Student Loans: Tips For Students And Parents

Many people are afraid of the process of getting a student loan. This is frequently due to lack of information. This article can clarify everything there is to know about student loans.

Be sure you know about the grace period of your loan. Each loan has a different grace period. It is impossible to know when you need to make your first payment without looking over your paperwork or speaking with your lender. Be sure to be aware of this information so you do not miss a payment.

Keep in contact with the lender. Keep them updated on any change of personal information. Also, be sure you immediately read any kind of mail you get from a lender, whether it’s electronic or paper. If any requests are made or important stipulations are shared with you, act on them right away. Missing an important piece of mail can end up costing a great deal of money.

If you are moving or your number has changed, make sure that you give all of your information to the lender. Interest begins to accrue on your loan for every day that your payment is late. This is something that may happen if you are not receiving calls or statements each month.

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.

Never ignore your student loans because that will not make them go away. If you are having a hard time paying the money back, call and speak to your lender about it. If your loan becomes past due for too long, the lender can have your wages garnished and/or have your tax refunds seized.

Try getting your student loans paid off in a 10-year period. This is the traditional repayment period that you should be able to achieve after graduation. If you struggle with payments, there are 20 and 30-year repayment periods. The drawback to these is that they will make you pay more in interest.

There is really no reason to feel nervous about student loans. You should know how to make smart decisions about student loans now. Follow these tips carefully to find and apply for the right student loans.

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