Most people who have graduated have a loan of some sort. It is important to have knowledge about student loans prior to getting one. The following article will ensure you are properly prepared.
Be mindful of any grace period you have prior to having to repay your loan. This is generally a pre-determined amount of time once you graduate that the payments will have to begin. Being aware of this will help you get a jump start on payments, which will help you avoid penalties.
Always keep in touch with all of your lenders. Make sure you update them with your personal information if it changes. It is also important to open and thoroughly read any correspondence you receive from your lender, whether it is through traditional or electronic mail. Take any requested actions as soon as you can. If you miss something, it may cost you.
If an issue arises, don’t worry. Unemployment or a health problem can happen to you from time to time. Keep in mind that forbearance and deferment options do exist with most loans. Just remember that interest is always growing, so making interest-only payments will at least keep your balance from rising higher.
Keep in mind the time that’s allotted to you as your grace period from when you get out of school until you have to start paying back the loan. For Stafford loans, the period is six months. Perkins loans offer a nine month grace period. Other student loans’ grace periods vary. Know what you have to pay when, and pay on time!
If you are going after an advanced degree, know that you’re probably going to need financial help at some point. Most people will have to deal with them until the price of education decreases. Now that you are armed with some useful tips to mitigate the damage student debt does to your financial future, you should feel much more confident.