College is pricey, and when money is tight, or just not there, some look to take out loans to cover the balance of tuition and living expenses. This is where many get confused, and some get into trouble. There are several loans out there, but they are not all created equal. Even some that are meant for student loans can be problematic. When searching, you want to be sure you’re signing up for federal student loans and that you are avoiding private lenders.
Federal student loans are backed by the government, and there are laws and regulations that are supposed to be in place to protect the student and the organization issuing the loan. Recently, new laws have been passed to keep and even tighter rein on these types of loans. If you go with something other than federal student loans, you’ve very little protection, and your interest rate can grow beyond anything you could have imagined. It’s ideal to protect yourself from this. When the economy takes a turn for the worse, interest rates can skyrocket and the amount you’ve to repay will go up as well. It might get so far out of hand that you have no hope of paying on time.
When you want to find out about federal student loans, you can speak to your college’s financial aid department. They’ll have all the information you might need, and they might also already have all the forms that you need. They have the ability to give you the applications for federal student loans, and they can even help you fill things out when you become confused. With any type of loan application, confusion is bound to come up once in a while, so be ready for it. Having help from people who know all about the forms is a great begin.
When you leave college, you will have some grace periods before you have to start paying back your federal student loans. Some give six months after graduation before repayment is expected to start, though you don’t have to wait if you don’t want to. You can start to repay right away if you want to do so. There are also times when you might also be able to defer payments at times when money might be tight, but remember that even though your payments may be on hold for a tiny while, you’ll still be generating interest on the loans that you will have to pay back in the end.