Are you interested in going to college? Are you afraid you can’t afford it? You might be curious to know how folks are able to pay for college when costs are so high. The answer is that they turn to student loans, tools used by the majority of people to help pay for their schooling. It’s definitely possible for you to get loans as well, and this post will give you some top tips to get you started.
If you lose your job, face financial issues or some other bump in the road comes up, don’t worry about missing a payment. Usually, many lenders let you postpone payments if you are able to prove hardship. However, this can make it to where you have higher interest rates and more to pay back.
Private financing could be a wise idea. Public loans are available, but there is often a lot of competition for them. A private student loan has less competition due to many people being unaware that they exist. Investigate around your community for private loans; even a small one can cover room and board for a term or two.
Don’t get too stressed out if you have trouble when you’re repaying your loans. You will most likely run into an unexpected problem such as unemployment or hospital bills. There are options such as deferments and forbearance that are available with most loans. Just remember that interest will continue to build in many of these options, so try to at least make payments on the interest to prevent your balance from growing.
Know what the grace period is before you have to start paying for your loans. Stafford loans offer six months of grace period. Perkins loans offer a nine month grace period. Other loans will vary. It is important to know the time limits to avoid being late.
Pick a payment option which best fits your requirements. A lot of student loans give you ten years to repay. You can consult other resources if this does not work for you. For example, you may be able to take longer to pay; however, your interest will be higher. You may also use a portion of your income to pay once you are bringing in money. Sometimes student loans are written off after an extended period of time.
If you have more than one student loan, pay each off according to interest rates. It’s a good idea to pay back the loan that has the biggest interest rate before paying off the others. Any extra cash you have lying around will help you pay these quicker. Prepayment of this type will never be penalized.
For those on a budget already stretched to the max, the idea of a student loan can be scary. That can be reduced with loan rewards programs. Two such programs are SmarterBucks and LoanLink. These allow you to earn rewards that help pay down your loan.
Take the maximum number of credit hours you can in your schedule to maximize the use of your loans. Full-time students typically have a minimum of nine to twelve hours per semester, but some schools let you take up to fifteen or even eighteen, speeding up your graduation date. This will decrease the loan amount.
If you want your application for a student loan to be processed quickly, ensure that the forms are filled out completely and accurately. If you make any errors on the paperwork, this can cause a hold up in your getting the loan, which could cause you to be unable to pay for school when the semester starts.
Two of the most popular school loans are the Perkins loan and the often mentioned Stafford loan. They are cheap and safe. They are a great deal because you will get the government to pay your interest during your education. The interest for a Perkins loan holds at five percent. Subsidized Stafford loans offer interest rates no higher than 6.8 percent.
There is a loan that is specifically for graduate students or their parents known as PLUS loans. The interest rate on these loans will never exceed 8.5% This rate exceeds that of a Perkins loan or a Stafford loan, but is lower than private lenders offer. Because of this, you should get this option only if you’re an established and mature student.
Now that you have digested this article, you ought to realize that getting your student loans need not be a challenge. Use the advice you were given here when you go get financial aid so you can get great student loans. Do not let the expense of an education keep you from getting one.