So, you’ve decided higher education is for you, but you can’t possibly afford it. You are probably thinking about how other people can afford these expensive schools even when economic times are tough. Most people take out student loans to help with costs. Learn how you can get a student loan just like them.
Maintain contact with your lender. Anytime there are changes to your personal information such as where you live, phone number, or email, it is important they are updated right away. Do not neglect any piece of correspondence your lender sends to you, whether it comes through the mail or electronically. Take any requested actions as soon as you can. You may end up spending more money otherwise.
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 have a grace period of six months. Perkins loans have a nine month grace period. Other loans offer differing periods of time. It is important to know the time limits to avoid being late.
Choose the payment option that is best suited to your needs. A lot of student loans give you ten years to pay it back. There are other choices available if this is not preferable for you. For instance, it may be possible to stretch out your payments for a longer period of time, although you will end up paying more interest. You also possibly have the option of paying a set percentage of your post-graduation income. Some balances pertaining to student loans get forgiven about 25 years later.
Prioritize your repayment of student loans by the interest rate of each one. You should pay off the loan that has the highest interest first. You will get all of your loans paid off faster when putting extra money into them. There is no penalty for early repayment.
Many obtain student loans, sign their documents, but remain clueless about what they’re signing into. Ask questions so that you are completely aware. Lenders sometimes prey on borrowers who don’t know what they are doing.
There are specific types of loans available for grad students and they are called PLUS loans. They cap their interest rate at 8.5 percent. This is a better rate than that of a private loan, though higher that those of Perkins or Stafford loans. This is often a good alternative for students further along in their education.
Keep in mind that a college may have its reasons for pointing your toward certain lenders for loans. Schools sometimes allow lenders to refer to the name of the school. This may be deceiving. Sometimes a school will have worked out a financial deal with a lender if you choose to use them. Make sure you know all the details of any loan before signing on the dotted line.
Rid your mind of any thought that defaulting on a student loan is going to wipe the debt away. There are ways that the government can collect the money against your wishes. They can take money off your tax refund, for example. The government even has the right to take up to fifteen percent of what it deems your disposable income. You could end up worse off in some circumstances.
Keep your eyes open when dealing with a private student loan. It can be hard to find out the exact terms. You may not know exactly what you’re signing until later. In addition, after you’ve signed, you may not be able to get out of the agreement. Get all the information you need first. If a lender gives you a good offer, see if another lender will match it or do even do better.
Avoid relying totally on student loans when it comes to paying for your education. Keep in mind that you need to save up and look for scholarships or grants to get help. There are websites that will help match you to scholarships and locate grants. In order not to miss some of the best ones, start looking as soon as you know you need one.
After going through the article above about getting your student loan, it should be easier on you now. Keep this article handy, and refer to it over the next 4+ years. You should be able to go to the school of your dreams; you’ve earned it!