Seniors Beware – Exit Interviews are LOOMING!
Seniors Beware – Exit Interviews are LOOMING!
College seniors are about to be sent off into the big, bad world. But not before the ever-exciting Exit Interview for all those great Federal loans they secured throughout their days on campus. Everyone who borrows money that is in the form of a loan backed by the federal government is required to do one, and it is advisable to pay close attention. These interviews are actually where you will learn about the repayment terms that you have the right to demand, and the responsibility for getting these terms that falls on the borrower.
We just finished the month of April, which was the National Financial Literacy Month. It is a great signal to get college seniors thinking about the future of their finances, and how they will start paying back all the money they borrowed to get that all important degree. Despite the much more appealing options to gain your attention, pay close attention to the information in the exit interview.
In particular, be sure to note the total balance on the outstanding loans, as well as the expected monthly payments. This will enable you to budget your income accordingly, and make short term as well as long term goals for pay-off dates.
Then be aware of when your particular grace period ends. You usually will have six months from graduation to make the first payment, but that may be a different specific date depending on your school’s particular ending date. Start planning now for those payments so you aren’t left struggling in six months.
Find out what options you have for repayment as well. Be prepared for unexpected events to occur in the next six months that may affect your ability to pay. There are specific reasons that the lender will understand, and be able to forgive or work around. For example, if you had a medical emergency and incurred hospital expenses that would take up a portion of your income, the loan company may be able to grant a temporary reprieve from payments. They may even be able to recalculate your monthly payment amounts in accordance with an unexpectedly lower income than originally projected.
Finally, be sure you know who will be expecting your payments. Usually college students will end up with several different creditors during the course of the education, and that will make several loan companies that will be expecting payments. Not all companies will send payment booklets to borrowers, and it is still up to you to get the payment in on time.
Late or missing loan payments can have an extreme affect on your credit score. The important thing to remember with federally backed loans is that the lenders are focused on the needs of the borrower just as much as they are on getting their money back. Keep all contact information accessible in case anything should arise that you have questions about. This will provide both you and the lender with a positive business relationship, and will likely allow you to maintain excellent credit status with the lender.