Who doesn’t have debt when they graduate today? You should know all about student loans before trying to get one. Read below to get a good student loan education to will help prepare you to pay it back.
Find out what the grace period is you are offered before you are expected to repay your loan. The grace period is the period between when you graduate and when you have to start paying back your loans. Knowing this can help you avoid hefty penalties by paying on time.
Keep in touch with the lender you’re using. Make sure your records are updated, such as your phone number and address. 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. Missing an important piece of mail can end up costing a great deal of money.
Work hard to make certain that you get your loans taken care of quickly. Start by making the minimum payments of each loan. Second, you will want to pay a little extra on the loan that has the higher interest rate, and not just the largest balance. This will minimize the amount of money you spend over time.
When you graduate, know how much time you have before you have to start making payments on your loans. Stafford loans usually have one half year before the payments have to be made. If you have Perkins loans, you will have 9 months. Make sure to contact your loan provider to determine the grace period. Be aware of exactly when you must start making payments, and be sure to make those payments on time!
Pick the payment option that works best for you. Most student loan companies allow the borrower ten years to pay them back. There are other options if you can’t do this. You might be able to extend the plan with a greater interest rate. You may also have the option of paying a certain percentage of your future earnings. Some balances on student loans are forgiven after a period of 25 years.
If you are going after an advanced degree, know that you’re probably going to need financial help at some point. This is probably going to be true until college becomes more affordable. Since you have this information, you should feel better about getting a loan.