Graduation day is a momentous occasion, a celebration of years of hard work, dedication, and dreams realized. But for many, the joy of receiving that diploma is accompanied by a looming question: “What about my student loans?” If you’re feeling a mix of excitement and apprehension as you think about the managing student loan debt you’ve taken on while in college, you’re certainly not alone.

With over 45 million Americans currently carrying student loan debt, navigating the repayment landscape can feel overwhelming. It’s challenging enough to understand the exact amount you’ve borrowed, let alone who you owe it to, and precisely when you need to start repayment. But don’t despair! This guide from ScholarshipOwl is designed to empower you with the knowledge and strategies you need to tackle your student loan debt confidently, both now and in the long term.

Unearthing Your Debt: How Much Have You Actually Borrowed?

The first step to managing student loan debt is understanding its full scope. It’s common for students to lose track of individual loan amounts and lenders, especially if they’ve borrowed over several years. Fortunately, there are clear paths to get this information:

Federal Student Loans

For federal student loans, your go-to resource is StudentAid.gov. You’ll be able to find out all about your federal student loans so that you can take proactive steps to manage your debt.

Private Student Loans

If you have taken out private student loans, you’ll need to review your personal records, such as promissory notes or loan agreements, or contact the financial aid office at your institution for assistance. Alternatively, you can check your credit report with one of the three major credit bureaus (Experian, Equifax, or TransUnion) to see a list of all your loans, both federal and private.

The Repayment Clock: When Do Payments Begin?

For most federal student loans, you’ll have a grace period after you graduate, leave school, or drop below half-time enrollment. This grace period typically lasts six months (though some loans, like Perkins Loans, may have a nine-month grace period). During this time, you are not required to make payments. This period is designed to give you some breathing room to find a job and get your finances in order before repayment begins. Private loan grace periods can vary, so be sure to check your loan agreements for specific details.

Be aware that if you have private student loans and/or federal unsubsidized student loans, then you are responsible for the interest that accrues while you are in school. Even though you aren’t required to make payments on your loans while in school, it is to your advantage to make payments on accrued interest while in college if you can. Any unpaid interest on unsubsidized federal student loans will be added to the principal balance of your loan, resulting in you having to pay interest on a higher principle amount.
If you have federal subsidized student loans, then the federal government will pay for the interest that accumulates while you are in school. This is what makes these loans “subsidized.” Of course, you’ll be responsible for both the principal and interest that accumulates after you exit school or reduce to less than part-time status.

Laying the Groundwork: What to Do While Still in School

Even before graduating, there are proactive steps you can take to make managing your student loan debt easier:

Know Your Loan Servicer

While still in school, try to identify your loan servicers. These are the companies that will handle your billing and other services related to your loans. Knowing who they are and how to contact them early can save you stress later. To find out who is servicing your loan, go to StudentAid.gov.

You might be wondering why you would need to proactively seek out this information. This is because lenders will often re-sell their loans to other loan servicers. What this means for you is that the lender who originally lent you the funds for college might not be the same company who is currently servicing your loan. So even if you remember the name of your original lender, you’ll need to check with the StudentAid.gov website to get the most accurate and up to date information about your current loan servicer.

Create a Budget

Get into the habit of budgeting now. Track your income and expenses to understand where your money goes. This practice will be invaluable when you have to factor in loan payments.

Make Interest-Only Payments If You Can

As indicated above, any unsubsidized federal loans and private loans accrue interest while you’re in school. If you have the financial capacity, making interest-only payments during college can significantly reduce the total amount you’ll owe over the life of the loan. This prevents interest from capitalizing (being added to your principal balance) when repayment begins, which means you’ll pay interest on a smaller amount overall.

Make Principal Payments If You Have Extra Funds

If you’re in an even stronger financial position, consider making principal payments. Even small amounts can make a difference in the long run.

Prioritize Scholarships Over Loans

As you plan for future semesters, actively seek out and apply for scholarships. Every dollar you receive in scholarship money is a dollar you don’t have to borrow, directly reducing your future debt burden. Consider part-time jobs during college to earn income and reduce your reliance on loans.

The Countdown to Commencement: Steps to Take Before You Graduate

As graduation approaches, it’s crucial to finalize your student loan game plan:

Confirm Your Loan Servicer(s)

Re-confirm who your loan servicer(s) are. If you have federal loans, check StudentAid.gov again. For private loans, review your records or contact your lender.

Create Your Loan Servicer Portal Account

As soon as you know your servicer, visit their website and create an online account. This portal will be your hub for managing your loans, viewing statements, and making payments.

Update Your Contact Information

Ensure your loan servicer has your most current contact information. Crucially, switch from your school email address to a personal email address you’ll use long-term. Your school email will likely be deactivated after graduation, and you don’t want to miss important communications regarding your loans.

Choose a Repayment Plan

Federal student loans taken out prior to July 01, 2026 offer several repayment plans, including standard, graduated, extended, and various income-driven repayment (IDR) plans. Research these options carefully to find the one that best fits your financial situation and goals. IDR plans can be particularly helpful if you anticipate a lower starting salary.

Federal student loans taken out as of July 01, 2026 or later have just two options: The Standard Repayment Plan and the Repayment Assistance Plan (RAP). The RAP Plan is the only income-driven repayment plan available as of this date and going forward due to legislative changes made in the One Big Beautiful Bill Act (OBBBA). In addition, if you have older loans and want to take out NEW federal student loans on or after July 01, 2026, then you’ll need to choose one of the two new plans for ALL of your loans. This is because the legislation requires that all loans have the same repayment plan.

If you have private loans, you’ll need to check with your lender to learn about repayment plans available to you.

Don’t Hesitate to Call Your Loan Servicer

If you have questions about your loans, your repayment options, or are concerned that you won’t be able to make your minimum payment amount, call your loan servicer immediately. They can guide you through your options, such as deferment, forbearance, or changing repayment plans. Avoiding communication will only lead to greater problems.

Ensuring Repayment Success: Making Your Loan Payments Manageable

Being able to consistently make your loan payments is key to financial stability after college:

Job Search Early and Strategically

Begin your job search well before graduation, ideally seeking a position in your field that will be waiting for you upon receiving your diploma. A steady income is your best defense against debt.

Build a Realistic Budget and Stick to It

Create a post-graduation budget that accounts for all your living expenses (rent, utilities, food, transportation, insurance, etc.) AND your student loan payments. Be honest with yourself about what you can afford, and look for areas to cut back if necessary.

Plan for Independent Living

If you plan to live independently after graduation, ensure you have sufficient funds to cover your living expenses in addition to your loan payments. This might mean saving a security deposit, first month’s rent, and a few months of emergency funds before you move out.

Consider Living with Family

If moving back in with family is an option, it can provide significant financial relief during your first few years out of college, allowing you to save more aggressively or make larger loan payments.

Preventing Deeper Debt: Prioritize Smart Financial Choices

If you’re still in college and have future years of study ahead, continue to be strategic about your finances:

Scholarships Over Loans, Always

This cannot be stressed enough. Dedicate time to finding and applying for scholarships. Every scholarship awarded means less money you have to borrow. ScholarshipOwl is an outstanding resource for scholarship opportunities.

Work While You Study

Earning income from a part-time job or internship can help cover current expenses and reduce your need for additional loans. Even a small amount can make a difference.

Only Borrow What You Absolutely Need

When it comes to student loans, treat them like a last resort. Borrow only the minimum amount necessary to cover your essential educational expenses. Avoid borrowing extra for non-essential items or lifestyle upgrades.

Why ScholarshipOwl is Your Best Alternative to Loans

While loans simply delay your financial responsibility, scholarships provide true financial freedom by offering “free money” that never has to be repaid. Embracing a “Scholarships First, Loans Last” mentality is one of the most impactful decisions you can make for your long-term financial health.

Using a dedicated platform like ScholarshipOwl offers several unique advantages over traditional funding:

Massive Opportunity Pool

You can access hundreds of thousands of dollars in active, year-round scholarships all in one centralized location.

Smart Matching Technology

Instead of mindlessly searching, an AI-powered system analyzes your unique profile to match you with scholarships where you have the best chance of winning.

