Many people find they are overwhelmed or even scare at the prospect of getting a student loan. Typically, these feelings show up because of not knowing what they are headed for. To help reduce your fears, this article has some great suggestions to help you get started.
Know all the little details of your student loans. Know your loan balance, your lender and the repayment plan on each loan. These three things will affect future repayment plans and forgiveness options. This will allow you to budget effectively.
Speak with your lender often. Make sure they always know your address, phone number and email, all of which can change often during your college experience. Read all letters which you are sent and emails, too. You should take all actions immediately. Missing anything in your paperwork can cost you valuable money.
Never fear paying your student loans if you are unemployed or another emergency happens. Most lenders can work with you if you lose your job. However, you may pay an increase in interest.
Don’t panic when you struggle to pay your loans. Unemployment and health emergencies can happen at any time. Lenders provide ways to deal with these situations. But bear in mind that interest will still accrue, so consider making whatever payments you can to keep the balance in check.
If you have the ability to pay more than what you owe on your loans, try to get those with the highest interest taken care of first. Do not simply pay off the loan that has the smallest amount remaining.
Grace Period
Check the grace period of your student loan. Stafford loans offer six months of grace period. For Perkins loans, the grace period is nine months. Other loans vary. Know precisely when you need to start paying off your loan so that you are not late.
Get a payment option that works for you. A lot of student loans give you ten years to pay it back. If you can’t make this work for your situation, check out other options if you can. For example, you might be given a longer time to pay. Keep in mind that this option comes with higher interest. It may also be possible for you to dedicate a portion of your salary to loan repayment once you have a regular paycheck coming in. Certain student loans forgive the balances once 25 years are gone by.
If you have more than one student loan, pay each off according to interest rates. Begin with the loan that has the highest rate. Then utilize the extra cash to pay off the other loans. There will be no penalty because you have paid them off quicker.
Get the maximum bang for the buck on your student loans by taking as many credits each semester as you can. You will graduate more quickly if you get to 15 or 18 hours each semester rather than 9 or 12. This helps you keep to aminimum the amount of loan money you need.
If you don’t have good credit, and you are applying for a student loan from a private lender, you will need a co-signer. You must be current on your payments. Otherwise, the other party must do so in order to maintain their good credit.
Plus Loans
There is a loan that is specifically for graduate students or their parents known as PLUS loans. The PLUS loans have an interest rate below 8.5%. While this is generally higher than either Perkins or Stafford loans, it still has lower interest rates than the typical personal loan. This may be a suitable option for your situation.
Get rid of thinking that defaulting on a loan means freedom. The government has several collection tools at its disposal. The federal government can take your Social Security payments or take your tax refunds if money is owed. The government also has the right to claim 15 percent of all your income. You can easily find yourself in a very bad position that will take many years to get out of and cause many headaches.
Do not simply apply for loans and let that be the end of it. Remember to also seek out grants and scholarships, and look into getting a part time job. 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. Make sure to start the search process early.
To extend to value of your loan money, try to get meal plans that do not deduct dollar amounts, but rather include whole meals. That way, you won’t be overpaying for extra items in the cafeteria. You will just pay a flat fee for every meal.
Student Loans
As shown in this article, you don’t have to be afraid of student loans. With the tips you’ve just read, you will be able to successfully tackle the topic of student loans. Keep this advice in mind as you head out into the world!
This is a limited-time offer. We are not able to guarantee availability if you wait!
