January 16, 2018

A Word on Borrowing and Repaying Student Loans

student loans south africayou need to bridge that college education funds gap. you find out about student loans and wonder if this is right for you. here are some tips that might help you borrow sensibly.

it is still borrowing isn’t it?

a student loan is still a loan even if you don’t have to pay the loan right away. it is not like a grant or scholarship where your tuition fee and other incidental expenses are paid for. with a student loan, you have to estimate a lot of things:

  • the tuition for the college you want to get into
  • other expenses you  might need to spend for
  • your budget in repaying the loan in the future
  • what  jobs you can get after you graduate and the pay scale they give so you will know your future income

this may be your first attempt at borrowing so take it seriously. it will have an effect on your future credit history and borrowing.

paying back the loan isn’t hard is it?

after you graduate, you are given a grace period of six months before you will be asked to start paying your loan. take advantage of this time to look for job that suits you. you will be given a notice about repayment and when it would start by your lender.

it is possible to postpone paying your loan with the following options:

  • deferment
  • forbearance

if you are temporarily unable to meet your repayment schedule and you are not eligible for a deferment, you may receive a forbearance for a limited and specified period. during forbearance, your payments are postponed or reduced. you will be charged interest. if you don’t pay the interest as it accrues, it will be capitalized.

there are serious consequences for non-payment of student loans which you do not want to get into. all the hard work that went into putting long hours in school will go to waste. don’t go that route and pay your student loan obligation.

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