Loans are a common resource for students to finance their education and cover living expenses. At Lamar, we are committed to helping students make informed decisions about borrowing and using loans responsibly. On this page, you’ll find valuable information about what it means to take out a loan, as well as the various repayment options available to you.

Why is Loan Accountability Important?

Deciding whether to take out a student loan is a significant decision that requires careful thought. While loans can provide the financial support needed to cover educational expenses and help you achieve your degree, they should only be used responsibly.

Here are a few key points to consider before accepting a student loan:

• Establish a Budget: Determine how much funding you truly need to borrow.
• Borrow Wisely: Keep loan amounts as low as possible to minimize future debt.
• Prioritize Federal Loans: Federal loans typically offer better terms compared to alternative loans.
• Borrow for Needs, Not Wants: Use loans for essential educational expenses, not discretionary spending.
• Track Your Borrowing: Log into your Federal Student Aid account at studentloans.gov to monitor your loan balance regularly.

To stay organized, consider creating a loan portfolio to track your borrowing. Use our provided template to update and manage your loan amounts each time you borrow. Being proactive about loan accountability will set you up for better financial health after graduation.

Student Loan Repayment

Repaying your student loans is an important financial responsibility. Choosing a repayment plan that fits your needs can help you stay on top of your finances and avoid unnecessary stress.

Here are some key points to remember about student loan repayment:

• You are required to repay the full amount borrowed, including any accumulated interest.
• Loan repayment begins after a six-month grace period.
• You must repay your loans regardless of whether you graduate.
• The federal government has the authority to collect repayment through wage garnishment or by withholding tax refunds if you default.
• Student loans are rarely discharged, even in bankruptcy.
• Late or missed payments can negatively impact your credit score.

To estimate your monthly payments and choose a plan that works for you, use the Federal Student Aid Repayment Estimator. Taking the time to understand your repayment obligations and options will help you manage your debt more effectively.