PHILADELPHIA (CBS) – It’s May, a big month for college graduations, along with all the cards comes the first repayment statement for college loans.
The first thing to do is get out the paperwork and make sure you understand the terms of the loan. When does repayment begin and how much is it a month?
Jacquelyn Basso, a Certified Public Accountant from Downingtown, says if money is tight ask for help, “Contact the company you got the loan from and explain the situation and come to some agreement as to how you can repay the loan. And there are several options available.”
You could extend the loan length (adding years reduces monthly payment, but would increase the interest owed) or you could get graduated payments, so the amount owed is smaller when your paycheck is small and increases with your salary. She says don’t default on the loan; it will affect your finances for years.
Reported by Lynne Adkins, KYW Newsradio 1060