While there is no doubt that student loans can help you achieve a college education, they can also be disastrous. Educating yourself on the process is important. Keep reading to learn all you need to personally know.
Make sure you stay on top of applicable repayment grace periods. This usually refers to the amount of time you are allowed after you graduate before repayments is required. Knowing this can help you avoid hefty penalties by paying on time.
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 are three very important factors. 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. Be certain you always open mail that comes from your lender, and that includes e-mail. Take any and all actions needed as soon as possible. You can end up spending more money than necessary if you miss anything.
Be mindful of the exact length of your grace period between graduation and having to start loan repayments. The period should be six months for Stafford loans. For Perkins loans, you’ll have a nine month grace period. Other kinds of loans may have other grace periods. Make certain you are aware of when your grace periods are over so that you are never late.
Go with the payment plan that best fits what you need. The majority of student loans have ten year periods for loan repayment. There are often other choices as well. You might be able to extend the payments, but the interest could increase. You might also be able to pay a percentage of your income once you begin making money. Sometimes, they are written off after many years.
Pay off your loans in order of interest rates. You should pay off the loan that has the highest interest first. Do what you can to put extra money toward the loan so that you can get it paid off more quickly. There is no penalty for repaying sooner than expected.
For those on a budget already stretched to the max, the idea of a student loan can be scary. You can make things a bit easier with help from loan rewards programs. Check out programs from Upromise such as SmarterBucks and LoanLink. The are akin to cash back incentives, and the money spent works like a reward you can use toward your loan balance.
Perkins and Stafford are some of the best federal student loans. These are very affordable and are safe to get. One of the reasons they are so popular is that the government takes care of the interest while students are in school. The Perkins Loan has an interest rate of five percent. Subsidized Stafford Loans will have an interest rate that goes no higher than 6.8 percent.
You must consider many details and different options regarding student loan choices. These decisions can follow you years after you’ve graduated. Borrowing in a prudent manner is vital, so use this information when you start looking for student loans.