College graduation: a time of celebration, happiness and the realization that its time to start paying back all those loans.
In December 2009, many UTSA students walked across the stage, accepted their diplomas and crossed over into the real world.
Among those was DJ Bernal, who will be entering the work force. Following graduation, Bernal was notified of a Web Site where he could check his total outstanding loans: the National Student Loan data-system.
Bernal, who stated that about “88 percent” of his school was paid for by loans, said that “when college graduates go into the work force, it’s hard to get a good job. Most people paid through loans.”
According to American Student Assistance, as of 2007 about 60 percent of bachelor degree recipients funded their education through borrowing. In this economy, entering into the work force is difficult enough without also  having to worry about the loans you will have to start paying back.
Nick Rougely, who graduated from the UTSA Graduate School with a degree in English in May 2009, advised students to “think of the money you’re borrowing as real money. It doesn’t seem real until you graduate and have to start paying it back.”
Rougely, who has already begun paying back the loans, plans to return to school for his doctorate, which will suspend the loan payments while he is back in school.
Johnny Mendez, who graduated in May 2007, had a similar experience, he left in leaving school for a period of time for work and then returned.
Upon returning, the loans were on hold as he pursued a dual degree plan. He has been paying back his loans since graduation,
“I think the system is very affordable. The only way it’s possible for a lot of students to make it is through the loans,” Mendez said.
Fortunately for recent graduates and soon– to –be graduates, there is a six month grace period for the Stafford loan, the most common student loan.
Rex Algate, associate director of loans at the UTSA Financial Aid office, reminds students that the six–  month grace period begins not necessarily when a student completes school, but when the student is no longer taking half the required courses as a full time student (or six hours).
After six months of no longer being in school, student loans automatically go into repayment. There are certain exceptions students may qualify for, but generally the first payment is due 60 days after the grace period ends.
Some exceptions students may qualify for are deferment (a postponement of payment on a loan that is allowed under certain conditions) or forbearance (a period during which your monthly loan payments are temporarily suspended or reduced).
According to Algate,  the standard payment plans for student loans span across 10 years. The minimum monthly payment is $50, with payment plans available for the student.
“It is important to remember that lenders are going to work with students. Students should keep in touch with their lenders and update them on any changes in their status or any hardships they may be having,” Algate said.
Tracy Hunt, a financial aid officer for UTSA, reinforced the importance of students keeping in touch with their lenders.
“The university hears from the lenders about students who have gone delinquent on their loans,” she said.
Tracy recommends students check frequently on the status of how much they owe so as to avoid these sorts of problems.
No matter how students pay for their education, it is important to remember “not to live outside your means,” as Algate put it.
“Don’t borrow $5,000 when you can get by with $3,000.”
 Eventually, you will have to leave school and begin paying the money back.