Paying For College For Dummies

Chapter 16

Ten Things to Know About Student Loans

IN THIS CHAPTER

Making sense of the terms and conditions on student loans

Understanding money-saving repayment and forgiveness options for lower-income earners

Student loans may seem simple. Unfortunately, appearances can be deceiving.

There are numerous types of federal student loans and repayment plan options and lots of private loans. Repayment options and forgiveness of some loan balances are not widely or well understood.

So, in this chapter I discuss staying on top of those loans and repaying them on time and at as low a cost as possible for you, the borrower.

Keeping Track of Your Loans

During the years of college, you’ll get bombarded with various financial aid forms and financial aid award letters and notices. If you take out student loans, you should also begin to receive various notices about those.

Students, of course, are likely to be changing addresses, especially post-graduation. Parents and families may move as well when residency for local schooling options is no longer required or retirement beckons. So, be sure that you keep all of your student lenders (and servicers) informed and updated regarding your correct mailing addresses.

Especially if you’ve taken loans from numerous sources (for example, federal government–sponsored ...