Do You Know What Your Student Loan Obligations Are?

Posted on 10/05/2009 09:34:00 PM No Comments
Labels: money for college, student loans

I do not know about you, but I am tired of hearing people say they "did not know" when it comes to loans, payments, obligations. If you do not know, then ask.

Did you know if you break the law and tell the cop or the judge that you "did not know" they will tell you it is no excuse? Really. Why, you ask. Simple, because ignorance of the law is no excuse. The same goes for loans, payments, obligations, you see where I am going here, right?

And since I do not want you to "not know" the deal with your student loans I am going to share some great information sent to me from SimpleTuition.

Six Tips for Managing Your Student Loans Successfully:

Both the borrower and co-signer are each responsible for the loan’s repayment. Even if you are a co-signer (taking out the loan with another person) you are also on the hook for the loan. Make sure your fellow borrower knows their responsibilities, as well.

If you don't repay your loan on time or according to the terms in your promissory note, you might go into default, which has serious consequences and will affect your credit rating.

You must make payments on your loan even if you don't receive a bill or repayment notice. Billing statements (or coupon books) are sent to you as a convenience, but you're obligated to make payments even if you don't receive any reminders.

If you apply for a deferment or forbearance, you must continue to make payments until you're notified the request has been granted. If you don't, you might end up in default.

Know who your loan “servicer” is. The servicer is the entity that will handle billing and payments, and it is often a different organization from the lender who made the loan. You should keep an eye out for communication from the servicer.

Remember to notify your loan servicer when: you graduate; withdraw from school; drop below half time status; change your name, address, email or phone number; or transfer to another school.

SimpleTuition is the smart way to choose student loans. Dedicated to helping students and their families through the confusing education loan process SimpleTuition provides innovative and effective tools, resources, and most importantly, choices that help students and families make the best choice for them.

Six Tips for Managing Your Student Loans Successfully:

Both the borrower and co-signer are each responsible for the loan’s repayment. Even if you are a co-signer (taking out the loan with another person) you are also on the hook for the loan. Make sure your fellow borrower knows their responsibilities, as well.

If you don't repay your loan on time or according to the terms in your promissory note, you might go into default, which has serious consequences and will affect your credit rating.

You must make payments on your loan even if you don't receive a bill or repayment notice. Billing statements (or coupon books) are sent to you as a convenience, but you're obligated to make payments even if you don't receive any reminders.

If you apply for a deferment or forbearance, you must continue to make payments until you're notified the request has been granted. If you don't, you might end up in default.

Know who your loan “servicer” is. The servicer is the entity that will handle billing and payments, and it is often a different organization from the lender who made the loan. You should keep an eye out for communication from the servicer.

Remember to notify your loan servicer when: you graduate; withdraw from school; drop below half time status; change your name, address, email or phone number; or transfer to another school.