Student loan offers will likely be sent to you before you even finish high school. Initially, these loan offers may seem like the answer. However, there are certain facets of student loans you need to be mindful of before signing up for anything.
Know how long of a grace period is in effect before you must begin to make payments on the loan. This is the amount of time you are allowed after graduation before you loan becomes due. When you know what it is, you will have time to make a payment plan that will help you pay on time without penalties.
Make sure you stay in close contact with your lenders. Make sure they always know your address, phone number and email, all of which can change often during your college experience. Anytime you receive a phone call, email or paper letter from your lender, pay attention to it as soon as it is received. Make sure that you take all actions quickly. Missing anything could make you owe a lot more money.
Do not worry if you are unable to make a student loan payment because you lost your job or some other unfortunate circumstance has occurred. Generally speaking, you will be able to get help from your lender in cases of hardship. Just remember that doing this may raise interest rates.
Do not overlook private sources of funds for college. Because public loans are so widely available, there’s a lot of competition. Student loans from private sources are not as popular. They are available in smaller increments and are often unclaimed because people don’t know about them. Ask locally to see if such loans are available.
Make certain that the payment plan will work well for you. Most loans have a 10-year repayment plan. If this won’t do, then there are still other options. It is sometimes possible to extend the payment period at a higher interest rate. Another option some lenders will accept is if you allow them a certain percentage of your weekly wages. Some student loan balances are forgiven after twenty five years have passed.
Look to pay off loans based on their scheduled interest rate. The loan with the individual highest rate needs paid down fastest and first. Anytime you have extra cash, apply it toward your student loans. You don’t risk penalty by paying the loans back faster.
College can give you a lot of debt over the four years you are there. Borrowing excessively at high interest rates can cause serious problems. Therefore, keep in mind the advice in this article as you start your college journey.