Few important things you need to know about private loans. In order to get a good education today most people will need to apply for student loans. Many schools are so expensive, and without a loan, it becomes almost impossible to pay for the school you would like to attend. This is where good article such as the one below come into play, as it will show you how to apply for student loans, so keep on reading!
Keep in mind that there’s a grace period to follow before it’s time to pay a loan back. The grace period is the amount of time between your graduation date and date on which you must make your first loan payment. You can use this time to start saving up for some initial payments, getting you ready to avoid any penalties.
Be careful when consolidating loans together. The total interest rate might not warrant the simplicity of one payment. Also, never consolidate public student loans into a private loan. You will lose very generous repayment and emergency options afforded to you by law and be at the mercy of the private contract.
One form of loan that may be helpful to grad students is the PLUS loan. The interest rates on these are kept reasonable. Although it is higher than Perkins and Stafford Loans, you still get a much better rate than one that is private. It’s a good option for students pursuing higher education.
If the financial aid package you have will not cover all the expense of attending the school of your choice, a private loan may be necessary. Do not agree to the first loan you are offered. Check out multiple loan programs and compare them.
Make sure you keep track of your loans. You should know who the lender is, what the balance is, and what its repayment options are. If you are missing this information, you can contact your lender or check the NSLDL website. If you have private loans that lack records, contact your school.
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.
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.
As stated in the above article, most people need to some sort of student loans to help pay for their schooling. Without good advice on what student loans are available to you, it can become a complicated process. Don’t think you can’t attend the school of your dreams, because you now have solid tips that will help you get the student loans you need.