paying principal on student loans while in school & consolidating?
Asked by Mrs.BElli just got a federal student loan and i received more money than i needed (but i wasnt sure how much id need at the time) so now that i have the check from whats leftover can i pay that back to the company on my loan before it starts collecting more interest...also i plan on paying all of the interest while in school but was wondering if im also able to pay extra while in school without penalty and is this going to apply to the principal? also ive seen websites on consolidating student loans and making 1 payment... this made me wonder why someone would need to consolidate student loans?what would cause you to have multiple student loans? is thi something thats based on having multiple lenders, schools, type of loans (sub or unsub.)etc... basically i am trying to understand why youd be billed seperately on loans because i would like to avoid this now so i wont have to worry about consolidating later. any insight would help =] thanks i know the benefits of paying interest as i said in the question thats what i plan to do...i also plan to pay the PRINCIPAL as well in school & was wondering if theres any penalty for paying on the PRINCIPAL while you are still in school I also understand what consolidating IS i wanted to know what would CAUSE you to have MULTIPLE student loans in the first place..i even listed some possible reasons that i thought may be the cause for more than one student loan in my question...but i didnt know if any of those were the reason for it and i was hoping someone could tell me as i havent found the answer in any of my research or from any of the answers that ive already gotten...if you have the answer i would love to hear it!
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Answered by Student Loans
First of all, what kind of federal loan did you take out? If you took out a Subsidized Stafford Loan or a Perkins Loan, then the government will take care of all your interest while you are at least a half-time student, which means that your principle will not increase while you are in college. If you have an Unsubsidized Stafford loan, you will still be compiling interest on your loan, and it would be wise to save any extra money and start repaying your loan. As far as consolidating goes, a great option is to go with the Federal Family Education Loan Program, or a FFELP consolidation. Many students have several federal loans; I have three myself. Regardless of how many you have, consolidating will significantly lower your interest rate on your loan, and could eventually save you thousands of dollars. For more information on FFELP consolidation and the application process, please visit the source below. I hope this helped you out! Good luck!
First of all, what kind of federal loan did you take out? If you took out a Subsidized Stafford Loan or a Perkins Loan, then the government will take care of all your interest while you are at least a half-time student, which means that your principle will not increase while you are in college. If you have an Unsubsidized Stafford loan, you will still be compiling interest on your loan, and it would be wise to save any extra money and start repaying your loan. As far as consolidating goes, a great option is to go with the Federal Family Education Loan Program, or a FFELP consolidation. Many students have several federal loans; I have three myself. Regardless of how many you have, consolidating will significantly lower your interest rate on your loan, and could eventually save you thousands of dollars. For more information on FFELP consolidation and the application process, please visit the source below. I hope this helped you out! Good luck!
