Student loans can add up rather quickly, so it’s important to keep them under control. Interest will accumulate at a steady pace. Failure to make payments on time or making late payments can have some dire consequences.
To begin, it’s important to know that the interest on student loans will not accrue while you’re attending school. So, the principal balance owed will remain the amount you have borrowed thus far in your educational career. Student loan payments will not be due during your time at school. So, focus on your studies. Do not worry about student loans until after graduation.
Even after graduation, you will not be required to immediately begin paying back federal student loans. There is a grace period involved with these loans. For Federal Stafford loans, the grace period will be six months. Federal Perkins loans have a grace period of about six months. During this time frame, no student loan payments will be due. This time should be spent finding a good job within your field. Finding this job will be important. It will determine whether you can afford to make your student loan payments once the bills begin arriving.
It is after this grace period that the monthly bills will start coming. Federal loans have a standard repayment program of ten years, and repayment will begin immediately following the grace period. The first payment will be very important. Don’t miss it! Don’t be late! It is imperative to begin your repayment with a clean record.
Overall, there will be 120 payments made to cover your student loan debt over the standard time frame of ten years. This means there will be a monthly bill which you must pay. Do your absolute best to pay the full amount billed, and pay it on time. Any missed or late payments will have an adverse affect on your debt. Interest will be adding up while you’re repaying. The longer it takes to pay off those loans, the more money you’ll be paying in the long run due to interest.
It is important for you to know that there are options available to you if you are struggling with your student loan debt. There are different repayment programs you could sign up for. All it takes is a simple phone call to your loan servicer. They will consult with you on the best repayment option for your specific situation. They’re not out there to bring you further into debt. They want to make sure you can handle the payments.
Refinance is another option for someone struggling with loans. With refinance, multiple loans can be consolidated into one lump payment every month. This may make it easier for many people to pay on time. However, make sure you research and shop around. Different refinance options can make your monthly payments rise, and interest rates could become variable. This means they can change based on the current rates. Fixed rate plans are the right way to go.
Check out the other articles on this webpage for more information for struggling graduates. There are many different options to help you get out of debt. There are also forgiveness programs offered by the government to cancel some of the loan based on employment or military status. There are many ways to keep student loans under control. It just requires diligence and research.