Student loans are a good avenue to explore for those who are financially short of affording tertiary education.Taking out a student loan however comes with responsibilities such as avoiding fees and extra interest costs, keeping your payments affordable and protecting your credit rating. Below are some tips which can assist you in dealing with the subject of student loans.
Know Your Loans – Its important to keep track of the lender, balance and repayment status for each of your student loans.These details determine your options for loan repayment and forgiveness. If you are not sure, ask your lender.
Compare Financial Aid Offers – The market is awash with many service providers who offer financial aid packages. It is important that you assess your financial aid packages by comparing offers and reading the fine print.
Borrow Only What You Need – To figure out how much money you may need to borrow, look at a colleges cost,your cost of living,your family’s contribution and your finance available.You don’t have to accept the entire amount of a loan you are offered.
Know Your Grace Period – Different loans have different grace periods. A grace period is how long you can wait after leaving school before you have to make your first payment.The grace periods for different loans varies, so read through your paperwork or contact your lender to find out.
Consider Working Part – Time – You wont need to borrow as much if you have a part time job to cover some of your expenses. You may even qualify for a work-study program at your college.
Consider Making Interest Payments While in College – You can start making payments on any need based loans while you are in college. You don’t have to pay alot, and this will allow you to reduce the total amount you will have to pay.
Stay in Touch with Your Lender – Whenever you move or change your phone number or email address,tell your lender right away. If your lender needs to contact you and your information isn’t current,it can end up costing you a bundle. Open and read every piece of mail that you receive about your student loans. Ignoring bills or serious problems can lead to default, which has severe ,long term consequences.
Use a Repayment Calculator – You must plug the information about your loan into a repayment calculator or even use your service providers online account tools. Learn how much you need to pay per month in order to pay off your loan within a specific amount of time.
Consider Enrolling in Auto-Debit – When you enroll in auto-debit,your student loan service provider automatically deducts your payment from your bank account each month.There are several benefits to this payment method, and some lenders may give you a discount just for enrolling.