A lot of people know someone that had their life ruined because after college they were in so much debt. It is important to be wary of signing on the dotted line until you really know what you are getting into. Continue reading for strategies on making the right decisions concerning your loans.
To make paying for college easier, don’t forget to look at private funding. Student loans from the government are plentiful, but they come with a lot of competition. Private loans – especially small ones – do not have as much competition, and this means that there is funding available that most other people don’t even know about. Talk to people you trust to find out which loans they use.
Know how long the grace period is between the date of your graduation and the date on which you must start repaying the loans. For Stafford loans, you should have six months. For Perkins loans, the grace period is nine months. For other loans, the terms vary. Know when you are to begin paying on your loan.
Select a payment option that works well for your particular situation. Many student loans come with a 10-year plan for repayment. If these do not work for you, explore your other options. For instance, you could be given more time but have to pay more interest. You might even only have to pay a certain percentage of what you earn once you finally do start making money. There are even student loans that can be forgiven after a period of twenty five years passes.
When you begin to pay off student loans, you should pay them off based on their interest rates. Pay loans with higher interest rates off first. Use extra funds to pay down loans more quickly. There are no penalties for paying off a loan faster.
Squeeze in as many possible credit hours as you can to maximize your student loans. Full time is 9-12 hours, but you can go as high as 8. This helps you keep to aminimum the amount of loan money you need.
Fill in all of the spaces on your application, otherwise, you may run into delays. You might find your paperwork in a stack waiting to be processed when the term begins.
Two superior Federal loans available are the Perkins loan and the Stafford loan. They are the safest and are also affordable. They are a great deal because the government pays the interest on them during the entirety of your education. Interest rate on the Perkins loan is five percent. On the subsidized Stafford loan, it’s fixed at no higher than 6.8%.
If your credit isn’t the best, and you want to apply for private student loans, then you will probably need a co-signer. It’s a good idea to stay up to date with the payments you make. If you don’t, then your co-signer will be held responsible for those debts.
For young graduates today, financial aid obligations can be crippling immediately following graduation. Care should be taken when signing for student loans. The tips above are for anyone considering taking out loans to further their education.