Perhaps you have recently experienced sticker shock concerning the cost of college these days. Very few people can afford to pay for college these days without any help. Student loans can help you finance an education.
Make it a point to be aware of all the important facets of your student loans. You want to keep track of your balance, who your lender is and any current repayment status of your loans. These things matter when it comes to loan forgiveness and repayment. You will also need to know these things if you want to have an accurate budget.
Stay in communication with all lenders. Make sure you let them know if your contact information changes. It is also important to open and thoroughly read any correspondence you receive from your lender, whether it is through traditional or electronic mail. If any requests are made or important stipulations are shared with you, act on them right away. If you forget about a piece of mail or put something aside, you could be out a bunch of money.
Don’t be scared if something happens that causes you to miss payments on your student loans. Usually, most lenders let you postpone payments if some hardship is proven. Just be aware that doing so may cause interest rates to rise.
Start Paying
Know how much time your grace period is between graduating and when you need to start paying back loans. For Stafford loans, you should have six months. For Perkins loans, you have nine months. Grace periods for other loans vary. Keep in mind exactly when you’re supposed to start paying, and try not to be late.
Be sure you select the right payment plan option for you. Ten year plans are generally the default. There are many other options if you need a different solution. For instance, it may be possible to stretch out your payments for a longer period of time, although you will end up paying more interest. You also possibly have the option of paying a set percentage of your post-graduation income. Sometimes, they are written off after many years.
Some people sign the paperwork for a student loan without clearly understanding everything involved. Don’t do this! Always understand what you are signing. If you must, ask questions to make sure you understand everything completely. You do not want to spend more money on interest and other fees than you need to.
To make sure your student loan application goes smoothly, make sure the information you include is accurate. Giving incomplete or incorrect information can delay its processing.
A co-signer may be necessary if you get a private loan. It’s imperative that you make your payments on time. If you miss a payment, then your co-signer will not be happy because they are just as responsible for these payments as you are.
A PLUS loan is specifically oriented to address the needs of graduate students and/or parents. The interest rate is no greater than 8.5%. These rates are higher, but they are better than private loan rates. This may be a suitable option for your situation.
Keep in mind that your school could have other motivations when they recommend certain lenders. Some schools let private lenders use the name of the school. This is really quite misleading. A school might get a kickback for you signing up for that lender. Know what is going on before you sign.
Student loans are able to make college something most people can get into, but they have to be paid back. Lots of folks borrow for college blindly without considering how the loans will eventually be paid back. With what you’ve learned in the article above, you should be able to get yourself into college without it costing you too much.
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