Getting loans for college is something almost everyone has to do at some point due to the high costs of tuition, room and board, and books. Getting loans though shouldn’t be something that you do without knowing a little about them. In this article I will tell you about 7 things that you should take into consideration when taking out a loan as a college student and it’ll have advice for college graduates.
1. Mind your grace period.
Most loans have due dates, although you have something that’s called a grace period as well. What that means is that you usually get about ten days after your due date to pay the loan amount back. Knowing this, you should definitely take into consideration your loan grace periods when getting a loan. It’s very important that the loan that you get comes with one to ensure that you’re never charged for late payments if any emergency should arise.
2. Consolidate cautiously
If as a college graduate you have numerous loans to pay back you should think about consolidating your loans into one payment, but be aware that this might come with a higher interest rate sometimes or less amount of time to pay back what you owe. Always make sure to consolidate carefully and read the fine print on all the documents you get.
3. Shop around for the best deal.
Most college loans these days are offered by banks or organizations that are just trying to help you get your degree without having to worry about money. Don’t be fooled by this attitude and just get a payment from anyone. Make sure that you go around your local area and at least ask 3 banks or loan houses for the options you might have before signing anything.
4. Dig for repayment discounts.
Sometimes if you get a high GPA while you’re in college you can get a discount from your loan providers. Make sure to check if you qualify for any of these discounts as they might be able to help you immensely.
5. Prepay your loan.
This is the last tip for college loan borrowers and college graduates with debt to pay back. If you are barely getting a loan or if you’re straight out of college and you still have some time to pay back, then consider saving up to prepay your loan or start giving monthly payments if it’s an option for you. This will help ease your tension in the months/years to come.
I hope that this advice is something that you can use. Good luck college loan borrowers!