For many individuals, student loans provide a financial lifeline to help pay for college tuition, books, and other related expenses. Although repayment is deferred while you’re enrolled, the day eventually comes when payments will be expected. Whether you’re about to graduate or are paying back your loans, there are ways to meet the obligation without wrecking your budget. Here are some answers to several frequently asked questions about student loans.

4 Common Questions About Student Loans

When do you have to start paying them back?

Most lenders provide a six month to one-year grace period after you graduate from college, so you won’t have to start making payments during this time frame. If you’re still looking for employment or have unique financial hardships after the grace period, you can ask  your student loan provider for a payment deferment. 

What are the repayment options?

As long as you’re enrolled in college at least half-time, you typically won’t have to start making student loan repayments. There are generally several repayment options available. You can choose to begin making interest-only payments or paying the loan’s principal and interest payments while still enrolled in college. A full deferment means payments aren’t due until you graduate or leave school.

How can you lower your payments?

One way to reduce your student loan payments is through refinancing. If you qualify for a lower interest rate, it can lower your monthly payments. Students may also be eligible for certain tax deductions and credits. For the 2019 tax year, you can deduct up to $2,500 on your taxes for any interest payments made on your student loans. Certain professions, such as teachers, may also forgive student loan debt if you work within the industry for a designated number of years. 

How can you get a lower interest rate?

Federal loans through the Perkins and Direct programs will typically offer low interest rates. However, if you’ve already started paying back your student loans, consider refinancing. If you have a good credit score and steady income, you may qualify for a lower rate. 

If student loan repayment is a struggle, Citizens Bank in Byhalia, MS, provides several strategies for making your payments more affordable. Because all lending decisions are made in house, your financial circumstances will be reviewed independently for personalized assistance. The community bank is also a member of the Federal Deposit Insurance Corporation. To learn more about refinancing your student loans, call (662) 838-2146. Visit the website for information about loan options.