Student Loans: Make It The Best It Can Be Today


If you are like many, you need a student loan to continue your education. Still, that doesn’t make it an easy or enjoyable process. The good news is that this information can help you achieve your desired education.

TIP! Find out what the grace period is you are offered before you are expected to repay your loan. This usually means the period of time after graduation where the payments are now due.

If you have any student loans, it’s important to pay attention to what the pay back grace period is. This is important for avoiding penalties that may result. Knowing this allows you to make sure your payments are made on time so you can avoid penalties.

Always know the pertinent details of your loans. You must watch your balance, keep track of the lender, and monitor your repayment progress. This helps when it comes to payment plans and forgiveness options. You need this information to budget yourself appropriately.

TIP! There is hope for you if you find yourself in a tight financial spot where you cannot keep up with student loan payments. Typically, most lenders will allow you to postpone your payments if you can prove you are having hardships.

Make sure you stay in close contact with your lenders. Let them know if your number, email or address changes, all of which occur frequently during college years. You should also be sure to read all of the information you receive from the lender, whether electronic or paper. If the correspondence requests you take an action, do so as soon as you can. If you forget about a piece of mail or put something aside, you could be out a bunch of money.

Don’t worry about not being able to make a payment on your student loans if something unexpected like job loss has happened. Lenders will typically provide payment postponements. Just be mindful that doing so could make your interest rates rise.

TIP! Pay your loan off in two steps. Always pay the minimum balance due.

Don’t panic if you have a slight hiccup when paying back your loans. Job loss and health crises are bound to pop up at one point or another. Remember that forbearance and deferment options are widely available on a lot of loans. Interest continues to compound, however, so a good strategy is to make interest only payments that will prevent your balance from getting bigger.

If you are in the position to pay down your student loans, make the high interest loans your first priority. If you think you will be better off paying the one with the highest monthly payments first, you may be wrong. Best to look at the interest rates.

Student Loans Offer

Which payment option is your best bet? Many student loans offer 10-year payment plans. You may be able to work a different plan, depending on your circumstances. For instance, you might be able to get a longer repayment term, but you will pay more in interest. You may be able to make your payments based on percentage of your income after you get a job. Some student loans offer loan forgiveness after a period of 25 years has elapsed.

TIP! Get a payment option that works for you. The majority of student loans have ten year periods for loan repayment.

Prioritize your repayment of student loans by the interest rate of each one. Begin with the loan that has the highest rate. Paying a little extra each month can save you thousands of dollars in the long run. You will not be penalized for speeding up your repayment.

You can stretch your dollars further for your student loans if you make it a point to take the most credit hours as you can each semester. You may be able to scrape by with 12 hours, but try to at least carry 15 per semester. If possible, go for 18. This helps you shave off some of the cost of your loans.

Stafford Loans

The Perkins and Stafford loans are the most helpful federal loans. They tend to be affordable and entail the least risk. This is a great deal that you may want to consider. There’s a five percent interest rate on Perkins loans. The Stafford loans are a bit higher but, no greater than 7%.

TIP! Get the maximum bang for the buck on your student loans by taking as many credits each semester as you can. Though full-time student status requires 9-12 hours only, if you are able to take 15 or more, you will be able to finish your program faster.

Taking out a PLUS loan is something that a graduate student can apply for. They cap their interest rate at 8.5 percent. This rate exceeds that of a Perkins loan or a Stafford loan, but is lower than private lenders offer. This loan option is better for more established students.

Remember your school could have some motivation for recommending certain lenders to you. Some schools allow private lenders to use the school name. Such tactics are often misleading. The school may receive some sort of payment if you agree to go with a certain lender. You should know about the loan before getting it.

TIP! Never sign anything without knowing what exactly it says and means. Don’t do this! Always understand what you are signing.

Be very cautious about private student loans. It can prove difficult to find out what the exact terms are. Often, you don’t know until you have already signed on the dotted line. You may not be able to get out of the loan then. Get all the pertinent information you can. If you receive a good offer, go to other lenders and see if they’ll beat that offer.

Double check to ensure that your loan application doesn’t have errors. This is critical for your ability to get the maximum amount in a loan that is available to you. If you are confused about the form, consult with a counselor at your high school.

TIP! The Perkins and Stafford loans are the most helpful federal loans. Many students decide to go with one or both of them.

Many people have to take out a loan to go to college. Now that you are done reading, you have the knowledge you need to make wise choices. The tips located above will help simplify the process.