Have you seen the cost of college recently? If so, you know how pricey it is. Most people need help in paying that bill. If you’re trying to figure out how you’re going to swing it, you might be in the market for a student loan.
Verify the length of the grace specified in the loan. Typically this is the case between when you graduate and a loan payment start date. This can also give you a big head start on budgeting for your student loan.
Make sure you understand the fine print related to your student loans. Keep track of this so you know what you have left to pay. These details are going to have a lot to do with what your loan repayment is like and if you can get forgiveness options. You will also need to know these things if you want to have an accurate budget.
Stay in communication with all lenders. When you make changes to your address or phone number, make sure you let them know. Anytime you receive a phone call, email or paper letter from your lender, pay attention to it as soon as it is received. Follow through on it immediately. Missing anything could make you owe a lot more money.
Private financing could be a wise idea. Public loans are available, but there is often a lot of competition for them. Student loans from private sources are not as popular. They are available in smaller increments and are often unclaimed because people don’t know about them. Check your local community for such loans, which can at least cover books for a semester.
Pay your student loans using a 2-step process. First, ensure you meet the minimum monthly payments on each separate loan. Second you should pay whatever you’re making extra to a loan that has a high interest rate, not the one with a higher balance. This will keep your total expenditures to a minimum.
If you want to pay down student loans faster than scheduled, start with the highest interest rate loans first. If you pay off the wrong loans first, you could end up paying more than you need to.
Grace Period
Pay attention to how long the grace period is after your graduation before you student loan has to be repaid. Stafford loans typically allow six months. Perkins loans have a nine month grace period. Other loans offer differing periods of time. Know when you are to begin paying on your loan.
Too often, people will accept student loans without contemplating the legal implications. It is important that you ask questions to clarify anything that is not really clear to you. This is one way that lenders use to get more than they should.
Stafford and Perkins loans are the most advantageous federal loans to get. They are both reliable, safe and affordable. They are a great deal since the government pays your interest while you’re studying. The interest rate on a Perkins loan is 5 percent. On subsidized Stafford loans it is fixed at a rate no greater than 6.8%.
Rid your mind of any thought that defaulting on a student loan is going to wipe the debt away. The government will often still get its money back anyway. 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. You can easily find yourself in a very bad position that will take many years to get out of and cause many headaches.
Be careful when it comes to private student loans. Finding exact terms is difficult. Oftentimes, you aren’t aware of the terms until after you have signed the papers. Once that happens, you may find it difficult to get out of the agreement. Get all the information you need first. Compare offers and see if banks are willing to compete with each other for your loan.
Never depend solely on student loans for paying for college. Keep in mind that you need to put money aside and investigate grants and scholarships that may offer you some financial assistance. There are a number of good scholarship matching websites that can help you locate just the right grants and scholarships to suit your needs. Start your search early so you’re best prepared.
When you apply for financial aid, make sure your application is error free. It can really affect what you’ll be offered if you file in error. Speak with a financial aid advisor if you are unsure if the paperwork is properly filled out.
Remain in contact with whoever is providing the money. You have to understand everything about the loan you owe and how you need to pay it back. You may even get helpful advice about paying back your loan.
To make sure you get financially stable when it comes to student loans, try to get a job while you’re on campus. By doing so you will not be relying solely on a loan and will also be able to earn some spending money.
Student loans make college possible for lots of people, but they must be paid. Some people take out a loan but don’t consider how they are going to pay it back. As you can see, you do not need to go broke in order to attend college.
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