Student Loans

Tips for Repaying Your Student Loan

Most students going to college will need to get a student loan. These are normally offered through the United States Department of Education. There are also loans which are offered by private lenders for slightly higher interest rates.

Attaining the loans is possible through the financial aid department of most major schools. They will inform you about your eligibility for student loans as well as the ability to acquire certain grants. The information provided gravitates towards the lenders which will allow you to pay the lowest interest rates.

Repaying the Loan

Once you graduate college, you will be required to start repaying your loan. Keep in mind that any time that your status drops below that of a full time student, you will be required to start repaying your loan amount. Some students extend the length of the loan by enrolling in school after graduating.

If you ever run into problems making your payments, you can contact the lender. You can put your loan into a deferred status for a period of time not to exceed three years. You will need to provide information as to why you need to defer your college loan. The lender will put your account on hold for payments, but you will still accrue interest on the loan.

Another option for repaying your school loan is that you can have the loan refinanced. This will help you to get a lower interest rate than what you have now. Part of your refinancing can include consolidating student loans. When consolidation occurs, you will pay the lower interest rate of the loans you have. Consolidations are more common for federal student loans.

Your education loan cannot be discharged as a part of a bankruptcy agreement. It is one of the few loans you can receive in which you will have to pay off the loan eventually. Failure to repay the loan could lead to having your wages garnished. Additional measures which can be taken is that the government may redirect any tax returns to the United States Department of Education to pay towards your loan.