Many individuals dream of going to college or even pursuing a graduate or professional degree. However, the exorbitant tuition costs that prevail these days make such goals almost unobtainable without the help of student loans. Review the guidance outlined below to ensure that your student borrowing is done wisely and in a way that makes repayment relatively painless.
Be sure you know about the grace period of your loan. Each loan has a different grace period. It is impossible to know when you need to make your first payment without looking over your paperwork or speaking with your lender. Be sure to be aware of this information so you do not miss a payment.
Do not overlook private sources of funds for college. While public student loans are widely available, there is much demand and competition for them. Private loans are available, though perhaps not in the volume of federal ones. Check your local community for such loans, which can at least cover books for a semester.
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.
Focus initially on high-interest loans. Calculating the terms properly will prevent spending more money than is necessary by the end of the loan.
Pay extra on your student loan payments to lower your principal balance. Your payments will be applied first to late fees, then to interest, then to principle. Clearly, you should avoid late fees by paying on time and chip away at your principal by paying extra. This will reduce your overall interest paid.
Be sure you understand the terms of loan forgiveness. Some programs will forgive part or all of any federal student loans you may have taken out under certain circumstances. For example, if you are still in debt after ten years have passed and are working in a public service, nonprofit or government position, you may be eligible for certain loan forgiveness programs.
To keep your student loan load low, find housing that is as reasonable as possible. While dormitory rooms are convenient, they are often more costly than apartments near campus. The more money you have to borrow, the more your principal will be — and the more you will have to pay out over the life of the loan.
The unsubsidized Stafford loan is a good option for student loans. Anyone with any level of income can get one. The interest is not paid for you during your education; however, you will have six months grace period after graduation before you have to start making payments. This kind of loan offers standard federal protections for borrowers. The fixed interest rate is not greater than 6.8%.
Student loan deferment is an emergency measure only, not a means of simply buying time. During the deferment period, the principal continues to accrue interest, usually at a high rate. When the period ends, you haven’t really bought yourself any reprieve. Instead, you’ve created a larger burden for yourself in terms of the repayment period and the total amount owed.
Be careful about accepting private, alternative student loans. It is easy to rack up a lot of debt with these because they operate pretty much like credit cards. Starting rates may be very low; however, they are not fixed. You may end up paying high-interest charges without warning. Additionally, these loans do not include any borrower protections.
Use caution if you are considering getting a private student loan. It isn’t easy to know what the terms might be. You may not know exactly what you’re signing until later. This makes it hard to learn about your options. Get as much information as you can. If a good offer comes your way, ask other loan providers if they can match or beat it.
If you are having a hard time paying back your student loan, you should check to see if you are eligible for loan forgiveness. This is a courtesy that is given to people that work in certain professions. You will have to do plenty of research to see if you qualify, but it is worth the time to check.
To get the most out of your student loan dollars, make sure that you do your clothes shopping in more reasonable stores. If you always shop at department stores and pay full price, you will have less money to contribute to your educational expenses, making your loan principal larger and your repayment even more expensive.
When applying for loans, be sure you provide accurate information. Accurately filling out this form will help ensure you get everything you are qualified to get. Ask someone for help if you are uncertain.
Stretch your student loan money by minimizing your living expenses. Find a place to live that is close to campus and has good public transportation access. Walk and bike as much as possible to save money. Cook for yourself, purchase used textbooks and otherwise pinch pennies. When you look back on your college days, you will feel very resourceful.
It is easy to see why so many folks are interested in seeking higher education. But, the fact is that college and graduate school costs often necessitate that students incur substantial amounts of student loan debt to do so. Keep the above information in mind, and you will have what it takes to handle your school financing like a pro.
