 |
|
|
|
|
|
 |
|
|
|
| 10 Tips to Help You Manage Your Student Loans |
|
By Brooke Heath
For many, taking out student loans to compensate for the growing cost of attending school is a common part of the college experience. If you fall into this category, read on to learn about 10 tips that can help both experts and rookies alike with managing the student loan game.
#1 - Do Your Research!
It is important that prior to signing on the dotted line, you know what you are committing to. Not all loans have the same interest rates, repayment terms and benefits, so educate yourself on the kinds of loans that are available.
#2 - Apply for Federal Loans First
From a money-saving standpoint, you should apply for Federal Loans first, because they have lower interest rates than Privates Loans. Federal Loans are the largest source of educational loans available, and are usually the first choice for borrowers. Federal Loans are also backed by the Federal Government and offer a portion of loans that can be subsidized, in which the Federal Government pays the interest while the borrower is in school and/or in deferment.
#3 - Shop Around for Lenders
Just like you would shop around and compare prices before buying a car or making another large purchase, you should also shop around and compare rates on your student loans. When shopping, look for a lender who will offer you competitive rates, flexible repayment options and customer incentives. Also, look for a lender who will take the time to address any questions or concerns that you might have and will walk you through the borrowing process.
#4 - Know When to Put the Breaks on Your Borrowing
While student loans are a good investment into your future, they still require being repaid once you are out of school. As a rule of thumb, only borrow what you absolutely need to. This will help you to avoid problems with excessive student loan debt in the future.
#5 - Make Payments While In School
If you can afford to, make payments on your student loans while you are still in school. At the very least, pay on the interest on your unsubsidized loans. This will keep your total debt from growing to big to handle while you are in school.
#6 - Track Your Debt
Once you start borrowing student loans, keep track of how much debt you accrue. It is easy to get confused about how much you owe, particularly if you borrow from a number of different lenders. This will help you to know the total amount that you owe, what your interest rates are, and who to contact should you have any questions or concerns about your loans. Knowing your balance will also keep you grounded when you feel the need to take out more loans. A great way to track your debt is to take advantage of Student Loan Foundation's free detailed, student loan reports. This report will provide you with a personal summary of your student loans.
#7 - Look to Uncle Sam for Help
There are tax breaks available to those who take out student loans. Meet with your CPA to discuss your options. You may be able to deduct as much as $2,500 of the annual interest that you pay on your loans.
#8 - Consolidate to Save Time and Money
Once you are out of school, consolidate your Federal Student Loans and/or Private Student Loans. Consolidating your outstanding student loans with a consolidation company such as Student Loan Foundation's partner company, EdFed, will give you just one loan, with one, low monthly payment, that you will make to just one lender. Consolidating with EdFed can also save you thousands of dollars over the life of your loans.
#9 - Take Advantage of Deferment and Forbearance Options
If at any time during your repayment period you are unable to make your monthly payments, contact your lender immediately to take advantage of Deferment and Forbearance options. These options will allow you to temporarily postpone your monthly payments. But be ware, if your loans are not subsidized, interest will still accrue even when you are not making the monthly payments.
#10 - Look into Loan Forgiveness Options
Forgiveness programs are available to those in various fields of study and can compensate part or all of your school loans depending on the field that you are going into. These programs are provided by the federal government, state government, military and other various organizations and agencies throughout the country. They offer part or full reimbursement on school loans in exchange for a commitment from recent graduates to work in a field or area pre-determined by the organization.
Free Student Loan Report
Student Loan Foundation has provided these tips to aid you with managing your student loans. To obtain your free student loan report, visit: https://www.studentloanfoundation.org/slfrequestreport.php
|
|
|
Shoot for the moon. Even if you miss it, you will land among the stars.