When it comes to borrowing money for college, it’s wise to understand repayment requirements and options.
If you are planning to borrow money to help pay college tuition, you may find preparing for repayment challenging – especially when you aren’t sure what job or what income you may have after graduation. Although you may not have specifics, you can prepare by understanding how much you’ve borrowed, possible monthly repayment amounts, and options for different repayment plans.
A new Loan Simulator tool, released earlier this year by the U.S. Department of Education, addresses this issue by providing personalized information about federal student loan repayment options.
The tool can pull your data from the National Student Loan Data System (NSLDS) (the national database that stores information about your borrowing) and guide you through a series of questions about any possible future situation. The results will include repayment amount estimates and a repayment strategy that reflects your possible situation and eligibility.
The Department notes that the tool serves only as an estimate and is not a final eligibility determination or a final repayment amount.