Athlete getting ready on the track
Athlete getting ready on the track

If you’re about to take out your first student loan, be sure to consider direct subsidized federal student loans, also known as subsidized Stafford Loans.

Direct subsidized federal student loans are one of the best types of student loans. These are low-interest loans that help pay for higher education at community colleges, trade schools, technical schools as well as four-year colleges or universities.

Students who qualify for direct subsidized student loans can borrow from the U.S. Department of Education at participating schools. Before applying for a direct subsidized federal student loan, here’s what to know:

1. Backing and Grace Period

The government backs direct subsidized loans. It gives the student a grace period of six months after he or she graduates before it starts accruing interest. The government subsidizes or backs the interest during this period. …

Woman Smiling
Woman Smiling

Student loan payments account for quite a chunk of an average student loan borrowers monthly expenses, and average out at around $393. This could be around half of your monthly rent expense and for most borrowers, it certainly exceeds the sum of a typical auto payment and the insurance payment for that vehicle as well. It’s important to understand the options you have when it comes to potentially reducing your monthly payments and overall interest to give yourself some breathing room.

If your income improves or a co-signer is willing to lend a helping hand, you could qualify for a lower student loan interest rate, which can help you save money on interest over the term of the loan, reduce your monthly payments and even get out of debt faster. …

woman talking to another woman
woman talking to another woman

Refinancing your student loans is a great opportunity to save thousands or even potentially tens of thousands of dollars over the long run throughout the life of your student loan. Refinancing typically offers a lower interest rate, lower monthly payments, and generally more favorable loan terms overall, and gives you confidence that your financial future has a more optimistic outlook than before.

When you refinance your student loans, you may now have an opportunity to put money back in your pocket and use it for other purposes like financing a new mortgage or a car, a dream wedding, or even paying down your student loan debt faster through a lump sum payment. …

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PeppyWallet

PeppyWallet.com helps student loan borrowers better understand their student loan refinancing opportunities, and allows borrowers to track their loans for free.

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