The student loan process can be very confusing. The reason for this is that they lack sufficient information about the process. This is something that you can become worry free about because you’re about to get some great information.
Know all of your loan’s details. You need to be mindful of your balance levels, your current lenders and your repayment status of each loan. These details affect your repayment options. This information is necessary to plan your budget accordingly.
Stay in communication with all lenders. Make sure they always know your address, phone number and email, all of which can change often during your college experience. Do not put off reading mail that arrives from the lender, either. Follow through on it immediately. If you forget about a piece of mail or put something aside, you could be out a bunch of money.
Do not worry if you are unable to make a student loan payment because you lost your job or some other unfortunate circumstance has occurred. Most lenders can work with you if you lose your job. Just be aware that doing so may cause interest rates to rise.
Try not to panic if you can’t meet the terms of a student loan. Job loss and health crises are bound to pop up at one point or another. Realize that there are ways to postpone making payments to the loan, or other ways that can help lower the payments in the short term. The interest will grow if you do this though.
Grace Period
Know how long the grace period is between the date of your graduation and the date on which you must start repaying the loans. Stafford loans typically allow six months. Perkins loans have a nine month grace period. Other types can vary. It is important to know the time limits to avoid being late.
Think about what payment option works for you. The ten year repayment plan for student loans is most common. There are many other options if you need a different solution. For instance, you might be able to get a longer repayment term, but you will pay more in interest. You may also have the option of paying a certain percentage of your future earnings. Some balances on student loans are forgiven when twenty-five years have passed.
Prioritize your loan repayment schedule by interest rate. Pay off the highest interest rate loan first. Do what you can to put extra money toward the loan so that you can get it paid off more quickly. Remember, there are no penalties for paying off your loan early.
Credit Hours
Take a large amount of credit hours to maximize your loan. To be considered a full-time student, you usually have to carry at least nine or 12 credits, but you can usually take as many as 18 credit each semester, which means that it takes less time for you to graduate. When you handle your credit hours this way, you’ll be able to lessen the amount of student loans needed.
Too often, people will accept student loans without contemplating the legal implications. You must ask the right questions to clarify what you don’t understand. There are unscrupulous lenders who will take advantage of the unwary.
Understand that school affiliations with lenders can be quite misleading when you are deciding which lender to choose. Some colleges allow lending companies to use the name of the college. This can be very misleading. The school might be getting a kickback from the lender. Make sure you grasp the subtleties of any loan prior to accepting it.
Be sure to double check all forms that you fill out. This will determine how much money you get. Talk to a financial aid representative for more advice on the process.
Look for a part-time job. That way some of your education’s expenses can be offset with something else besides a loan, plus you can have some extra money.
Do not stress too much when you see the full amount owed on your student loan. Though it is considerable, the lenders do not expect it in one lump sum. Take each bill as it comes, and try not to focus on the total number. You will get the amount down soon enough.
As you should be able to tell by now, there is no reason to be afraid of student loans. You can get a loan (or loans!), and pay it back, without falling into crippling debt. Get the best student loan by using this advice.
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