When you take out a student loan, you are agreeing to repay the principal balance of the loan as well as all accrued interest. If you have an unsubsidized loan, interest typically begins to accrue as soon as the loan is disbursed. If the accrued interest is capitalized, it means the interest is added to the principal balance and interest starts to accrue on the new, larger amount.
Because interest can play a significant role in the amount you owe on your student loan, it is important to consider making interest-only payments while you are still in school. Consider the following:
- By making small interest-only payments while you are in school, you will save yourself from having to repay a much larger amount of money when you graduate from school.
- Making payments while in college will require you to make sacrifices and learn to live on a budget. It will also teach you to be disciplined and get you into the habit of making timely payments toward your student loan each month.
- Once you learn to live on a budget and develop the habit of making your loan payments, you may want to consider automating your payments. It can be a great tool for keeping your loan payments on track and some lenders give you a discount for choosing this option.
- If you discover after graduation that you are unable to make your monthly payments, seek help in obtaining a manageable repayment plan.
To learn more about taking control of your student loan debt, call the legal team at DeLadurantey Law Office, LLC.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on student loan debt, Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.