Do you remember how, with a simple signature on a piece of paper, all your financial struggles magically disappeared? Well, that was you signing a contract for a student loan. However, similar to any other loan, it is only a matter of time before the debtors come calling. Despite the prior information and knowledge about the loans, many graduates still default in making the monthly ASC educational loans payment.
Crucial Information You Need to Know Regarding Your ACS Loans
Newly declared graduates are the most culpable when it comes to default in payments, especially the first few months after the end of the grace period. This particular cohort, most of the time is too carried away by the thrill of their new employment and lives to remember simple demands like paying the loans. Well, just before you start panicking about the ACS educational loans that are due, here are some student loans for dummies must-know things.
Private or a federal loan? What is the difference?
- Who is your lender and service provider?
When filling in your applications, most of you were too happy to receive the ACS ed loans even to know your financiers. The disintegration of this knowledge is understandable. However, what you should not forget is whether yours was a private or a public loan. Their approach and repayment policies are entirely different. To successfully trace your lender, you need to know who your service provider is. Many service providers contract with the government to avail the loans to students. The commonest is ACS. Others include Nelnet Loans and Brazos student loans. Three main ways to get this information include:
- Log in to National Student loan database To log in to the NSLD, you will require an FSA ID. If you do not have one, you can create it instantly on the website. The NSLD site provides information on public students’ loans. If you find some of your loans missing from this site, the chances are that it is a private loan.
- Check through studentloans.gov. The studentsloan.gov site provides more information about the loans including the interest rates on the various loans you have.
- Access your credit report online via annualcreditreport.com.
These methods will show you the number and type of loans you have.
- Find out how much money you owe
ACS college loans accrue interest from the minute the money is credited to your account. Do not be shocked to find that your debt balance is more than what you received in college. Among the information, you must seek out is the principal amount you owe, the interest accrued and the number and types of loans you have. With this information, you can quickly sum it all up and come up with a total of how much money you are required to pay back.
- Where and when do you have to start paying back student loans?
Once the grace period is over, you will be required to start making installments of the loan depending on the arrangement you have with your lender. Thanks to the online platforms, you can now pay your installments via the available online money transfer options. You only need to log in to your portal on the loan provider’s site and affect the transfer directly from your bank account.
Managing Your ACS Student Loans Login
ACS loans services are mainly obtained from their official website. For loans serviced by ACS, you will have to log in to your ACS account. ACS’s website (currently known as Content), has a username and password fields to allow users to log in and check their loan status. Your login credentials must be safeguarded at all times to prevent unauthorized access to your account. This is a measure to prevent fraud among applicants. Once you have logged in you will be able to not only view your balances but also modify your payment options.
Repayment Options for ASC School Loans
Understanding ACS student loans payments options are key in improving compliance with the payment schedules. A comprehensive understanding of how to start paying student loans is crucial for this process. More importantly, you will be required to know your repayment options and loans services.
Some of the common repayment options include;
- Standard (fixed) plan. The standard plan is pretty straightforward. All the money you owe is divided equally among the months it will take you to repay the amount plus the interest fully. The interest keeps on reducing as the principal amount reduces.
- Graduated plan-this plan has a step-ladder kind of increment of the installments. The installments increase every two years.
- Extended plan. This is a plan just like the standard plan but for a much longer period of time, usually up to twenty-five Such plans are normally given to people with a heavy cumulative student loan debt.
The repayment plans are generally flexible when it comes to public ACS school loans as opposed to the private loans. The public ASC loans are legible for forgiveness after certain conditions are not met, for instance, failure to clear the loan after twenty-five years. Caution, however, must be advised when applying for such loans to be forgiven. The forgiven loans will be considered income and therefore subject to taxation.
Many graduates fail to understand the importance of making timely installments to offset the student loans. These simple misses in the repayment plan can result in serious repercussions on the defaulter. Firstly, defaulting hurts your credit ratings a lot, therefore jeopardizing your future borrowing capacity. Secondly, the more you default in payments, the interest you accrue and therefore end up paying more than what you signed up for. Finally, for those who are banking on loan forgiveness, you need to understand that the forgiven amount is taxable and therefore you will still be required to pay it.