Better yet, you can get a jump on your loan payments and substantially reduce your borrowing costs over time by prepaying some of the principal balance. You won't incur any penalties by prepaying your Stafford loans. The grace period gives you ample time to organize your student loan records and craft a system that will make it easy for you to file future documents, including several letters you can expect to receive from your lender or loan servicer during the grace period. These documents will tell you how much you owe, detail your repayment options, and ask you to select a repayment plan. Well-organized student loan records will also simplify your life at tax time.
Many borrowers entering repayment can take advantage of a tax deduction for student loans.
To ensure that you receive these important communications, notify your lender if your address changes . Do your homework You may have been too busy during school to develop a strategy for repaying your student loans. Evaluate your repayment options and plan ahead. Understand common student loan industry terms .