RICHMOND, Va. (WWBT) - Here are the top 5 things you need to know about student loans.
First of all it’s important you know the difference between a federal student loan and a private student loan.
Federal student loans are offered by the government, and the two types of loans have very different benefits, interest rates and repayment options.
Cherry Dale with the Virginia Credit Union tells us you always want to access federal student loans before you go onto private.
She also says-- only borrow what you need. This is key!
“So often a student might gain access to grants and student loans and it might be cover the cost of their room and board and tuition and they have a little bit leftover. If they don’t need all of the money they should not be not take it,” Dale said.
Next, know who holds your loan and when you have to pay it back. Know the interest and fees that come with it.
Basically, it’s important to monitor your credit because multiple lenders or companies could hold your loans and your credit report will show this.
Finally, know that student loans are reported to the credit bureaus.
So, 6 months after graduation, when it comes due-- you absolutely need to start making those payments. Because it will hurt your credit if you don’t.
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