Student Loan Six-month Grace Period Expiring
Graduates are encouraged to consider repayment optionsHarrisburg, PA (November 16, 2007) - The student loan six-month grace period that many spring college graduates have taken advantage of will soon expire and now is the time to consider student loan repayment options.
Traditionally, after a borrower graduates a six-month grace period is given until he or she must begin repayment on his/her student loans. PHEAA wants to remind college graduates of their repayment choices and offer simple online solutions for easy repayment, like the online repayment calculator and checklist. PHEAA’s programs and public service mission is supported by its business enterprise, American Education Services (AES).
"This is the time when many college graduates are finally settled into their careers and might not be thinking about their pending student loan repayments, but with the grace period ending they need to look into repayment options now," said James Preston, Interim PHEAA President and CEO. "PHEAA offers several repayment options that meet the individual needs of borrowers and, by helping them establish a responsible payment plan, we are helping them build future financial responsibility and maintain a healthy credit rating."
Borrowers are encouraged to take advantage of free online resources like YouCanDealWithIt.com, which offers college graduates and soon-to-be graduates helpful information on financial planning and budgeting, managing student loan debt, and establishing good credit habits.
"Our goal is to eliminate any chance of default that could potentially harm the borrower’s credit history," said Preston. "Making smart financial decisions now, will help ensure success for their future."
PHEAA offers these additional tips to graduates during their repayment period:
- Avoid credit card debt and their high interest rates.
- Set a reasonable budget and stick to it.
- Make payments on time.
- Enroll in an automatic debit program. Most Pennsylvania borrowers can save an additional .25% interest rate when their loan payment is automatically debited from a savings or checking account.
- Make payments online; borrowers are encouraged to manage their student loan on the secure borrower portal found on aesSuccess.org.
- Take advantage of the Student Loan Rebates program. By purchasing items through participating companies, a percentage of rebates can be used toward paying down a borrowers’ student loan debt. (StudentLoanRebates.com)
For more information regarding repayment options and helpful tips please visit www.aesSuccess.org.