While a student loan can help you further your education, they can cause serious issues if you’re not knowledgeable about them. It is important that you learn all you can about loans. Keep reading and you’ll get all the information you need about this subject.
Don’t worry if you can’t pay a student loan off because you don’t have a job or something bad has happened to you. Generally speaking, you will be able to get help from your lender in cases of hardship. However, you should know that doing this could cause your interest rates to increase.
If you’re having trouble repaying loans, don’t panic. Unemployment or a health problem can happen to you from time to time. Virtually all loan products offer some form of a forbearance or deferment option that can frequently help. Just remember that interest is always growing, so making interest-only payments will at least keep your balance from rising higher.
Know how much time you have in your grace period from the time you leave school until you must begin paying back your loans. Stafford loans typically allow six months. Perkins loans often give you nine months. For other loans, the terms vary. Make certain you are aware of when your grace periods are over so that you are never late.
Many people will apply for their student loans without reading what they are signing. You must, however, ask questions so that you know what is going on. You could be paying more if you don’t.
If you want your application for a student loan to be processed quickly, ensure that the forms are filled out completely and accurately. This will give the loan provider accurate information to leverage off of.
Applying for a private loan with substandard credit is often going to require a co-signer. Keep your payments up to date. If you miss a payment, you will saddle your co-signer with the debt.
Taking out a PLUS loan is something that a graduate student can apply for. The interest rates on these are kept reasonable. This rate exceeds that of a Perkins loan or a Stafford loan, but is lower than private lenders offer. These loans are much better suited to an older student that is at graduate school or is close to graduating.
Remember that your school may have its own motivations for recommending you borrow money from particular lenders. Some lenders use the school’s name. This can be misleading. The school might get an incentive if you use a certain lender. Make sure that you are aware of all the stipulations involved in a loan prior to taking it.
As you can now see, there are many variables to consider regarding student loans. The decisions you make now will affect you long after graduation. Be a smart borrower.
