Have you seen the cost of college recently? If so, you know how pricey it is. There’s not a lot of folks who can currently pay for a college education just out of their pocket. That is where student loans come in; they can help students attend college if they do not have the money.
Find out what the grace period is you are offered before you are expected to repay your loan. The grace period is the time you have between graduation and the start of repayment. Knowing this will give you a head start on getting your payments in on time and avoiding hefty penalties.
Know all of your loan’s details. Keep a running total on the balance, know the repayment terms and be aware of your lender’s current information as well. These three details all factor heavily into your repayment and loan forgiveness options. Budgeting is only possible with this knowledge.
Stay in touch with your lending institution. Always let them know when you change your phone number, mailing address or email address, and these things can happen often when you are in college. You should also be sure to read all of the information you receive from the lender, whether electronic or paper. Take action right away. It can be quite costly if you miss anything.
Don’t fret when extenuating circumstances prevent you from making a payment. Many lenders give you a grace period if you are able to prove that you are having difficulties. If you take this option, you may see your interest rate rise, though.
Don’t panic if you cannot make your payments on your student loans. Job loss and health crises are bound to pop up at one point or another. Do know that you have options like deferments and forbearance available in most loans. It’s important to note that the interest amount will keep compounding in many instances, so it’s a good idea to at least pay the interest so that the balance itself does not rise further.
If you want to pay down student loans faster than scheduled, start with the highest interest rate loans first. If you think you will be better off paying the one with the highest monthly payments first, you may be wrong. Best to look at the interest rates.
Check the grace period of your student loan. Stafford loans offer six months of grace period. Perkins loans give you nine months. Grace periods for other loans vary. Know when you will have to pay them back and pay them on time.
Monthly student loans can seen intimidating for people on tight budgets already. You can minimize the damage a little with loan reward programs. Look at the SmarterBucks and LoanLink programs that can help you. These are similar to other programs that allow you to earn cash back. You can use this money to reduce your loan.
You can stretch your dollars further for your student loans if you make it a point to take the most credit hours as you can each semester. Though full-time student status requires 9-12 hours only, if you are able to take 15 or more, you will be able to finish your program faster. When you handle your credit hours this way, you’ll be able to lessen the amount of student loans needed.
Some people apply for loans and sign the papers without understanding the terms. It is important that you ask questions to clarify anything that is not really clear to you. Don’t let the lender take advantage of you.
PLUS loans are a type of loan option for parents and graduate students. The highest the interest rate will go is 8.5%. Although it is higher than Perkins and Stafford Loans, you still get a much better rate than one that is private. For this reason, this is a good loan option for more mature and established students.
Your school might have motivations of its own when it comes to recommending certain lenders. There are institutions that actually allow the use of their name by specific lenders. This is oftentimes quite misleading to students and parents. The school may receive some sort of payment if you agree to go with a certain lender. Know the terms and conditions of any loan you are considering before you sign anything.
Get rid of the notion that by defaulting on a loan it will get you out of debt. There are several ways the government can get their money. For example, it can step in and claim a portion of your tax return or Social Security payments. It is also possible for the government to garnish 15 percent of all disposable income. Therefore, defaulting is not a good solution.
Don’t rush into taking a private student loan. It can be hard to find out the exact terms. Often, you don’t know until you have already signed on the dotted line. This makes it hard to learn about your options. Learn all that you can prior to signing. Check with different lenders to make sure you are getting the best offer.
When you’re trying to fill out a financial aid application, be sure that you’re not making any errors on it. This will impact the types of student loans that are offered to you. If you are unsure of anything in your application, talk with a financial aid counselor at your school.
If you want to stretch out your student loans a little farther, get a meal plan which deals in terms of meals instead of dollar amounts. This means you’re not going to have to pay a lot for the food you eat if you’re not able to get food that day from the school.
Student loans can possibly make college more affordable to many, but they must be repaid. Some people get a student loan without thinking much about eventually paying off the debt. As you can see, you do not need to go broke in order to attend college.