Are high school prices intimidating to you? You may wonder how anyone can afford to attend college these days. Many people take out student loans to cover the cost of getting a degree. There’s no reason you can’t get a loan. Continue reading to learn what you need to know about them.
Stay in contact with your lender. Let them know if your number, email or address changes, all of which occur frequently during college years. Read all mail you get from lenders. Perform all actions to do as soon as you can. Neglecting something may cost you a fortune.
Know how long the grace period is between the date of your graduation and the date on which you must start repaying the loans. Stafford loans provide a six month grace period. Perkins loans enter repayment in nine months. Other types of loans may vary. Know when you will have to pay them back and pay them on time.
When you begin to pay off student loans, you should pay them off based on their interest rates. You should pay off the loan that has the highest interest first. Using additional money to pay these loans more rapidly is a smart choice. There are no penalties for early payments.
Reduce your total principle by paying off your largest loans as quickly as possible. If you don’t owe that much, you’ll pay less interest. Pay the larger loans off to prevent this from happening. When you pay off a big loan, apply the payment to the next biggest one. Make minimal payments on all your loans and apply extra money to the loan with the greatest interest in order to pay off all your loans efficiently.
If you don’t have a lot of “extra” money, student loans can really make life difficult for you. Loan programs with built in rewards will help ease this process. Consider Upromise and other similar organizations. These allow you to earn rewards that help pay down your loan.
Some people apply for loans and sign the papers without understanding the terms. Ask to get clarification on anything you don’t understand. This is an easy way for a lender to get more money than they are supposed to.
To get student loans to go through quicker, fill out the documents properly. If you give wrong or incomplete information, it can slow down processing and you may not be able to start when you planned. This can put you behind by a year.
The Perkins loan and the Stafford loan are the most desirable federal programs. These are both safe and affordable. They are favorable due to the fact that your interest is paid by the government while you are actually in school. Perkins loans have an interest rate of 5%. On subsidized Stafford loans it is fixed at a rate no greater than 6.8%.
Now that you have read this article, it will be easier to get a student loan. Remember these tips when you fill out your financial aid form. Do not let student loans ruin your college experience.