Eventually, you might have to get yourself a student loan. This may happen now or later in your life. In either case, you need to know all that you are able about student loans so you can get the right one. These tips will help you tremendously when applying for a loan.
Read the fine print on student loans. You need to be able to track your balance, know who you owe, and what your repayment status is. These details are going to have a lot to do with what your loan repayment is like and if you can get forgiveness options. This information is needed for proper budgeting.
If you lose your job, face financial issues or some other bump in the road comes up, don’t worry about missing a payment. Many times a lender will allow the payments to be pushed back if you make them aware of the issue in your life. You should know that it can boost your interest rates, though.
Grace Period
Be aware of the amount of time alloted as a grace period between the time you complete your education and the time you must begin to pay back your loans. Six months is usually the length for Stafford loans. A Perkins loan gives you a nine month grace period. Other types can vary. Be sure you know exactly when you will be expected to begin paying, and don’t be late!
If you have more than one student loan, pay each off according to interest rates. The loan with the largest interest rate should be your first priority. Use extra funds to pay down loans more quickly. There is no penalty for early repayment.
The concept of making payments on student loans each month can be frightening when money is tight. There are frequently reward programs that may benefit you. Check out programs from Upromise such as SmarterBucks and LoanLink. These allow you to earn rewards that help pay down 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. You may be able to scrape by with 12 hours, but try to at least carry 15 per semester. If possible, go for 18. This will assist you minimizing your loan amounts.
Fill your application out accurately to get your loan as soon as possible. Giving incomplete or incorrect information can delay its processing.
The Stafford and Perkins loans are the best options in federal loans. This is because they come with an affordable cost and are considered to be two of the safest loans. They are an excellent deal because for the duration of your education, the government will pay your interest. Interest rates for a Perkins loan will be around 5%. The interest is less than 6.8 percent on any subsidized Stafford loans.
One type of student loan that is available to parents and graduate students is the PLUS loans. Their interest rate doesn’t exceed 8.5%. While it may be more than other loans, it is cheaper than you will get through a private lender. It might be the best option for you.
Understand that school affiliations with lenders can be quite misleading when you are deciding which lender to choose. Some lenders use the school’s name. This can mislead you sometimes. The school could be receiving money because of your choice. Be sure you know what a loan is all about before you decide to utilize it.
After all is said and done, you may need a student loan sometime in the near or the far future. When picking out a loan, you should have as much knowledge as possible. Use the advice you have read here to guide your decision.
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