Getting A Leg Up: Student Loans TipsFor most people, student loans are the only way to afford a higher education. Although getting these loans is certainly a big help, there are many things you need to pay careful attention to and take into consideration before pulling the trigger. We’ve put together some basic information that can assist you in sorting out your educational and financial future.

TIP! Although student loans tend to be much more flexible than standard bank loans if you lose your job or fall ill and cannot work, remember that student loans can never be discharged in a bankruptcy. Even if you declare bankruptcy, you’re still on the hook for paying your student loans.

Make sure you understand the fine print related to your student loans. You need to be able to track your balance, know who is servicing your loans, and what your repayment status is. These details can all have a big impact on any loan forgiveness or repayment options over the next 20-40 years of your life. This information is also necessary to plan your budget accordingly.

Be mindful of any grace period you have prior to having to repay your loan. This is the period of time after your graduation before your payment is due. When you know what it is, you will have time to make a payment plan that will help you pay on time without penalties.

Don’t panic if you can’t make a payment due to job loss or other major life event. Usually, most student loan lenders let you postpone payments in the form of a forbearance or deferment if some significant hardship is proven. If you take this option, though, interest will continue to accrue while you are not making payments, and you may even see your interest rate rise.

Student Loans

Select the payment arrangement that is best for you. The majority of student loans have ten year periods for loan repayment. There are other options if you can’t do this. You can pay for longer, but it will cost you more in interest over time. You might also be able to pay a percentage of your income once you begin making money. Some balances pertaining to student loans get forgiven about 25 years later.

Monthly student loans can seen intimidating for people on tight budgets already. There are loan rewards opportunities that can help. For instance, look into the Upromise programs called SmarterBucks and LoanLink. Similar to popular cash-back programs, each dollar spent accrues rewards that are applied against your loan balance.

TIP! Know how much time your grace period is between graduating and when you need to start paying back loans. Stafford loans provide a six month grace period.

Perkins and Stafford are some of the best federal student loans. They are the safest and least costly loans. They are a great deal, because the government covers your interest while you are still in school. The Perkins loan has an interest rate of five percent. The Stafford loans are a bit higher but, no usually greater than 7%.

Many people would not be able to get a higher education without student loans. However, you don’t want to jump into a student loan blindly without learning about them and considering the various pros and cons. Also be sure you understand fully the terms of your loans so there are no surprises later on down the line. Hopefully some of the information we discussed will make you aware of matters to inquire about.

 

 

Getting A Leg Up: Student Loans Tips
Getting A Leg Up: Student Loans Tips

Getting A Leg Up: Student Loans Tips

Related terms: Paying Off Student Loan Tips, Get a Leg Up

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