The summer before college can be a stressful for students. They have to figure out who their roommates are going to be. They also have to figure how they are going to pay for their college. Sixty-six percent of people will have to take out a student loan to fund their college.
You have probably heard a lot of student loan horror stories. However, there are things that you can do to avoid letting student loans consume your loan.
Only Borrow Federal Loans
There are two types of loans that you can get, which are private and federal. It is best to get a federal loan because you can get one without having good credit. They also come with income-based repayment plans.
You can get a subsidized or unsubsidized student loan. The subsidized student loan will accumulate interest while you are in school.
Borrow What You Need
The most important thing that you have to remember about student loans is that you will have to eventually pay them back. That is why you should only borrow what you can afford. Some schools will offer you more than what you need. However, you do not have to accept it.
Know Who Your Servicer Is
The federal government will handle your federal student loans. Your lender will handle your private student loans. In some cases, they are transferred to another company.
You should find out who will be servicing your student loans while you are still in school. This is also who you will have to talk to if you have trouble making student loan payments. Keep in mind that you will have a six-month grace period before you start repaying your loans. However, if you want to start repaying your student loans before the six-month grace period, then you can save on interest.