Before you take out a loan, estimate how much you'll need,  how much your loan payments will be, and whether you can afford them. Borrow wisely. Don't let your future monthly payments become a burden to you.

The terms of your loan are described in the promissory note on the back of the application. Read them carefully. Once you sign the promissory note, you're obligated to repay the loan according to the terms in the note. You must still repay your loan even if you don't complete your schooling, aren't happy with your education, or aren't able to find a job after leaving school.

You must let your lender know if you change your address, name, Social Security number, telephone number, enrollment status or school. If you're having trouble making your monthly payments, you must let your lender know before the payment is due. In some circumstances you may be able to temporarily reduce or postpone your payments when you're having financial trouble. Don't hesitate to contact your lender when you need help.

Your lender must offer you an income-sensitive or graduated repayment schedule if you're a borrower whose first Stafford Loans were disbursed on or after July 1, 1993. These repayment options allow you to make lower monthly payments in the beginning of your repayment period and increase your monthly payments as your income increases.

If you're a borrower with no outstanding FFELP loans prior to October 7, 1998, and you accumulate a FFELP debt of over $30,000, you're eligible for an extended repayment plan. Through extended repayment, borrowers may pay under a fixed or graduated plan and must repay the loan within 25 years.

Default occurs when a borrower fails to make monthly payments for an extended period of time. Most people do successfully repay their student loans. The small number of those who do default on their loans don't escape repaying their debt, but they do damage their credit. A defaulted student loan can prevent you from qualifying for a home loan, car loan or credit card.

If you start having problems making your monthly payments contact your lender and ask for help.

Your promissory note, loan disclosure statement and repayment schedule all have important information about your loan that you should keep. Your interest rate, how much you borrowed, and the terms of your loan are contained in these documents. Keep them in a safe place.

It's your responsibility to make your monthly payments on time. You must begin making payments at the end of your grace period—even if you haven't received a repayment schedule from your lender. If your grace period is ending and you still haven't heard from your lender, call and find out why.