Student Loans: Grace Period, Waste Period

I spoke with my sister who just recently graduated with student loan debt.  She asked me, “How do I start paying back my loans?”  I told her, I don’t know.

If you have recently graduated from college then chance are you have student loans to pay back.  There is student loan exiting counselling you must go through and then it seems like you’re all finished.

This is exactly what I did.  After I graduated I went through loan counselling sometime during the late summer of 2012.  And then… Nothing.  I don’t even believe I received an email until almost six months later when it was time to start paying back my loans.  My grace period was coming to an end.

If you take out a student loan through your college or university you will most likely have a grace period of six months.  This is so you can have time to “Get your finances in order”.  I assume these loan company figure if you were this easy to get into debt it was the least they could do.

The bad part about this “Grace Period” is that interest is accruing during the six months you aren’t paying back your loans.  The loan companies try their best to hide this from you and make it as difficult as possible to figure out how to pay back your loans before the period is over.

Step 1: Log on to https://studentaid.ed.gov/sa/?login=true and find out who your student loan provider is.

Step 2: Create an online account with your provider(s) and set up your account information.

Step 3: Begin paying back your loans before the grace period ends to limit the amount of interest you will pay over the life of the loan.

 

Budget Smart, Invest Wise

Video: Step by Step Guide to Creating a Monthly Budget

I have discussed the importance of creating a monthly budget on many previous posts.  This post is for all of you visual learners out there who have not yet created your own personal monthly budget.  Rachel’s video illustrates just how easy it is to create your very own budget.

http://www.youtube.com/watch?v=Rs8P0Eh7Zbc

Budget Smart, Invest Wise

Having a Portable Budget

A number of months ago I made a switch.  I used to keep track of my budget using a Microsoft Excel spreadsheet that was saved to my computer.  It was easy for all intensive purposes except that I could only do updates on the computer I saved my budget on.  So I made a switch.




Now I use Google’s Spreadsheet for all of my budget updating.  Here are 3 reasons why.

  1. I can update my budget from any computer where internet is available.  No need to ever save it as it is done automatically.  Whether it is my work computer or personal computer it doesn’t matter.
  2. You can make budget updates with your PHONE!  This is probably the best part about using the Google platform for your budget.  Just simply download the app, login to your Google account and you are ready to make budget updates on the go.
  3. Your budget will never crash.  Computer’s can crash, but having a budget on Google Spreadsheets makes it virtually uncrashable.  As long as you have access to internet you can have access to your budget and unless you decide to wipe it out (which again can still be undone) it is always accessible.

There are numerous advantages to having a portable budget.  The first key is to have a budget, but if you are going to have one do it right the first time and use Google Spreadsheets.

For more on this topic, consider reading my articles on: