If you have checked out the costs of college tuition lately, chances are you were shocked at how expensive it is. It is uncommon for a student to be able to fully pay their own way through school. That is where student loans come in; they can help students attend college if they do not have the money.
Always figure out what the details of the loans you have out are. Know your loan balance, your lender and the repayment plan on each loan. These three things will affect future repayment plans and forgiveness options. This is necessary so you can budget.
Don’t be scared if something happens that causes you to miss payments on your student loans. Many times a lender will allow the payments to be pushed back if you make them aware of the issue in your life. However, this can make it to where you have higher interest rates and more to pay back.
Private financing is something that you may want to consider. While public loans for students are available widely, there is a lot of competition and demand for them. Private student loans are far less tapped, with small increments of funds laying around unclaimed due to small size and lack of awareness. Look around for these kinds of loans, and you may be able to cover part of your schooling.
Know what the grace period is before you have to start paying for your loans. Stafford loans usually have one half year before the payments have to be made. For a Perkins loan, this period is 9 months. Other loan types are going to be varied. Keep in mind exactly when you’re supposed to start paying, and try not to be late.
Choose payment options that fit your financial circumstances. 10 years is the default repayment time period. If this won’t work for you, there may be other options available. Examples include lengthening the time it takes to repay the loan, but having a higher interest rate. You may also have the option of paying a percentage of income you earn once you start earning it. Some loans’ balances get forgiven after 25 years.
The concept of making payments on student loans each month can be frightening when money is tight. Rewards programs can help. LoanLink and Upromise are two of these great programs. This can help you get money back to apply against your loan.
Far too often people will rush into signing the student loan paperwork without carefully analyzing the terms and conditions of the loan. Make certain that you understand all of the facts before signing the dotted line. A lender may wind up with more money that necessary if there is a term that you don’t understand.
PLUS loans are student loans that are available to graduate students and to parents. Interest rates are not permitted to rise above 8.5%. This is a higher rate than Stafford or Perkins loans, however it’s better than most private loans. This is …