Since college costs only continue to rise, student loans are nearly a universal part of student life. You need good information in order to get the right loan with the right terms. Keep reading and you’ll learn everything you have to know.
Know what kind of grace periods your loans offer. The grace period is the time you have between graduation and the start of repayment. Knowing when this is over will allow you to know when to pay your payments on time so you don’t have a bunch of penalties to take care of.
Make it a point to be aware of all the important facets of your student loans. You need to be mindful of your balance levels, your current lenders and your repayment status of each loan. These details all affect loan forgiveness and repayment options. This is necessary so you can budget.
Keep in contact with the lender. Make sure they always know your address, phone number and email, all of which can change often during your college experience. Do not neglect any piece of correspondence your lender sends to you, whether it comes through the mail or electronically. Make sure you take action whenever it is needed. If you miss important deadlines, you may find yourself owing even more money.
If you are in the position to pay off student loans early and inclined to do so, make sure you begin with the loans that carry the highest rate of interest. If you base your payment on which loans are the lowest or highest, there is a chance that you will end up owing more money in the end.
Month Grace Period
Be mindful of the exact length of your grace period between graduation and having to start loan repayments. Stafford loans provide a six month grace period. Perkins loans offer a nine month grace period. Different loans will be different. Know exactly the date you have to start making payments, and never be late.
Select the payment option best for your particular needs. Many loans offer payment over a decade. If this isn’t possible, then look around for additional options. For instance, you can possibly spread your payments over a longer period of time, but you will have higher interest. You may also have to pay back a percentage of the money you make when you get a job. The balances on student loans usually are forgiven once 25 years have elapsed.
If you have more than one student loan, pay each off according to interest rates. Pay off the highest interest rate loan first. Paying a little extra each month can save you thousands of dollars in the long run. You don’t risk penalty by paying the loans back faster.
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. As much as 12 hours during any given semester is considered full time, but if you can push beyond that and take more, you’ll have a chance to graduate even more quickly. When you handle your credit hours this way, you’ll be able to lessen the amount of student loans needed.
If you wish to get your student loan papers read quickly, be sure that your application is filled out without errors. You might find your paperwork in a stack waiting to be processed when the term begins.
PLUS loans are student loans that are available to graduate students and to parents. They cap their interest rate at 8.5 percent. Although it is higher than Perkins and Stafford Loans, you still get a much better rate than one that is private. This makes it a great choice for more established students.
Don’t buy into the notion that you can default on your loans to free up money. The government will often still get its money back anyway. The federal government can garnish your taxes and disability payments. They can also take a chunk of the disposable income you have. Many times you will put yourself in an even worse situation.
Never rely solely on student loans in order to pay for college. You should do what you can to earn extra money, and you should also look to see what school grants or scholarships you may be eligible for. There are several great websites that offer information about available grants and scholarships. Look as early as you can to have the greatest number of options.
As you fill out your application for financial aid, ensure that everything is correct. This is critical for your ability to get the maximum amount in a loan that is available to you. Ask someone for help if you are uncertain.
Students typically rack up quite a bit of debt pursing an undergraduate education. They may also take out many student loans that can have a crippling effect on their financial future. Luckily, what you have just read will help you out tremendously.
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