The price of higher education can be sky high today. Not many people are able to pay college tuition nowadays without financial aid. A student loan is a great way to help finance the cost of a college education.
Maintain contact with your 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. It is also important to open and thoroughly read any correspondence you receive from your lender, whether it is through traditional or electronic mail. You need to act immediately if a payment is needed or other information is required. You may end up spending more money otherwise.
Utilize a methodical process to repay loans. First, be sure to pay the monthly amount due on each loan you have taken out. Second, pay extra on the loan that has the highest interest. You will reduce how much it costs in the long run.
If you are in the position to pay down your student loans, make the high interest loans your first priority. If you get your payments made on the loans that have the lowest or the highest, it can cost you extra in the end.
Keep in mind the time that’s allotted to you as your grace period from when you get out of school until you have to start paying back the loan. Stafford loans usually have one half year before the payments have to be made. Perkins loans are about 9 months. The time periods for other student loans vary as well. Know when you are expected to pay them back, and make your payments on time!
Choose payment options that best serve you. The majority of loan products specify a repayment period of ten years. You may discover another option that is more suitable for your situation. 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. On occasion, some lenders will forgive loans that have gone unpaid for decades.
Get many credit hours each semester. Full-time students typically have a minimum of nine to twelve hours per semester, but some schools let you take up to fifteen or even eighteen, speeding up your graduation date. This helps you reduce the amount you need to borrow.
Stafford and Perkins loans are two of the best that you can get. They are the safest and least costly loans. They are a great deal, because the government covers your interest while you are still in school. The Perkins loan interest rate is 5%. The Stafford loans are a bit higher but, no greater than 7%.
Many students think of college loans as free money, but that is not the reality. It is easy to forget about student loans during the college years. Using the advice in this article will help you fund your college education without going too deep into debt.