You may start getting student loan offers in your mailbox while you are still in high school. It may seem great to have this opportunity. However, there are certain facets of student loans you need to be mindful of before signing up for anything.
Watch for the grace period which is available to you before you are required to repay the loan. The grace period is the period between when you graduate and when you have to start paying back your loans. Being aware of this will help you get a jump start on payments, which will help you avoid penalties.
Always know all of the key details of any loan you have. You need to watch what your balance is, who the lender you’re using is, and what the repayment status currently is with loans. These three details all factor heavily into your repayment and loan forgiveness options. Budget wisely with all this data.
Try paying off student loans with a two-step process. First you need to be sure that you know what the minimum payments for the loans will be each month. If you have money left over, apply that to the loan that has the highest interest associated with it. This will minimize the amount of money you spend over time.
Pay attention to how long the grace period is after your graduation before you student loan has to be repaid. The period should be six months for Stafford loans. A Perkins loan gives you a nine month grace period. Make sure to contact your loan provider to determine the grace period. Keep in mind exactly when you’re supposed to start paying, and try not to be late.
Understanding loans is critical to the college experience. Borrowing a large sum of money at high interest rates can turn into a huge financial burden. So, keep this information in mind as you enter college and embark on your future.