Why You Should Pay Interest During Your Student Loan Grace Period
Before your student loan becomes effective, you will receive a short grace period to prepare for your monthly payment. However, some loans will accrue interest during this time. Student Loan Hero is offering to pay these percentages to lower the overall balance.
Your grace period is a good time to familiarize yourself with and strategize on your student loan repayment strategy . We’ve given you some tips on how to do this, and Student Loan Hero offers another one: to satisfy your interest. They write:
Although you do not have payments during the grace period, interest will accrue on your unsubsidized student loans – that interest is added to the main balance and interest also begins to accrue.
When this happens, you will be charged interest on interest. Make sure that after graduation, you do not increase your student loan balance further and end up paying additional interest; consider paying interest during the grace period.
It will also help you develop the habit of making higher, recurring monthly payments. Perhaps more importantly, you are not letting your balance grow. They offer more tips for managing your loan during the grace period, so read the full message at the link below.
How not to screw up your student loan | Student loan hero