What Every Student Needs To Know About Student Loans


So you are interested in attending school but you are afraid of the cost. It may be confusing that many people can go to school with the high prices. Many people use student loans to pay for school. If you want to learn more, read on for some great tips.

TIP! Verify the length of the grace specified in the loan. This is the period of time after your graduation before your payment is due.

Make sure you stay on top of applicable repayment grace periods. This is typically a six to nine month period after your graduation before repayments start. You can get a head start in making timely payments by knowing what your grace period is.

Always know the pertinent details of your loans. You need to stay on top of your balances, your lenders and the repayment status in which you find yourself at any given time. These important items are crucial when it comes time to pay back the loan. Use this information to create a budget.

TIP! Don’t panic if you aren’t able to make a loan payment. Emergencies are something that will happen to everyone.

Keep in touch with the lender you’re using. Make sure you let them know if your contact information changes. In addition, be sure to open and read all correspondence that you receive from your lender right away, whether it arrives electronically or via snail mail. Take any requested actions as soon as you can. Missing anything in your paperwork can cost you valuable money.

When paying off student loans, do it using a two-step process. First, make sure you are at least paying the minimum amount required on each loan. Second, if you have any extra money, use it to make extra payments on the loan that bears the higher interest rate rather than the one that bears the highest balance. In this way, the amount you pay as time passes will be kept at a minimum.

Grace Period

Know how long you have between graduation and the commencement of loan payments. For Stafford loans, you should have six months. For Perkins loans, you’ll have a nine month grace period. Make sure to contact your loan provider to determine the grace period. Be aware of exactly when you must start making payments, and be sure to make those payments on time!

TIP! If you want to pay off student loans before they come due, work on those that carry higher interest rates. Basing payments on the highest and lowest amounts can make you end up paying more money later.

Go with the payment plan that best suits your needs. Many loans offer a ten year payment plan. You may discover another option that is more suitable for your situation. As an example, it may be possible to extend your payment time, but typically that’ll include a higher interest rate. You could start paying it once you have a job. It may be that your loan will be forgiven after a certain period of time as well.

When the time comes to repay student loans, pay them off based on their interest rate. The highest rate loan should be paid first. Paying a little extra each month can save you thousands of dollars in the long run. There are no penalties for paying off a loan more quickly than warranted by the lender.

TIP! Choose a payment option based on your circumstances. Many student loans come with a ten year length of time for repayment.

Pay off the loan with higher interest rates first so you can shrink the amount of principal you owe faster. The less principal you owe overall, the less interest you will end up paying. Set your target on paying down the highest balance loans first. After you have paid off your largest loan, continue making those same payments on the next loan in line. By making sure you make a minimum payment on your loans, you’ll be able to slowly get rid of the debt you owe to the student loan company.

Rewards Programs

TIP! When it comes time to pay back your student loans, pay them off from higher interest rate to lowest. You should pay off the loan that has the highest interest first.

For those on a budget already stretched to the max, the idea of a student loan can be scary. Loan rewards programs can help a little with this, however. For examples of these rewards programs, look into SmarterBucks and LoanLink from Upromise. These are very similar to cash back programs, where any dollars you spend can accumulate rewards which apply to your student loan.

One form of loan that may be helpful to grad students is the PLUS loan. The interest rate on these loans will never exceed 8.5% While it may be more than other loans, it is cheaper than you will get through a private lender. This means that this is a suitable choice for students who are a bit older and better established.

TIP! The Perkins and Stafford loans are the most helpful federal loans. These two are considered the safest and most affordable.

Never depend totally on a loan to pay for your schooling. Scholarships or grants can be a great way of reducing the amount of money you ultimately have to borrow. There are websites that will help match you to scholarships and locate grants. You should begin your search early as funds go quickly.

If you want to stretch out your student loans a little farther, get a meal plan which deals in terms of meals instead of dollar amounts. That way, you can pay a flat fee instead of being nickel and dimed.

Student Loan

After going through the article above about getting your student loan, it should be easier on you now. Use the above tips to fill out student loan forms to get the loans you need. Never allow the expense of college stop you from achieving your educational goals.