Many need loans in order to fulfill their dreams of higher education. Many people can’t afford to pay for school or expenses. Luckily, if someone is able to learn what they can about student loans, you can make good decisions when borrowing money.
Make sure you know what the grace period is for your loans before you need to start making payments. This is the amount of time you have before the lender will ask that your payments need to start. Having this information will help you avoid late payments and penalties.
Stay in contact with your lender. Notify them if there are any changes to your address, phone number, or email as often happens during and after college. Be certain you always open mail that comes from your lender, and that includes e-mail. Take the actions you need to take as quickly as you can. If you miss any piece of information, you may end up spending more money.
You don’t need to worry if you cannot pay for your student loans because you are unemployed. Generally speaking, you will be able to get help from your lender in cases of hardship. Just know that taking advantage of this option often entails a hike in your interest rates.
If you plan to prepay your loans, try to pay those with the highest interest rates first. You definitely want to pay down the ones with the highest interest rate, because taking care of the lower ones could cause you to end up paying more money.
Your loans are not due to be paid back until your schooling is complete. Make sure that you find out the repayment grace period you are offered from the lender. Stafford loans have a grace period of six months. Perkins loans are about 9 months. Grace periods for other loans vary. Know when you are expected to pay them back, and make your payments on time!
Make sure that you specify a payment option that applies to your situation. Many loans allow for a 10 year payment plan. If that doesn’t work for you, some other options may be out there for you. The longer you wait, the more interest you will pay. Consider how much money you will be making at your new job and go from there. There are some student loans that will be forgiven if you have not got them paid in full within 25 years.
Choose payment options that best serve you. Many loans offer a ten year payment plan. If this won’t do, then there are still other options. Perhaps you can stretch it out over 15 years instead. Keep in mind, though, that you will pay more interest as a result. You could start paying it once you have a job. Sometimes student loans are written off after an extended period of time.
Look to pay off loans based on their scheduled interest rate. Go after high interest rates before anything else. Whenever you have a little extra money, put it towards your student loans to pay them off as fast as possible. Student loans are not penalized for early payoff.
Anyone on a strict budget who is facing the repayment of a student loan is put in a difficult situation. A good loan rewards program can make it all more manageable. For example, check out the LoanLink and SmarterBucks programs from Upromise. These are similar to cash back programs in which you earn rewards for each dollar you spend, and you can apply those rewards toward your loan.
Student loans an everyday part of college. But that doesn’t mean that figuring out which loans to get is something that should ever be looked at lightly. By studying the facts now, borrowers can save themselves a great deal of heartache down the road.