Most students (and their parents) who borrow know that their loans need to be repaid, but they often don’t know how to repay them. Here is a good summary of what you need to know. Perhaps most important: the loan servicer needs your address.
Since 2013, interest rates on federal student loans are tied to the financial markets, specifically the yield of the 10-year Treasury note yield at its May auction. With the yield 0.37% lower than a year ago, interest rates on federal loans have also gone down by that amount.
Not a lot of surprises here. For those with a student heading off to college this fall, remember the rule of thumb: keep your student loan debt to less than your projected first-year salary.
With college graduations starting to take place, many students who have borrowed to pay for college are entering the 6-month “grace period” on their student loans. During this time, no payments are required. Woo hoo, right?
Robert Farrington of The College Investor has a great intro to student loans article here. If you or your student intends to borrow for college and you’re new to the process, it’s a must-read. One of the key points he makes cannot be repeated often enough: With a student loan, YOU are the collateral. As long as you are alive and…