College students guide to student loans

As the years go on, the price of college education continues to rise.

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As the years go on, the price of college education continues to rise.

Every year 30 percent of college students take out student loans to afford college. In the United States, 70 percent of college students graduate with loan debt. The Federal Student Aid website offers information for students on paying their loans back.

Loans have to be paid back once a student graduates, leaves school, or does not meet the enrollment credit requirements. Depending on what type of loans you have depends on when you are required to pay them back. “If you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.” However, you can make payments while you are still in college and before your grace period is up, but these will not count as qualifying payments.

Once you are done with school and you are ready to pay back the loans, your loan provider will set up a payment plan that works for you. This payment plan will have a required minimum payment for every month after your grace period until your loans and the interest is paid off. You can definitely pay more than the monthly payment, the faster you pay back the total amount of loans the less interest you have to pay which lowers the total cost.

Staying on top of the loan payments is the goal. You do not want to fall behind in payments or default on the loans. If you find yourself falling behind in payments, contact your loan service and look for other payment options. Defaulting on a loan is when nine months of payments have been missed. Not staying on top of student loan debt can have a lasting effect on your future. It can destroy your credit and ability to borrow money in the future, like buying a car or housing opportunities.

Though it can be hard, the most important aspect of loans is starting as soon as one can. Once ahead of the payments, and being on time with them, the stress of paying back students loans seems to lessen.