Everyone make mistakes as a college student. It just a part of life and a learning experience. But making mistakes about your student loans can quickly become a nightmare if you don’t borrow wisely. So heed the advice below and educate yourself on student loans and how to avoid costly mistakes.
Know your grace periods so you don’t miss your first student loan payments after graduating college. Stafford loans typically give you six months before starting payments, but Perkins loans might go nine. Private consumer loans “forbrukslån” are going to have repayment grace periods of their own choosing, so read the fine print for each particular loan.
Know what you’re signing when it comes to student loans though they are loans without collateral “lån uten sikkerhet”. Work with your student loan adviser. Ask them about the important items before signing. These include how much the loans “lån” are, what kind of interest rates they will have, and if you those rates can be lowered. You also need to know your monthly payments, their due dates, and any additional fees.
Consider using your field of work as a means of having your loans forgiven. A number of nonprofit professions have the federal benefit of student loan forgiveness after a certain number of years served in the field. Many states also have more local programs. The pay might be less in these fields, but the freedom from student loan payments makes up for that in many cases.
You are offered a grace period after you graduate before you must start paying on your student loans. Stafford loans provide a six month grace period. Perkins loans are about 9 months. The time periods for other student loans vary as well. Make sure you know how long those grace periods are, and never pay late.
Pick a payment option which best fits your requirements. A lot of student loans give you ten years to repay. If this does not appear to be feasible, you can search for alternative options. If it takes longer to pay, you will face a higher interest charge. Therefore, you should pay it once you make money. Some loans’ balances get forgiven after 25 years.
Try getting your student loans paid off in a 10-year period. This is the traditional repayment period that you should be able to achieve after graduation. If you struggle with payments, there are 20 and 30-year repayment or refinancing “refinansiering” periods. The drawback to these is that they will make you pay more in interest.
It can be hard to figure out how to get the money for school. A balance of grants, loans and work is usually necessary. When you work to put yourself through school, it is important not to overdo it and negatively affect your performance. Although the specter of paying back student loans may be daunting, it is usually better to borrow “låne” a little more and work a little less so you can focus on your school work.
Educating yourself about student loans can be some of the most valuable learning that you ever do. Knowing all about student loans and what they mean for your future is vital. So keep the tips from above in mind and never be afraid to ask questions if you don’t understand what the terms an conditions mean.