This article discusses everything that you should know about student loans.
If you don’t want to hire a student loan counselor then it is imperative that you read this article!
The Types of Student Loans
Private loans, Federal loans are the two types of student loans.
Federal loans can be deferred. Private loans have different terms.
A Federal Perkins Loan is a long term student loan with low interest. The college or university collects the payments. You should discuss and understand the terms of a Federal Perkins Loan with your college or university.
A Federal Family education loan or a Stafford loan consist of subsidized or unsubsidized terms. With a Subsidized Stafford Loan the government covers the interest on your student loan as long as you are enrolled in school and taking 6 or more credits. You can qualify by meeting the criteria for financial need. On the contrary with an Unsubsidized Stafford Loan the student must pay the interest on the loan while they are enrolled in school.
Another type of student loan is parent loans for undergraduates. No credit check is
made for federal student loans. But a credit check is required for parent loans.
Know your Student Loan Payment Options
You can increase the length of your student loans payment time to lower your monthly payments. You can also default payments your student loan payments. To default your student loan means: to not make any payments or arrangements for payments for at least 270 days. You can deffer your Student loans which means: put making payments off for some time. If you have a federal subsidized loan and you default your loan will not accumulate interest. This is good because the amount that you owe on your student loan will not increase. However once you start making the payments again you can expect the interest to began to go up as well.
Know your Student Loan Grace Periods
There are different options during the student loan grace period. The student loan grace period lasts for the first 3 months after you graduate college. This is the time to take advantage of your student loan repayment options. Find more information regarding student loan grace periods by referring to the resource box.
Know when to Consolidate Student Loans
Well the truth is student loan consolidation is not the answer for everyone who has a student loan. This is something that many students don’t know.
Federal loans should consolidated separately from private loans because this allows you to get the best possible interest rates for each type of loan. It may be more beneficial in some cases not to consolidate student loans because the payment plan may be extended so long it turns into a mortgage (30 year) . Student loan consolidation counselors get paid the big bucks to help you figure out this information. Don’t spend another penny on a student loan counselor when you can get free information and free consultations from student loan lenders all over.