A college degree is practically a necessity in today’s competitive job market. If you do not have a degree, you are putting yourself at a big disadvantage. However, paying for college can be difficult, since tuition continues to rise. For tips on getting the best deals on student loans, keep reading. College Advice What You Should Know About Student Loans
Tips You Should Know About Student Loans:
Know your grace periods so you don’t miss your first student loan payments after graduating college. Stafford loans typically give you six months before starting payments, but Perkins loans might go nine. Private loans are going to have repayment grace periods of their own choosing, so read the fine print for each particular loan.
Try getting a part-time job:
Try getting a part-time job to help with college expenses. Doing this can help you cover some of your student loan costs. It can also reduce the amount that you need to borrow in student loans. Working these kinds of positions can even qualify you for your college’s work study program. Be careful when consolidating loans together. The total interest rate might not warrant the simplicity of one payment. Also, never consolidate public student loans into a private loan. You will lose very business revolving line of credit repayment and emergency options afforded to you by law and be at the mercy of the private contract.
Avoid fees and penalties:
Be sure your lender knows where you are. Keep your contact information updated to avoid fees and penalties. Always stay on top of your mail so that you don’t miss any important notices. If you fall behind on payments, be sure to discuss the situation with your lender and try to work out a resolution. Many people will apply for their student loans without reading what they are signing. Ask to get clarification on anything you don’t understand. There are unscrupulous lenders who will take advantage of the unwary.
Work as many hours as you can:
To reduce the amount of your student loans, work as many hours as you can during your last year of high school and the summer before college. The more money you have to give the college in cash, the less you have to finance. This means less loan expense later on. Perkins and Stafford are some of the best federal student loans. These are very affordable and are safe to get. This is a good deal because while you are in school your interest will be paid by the government. The interest for a Perkins loan holds at five percent. Subsidized Stafford loans have an interest rate cap of 6.8%.
To ensure that your student loan funds come to the correct account, make sure that you fill out all paperwork thoroughly and completely, giving all of your identifying information. That way the funds go to your account instead of ending up lost in administrative confusion. This can mean the difference between starting a semester on time and having to miss half a year. If you take out loans from multiple lenders, know the terms of each one. Some loans, such as federal Perkins loans, have a nine-month grace period. Others are less generous, such as the six-month grace period that comes with Family Education and Stafford loans. You must also consider the dates on which each loan was taken out, as this determines the beginning of your grace period.
Double check to ensure that your loan application:
Double check to ensure that your loan application doesn’t have errors. A mistake may result in you getting less money than you had hoped for. Talk to a financial aid representative for more advice on the process. It is important that you pay close attention to all of the information that is provided on student loan applications. Overlooking something can cause errors and/or delay the processing of your loan. Even if something looks like it is not very important, it is still important for you to read it in full.
Remain in contact with whoever is providing the money. This will keep you informed about the loan and aware of any stipulations to your payment plan. You should also ask the lender if they have any advice that will help you to pay off your loan more quickly. Too many people think that they will never be able to afford to go to college, but there are many ways to help pay for tuition. Student loans are a popular means of helping with the cost. However, it is all too easy to get into debt. Use the advice you have read here for help.