Strategic Insights

Only ScholarshipOwl offers you strategic insights into scholarships that you won’t find anywhere else:

• • • View Number of Applicants: You can see the number of applicants for each scholarship, allowing you to prioritize those with less competition and stack the odds in your favor.
    • Access Credibility Scores: Our exclusive credibility scoring system shows you which scholarships are most worth your time and effort, helping you to avoid scholarship scams.

Maximum Efficiency:

• • • Universal Application: Your profile data automatically fills out application forms, eliminating hours of repetitive data entry.
    • AI Essay Assistant: Quickly generate relevant essay drafts to speed up the application process for high-reward opportunities.
    • Automatic Re-application: The platform can automatically resubmit your applications for recurring “no requirement” scholarships while you focus on other tasks.

By making scholarship applications a priority through a streamlined system, you can significantly reduce—or even completely eliminate—your reliance on student loans.

The Marathon, Not a Sprint: Long-Term Debt Management

For most borrowers, managing your student loan debt is a marathon, not a sprint, with many taking 20 years or more to become debt-free. Long-term success requires consistent effort and smart strategies:

Avoid Negative Credit Ratings

Your student loan payment history directly impacts your credit score. Missed or late payments can severely damage your credit, making it harder to secure housing, get favorable interest rates on future loans (like a car or home loan), or even land certain jobs. Set up automatic payments to avoid missing due dates.

Don’t Bury Your Head in the Sand

If you find yourself struggling to make payments, do not ignore the problem. Your loan servicer is there to help. Proactively communicate with them to explore options like income-driven repayment plans, deferment, or forbearance. These options can temporarily reduce or postpone your payments, preventing delinquency and default.

Avoid Aggressive Collection Efforts, Including Wage Garnishment

The Trump Administration has made student loan collection efforts a priority, especially for borrowers with defaulted loans. In 2026, wage garnishments are expected to begin for those in default, so ensuring your loans are in positive status is imperative.

Consider Federal Student Loan Consolidation

A Direct Consolidation Loan allows you to combine multiple federal student loans into a single loan with one monthly payment and one loan servicer.

Advantages:

• • • • Simplified Repayment: You will have only one monthly bill to track, reducing the risk of missed payments.
      • Access to New Plans: It can make older loans (like Perkins or FFEL loans) eligible for income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).
      • Fixed Interest Rate: If any of your current loans have variable rates, consolidation will lock you into a single fixed interest rate for the life of the loan.
      • Lower Monthly Payments: By extending your repayment term up to 30 years, you can significantly lower your required monthly payment.

Disadvantages:

• • • • Higher Total Interest: Because extending the term means you are paying for longer, you will likely pay more in total interest over the life of the loan.
      • Slightly Higher Rate: Your new interest rate is the weighted average of your current loans, rounded up to the nearest one-eighth of 1%.
      • Capitalized Interest: Any unpaid interest on your original loans is added to your new principal balance, meaning you will now pay interest on that interest.
      • Loss of Benefits: You might lose specific borrower benefits from your original loans, such as interest rate discounts or certain loan cancellation perks.

Explore Refinancing (Carefully)

Once you have a stable job and good credit, you might consider refinancing private student loans (and sometimes federal loans, though this means losing federal benefits). Refinancing can potentially lower your interest rate or monthly payment, but be sure to understand the pros and cons.

Make Extra Payments When Possible

Whenever you have extra income (a bonus, a tax refund, an inheritance), consider putting it towards your student loans. Even small extra payments can help you in managing your student loan debt by shortening your repayment period and saving on accrued interest.

Live Below Your Means

Post-graduation, resist the urge to immediately upgrade your lifestyle. Continue living frugally, especially in the early years of repayment. The more aggressively you can pay down your debt, the sooner you’ll achieve financial freedom.

A Bright Future Awaits

While the journey to student loan freedom might seem daunting, it’s a completely achievable goal. By taking proactive steps, understanding your options, and maintaining open communication with your loan servicer, you can navigate this challenge successfully. Your college education is an investment in yourself and your future, and managing student loan debt is a crucial part of maximizing that investment. Embrace the challenge, stay informed, and know that with a solid plan, you’ll not only conquer your college debt but emerge with invaluable financial wisdom and a clear path to a bright and financially secure future!