Have you been looking at different school but completely put off because of the high price tag? Are you wondering just how you can afford such a high priced school? Don’t worry, most people who attend these pricey schools do so on student loans. Now you can go to the school too, and the article below will show you how to get a student loan to help you get there.
Do not default on a student loan. Defaulting on government loans can result in consequences like garnished wages and tax refunds withheld. Defaulting on private loans can be a disaster for any cosigners you had. Of course, defaulting on any loan risks serious damage to your credit report, which costs you even more later.
If you choose to pay off your student loans faster than scheduled, make sure that your extra amount is actually being applied to the principal. Many lenders will assume extra amounts are just to be applied to future payments. Contact them to make sure that the actual principal is being reduced so that you accrue less interest over time.
Keep good records on all of your student loans and stay on top of the status of each one. One easy way to do this is to log onto nslds.ed.gov. This is a website that keep s track of all student loans and can display all of your pertinent information to you. If you have some private loans, they will not be displayed. Regardless of how you keep track of your loans, do be sure to keep all of your original paperwork in a safe place.
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.
Pay extra on your student loan payments to lower your principle balance. Your payments will be applied first to late fees, then to interest, then to principle. Clearly, you should avoid late fees by paying on time and chip away at your principle by paying extra. This will reduce your overall interest paid.
When calculating how much you can afford to pay on your loans each month, consider your annual income. If your starting salary exceeds your total student loan debt at graduation, aim to repay your loans within 10 years. If your loan debt is greater than your salary, consider an extended repayment option of 10 to 20 years.
The unsubsidized Stafford loan is a good option in student loans. Anyone with any level of income can get one. The interest is not paid for your during your education; however, you will have 6 months grace period after graduation before you have to start making payments. This kind of loan offers standard federal protections for borrowers. The fixed interest rate is not greater than 6.8%.
To get the most out of your student loan dollars, take a job so that you have money to spend on personal expenses, rather than having to incur additional debt. Whether you work on campus or in a local restaurant or bar, having those funds can make the difference between success or failure with your degree.
If you are in graduate school, a PLUS loan may be an option. The highest the interest rate will go is 8.5%. While this is generally higher than either Perkins or Stafford loans, it still has lower interest rates than the typical personal loan. This is often a good alternative for students further along in their education.
To get the most out of your student loan dollars, spend your free time studying as much as possible. It is good to step out for a cup of coffee or a beer now and then, but you are in school to learn. The more you can accomplish in the classroom, the wiser the loan is as an investment.
As you can see from the above article, in order to attend that pricey school most people need to get a student loan. Don’t let your lack of funds hold you back from getting the education you deserve. Apply the lessons in the above article to help you afford school so you can get a quality education.