Top 10 FAQs for your Student Loans


Today we’re going to talk about the top
ten FAQ’s for your student loans. So you just graduated college, congratulations!
All of those years of hard work have finally paid off and you’ve received
your degree. I graduate with my Bachelor of Arts degree two years ago and it was
an exhilarating experience. Being able to walk across that stage is super
gratifying finally knowing one of my dreams has been met is amazing. After
commencement is over and graduation is official you’re about to acquire a
massive monthly payment – your student loans, but you’re not alone with this! A
whopping 44.7 million Americans are currently in student loan
debt. Here are the top 10 FAQs for those who will soon be entering the
student loan payment cycle. Before we go any further make sure to LIKE and
SUBSCRIBE! Let’s get this started. Number 1 is my loan federal or private?
Most likely you have a federal loan. Federal loans are funded by the US
government, whereas private loans are not Federal loans are more common and
they’re closely monitored. Federal loans are available to anybody who is a US
citizen or an eligible non-citizen. Go to the national student loan data system
website to get a list of your federal loans. If you have a loan with a cosigner
it’s most likely a private student loan. Most federal loans are not credit based
and therefore don’t call for a cosigner. If you can’t find your loan provider,
take a look at your annual credit report. You can receive a free credit report
once a year from annualcreditreport.com You can also go to your school’s
financial aid office because they’ll also have a record of your student loans
on file. Question number 2, what is the difference between a loan service or a
loan provider? A student loan servicer is a third party company that manages the
student loans for the loan provider. They are a middleman between you and your
lender. Most of your contact will be with your loan servicer. This is who you
should contact when you have questions about your student loan. Question 3, when do I have to start paying my loans? You have a six month grace period before you
have to start paying your loan back. This window of time is given
to you help you establish a full-time job. Not all private loans have a grace
period so be sure to check with your specific loan. You can start paying back
your loans at any time. Paying down your principal during this six-month period
will help you in the long run. Question number 4, how much will I need to pay?
The amount you’ll be required to pay will depend on your loan, if you have
federal loans you will receive a letter in the mail from My Federal Loan. This
will tell you how much you have to pay on your loans every month, the standard
repayment is a ten year period. You will be required to pay at least the minimum
payment on your loans every month. The standard ten-year repayment plan is the
common plan but that plan might not be the one that’s right for you. There are
also plans that are based on your income that are more flexible if you are not
making as much as you anticipated you would. This payment may take a little
longer for you to pay off but it will help you stay on top of your loans if
your income is uncertain. Question 5, how do I pay my monthly payment for my
loan? Log into your federal or private loan servicer account and to pay your
bill every month or better yet set up automatic payments. Setting up an
automatic payment will ensure that your bill is being paid on time every month.
Question 6, I’m going to graduate school right after I graduate can I
defer my loans? Yes, you can defer your loans if you are continuing your
education after graduation but make sure to check with your loan provider first
before you miss a payment. You can request the deferment from your student
loan provider but keep paying your loans until you get the okay. Question 7,
can I pay off my student loans early? There is no penalty to paying off your
loans early and paying more than the minimum monthly payment will help you in the
long term. Paying as little as $10 more a month will make a
difference in the life of your loans. If you get a bonus at work or some other
financial windfall consider putting some, or all of that money towards your
student loans to bring down your financial principal. This is some
short-term pain for a long-term benefit. Question 8, what if I can’t afford my
monthly payments? The most important thing to do is act
early if you are having difficulty paying your loans. Don’t wait until
you’ve missed a payment, contact your loan servicer early! Student loans are
never discharged even if you file for bankruptcy. You’ll have to pay your
student loans at some point. Making a late payment can incur up to a 6% late
fee. If you don’t pay your loans for 90 days you are considered a delinquent. If
you don’t pay your loans for nine months you’re placed in default. If your loans
are federal, the government can garnish your wages and Social Security benefits
up to 15%. There may also be other fees associated with not paying
your loan so it will put you even further behind. Question 9, how can I afford my
student loans when I have so many other monthly payments? You need to create a
budget for yourself. After graduation, you’re going to have many other payments
besides your student loans, such as your car payment, your rent, and utilities. Creating
a monthly budget that includes your student loans will help you keep track
of all your expenses and make sure that you don’t miss a student loan payment. If
you need help creating a monthly budget check out our link in the corner for
more information. Question 10, is my student loan debt worth it? My personal
answer to this is yes! Your student loan payment might seem unbearable when you first graduate college and don’t have a full-time job, but it will be worth it for
your future when you finally land that full-time job in your desired field.
You’ll be grateful for your undergraduate degree. Remember you are
not alone in your student loan debt payment, many of your other classmates
have graduated in the same position as you. Take a deep breath and try not to
feel overwhelmed you can do this!

2 comments on “Top 10 FAQs for your Student Loans”

  1. Credit Knocks says:

    Great info. A few years back, I had a hard time paying my student loans and had no idea I could contact the lender and potentially work something out. Also, I had no idea about the difference between Federal and Private. Thanks for the info.

  2. Pennies Not Perfection - A Merry Life, On A Budget says:

    Great info! Any tips to make repayment easier is always great.

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