Wondering how and what the heck a grace period and forbearance are?
Well help you decipher it all.
Lets start with a quick explainer of the terminology.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
What Is a Grace Period?
You get a few months to establish yourself financially before you have to start paying.
Every month, the loan accrues interest, which is dumped in the interest bucket.
Thats your new total.
The other important fact to know about a typical grace period: Interest continues to accrue.
How Does Forbearance Through the CARES Act Help?
Make the most of these months.
Here are four things you should do.
Gather a list of your student loans, including amounts, interest rate and loan servicers.
Heres a guide to help you figure out how much you owe in student loans.
Start to pay something get in that habit, he said.
It buys new grads time for them to reevaluate everything else in their financial life.
How adult of you.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…