10 Student Loan Facts Graduands Need to Know

In recent years, 70 percent of students graduated with student loans. The average 2016 grad holds $37,172 in student debt, according to calculations by student loan expert Mark Kantrowitz. And a recent Citizen's Bank survey finds finds 59 percent of millennial graduates say they have no idea when their student loans will be paid off.
Here are some facts to know about paying down and managing student debt.

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The first step for student loan borrowers is to take inventory, checking if the loans are federal or private and knowing the interest rate and terms for each loan, experts say.
"Students understandably don't want to look at the details of their loans while they're in school," says Heather Jarvis, an attorney and student loan expert. "But when you leave school, you could spend more money than you have by making uninformed decisions."

NEXT: Know Your Loan Provider
Know Your Loan Provider
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Borrowers can find out their service provider or information about their loans by logging in to the
National Student Loan Data System , a central database for student aid.
Student loan experts say it's also important to update changes such as a street or email address with a student loan servicer and communicate other changes in their financial situation, including inability to pay.

NEXT: Check if Your Loan Has a Grace Period
Check if Your Loan Has a Grace Period
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Most student loans have a grace period. The Stafford loan gives borrowers a six-month grace period before the first payment is due, for example. Borrowers with Perkins loans are given a longer period at nine months. Many private education loans such as the Wells Fargo student loan also provide grace periods.
A grace period is an opportune time to research and figure out the right repayment method.

NEXT: Make a Grace Period Payment to Help
Make a Grace Period Payment to Help
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The amount a borrower owes in student loans – for federal ones – doesn't increase during a grace period.
If you have loans accruing interest during the grace period, a payment will reduce the balance of the loan even if it's just an interest payment . After that period, the interest rate will begin to capitalize and the balance will accumulate interest – increasing the size of the loan.

NEXT: Take Action on Your Loans During Unemployment
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Take Action on Your Loans During Unemployment Unemployed youth waiting in line

Unemployed federal student loan borrowers may be able to enroll in an income-driven plan that reduces their loan payments with payments as low as zero dollars. Not all borrowers are eligible for a payment that low, but enrolling in an income-driven plan is better than forbearance , experts say.
Borrowers can also defer federal student loans during unemployment. A deferment puts a temporary pause on payments and accruing interest for certain loans.

NEXT: Defer a Loan If You Continue Your Education
Defer a Loan If You Continue Your Education
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Borrowers with federal loans entering an advanced degree or a fellowship can select to defer on their student loans.
During the deferment, the borrower doesn't have to make any payments. Depending on the type of loan, the federal government may pay the interest on the loan during the deferment. But if it's an
unsubsidized loan – including a federal one – then interest will accrue.

NEXT: Place a Loan in Forbearance to Postpone Payments
Place a Loan in Forbearance to Postpone Payments Money Time
Forbearance postpones student loan repayments, but interest on the loan will still accumulate. A borrower with $30,000 in student loans who forbears the debt for five years, would accrue $10,200 during that period, bringing the balance to $40,200, for example.
Experts recommend using tools such as income-driven repayment plans and deferment for federal student loans over forbearance since these options sometimes include a subsidy for accumulating interest .

NEXT: Avoid Defaulting on a Student Loan
Avoid Defaulting on a Student Loan
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Around 1 in 4 student loan borrowers are in default, according to the Department of Education. Around 70 percent of those borrowers who are in default would qualify for an income-based repayment plan, according to the department.
Experts say there is no reason for a borrower with federal student loans to default because of the availability to enroll in an income-driven plan or the option to defer or forbear on loans.
NEXT: Enroll in a Payment Plan
Enroll in a Payment Plan
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Each loan has different terms and conditions. Private loans may have fewer repayment plans to select from, or none at all. But federal loan borrowers are known to have more flexibility and typically there is a plan for each circumstance, student loan experts say.
Federal loan borrowers can log in to
studentloans.gov/repay and use the five quiz-like questions to find a repayment plan.

NEXT: Develop a Student Debt Repayment Strategy
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Develop a Student Debt Repayment Strategy
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Experts say that enrolling in an income-driven plan is often better than deferment or forbearance because it has more advantages. One of those benefits includes setting the borrower up toward a path for loan forgiveness, for example.
"There's never anything to gain with sticking your head in the sand," Jarvis says, on ignoring your student loans. "If you emerce yourself in the details, then you can decide how to proceed with a strategy."

NEXT: Learn More About Student Loans
Learn More About Student Loans
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