Paying off your online college student loans becomes more manageable when you create a repayment plan. You can also design a comprehensive budget so you can see the total amounts of your monthly living expenses, income and student loan payments. If you took out low interest, fixed rate loans your payments will generally be the same each month until you pay the loan off in full.
If you took out direct federal student loans you generally have between 10 to 25 years to repay the full amount of the loans, including applicable interests. As of 2011, interest rates for direct federal loans for undergraduate students were at 3.4 percent. Unsubsidized loans and loans for graduate students carried a 6.8 percent interest rate. However, if you got a Direct PLUS federal student loan, the interest rate on your loans is set at 7.9 percent as of 2011.You may be able to make your loan payments online using debit cards. You can also write out checks and mail in your loan payments. If you set up your government loan payments using automatic debit deductions you can receive a 0.25 percent reduction on your interest rate.
About Repaying Online College Student Loans
Calculate the amount of your monthly student loan payments before you get the loans. Also consider opening interest bearing savings or checking accounts and start saving money (e.g. 100 a month) to repay the loans while you attend online colleges.
In the event you stop making payments against your student loans your loans could go into default. If this happens you might be required to pay back the full amount of the loans immediately. Your state and federal tax returns could also get intercepted and the lender could also take you to court, leaving you responsible for collection and attorney fees and court costs.
you don’t incur late fees and penalties. To do this, consider setting aside a percentage of your paycheck to repay your student loans. Avoid using credit cards to repay student loans as this can increase the overall interest you pay.
Should you experience unexpected events (e.g. job loss, family emergency) that make it challenging for you to make your full loan repayments on time, contact a loan counselor at the financial institution where you got your loan. Always reach out to your loan counselor as you don’t want your loans to default.
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