Suzana Mikolova / February 15, 2019
Perhaps you have recently experienced sticker shock concerning the cost of college these days. Most families simply can’t pay for it all by themselves. If you are looking for a viable means of going to college, then student loans are there to give you a hand.
Paying your student loans helps you build a good credit rating. Conversely, not paying them can destroy your credit rating. Not only that, if you don’t pay for nine months, you will ow the entire balance. When this happens the government can keep your tax refunds and/or garnish your wages in an effort to collect. Avoid all this trouble by making timely payments.
When you begin to pay off student loans, you should pay them off based on their interest rates. Try to pay the highest interest loans to begin with. Any extra cash you have lying around will help you pay these quicker. The is no penalty for early repayment.
Before accepting the loan that is offered to you, make sure that you need all of it. If you have savings, family help, scholarships and other types of financial help, there is a chance you will only need a portion of that. Do not borrow any more than necessary since it will make it harder to pay it back.
Get many credit hours each semester. As much as 12 hours during any given semester is considered full time, but if you can push beyond that and take more, you’ll have a chance to graduate even more quickly. This helps you keep to aminimum the amount of loan money you need.
To keep your student loan load low, find housing that is as reasonable as possible. While dormitory rooms are convenient, they are often more costly than apartments near campus. The more money you have to borrow, the more your principal will be — and the more you will have to pay out over the life of the loan.
Bad credit will mean you need a cosigner on a private loan. Making payment on time is very important. If you don’t keep up with payments on time, your co-signer will be responsible, and that can be a big problem for you and them.
One form of loan that may be helpful to grad students is the PLUS loan. They bear an interest rate of no more than 8.5%. While it may be more than other loans, it is cheaper than you will get through a private lender. These loans are much better suited to an older student that is at graduate school or is close to graduating.
If you want to give yourself a head start when it comes to repaying your student loans, you should get a part-time job while you are in school. If you put this money into an interest-bearing savings account, you will have a good amount to give your lender once you complete school.
Many people could not afford college without student loans; however, paying them back can be a problem. You can’t borrow for today without thinking about tomorrow. This article can put you in a strong financial position.
FILED UNDER : Department Of Education Website