Student Loan Success Strategies - Starting Grace Period

Grace Period

Upon graduation, Lenders will usually give you a set amount of time before you must begin making payments. This grace period starts when you: a) Graduate, b) Leave School, c) Your class enrollment drops below half-time, whichever comes first.

Grace Period by loan Type (as of January 2021):

Federal Direct subsidized and unsubsidized: 6 months.
Federal Stafford subsidized and unsubsidized: 6 months.
Federal Direct PLUS for graduate students: 6 months.
Federal Direct PLUS for parents: 6 months,
Federal Perkins: 9 months.
Private loans: Varies by lender(s). Ask your lender(s) if you’re not sure.

GET THE ADVANTAGE: Use this time to 1) Get a job, 2) Know your take home pay, and 3) Begin tracking your monthly expenses.

Info from "Success Strategies & Repayment Realities: A Guide to Repaying Student Loans," published by Access Group, Inc.

Comments

Student Loan Success Strategies: Interest

Loans are paid back with interest to Lender. A percent charge to the amount of money you received that you pay back to the entity that loaned you money. Example: You get a $50,000 loan with a 10 year pay off at 5% annual interest rate. Year 1: $50,000 x 5% = $2,500 Interest If no payments are made, then most lenders include unpaid interest into the principle and Year 2 will be 52,500 x 5% = $2,625 Interest. The way to pay the least amount of interest is to pay off the loan as fast as possible. Achieve this by paying more than the monthly payment due, if you can. Example: Same $50k loan, 10 yr pay off, 5% interest. A. You pay the minimum amount of $500 a month for 10 years = $16,276.24 interest B. You pay $825 a month for 5 years = $9,065.85, which is ($7,210.39 or 44.30% less than A) C. You pay double the minimum $1,000 a month for 4 years = $7,506.50 ($8,769.74 or 53.88% less than A) Info from "Success Strategies & Repayment Real...

Book notes from: The Great Depression: A Diary, by Benjamin Roth (2009)

Roth 's book c ompares the economic conditions in 1873 to 1929-1934: The 1873 panic was preceded by Civil War- then 8 or 9 years of hectic prosperity, speculation, rising prices, corruption in government- and then sudden panic, bank closings, etc. Organized movements to stop foreclosures. Wild schemes to inflate currency. "The panic of 1873 lasted 5-6 years," and the Great Depression started in Fall 1929 and lasted through the early to mid 1930's, in which 4 years were hard until they started seeing true signs of recovery.

Failure is an Important Element of Success

"Failure is one of the most important elements for both business success and personal growth." - Matthew Furey Image From: https://education.cu-portland.edu/blog/classroom-resources/students-failure/ I have failed many times, but I am not afraid to fail, because I know I will succeed in everything I do. I've seen my future and it is inevitable success .

Getting to Spira

Search This Blog