Common Student Loan Payment Options for Texans

Common Student Loan Payment Options for Texans
Brazos Staff

BIG Ideas:

  • Your repayment options and schedule depend on whether you have federal or private student loans.
  • Private student loan repayment options vary from lender to lender.
  • Texas borrowers may qualify for student loan repayment assistance based on their profession and employer.

College is arguably one of the most exciting times of your life. And though it won’t last forever, some aspects of it will stay with you – like the friendships you’ve forged, the memories you’ve made, and the lessons you’ve learned both inside and outside the classroom.

Unfortunately, for many students, there’s one part of college that may seem like it will be with them forever – student loan debt. 

Paying student loans is a real-world challenge for many recent grads that ranks right up there with finding a job, paying the bills, and figuring out the answer to a pretty important post-graduation question: “Where will I live?”

Fortunately, you have student loan payment options that can make managing your monthly payments easier. And if you live in Texas, you may be able to take advantage of repayment assistance programs that can really help. 

Understand your student loan payment options 

The repayment options available to you depend on whether you have federal loans (from the government) or private loans (from banks, credit unions, nonprofits, and other non-government lenders). 

In general, federal loans offer more student loan payment options while private student loans have more limited options that vary from lender to lender. 

Federal student loan payment plan and forgiveness options 

If you have federal student loans, you have several student loan payment plan options, including: 

      • Standard Repayment Plan: You make fixed monthly payments over a 10-year period.
      • Income-Based Repayment (IBR): Your monthly payment is based on your income and family size to help make your payments more manageable. 
      • Repayment Assistance Plan (RAP): Beginning in July 2026, eligible borrowers may access this new income-driven repayment option, which bases monthly payments on income and family size.
      • Extended Repayment Plan: You can push out your repayment terms to make your payments lower. 
      • Public Service Loan Forgiveness (PSLF): If you work for a qualifying government agency or nonprofit, you could be eligible for Public Service Loan Forgiveness. With this program, eligible borrowers who make 120 qualifying monthly payments may have their remaining federal student loan balance forgiven. 

When do federal student loans enter repayment?

Repayment for most federal student loans typically begins six months after a student graduates, leaves school, or drops below half-time enrollment. To determine exactly when repayment on your loans begins, refer to your loan documents. 

How to choose the right student loan payment option

The type of repayment plan you choose will depend on your income, budget, and goals. For example, if you have a job lined up after school that pays well, you may opt for a plan that allows you to pay off your debt sooner. Conversely, if you haven’t secured a job and are concerned about making payments, you may opt for a student loan payment plan that lowers your monthly payment, though you will end up paying more in interest over the life of the loan. 

Student loan payment assistance programs available to eligible Texans

Though federal repayment plans are available to all federal loan borrowers, if you live in Texas, you may qualify for additional student loan repayment assistance plans depending on your employer or profession. Note that these repayment assistance programs usually apply to federal student loans, not private loans. This assistance includes:

Student loan payment options for private student loans

Unlike student loans from the government, payment options for private loans can vary from lender to lender. Some will offer you a six-month grace period after graduation, while others may require you to make full or interest-only payments while in school. 

So, if you have a private loan, it’s important to check your loan documents to see when repayment must begin, how interest is charged, and what payment options might be available to you.  

Steps to take to get ready for your loan payments

Preparing for your payments? Here are some pointers to help you:

  • Know the types of loans you have. Determine if you have federal or private loans as well as interest rates and the amounts you owe. You should also know if your interest rates are fixed or variable. If you have fixed rates, your payment won’t change each month. If, however, your rate is variable, your payments may rise or fall depending on the interest rate environment. 
  • Understand when repayment begins. Again, your repayment schedule depends on the lender and the loan. To prepare for your payments, review your loan documents to learn the repayment schedule. Remember, some private lenders may give you a six-month grace period after you graduate, but again that varies from lender to lender. 
  • Build a budget. To ensure you have the money to pay back your loans and meet other expenses after you graduate, create a monthly budget with your income and expenses. Learn more about budgeting. 
  • Never miss a payment. Your student loan payments can help you build your credit, which you’ll need to qualify for other loans. If you do experience financial hardship that will impact your ability to make payments, contact your lender or loan servicer to let them know. Late payments can also result in costly fees. 
  • Sign up for automatic payments. Many lenders will offer a discount when you have your payments automatically deducted from your account. Plus, it will help ensure you don’t forget to make payments. 

Refinancing may be an option

If interest rates decline after you graduate, you may consider refinancing your student loans. Just keep in mind that refinancing federal student loans could result in the loss of some federal loan benefits, including income-driven repayment, deferment, and forbearance. Learn more about refinancing student loans. 

Stay the course and make repayment a priority

Though no one likes owing money, remember the reason you have those loans: they helped you get the degree that will give you a brighter future. If you make paying back the money you borrowed a priority, you’ll put those loans in the rearview mirror, freeing up money to save for other goals that are important to you.

Brazos can help make it easier for you to make student loan payments

For more than 40 years, Brazos Higher Education has helped students and parents finance the cost of college. As a Texas non-profit student loan lender, we offer competitive rates on refinance loans that can help save money and reach your goals. Contact us today.