How to make your first student loan payment

Grace periods for many spring graduates are coming to an end, which means that first student loan payments are due soon. A grace period is the window of time — typically six months — between graduation and when loan repayment begins.

However, timelines vary depending on loan type. Federal loans generally offer a standard six-month grace period, while private lenders set their own terms, which can range from immediate repayment to longer grace periods.

Understanding these differences and preparing early can help you avoid late fees, credit damage, and unnecessary stress as you transition into repayment.

Your loan servicer handles billing and repayment, but it may not be the same entity listed on your original FAFSA or school paperwork. For federal student loans, verify your servicer by logging into StudentAid.gov and checking your loan details. The site lists all your federal loans and shows which company services each one.

For private student loans, review any notifications you’ve received by email or check your original loan documents for servicer contact information. Some lenders service their own loans, while others transfer servicing to third-party companies.

Once you’ve identified your servicer, create an online account immediately. This gives you access to critical information, including your exact balance, interest rate, payment due dates, and repayment plan options. Setting up online access early also makes it easier to enroll in autopay and monitor your account going forward.

Related: Federal vs. private student loans

The simplest way to confirm your first payment amount and due date is by checking your loan servicer’s online account dashboard. This is where servicers post your official repayment schedule, including:

Relying solely on paper statements can be risky, since mail can be delayed or sent to an old address. Logging in directly ensures you see the most accurate, up-to-date information for all your loans in one place.

Federal borrowers are automatically enrolled in the standard 10-year repayment plan, but this isn’t your only option. Income-driven repayment (IDR) plans calculate payments based on your income, which can significantly reduce what you owe each month — especially if you have a low starting salary or inconsistent hours.

To switch plans, apply through StudentAid.gov before your first payment is due. Updating your income information early prevents you from being locked into an unaffordable payment amount.

Related: Can you change your student loan repayment plan?

Enrolling in autopay reduces the risk of late payments and typically earns you a 0.25% interest rate discount — a benefit offered by all federal servicers and many private lenders. While 0.25% may seem small, it can save you hundreds of dollars over the life of your loan.

Before autopay kicks in, double-check your routing and account numbers in your servicer’s system. An incorrect digit can cause failed payments, triggering late fees and potentially damaging your credit. Consider scheduling your payment to withdraw a few days after your regular payday to ensure sufficient funds are available and prevent overdrafts.

Sometimes autopay doesn’t activate until the second billing cycle, meaning you’ll need to make your first payment manually. Log in to your servicer’s dashboard, navigate to the payment section, and follow the prompts to submit a one-time payment from your bank account.

After submitting, save your confirmation number, and then check your account a few days later to confirm the payment was applied correctly.

Making your first payment is just the beginning. These strategies will help you manage your loans effectively and minimize long-term costs:

• Track your interest and principal breakdown: Each payment you make is split between interest and principal. Early in the repayment process, most of your payment goes toward interest, with only a small portion reducing your actual loan balance. Understanding this breakdown helps you see how extra payments can accelerate payoff and reduce total interest costs.

• Pay a little extra toward principal if you can: Even small additional payments make a difference. For example, adding just $25 per month to a $30,000 loan at 6% can save nearly $1,000 in interest and shorten your repayment timeline by roughly a year. When making extra payments, specify that the additional amount should apply to the loan’s principal balance — not be held as a prepayment for future months.

• Update your contact information everywhere: Missed emails and letters can translate to missed bills, which can lead to late fees and credit damage. Update your address, phone number, and email with your loan servicer, especially if you’ve moved since graduation or are transitioning away from your student email address.

• Understand how missed payments affect your credit: Payments that are 30 or more days late — or 90 days for federal student loans — can be reported to credit bureaus, damaging your credit score for up to seven years. Making on-time payments from day one builds a strong foundation for future financial goals like buying a car or home.

Related: Tips and tricks for quickly paying off student loans

If your first payment feels out of reach, don’t panic — and don’t ignore it. There are several ways you can reduce your monthly obligation before you fall behind:

• Switch to an income-driven repayment plan: You don’t need to wait until after your first payment to apply for an IDR plan. If the standard payment feels unmanageable, apply immediately at StudentAid.gov/IDR. Processing can take roughly a month, so acting early ensures your lower payment is in place before you risk missing a deadline.

• Ask your servicer about temporary relief: Short-term deferment or forbearance options can pause payments for a few months while you stabilize your finances. However, interest may continue to accrue during these periods, increasing your total loan cost. Use these options sparingly and only when truly necessary.

• Revisit your monthly budget: Before missing a payment, examine where your money is going. Are you overspending on rent, dining out, or subscription services? Adjustments such as finding a roommate, cooking at home more often, or canceling unused subscriptions can free up cash for loan payments without drastically impacting your lifestyle.

Making your first student loan payment is a significant milestone, but it’s entirely manageable with preparation. Confirm your servicer, set up your online account, enroll in autopay, and choose the right repayment plan before your due date arrives.

Establishing good habits early, including paying on time, tracking your balance, and communicating with your servicer, can set you up for long-term financial stability.

Want a lower interest rate? Student loan refinancing could help you better manage your debt.

This article was edited by Alicia Hahn.