Student loans can lead to a dream education, but that can turn into a nightmare if you’re not smart about it. It’s best to make yourself knowledgeable on the subject of student loans before signing any paperwork. Read on for important information you ought to know prior to getting a loan.
Know your grace periods so you don’t miss your first student loan payments after graduating college. Stafford loans typically give you six months before starting payments, but Perkins loans might go nine. Private loans are going to have repayment grace periods of their own choosing, so read the fine print for each particular loan.
Speak with your lender often. Anytime there are changes to your personal information such as where you live, phone number, or email, it is important they are updated right away. Anytime you receive a phone call, email or paper letter from your lender, pay attention to it as soon as it is received. Do whatever you must as quickly as you can. It can be quite costly if you miss anything.
If you have taken a student loan out and you are moving, be sure to let your lender know. It is important for your lender to be able to contact you at all times. They will not be too happy if they have to go on a wild goose chase to find you.
Once you leave school and are on your feet you are expected to start paying back all of the loans that you received. There is a grace period for you to begin repayment of your student loan. It is different from lender to lender, so make sure that you are aware of this.
Pay attention to how long the grace period is after your graduation before you student loan has to be repaid. Six months is usually the length for Stafford loans. Perkins loans have a nine-month grace period. Other student loans’ grace periods vary. Know precisely when you need to start paying off your loan so that you are not late.
If you want to apply for a student loan and your credit is not very good, you should seek out a federal loan. This is because these loans are not based on your credit score. These loans are also good because they offer more protection for you in the event that you become unable to pay it back right away.
Try shopping around for your private loans. If you need to borrow more, discuss this with your adviser. If a private or alternative loan is your best bet, make sure you compare items like repayment options, fees, and interest rates. Your school may recommend some lenders, but you’re not required to borrow from them.
Student loans come with a lot of variables. What you do now will follow you around for quite some time after you graduate. Smart borrowing is the way to go, and the tips in the above article should be remembered when you go to apply for a student loan.