Student loan debt can have a huge impact on a person’s finances. The debt can vary depending on the type of loan, scholarships awarded, and the type of school you attend. Private schools normally cost at least twice as much as public schools do, and attending an out-of-state school can also rack up more tuition fees than attending an in-state school. Paying off student loans can be difficult as a new graduate still on the search for jobs. Fortunately, the Institute for College Access and Success provided some tips on how to make the process easier, as well as some things we may not know about in general when it comes to student loans.
A grace period is the time after completion of school that you have to begin making payments to your student debt. Some grace periods vary depending on the loan but most are 6 to 9 months. After this, you have the option of Deferment. This is a way of postponing the payment or reducing the payment amount for a certain amount of time depending on eligibility. With a deferment you may not being responsible to pay the interest that acquires on the loan either. Some people may have more than one source of debt, in which case a consolidation loan may be the right fit. This is a loan in which you can combine the rest of your loans and make one single monthly payment, instead of several payments to different sources. The cons to consolidation loans is that it extends the time of repayment, increasing the amount of interest being paid.
- Grace period- the time after completion of school that you have to begin making payments to your student debt.
- Deferment- a way of postponing the payment or reducing the payment amount for a certain amount of time
- Consolidation loan- a way of combining all loans into one monthly payment with a fixed interest.
TICAS. The Top 10 Student Loan Tips for Recent Graduates. Retrieved from https://ticas.org/content/posd/top-10-student-loan-tips-recent-graduates