Student loans can be incredibly easy to get. Unfortunately they can also be incredibly hard to get rid of if you don’t use them wisely. Take the time to read all of the terms and conditions of anything you sign.The choices that you make today will have an impact on your future so keep these tips in mind before you sign on that line.
If you are having a hard time paying back your student loans, call your lender and let them know this. There are normally several circumstances that will allow you to qualify for an extension and/or a payment plan. You will have to furnish proof of this financial hardship, so be prepared.
Make sure you understand the fine print related to your student loans. Keep a running total on the balance, know the repayment terms and be aware of your lender’s current information as well. These details affect your repayment options. You will also need to know these things if you want to have an accurate budget.
Never ignore your student loans because that will not make them go away. If you are having a hard time paying the money back, call and speak to your lender about it. If your loan becomes past due for too long, the lender can have your wages garnished and/or have your tax refunds seized.
If you are thinking about paying off any of your student loans ahead of schedule, you should focus on the ones that have the highest interest. If you pay off the wrong loans first, you could end up paying more than you need to.
To keep your student loan debts from piling up, plan on starting to pay them back as soon as you have a job after graduation. You don’t want additional interest expense piling up, and you don’t want the public or private entities coming after you with default paperwork, which could wreck your credit.
Take advantage of student loan repayment calculators to test different payment amounts and plans. Plug in this data to your monthly budget and see which seems most doable. Which option gives you room to save for emergencies? Are there any options that leave no room for error? When there is a threat of defaulting on your loans, it’s always best to err on the side of caution.
The Perkins Loan and the Stafford Loan are both well known in college circles. These are both safe and affordable. These are great options because the government handles your interest while you are in school. The Perkins loan carries an interest rate of 5%. On a subsidized Stafford loan, it will be a fixed rate of no larger than 6.8 percent.
If you try to get private loans with poor credit, you are sure to need a co-signer. Making payment on time is very important. If you don’t keep up with payments on time, your co-signer will be responsible, and that can be a big problem for you and them.
One type of student loan that is available to parents and graduate students is the PLUS loans. These loans do not have a large interest rate compared to private loans. While it may be more than other loans, it is cheaper than you will get through a private lender. This may be a suitable option for your situation.
Keeping the above advice in mind is a great start to making wise choices about student loans. Make sure you ask questions and that you are comfortable with what you are signing up for. Read up on what the terms and conditions really mean before you decide to accept the loan.