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Student Loan Advice That Will Work For You

Getting a college education can be expensive. Schools of all types cost great amounts of money. How do you obtain funds to allow you to attend school? You may find that a loan is your only course of action. Read on for some great suggestions on how to go about applying for one.

Do know that you are probably going to have a post-graduation grace period from your student loans before you are required to start making payments back. This generally means the period after you graduate where the payments will become due. Having this information will help you avoid late payments and penalties.

Always know all the information pertinent to 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 details are imperative to understand while paying back your loan. Budget wisely with all this data.

Always stay in contact with your lender. Always let them know when you change your phone number, mailing address or email address, and these things can happen often when you are in college. You must also make sure you open everything right away and read all lender correspondence via online or mail. If the correspondence requests you take an action, do so as soon as you can. Failure to miss anything can cost you a lot of money.

Pay your loans off using a two-step process. First, always make minimum payments each month. Second, pay anything extra to the loan with the highest interest rate, not the one with the highest balance. This will lower how much money is spent over time.

Focus initially on the high interest loans. This will reduce the total amount of money that you must pay.

Grace Period

You are offered a grace period after you graduate before you must start paying on your student loans. Stafford loans offer loam recipients six months. For Perkins loans, you’ll have a nine month grace period. The time periods for other student loans vary as well. Make sure that you are positive about when you will need to start paying and be on time.

When it comes time to pay back your student loans, pay them off from higher interest rate to lowest. The loan with the most interest should be paid off first. Any extra cash you have lying around will help you pay these quicker. There are no penalties for paying off a loan faster.

Having to make a monthly student loan payment is hard for a budget that is already stretched thin. A good loan rewards program can make it all more manageable. For example, you can look at SmarterBucks or LoanLink programs from Upromise. These are similar to cash back programs in which you earn rewards for each dollar you spend, and you can apply those rewards toward your loan.

To make your student loan money stretch even farther, consider taking more credit hours. To be considered a full-time student, you usually have to carry at least nine or 12 credits, but you can usually take as many as 18 credit each semester, which means that it takes less time for you to graduate. This helps reduce the total of loans.

After reading the article, you should be ready to apply for a loan. These suggestions are designed to simplify the process for you. So use all of these tips, and be sure to utilize them all as you begin to fill out forms.

Author

Carmen Evans