Interest payments. Unless you are eligible for a subsidized loan (the government pays the interest), your student loans immediately begin accruing interest. Usually your interest will capitalize, which means the outstanding interest is added to the principal balance of your loan, resulting in a larger principal amount that is due. Thus, if it is possible, you should make interest payments (even partially) while you are still in school and save yourself a fortune.
Private Loans. While private loans can be helpful, they should be your last option. Private loans typically have higher interest rates and stricter payment terms than federal loans. If you must take out a private loan, be sure to research them thoroughly to find the one with the best terms.
Co-Signers. Avoid having your parents or anyone else co-sign on your student loans. It makes your co-signor responsible to pay your loan if you are unable to and if you miss a payment, it negatively impacts their credit.
Keep your contact information current. If you move or otherwise change your contact information, let your student loan servicer know. They will be able to track you down, eventually, but you could miss important notices in the meantime. You don’t want to miss a payment or make it to the wrong party and have your credit score suffer.
Payment plans. If you have a federal student loan, there are a variety of repayment plans available. Obviously, you want to choose a plan that you can afford that pays the loan as quickly as possible. Be sure you understand all of the implications of the plan you select, including how interest accrues and how long it will take you to pay the loan in full.
If you have questions regarding student loans or you need assistance with a defaulted student loan, call DeLadurantey Law Office, LLC today.
At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in student loan law and defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us on Facebook.