Federal student loan advice
Updated on October 14, 2019
Federal student loans are a good option if you need money to cover your attendance costs in college. The federal government issues them, and they have more benefits than private student loans. With the rising cost of college tuition, it can be challenging to finish school without financial assistance.
Unfortunately, student loan debt is still an ongoing issue in the USA, with an estimated total of $1trilion. Therefore, you need to think about cutting down your costs and how your student loan debt affects your life after school.
Every dollar going into loan repayment is a dollar less for your mortgage, buying a vehicle and raising a family, making your financial situation tight.
Here is some expert advice to help you reduce the burden of your student loan.
1. Know your loan
As a new grad student, get organized by understanding the full cost of your loan. This includes the interest rates, details, and amount of your loan. Make sure you know how long your loan term runs for and the grace period for repaying your loan.
Having all this knowledge will help you plan your repayment options by estimating your monthly payments.
2. Be in touch with your loan servicer
Before repayment starts, ensure you know who your loan servicers are. For federal loans, you can go to the National Student Loan Data System and identify your loan servicer.
Additionally, keep in touch with your servicer to avoid missing a payment. For instance, if you change your college email to a personal one, notify them of this change.
3. Pay off your interest while in school
Most federal student loans come with a grace period of six months after you leave school, before making repayments. However, if you can pay off small amounts while in school, you can cut down your loan costs.
4. Take what you need
Many borrowers take out more student loans than they need, increasing their likelihood to default. Instead, estimate your overall costs and keep borrowing to a minimum.
Student Loanify can help you with your federal loan application by finding the best option for you. Contact us today for more information about federal student loans.