Wednesday, March 4, 2009
Paying your loans after College
By David Lucas,
You have been attending college the past four years wile being funded by college loans, but now you have to face to fact of repaying them. When it comes to paying back your loans you have a few options on how you can actually go about doing so. With a Stafford and Plus loan you can:
1) Pay an equal amount each month for up to 10 years
2) Pay an equal amount each month for up to 30 years
3) Make graduated payments that start small and grow over 30 years
4) Pay a percentage of income, usually 4-15 percent up to 25 years
You may have a grace period that will allow you to have some time after you graduate to find a job and settle in before you have to start paying the loans. A Deferment is a temporary halt of your required payments. This is something you must apply for however and would have to be discussed with your lender. You will likely only have one opportunity to use a deferment as well. Forbearance allows you to reduce or temporarily halt your payments if you are having trouble paying for them. With forbearance, interest will still be accrued. The amount of time forbearance lasts is agreed upon with your lender. You must apply to gain forbearance but under certain conditions a lender must grant you forbearance.
The way you will pay for your loans will reflect how you’re after college life is operating. The best thing you can do is plan your future financing and analyze the best way you can go about paying for you college loans.