At some point in your life, you may have to get a student loan. You might need one now or be looking into them for later. You will be able to get the best loan by learning more about them. Use the following tips to ensure you handle student loans the right way.
Stay in touch with the lender. Always let them know when you change your phone number, mailing address or email address, and these things can happen often when you are in college. Read all mail you get from lenders. If the correspondence requests you take an action, do so as soon as you can. Missing an important piece of mail can end up costing a great deal of money.
If an issue arises, don’t worry. Many issues can arise while paying for your loans. 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. Just know that the interest will build up in some options, so try to at least make an interest only payment to get things under control.
If you wish to repay student loans in advance, deal with the ones 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.
Know how much time you have in your grace period from the time you leave school until you must begin paying back your loans. For example, you must begin paying on a Stafford loan six months after you graduate. For Perkins loans, you’ll have a nine month grace period. Other student loans’ grace periods vary. Be sure you know exactly when you will be expected to begin paying, and don’t be late!
Think about what payment option works for you. Most student loans have a ten year plan for repayment. If that doesn’t work for you, some other options may be out there for you. You might be able to extend the payments, but the interest could increase. Also, paying a percent of your wages, once you start making money, may be something you can do. Sometimes you may get loan forgiveness after a period of time, often 25 years.
Make certain that the payment plan will work well for you. Many student loans will offer a 10 year repayment plan. You can consult other resources if this does not work for you. It is sometimes possible to extend the payment period at a higher interest rate. You may also use a portion of your income to pay once you are bringing in money. Sometimes student loans are forgiven after 25 years.
Never sign anything without knowing what exactly it says and means. You must, however, ask questions so that you know what is going on. You do not want to spend more money on interest and other fees than you need to.
Fill out each application completely and accurately for faster processing. Your application may be delayed or even denied if you give incorrect or incomplete information.
If your credit is sub-par, you might need a co-signer for private student loans. You should be sure to stay on top of your payments and never miss one. If you do not do so, then whoever co-signed your debt will be held liable.
Your college may have motives of its own for recommending certain lenders. Some let these private lenders use their name. This may be deceiving. The school might be getting a kickback from the lender. Know what the loan terms are before signing on the dotted line.
Double check your application for mistakes before you submit it. This is crucial because any mistakes could affect how much aid you are offered. Speak with a financial aid advisor if you are unsure if the paperwork is properly filled out.
You can save money by purchasing a meal plan from the college cafeteria. The best way to do this is to pay for meals rather than a specific dollar amount. This means that you won’t get gouged for extras in the dining hall line, instead just paying one flat fee for each meal that you eat.
Stay in touch with the lender providing your loan. This is essential since you need to know all about your loans and stipulations within your repayment plans. It is also possible that the lender offers you advice with regard to repayment.
Find a job at your school to help pay off your debt. This allows you to offset some of your expenses without a loan, and it can give you some spending money as well.
If you have a large balance on student loans, don’t panic. It looks big at first, but you will be able to whittle away at it. If you are diligent with your money, you can pay off the loans you have accrued.
Try to reduce your costs by taking dual credit classes and using advanced placement. You may be able to use those classes to reduce the number of college credits you must take and also pay for.
You may need a student loan at some point in your life. It is helpful to have a wealth of knowledge about student loans under your belt when trying to decide which is the best for you. The preceding article has given great suggestions, so use them wisely.