Student loans play an important role when it comes to financing student education. It helps needy students get through college education and then repay later. Therefore, if you are a student, you should repay your loan so that another student can be financed. Do not let the fees or penalties scare you. Read Huffington Post for more information, Put your consolidated loan under control. The following simple tips are all you need in controlling your student loans.
Ways to control student debts
Know your loans
It’s important that you track your loan balance, the lender, and interest. These key factors determine your loan repayment period as well as forgiveness. If you have no idea where to access such information, you can visit www.nslds.ed.gov for more information. If your loan status is not listed here, then it is not public (non-federal). In addition, if you cannot locate any record, contact your school.
Know the grace period
A grace period is a time allowed for a loan repayment. Therefore, you need to keep track of your grace period by first understanding the kind of loan in question. For instance, federal Stafford loans have a six months grace period. However, the grace period varies for private loans.
Constant communication with the lender
Open a communication medium with your lender. If he or she intends to reach you, it should be official and as quick as possible. This will ensure that crucial information on loans is availed to you for any corrective measure if necessary.
Choose a flexible repayment option
When your loan becomes overdue, your loan repayment will automatically be placed under a 10-year repayment plan. If you feel that this plan is not good for you, you can apply for an extension. However, an extension of more than ten years will attract more interest but low installments.
Repay more if our can
If you are in a position to service your loan at once, then do so without hesitating. This not only reduces the principle amount but also the number of your years you are going to repay your loan.
To consolidate versus not to consolidate
To consolidate your loan is to combine all your loans into one with a monthly installment and one fixed interest. Learn the pros and cons of each to make an informed decision.
Repaying your student loan is important. It creates a good credit history and reduces your credit burden. Learn how to manage your loan using the above tips and you will be on the safe side.…