You throw your cap into the air with the thrill of knowing that you have just completed a great challenge: College. As the cap falls from the sky and smacks you in the head, it hits you: You are $20,000 in debt! The nights of cramming for midterms, freshman hazing and caffeine comas have cost you, and now its time for payback. Where do you begin?

First you need to relax and take a deep breath. The United States government does not expect a check from you for $20,000. The first thing to understand about a federal student loan is that you

have some time before you have to start paying it back. It's called a "grace period" and it is extended for six months. During these six months, it is expected that you will find a job and secure some type of financial stability. Your first payment is due within sixty days of the first day of your repayment period.

The next thing that you need to understand is that you have repayment options. The Federal Student Aid website offers four specific repayment options. These include the Standard Repayment Plan, the Extended Repayment Plan, Graduated Repayment Plan, and the Income Contingent Repayment Plan.

The Standard Repayment plan requires a fixed amount each month, which is often a higher amount as you have ten years to repay. The Extended Payment Plan takes longer to pay off your loans, which means you will pay more in interest, but your monthly payments will be smaller. The Graduated Repayment Plan is an excellent option, offering lower payments at first which increase over time as your income increases. Finally, there is the Income Contingent Repayment Plan, which allows you to adjust monthly payment based on family size, income and loan amount.

If you have difficulty paying back your student loans, there are two ways to handle it: Deferment or forbearance. Each of them results in a pause or reduction of payment respectively.