5 things I wish I knew about student loans that I learned from taking this job

It is my belief that every person who has student loans would benefit from the training I got for this job.  We went over an intense 4 week, 160 hour training that taught us pretty much everything you need to know.  While there are many things here is an overview of what those things are that would have greatly benefitted me had I’d known before I became a loan rep.

1) Interest Capitalizes

As I mentioned before I was a naive student who didn’t question why my balance just one day got larger.  It turns out what was supposed to happen did happen but had I been on top of things and known about capitalization I could have saved a lot of money by making payments while in school and during grace.

2) Income Driven Plans are not too good to be true

I distinctively  remember when my now sister-in-law came to me to help her pick a plan with her consolidation.  I told her she wouldn’t want to go with an IDR plan because that “is just welfare.”  This was two years before I got this job.  I realized that IDR is a great option for people especially when paired with PSLF!

3) Your enrollment status determines your loan status

I never was a less than half-time student but whenever I stopped doing grad school I was surprised the loan I had at the time came due so quickly.  This was because of two lessons I did not know:  1)Your repayment status is based on your enrollment status and 2)Graduate PLUS loans do not have a grace period (and I did not know to ask for a Post Enrollment Deferment)

4) Interest accrues daily so paying more is very beneficial

I had always known that paying more could be beneficial but like many I thought perhaps it prepaid interest or that you had to specify “principal only.”  Because of the simple interest formula you never prepay interest and paying more will reduce your future interest accrual.  Again not only would I have paid during for example grace period or in school but paid as much as possible.

5) Borrower cancellation payments are incredibly awesome.

I can not tout these enough.  In fact this is a subject matter I am so passionate about it is to date the only “throw back” article I posted twice on here.  I will let you reread the details but if you have the money to pay a loan within the first 120 days after disbursement please do so as it is the most beneficial program that is offered in student loans.