Did you know that the average student loan debt amount for students graduating in 2016 was $37,172? That’s a lot of money, isn’t it? This is why it is so important that you apply for as many grants as you can. Grants don’t have to be paid back, whereas student loans do. Still yet, loans prove to be of the utmost value once all of your grants have been exhausted. You should do your best, though, to keep your student loan debt to a minimum.
Knowing how to apply for grants
Whether you are applying for grants or loans, you will need to fill out the FAFSA form. This form must be completed each year for the next upcoming academic year. You can complete the form anywhere between October and June before the next annual funding cycle. It is pertinent that you do your best to be completely honest on your FAFSA form as this will determine how much money you qualify for in grants and loans. If you have had a job, you will need to upload your tax return to the FAFSA system. If you don’t have a job and you are currently living with your parents, you will need to upload their tax information.
There are changes coming in the near future
As of now, you cannot be charged more than 10 percent of income when making monthly minimum payments to pay back your student loans. In the near future, though, this percentage is expected to increase by 2.5 percent. This is why it is so important to borrow as little as possible and to pay it back as quickly as possible. Not only will paying it back as quickly as possible help you get out of debt faster, but it will also reduce the overall total amount of interest that you have to pay back on your loans.