If you have checked out the costs of college tuition lately, chances are you were shocked at how expensive it is. Not many people are able to pay college tuition nowadays without financial aid. If you’re trying to figure out how you’re going to swing it, you might be in the market for a student loan.
Always know all of the key details of any loan you have. You must pay close attention to how much you owe, what the terms are and the name of your lending institution. These details all affect loan forgiveness and repayment options. This is must-have information if you are to budget wisely.
If you have extra money at the end of the month, don’t automatically pour it into paying down your student loans. Check interest rates first, because sometimes your money can work better for you in an investment than paying down a student loan. For example, if you can invest in a safe CD that returns two percent of your money, that is smarter in the long run than paying down a student loan with only one point of interest. Only do this if you are current on your minimum payments though and have an emergency reserve fund.
Use a process that’s two steps to get your student loans paid off. First you need to be sure that you know what the minimum payments for the loans will be each month. Pay extra on the loan with the highest interest rate. It’ll help limit your spend over a given time.
If you’re having trouble arranging financing for college, look into possible military options and benefits. Even doing a few weekends a month in the National Guard can mean a lot of potential financing for college education. The possible benefits of a full tour of duty as a full-time military person are even greater.
Be mindful of the exact length of your grace period between graduation and having to start loan repayments. If you have Stafford loans, you will usually have about 6 months. A Perkins loan gives you a nine month grace period. Other student loans’ grace periods vary. Know when you are expected to pay them back, and make your payments on time!
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.
To minimize your student loan debt, start out by applying for grants and stipends that connect to on-campus work. Those funds do not ever have to be paid back, and they never accrue interest. If you get too much debt, you will be handcuffed by them well into your post-graduate professional career.
To keep the principal on your student loans as low as possible, get your books as cheaply as possible. This means buying them used or looking for online versions. In situations where professors make you buy course reading books or their own texts, look on campus message boards for available books.
To help maximize the money you get from student loans, sign up for additional credit hours. Though full-time student status requires 9-12 hours only, if you are able to take 15 or more, you will be able to finish your program faster. This will keep your loans to a minimum.
Student loans are able to make college something most people can get into, but they have to be paid back. A lot of people borrow money to get into college without realizing that they need to come up with a repayment plan. With the advice from this article, you can get a college education without bankrupting yourself.