Top 10 Tips For Recent Graduates Student Loans
If you are in the process of graduating, or just took a break from college, these tips are designed to help you stay current on their student loans. These can help you avoid paying costs and additional interest rates, protecting your credit rating and preserving their eligibility for more financial aid.
1. Know your mortgage: It is important to know who is the lender for each loan, what is the balance of the loan, and payment status. Often these details determine the options for loan repayment, forgiveness, and discounts. If not aware, visit www.nslds.ed.gov. You will need the key number (PIN) of your FAFSA. No problem if you do not remember the key number you can always request a duplicate to the Department of Education. Once you register and login to the page you can find your federal loans – the total amount of your loan, lenders and condition of each loan payment. If any of your loans is not on the list, these are probably private loans (not federal). Try to find the documents you signed, if you can not locate any documents contact the university or school.
2. Know your grace period: Different loans have different grace periods (the period between leaving or graduating from college and the date on which expires the first payment). Perkins loans for the grace period is nine months for Stafford and most other federal loans is six months.
3. Choose the correct payment option: When you overcome their federal loans, loan payments will be based on the standard payment plan of 10 years unless you specify otherwise. If you have difficulty covering the standard payment, there are delays that can help and other payment plans and options, including graduation and deferred payments. Graduated payments start low and increase every two years. The deferred payments extending the payment period, and pay less each month, but ends up paying more in interest. Another option is to enroll in a Payment Plan Subject to your income, where your loan payments are based on your income and not have to pay more than is within their budget. Since July 2009 will be available Payment Program based on income that is more generous than the current options related to income.
4. Stay in touch with your lender: When you move or change your phone number be sure to inform your lender immediately. If they need to communicate with you about the loan and personal details are not current, this condition can negatively affect your payment and may end up costing you a fortune. If you are receiving unwanted calls from your lender or a collection agency, do not bury your head in the sand! Talk to them about the matter: the lenders should work with borrowers to resolve problems. Ignoring the bills or serious problems can cause your loan balance increases quickly and dramatically.
5. Remember you have options: If you are having trouble making payments, do not be panic. Arises or not unemployment, health problems, or return to school, there are legitimate ways to postpone their payments. You can write or call your lender and request a deferment for certain situations, and the only interest will accrue on unsubsidized loans. Tolerance can also be used to temporarily stop or reduce payments, but beware: the interest continues to accumulate in both the subsidized loans as in unsubsidized.
6. Do not get in trouble! Ignore your student loans has serious consequences that can last a lifetime. Loans are considered delinquent if not paid within a period ranging between nine months and 15 days. A loan that is still unpaid after that time are considered delinquent. Once your loan is considered delinquent: the total loan balance (principal and interest) due; causing a huge black mark on your credit report, you no longer qualify for federal education grants or loans, you must be an amount high collection costs (up 18.5% in the total loan balance), you can garnish your wages (and eventually your Social Security check) and also can empower your tax refund check. Final point: avoid arrears. Talk to your lender if you are in danger of default. You can also find useful information in studentloanborrowerassistance.org.
7. If you can reduce the principal balance: When making a payment on your loan, has many former covers all costs for delay, then finally the interest and principal balance. If you can pay more than their required monthly payment, you can lower the principal balance, which will reduce the amount of interest you have to pay. Include a written request to your lender to ensure that the additional amount is applied to the principal. Be sure to keep copies of their documents after paying and check to make sure the payment was applied correctly.
8. Pay first loans more expensive: When it comes to keeping up with monthly payments, you can not afford to miss a loan payment even smaller. But if you are considering fully pay one or more of one of their loans or trying to reduce the principal, beginning with the one with the highest interest rate. If you have private loans in addition to federal loans, private loans begin with, as almost always have a higher interest rate and lack the required payment options and other benefits that have federal loans.
9. What does consolidation for you: In addition to the accounts of his student loan, you may get sales information in the mail or online by promising lower payments on loans or other benefits if you “consolidate” their loans. A loan consolidation combines multiple loans into one simple payment per month with a single interest rate. However, not all deals are created equal and you can consolidate only once, therefore, do your research to see if consolidation is right for you. If so, be sure to look until you get the best conditions. Important: do not combine when you consolidate federal loans with private and you will lose all the protections of the borrower – such as tolerance and delay – that come with federal loans.
10. Loan Forgiveness: There are several programs that forgive some or all of their student loans if you make some kind of work, such as a school teacher in low-income, or serve in AmeriCorps National Guard or the Navy. There is also a new and expanded federal program for public service loan forgiveness to take effect in July 2009. Each program operates independently and has its own requirements.
Filed under: student loans
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