Furthering Your Education: Student Loan Advice


Have you seen the cost of college recently? If so, you know how pricey it is. Not too many people can afford it if they didn’t have help. To get your education, it may be time to consider a student loan.

TIP! Watch for the grace period which is available to you before you are required to repay the loan. This usually refers to the amount of time you are allowed after you graduate before repayments is required.

Make sure you stay on top of applicable repayment grace periods. The grace period is the amount of time between your graduation date and date on which you must make your first loan payment. When you have this information in mind, you can avoid late payments and penalty fees.

If you are considering paying off a student loan early, start with the loans with high interest rates. If your payment is based on what loans are the highest or lowest, there’s a chance you’ll be owing more at the end.

Loans Offer

Make sure you understand the true length of your grace period so that you do not miss payments. Stafford loans typically give you six months. Perkins loans offer a nine-month grace period. Other loans offer differing periods of time. Make certain you are aware of when your grace periods are over so that you are never late.

TIP! Choose payment options that best serve you. Many student loans offer 10 year payment plans.

Look to pay off loans based on their scheduled interest rate. You should always focus on the higher interest rates first. Paying a little extra each month can save you thousands of dollars in the long run. There are no penalties for paying off a loan faster.

Reduce the principal by paying the largest loans first. If you don’t owe that much, you’ll pay less interest. Pay off larger loans first. After the largest loan is paid, apply the amount of payments to the second largest one. If you make minimum payments on your loans while paying as much as possible on the largest loan, you can eradicate your loan debt.

TIP! Your principal will shrink faster if you are paying the highest interest rate loans first. If you don’t owe that much, you’ll pay less interest.

Making monthly payments is often difficult for those whose budget is tight. Loan rewards programs can help a little with this, however. Look at the SmarterBucks and LoanLink programs that can help you. This can help you get money back to apply against your loan.

Many people apply for student loans and sign paperwork without really understanding what they are getting into. Don’t do this! Always understand what you are signing. If you must, ask questions to make sure you understand everything completely. Don’t let the lender take advantage of you.

Stafford Loans

The best loans that are federal would be the Perkins or the Stafford loans. They tend to be affordable and entail the least risk. They are a great deal because you will get the government to pay your interest during your education. The interest for a Perkins loan holds at five percent. The Stafford loans which are subsidized come at a fixed rate which is not more than 6.8%.

TIP! Stafford and Perkins loans are two of the best that you can get. They are cheap and safe.

If you have poor credit and are looking for a private loan, you will need a co-signer. Keep your payments up to date. If you don’t your co-signer will be responsible for it.

PLUS student loans are offered to parents and graduate students. The interest isn’t more than 8.5%. This is higher than Stafford loans and Perkins loans, but it is better than rates for a private loan. Because of this, you should get this option only if you’re an established and mature student.

TIP! If your credit is sub-par, you might need a co-signer for private student loans. You must pay them back! If you fail to do so, the co-signer will be responsible for the payments.

You aren’t free from your debt if you default on your loans. The government can get back this money if they want it. For instance, it can place a claim on your taxes or benefits in Social Security. They can also tap into your disposable income. This will leave you worse off.

Don’t finance your whole college education by using student loans. Keep in mind that you need to save up and look for scholarships or grants to get help. You can find many places online that show you how to apply for grants and scholarships that will help you secure the money you need. Try not to delay and get out and get looking as quickly as possible.

TIP! Don’t finance your whole college education by using student loans. Remember to save money and also look into scholarships and grants that may help you.

Be sure to double check all forms that you fill out. This is key, as it can determine how much loan money you can receive. If you’re unsure, go to your school’s financial aid representative.

To extend to value of your loan money, try to get meal plans that do not deduct dollar amounts, but rather include whole meals. This way, you won’t be paying for each individual item; everything will be included for your prepaid flat fee.

TIP! When you are filling out your financial aid application, make sure that you are positive there are no errors on it. This is something to be careful with because you may get less of a student loan if something is wrong.

Make an effort to ask your lender questions and contact them any time you need to. This can help you understand how to pay back your loan efficiently. You may even get some helpful advice from your lender about how to pay it back.

Find a job at your school to help pay off your debt. You can have some extra spending money along with being able to repay your loan.

TIP! Only pay for the meals that you eat; get a meal plan to save money. A plan that presumes you will eat every time food is served may overcharge you.

Let your lender know immediately if you aren’t going to be able to make your payment. You will find they are likely willing to work together with you so you can stay current. You may even be able to get your loans deferred or lowered.

It is important that you keep in touch with your lending institution when in school and also when you graduate. Let them know if your name, phone number, email or address have changed. That way, you can be contacted as soon as possible if the lender is making any changes to your account. You should also tell them if you withdraw, transfer, or graduate from college.

Student Loan

A student loan can make it easier to pay for college, but it does have to be paid back. Lots of people get loans and never stop to think about paying them back. Use what you’ve just learned to get a student loan with the best terms.