QandAs: Loans

When am I required to pay back a Student Loan?

Answer:
College students have several student loan options

available to them. The majority of college students apply for a Federal loan . These involve low interest rates, flexible repayment terms, and most Federal loans are non-credit based. Unfortunately, the Federal government limits the amount a student can borrower within a calendar year. As a result, many students seek additional aid and apply for private student loans . Private loans come from a variety of sources. This might include a private lender, credit union, or bank. These loans are beneficial. However, they typically involve a higher interest rate and credit scores are taken into account.

Regardless of the type of student loan chosen, repayment doesn’t begin until after graduation. Students can opt to make early payments. This option lowers the amount of interest paid, and reduces the overall student loan costs. However, most college students on financial aid do not have a lot of disposable income. Rather than worry about student loan payments while still in school, many put off repayment until after graduation. Depending on the type of loan, graduates receive a six to nine month grace period. Since repayment terms are flexible, graduates can negotiate lower monthly payments. Additionally, student loan lenders offer deferments and forbearance options that temporarily stop payments.


	more Q&A sessions like this
	What is a Private Student Loan? What are the Benefits to Student Loan Consolidation? What is a Federal Supplemental Loan for Students? Is Financial Aid the same thing as a Student Loan? What is a Student Loan? What is a Federal Stafford Loan? What is a Federal Student Loan? When can I Consolidate my Student Loans? What is a Pell Grant? What Does it Mean to Discharge a Loan? What is a Work-Study Program?