One of the biggest concerns for many students right now is when their student loans are due again. If you’re one of those students, then you’re not alone. In fact, there are a lot of questions swirling around in your head right now, such as “When do I need to start making payments again?” and “Can I defer my loan payments again this year?” To help clear up some of these questions, we have put together a guide on when student loans are due again. Read on to learn more about when and how you can make sure that your loan payments are on time.
What are student loans?
A student loan is a financial aid award given to a student in order to help pay for their education. Student loans can be either undergraduate or graduate level. They are usually issued by the government as an obligation of the borrower, and must be repaid with interest. Student loans can have different terms, such as fixed or variable interest rates, and may have balloon payments at the end. Most importantly, borrowers should always consult with their lender to make sure they understand their loan’s terms before signing any papers!
Types of student loans
There are a few different types of student loans, each with its own set of repayment guidelines and terms. Here’s a rundown of the most common ones:
Federal Student Loans: These are all government-backed loans and are the easiest to get. You generally have to be enrolled in school and plan to continue your studies for at least one year to qualify for a federal student loan. Loans typically have longer repayment terms than other types of student loans, but they have lower interest rates, so it’s usually best to go with this type if you can.
Private Student Loans: This is where things start to get more complicated. There are two main types of private student loans: unsecured and secured. Unsecured loans simply involve borrowing money from a lending institution without having anything attached to your future earnings or credit score. This means that if you don’t pay back your loan on time, the lender could seize your assets (like your house). Secured loans require you to put down a security (a valuable item like a car or savings account) as collateral for the loan. If you don’t repay the loan on time, the lender can take the security away from you. Both types of private student loans tend to have higher interest rates than federal student loans, but they also come with added protections, such as being able to defer payments if you can’t afford them right away.
Graduate School Loans: Graduate school is an expensive proposition, and many students need
When are student loans due?
Student loans are typically due within 10-12 months after the date the loan was issued. However, there are a few exceptions. If you’re in school and have been accepted to a qualifying program, your loan may be deferred for up to three years. Additionally, some military service members may have their loans deferred for up to six years.
How to pay student loans
If you’ve been out of school for more than 270 days, your student loans are considered “in default.” That means the government can take various actions to collect on your loan, including wage garnishment and seizure of assets. To avoid these consequences, make sure you keep up with direct debit payments and current loan payments. If you can’t afford a loan payment right now, contact your lender or the federal student loan servicer to find out about payment plans or consolidation options. In most cases, you can also suspend or stop making payments if you have an emergency situation like a job loss or illness. However, be aware that if you do this too often, your lender may decide to declare your student loans in default and pursue other collection measures.
What if you can’t pay your student loans?
Student loans are generally due on the estimated date of graduation, which is based on the credit rating and degree level of the student. If a student does not graduate or if they withdraw from school, their loan is still considered to be in good standing and they are still responsible for making payments. However, if a student has had their loan denied or declared in default because they were unable to make payments, then they may have difficulty getting their loan forgiveness or discharge.
What to do if you default on your student loans
If you default on your student loans, the lender can take various actions, including canceling your loan, garnishing your wages, and contacting the federal student aid agency to determine whether you are eligible for assistance. Here are some steps that you can take to minimize your risk:
1. Get in touch with your lender as soon as possible after you know that you have defaulted. Explain what happened and ask what options are available to you.
2. Make a plan to repay your debt. Work with your lender to develop a repayment plan that is affordable and meets your needs.
3. Contact federal student aid if you need assistance understanding or managing your loans. Student loan servicers will work with you to create a payment plan that works for you and meets the terms of your loan agreements.
4. Stay current on all of your payments—even if it means going into debt. A missed payment can add months to the repayment process and result in higher interest rates and fees.
It’s that time of year again! Our students are returning to school and soon enough their wallets will be lighter by at least $1,000. In this article, we’ll discuss when student loan debt is actually due, what happens if you don’t pay it on time, and some ways to get a head start on repayment. We hope that this information will help you stay organized and on track as your loans come due.