Millions of federal student loan borrowers who graduated in the spring will need to start repaying their debt for the first time soon.
That’s because the six-month grace period that the Department of Education allows students after they finish school is winding down for May graduates.
“In other words, ‘Happy Thanksgiving!'” said higher education expert Mark Kantrowitz. “It’s time to start making payments on your student loans.”
Outstanding federal education debt in the U.S. exceeds $1.6 trillion, and more than 40 million people hold these loans. Between 4 million and 5 million federal student loan borrowers enter repayment each year, mainly during November and December, Kantrowitz said. The typical monthly student loan payment is around $350.
This year, borrowers begin repayment amid a challenging time for the lending system. More than 5 million people are in default on student loans, and President Donald Trump’s “big beautiful bill” phases out several repayment plans that were intended to make payments more affordable.
Here’s what you need to know about starting repayment on your student debt.
It’s easy to miss your first payment
Student loan borrowers are more likely to miss their first bill than any other payment, Kantrowitz said, because their debt has been “out of sight, out of mind, for six months.” Recent graduates are also often balancing other new expenses, including rent, a car, and new work clothes, Kantrowitz said.
As a result, he said, “I tell students to put a reminder in their calendar two weeks before payments are supposed to start.”
You should get your first bill at least 21 days before your payment is due, according to the Education Department. To avoid being late, borrowers can enroll in automatic payments with their loan servicer.
If you don’t know which company is managing your student loans on behalf of the government, you can find out at Studentaid.gov.
Find a repayment plan you can afford
Before your first bill is due, you’ll want to research your repayment options, experts said. As for the right plan, “there’s no simple answer,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
“It can be very borrower-specific,” Mayotte said.
As a result of a lawsuit brought by the American Federation of Teachers against the Trump administration, the Education Department has made available some of the student loan repayment plans it had partially paused.
Those options are: the Pay As You Earn Repayment Plan and the Income-Contingent Repayment Plan.
Both are income-driven repayment plans, which means they set your monthly bill based on income and family size, and lead to debt forgiveness after a certain period, typically 20 years or 25 years. (However, recent legislation will phase out PAYE and ICR as of July 1, 2028.)
Starting July 1, 2026, student loan borrowers will have access to one more option, the “Repayment Assistance Plan,” or RAP. The plan leads to student loan forgiveness after 30 years, compared with the typical 20-year or 25-year timeline on other plans, but will offer the lowest monthly bill for some borrowers.
Meanwhile, the Standard Repayment Plan is a good option for borrowers who are not seeking, or are not eligible for, loan forgiveness and/or can afford the monthly payments, experts say. Under that plan, payments are fixed and borrowers typically make payments for up to 10 years.
There are several tools available online to help you determine how much your monthly bill would be under different plans. Borrowers should also be able to change into a different repayment plan at any time.
There are options if you can’t pay
The start of student loan repayments may cause financial hardship for many borrowers.
Struggling borrowers should first see if they qualify for a deferment, experts say. With a deferment, loans may not accrue interest, whereas they almost always do in a forbearance.
If you’re not working, you can request an unemployment deferment with your servicer. If you’re dealing with another financial challenge, meanwhile, you may be eligible for an economic hardship deferment. Those who qualify for a hardship deferment include people receiving certain types of federal or state aid and anyone volunteering in the Peace Corps, Kantrowitz said.
Other, lesser-known deferments include the graduate fellowship deferment, the military service and post-active-duty deferment and the cancer treatment deferment.