Student loans are loans that people take out when they are going to college or private schools. To get a good interest rate on a student loan you need a good credit score. To apply for student loans you need to fill out forms from the lender, the university and the federal government. It’s important to understand how much money you’re borrowing, at what interest rate and how long you have to pay back that student loan. Student loans cannot be discharged in a bankruptcy.
Student Loan Interest Problems
A large student loan is creating problems with interest. Extra interest payments are being charged for the early payments. A negative amortization loan could be the culprit. With a negative amortization loan, you pay the same amount, even though the "true" cost of the loan is higher. The extra interest is added onto the back end of the loan, so in effect, you pay interest on interest.
After College Pay Down Non-Tax-Deductible Debt
Many people who graduate from college have a lot of student loan and credit card debt. Which debts should recent college graduates pay down first? You should always pay off your highest, non-deductible debt first.
Good Credit Score Helps You Get Better Mortgage Loan
Having a good credit score is crucial to getting a good interest rate on a car loan, a home mortgage loan or other loan. Whenever you apply for a loan, the creditor will check your credit report. Having too many creditors check your credit report or score within a month may result in your credit score dropping. When you're shopping for mortgage loan financing credit bureaus will give you 30 days to have unlimited checks of your credit.