Fast Fact

68% of students are concerned with their ability to pay back their education costs.

Source: College Savings Foundation, 2019

After College

Transition loan responsibilities to your child.

When your child graduates, withdraws from school, or drops below half-time status, they may have a grace period, during which there are no required loan payments.

The grace period gives your child time to find employment, and it gives you time to officially transfer any loan management that you may have taken on.

Step 1. Give your child all of their loan paperwork.

Sit down with your child and discuss the state of the loan. Discuss any payments you have made to date. Make sure they know the names of the lenders/loan servicers and has the correct contact information.

Step 2. Contact the lender/loan servicer.

If your child is moving out on their own, make sure your child gives the lender/loan servicer their current mailing address so your child will receive all billing statements and mailed communications regarding the loan.

Step 3. Always be available to answer questions and provide support.

It goes without saying that you do this anyway in your role as parent. Once you turn over loan responsibilities, you can expect your child to have questions about the loan and seek your advice. Encourage your child to deal with debt responsibly and help build good credit.

Find reliable financial resources.

The most important thing you can do when communicating with your child about their loan or general finances is to provide ACCURATE information.

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