Jennifer Smith Posted on 8:44 am

Student Loans: Advice For Students And Parents

Student loans enable people who cannot afford college fees to go to college. However, student loans are not as simple as they appear. Keep reading, and learn how to pay for the education that you desire.

Know that there’s likely a grace period built into having to pay back any loan. This is typically a six to nine month period after your graduation before repayments start. Knowing this will give you a head start on getting your payments in on time and avoiding hefty penalties.

Always know all the information pertinent to your loans. You want to keep track of your balance, who your lender is and any current repayment status of your loans. These are details that play an important role in your ultimate success. This also helps when knowing how prepare yourself when it comes time to pay the money back.

Stay in communication with all lenders. Make sure you let them know if your contact information changes. In addition, when you get mail from your lender, be sure to read everything. You should take all actions immediately. Failing to miss any deadlines or regulations can mean risking losing quite a bit of money or time.

It is acceptable to miss a loan payment if serious extenuating circumstances have occurred, like loss of a job. Many times a lender will allow the payments to be pushed back if you make them aware of the issue in your life. Just know that the interest rates may rise.

Private financing is always an option. Student loans from the government are plentiful, but they come with a lot of competition. Private loans – especially small ones – do not have as much competition, and this means that there is funding available that most other people don’t even know about. See if you can get loans for the books you need in college.

If you want to pay off student loans before they come due, work on those that carry higher interest rates. Repaying based on balance size could actually cause you to pay more in interest than you otherwise would have.

Grace Period

How long is your grace period between graduation and having to start paying back your loan? Stafford loans provide a six month grace period. Others, like the Perkins Loan, allot you nine months. The amount you are allowed will vary between lenders. Know when you are to begin paying on your loan.

Pick a payment plan that suits your particular needs. A lot of student loans give you ten years to repay. If this isn’t possible, then look around for additional options. For instance, you can possibly spread your payments over a longer period of time, but you will have higher interest. You can also possibly arrange a deal where you pay a certain percentage of your overall post-graduation income. After 20 years or so, some balances are forgiven.

Pay off your loans in order of interest rates. The loan with the individual highest rate needs paid down fastest and first. Apply any extra dollars you have to pay off student loan balances faster. There is no penalty for repaying sooner than expected.

You may feel overburdened by your student loan payment on top of the bills you pay simply to survive. A loan rewards program may help with this circumstance. Check out programs from Upromise such as SmarterBucks and LoanLink. These are similar to other programs that allow you to earn cash back. You can use this money to reduce your loan.

Student Loan

A student loan can help you acquire a quality education. It will be simpler to obtain a student loan with the advice above. Use what you’ve just learned to get a loan that will help you get a stellar education.