A Guide To Student Loans
Attending a college or university can be very costly
, as many people have discovered. Student loans are a popular way of paying for schooling in the short term, but as with any loan, it's a good idea to shop around to find the best loan opportunity for your budget.Lenders offer several different types of loans, differing in the amount of money they offer as well as the conditions of the loan. Here are a few ways to save money on your student loans no matter what type you take out.
The interest rate for all student loans is adjusted on July 1st of every year. This practice can make it difficult to figure out exactly how much you'll owe after you finish school.
Thankfully, there is a way to lock your interest rates in place. Consolidating your interest rates has the added effect of locking your rates until you've graduated.
Another way to save money on your loans is to consider utilizing the automatic payment option that your lender offers. Many lenders offer added benefits if you choose to allow them to automatically draft the amount you owe every month from your account.
The reason lenders offer benefits to those who choose automatic payment is because it provides them with a vote of confidence that they'll be receiving their payments every month, on time and in the full amount. Choosing the automatic payment option also means that you won't have to remember to send your payment every month since it's drafted automatically from your account.
You can save money on student loans by simply paying them on time every month. Lenders often hike up interest rates on past-due accounts, and missing payments can damage your credit as well.
If you're having difficulty making your payments on time, contact your lender to discuss your options before you fall too far behind on your payments.
by: Kimberly Adams