Stay on top of how much you borrow so you don't exceed what you're comfortable with. Don’t be fooled by federal maximum loan amounts. Those are the maximum limits for all borrowers and aren’t related to your own personal earning potential. The maximum amount you’re eligible to borrow may be more than you’re able to repay.

Avoid borrowing too much and risking a situation where you may have to default on your loans; if this happens, it can damage your credit rating and make it harder to qualify for a car loan, mortgage, etc.

When you’ll start repaying loans depends on the type of loan you choose. Some require you to start paying them back while you’re still in school, while others start after you graduate. But all loans must be repaid.

Mind your interest

On Federal Direct Unsubsidized and Federal Direct PLUS loans, the government starts charging interest as soon as we receive the loan funds. You can pay the interest while in school or capitalize it (have it added to the principal) and begin repaying it after you graduate.

Paying the interest while in school will help you reduce your payments later. When interest is capitalized, the loan principal increases—which means that each time interest is figured, it’s figured on a larger amount.

Loan exit counseling

When you’re about to graduate, or if you drop below half-time enrollment, you’ll be asked to complete loan exit counseling for your Federal Direct Loans. Exit counseling will give you the information you need to know about repaying your federal student loans.

No matter what kind of loan you have, we’ll send you email to let you know how to get started with your exit counseling.

Learn more about exit counseling

Don’t let your debt drag you down. Check out these sites to learn more about consumer credit and how to borrow wisely.

• American Consumer Credit Counseling
• Federal Trade Commission
• The National Foundation for Credit Counseling
• Student Loan Borrower Assistance