Archive for Home & Family
Refinance Your Student Loans
Posted by: | CommentsIf youve recently graduated from college,, student Federal loan
, youve probably been bombarded with mailings and advertisements urging you to refinance (or consolidate) your student loans right away. But wait, what is loan consolidation? And why should you do it?
If youve just graduated from college, youve probably got a number of different student loans, all in different amounts from different lenders at different interest rates. Loan consolidators (which can be private banks, lenders or government agencies) pay off all your individual loans in exchange for a single loan in the same amount issued to you. So now instead of all those different loans, youve got one loan that you repay to the consolidator.
Refinancing your student loans reduces your monthly payments and locks in a fixed interest rate. In most cases, student loans have variable interest rates set a few points below prime. As interest rates go up, so will the interest rate on your loans. When you refinance your loans, you lock in an interest rate based on the current market conditions that will be set for the life of your loan. Therefore, its important to evaluate the market before making the decision to consolidate. Right now, interest rates are low, but theyre going up and most economists predict that theyll continue to go up for awhile. So for many people, this is a good time to refinance.
Your credit history will also determine your eligibility for loan consolidation, student Federal loan
, programs. Loan consolidators can be picky in who they accept for their programs, so the option to refinance is usually only available to individuals who have established good credit by, student Federal loan
, paying their loans back on time. If youve missed payments or made payments consistently late, you may not be offered the best terms, if youre accepted at all. If your application is denied the first time, call the consolidator and talk to a loan officer about the reason for your rejection. The officer may offer you advice on how to, student Federal loan
, qualify for their, student Federal loan
, program at a later date.
If you decide to refinance, be sure to consolidate federal loans and private, student Federal loan
, loans separately from each other. When you consolidate your loans, youre typically offered a rate thats 1-2% lower than the average rate of your loans. Federal student loans often carry much lower interest rates than private loans, so consolidating them together can bring up the average interest rate, student Federal loan
, of your loans and leave you with a higher fixed rate locked in, student Federal loan
, . If you only have one private, student Federal loan
, loan, it may not make a difference, but its important to assess your options before committing to refinance.
Is there anyone who shouldnt consolidate? Lets look at a scenario. Tracy has 2 loans for $5,000 each that are scheduled to be paid off within 5 years. She can afford to make her monthly payments but wants to see if she can save a little extra cash each month by consolidating. She finds out that she can refinance the loans into a $10,000 consolidation loan to lower her monthly payments and shell be eligible to extend her payments over 8 years. But because shes extended the life of her loans, shell be paying interest over a longer period of time and may wind up paying more, student Federal loan
, overall than if she had kept her loans as they were.
It is tempting to pay less per month but if you can afford to pay off your loans in a shorter period of time, then youll likely save money on interest in the long run. Obviously every situation is different and you wont find all your answers in a short article like this, student Federal loan
, . But if you think loan consolidation might, student Federal loan
, be right for you, check out the Student Loan Networks site at Studentloanconsolidator.com for more information or speak with a loan officer or financial planner to see what your options are.
Sarah Russell
articlecity.com
A Direct Student Loan Offers Reduced Repayments At The Start
Posted by: | CommentsAfter graduating from high school, the next immediate concern that you will have is to get a job or a college degree. If you are planning to go to college,, student loan
, you will need a lot of money to finance your education.
However, not having enough money to pay for your school fees should not be a reason for, student loan
, you not to pursue your dreams of getting a college degree. There are many government institutions that are offering direct student, student loan
, loans to qualified students all over the country. The good thing about a direct student loan is that it is affordable and will only be payable once you have, student loan
, finished college or have left school.
Advantages of Getting Direct Student Loans
Getting a direct student loan has a lot of advantages. First, when you go for a direct student loan, you borrow directly from a government agency such as the Department of Education. Since you will no longer transact with any intermediary institutions such as banks and other lending institutions, you will most likely get lower interest rates.
The second advantage of getting a direct student loan is that you will be able to access your account 24 hours day seven days, student loan
, a week. When your application for a direct student loan is approved, you shall be provided with an account number and a password so that you can access the online portal of the government agency, student loan
, .
If you need information regarding your account, you can just log into the, student loan
, system of that agency using your account number and, student loan
, your password and then, student loan
, you can now get the information that you need.
The third advantage of getting a direct student loan is that it offers you flexible payment system. In most cases, you, student loan
, will be given at least three options to pay for your direct student loan after you graduate from college and find a job. The first option that you have to pay the direct student loan of equal monthly payments for a certain number of years.
The second option is the graduated scheme where you will start to pay in smaller amounts during the first few months after you have graduated but later on the amount of your monthly payments will increase, student loan
, accordingly. Usually, the second option is more appropriate because you cannot really expect to earn big bucks immediately after you graduate from college.
The third option that you have in paying your direct student loan is the income sensitive scheme where your monthly amortization shall be computed, student loan
, according to your income. The third option is favorable to you but sometimes could become a bit complicated if you transfer from one job to another and your income fluctuates.
John Mailer
isnare.com
A Student Loan Consolidation Center Offers Finacial Relief
Posted by: | CommentsWhen does it make sense to approach a Student Loan Consolidation Center for help? If you are a young person or a parent who is trying to pay off student loans, it may make a lot of sense to consider consolidating all your outstanding loans into one loan with a lower interest rate.
Consult with the Student Loan Consolidation Center and ask about locking in the interest rate that you are paying at today’s rates. That way, even if interest rates do rise, you will not be charged the higher interest rate. If you have signed an agreement for a student loan, student loan consolidation
, with a variable interest rate, the rate of interest charged on the money, student loan consolidation
, owed rises and falls with changes in interest rates.
By choosing a loan with a fixed rate, you avoid this possibility. The drawback to a fixed rate for a loan is that if interest rates should happen to fall, the borrower will still be required to pay the higher interest rate, student loan consolidation
, .
Reasons to Consider Consolidating
The two most common reasons for consolidating a student loan are to save money over time or to lower the monthly payments. There are advantages and disadvantages to both courses of action. If your goal is to save money over time,, student loan consolidation
, you may want to lock in a lower interest rate through,, student loan consolidation
, student loan consolidation
, a Student Loan Consolidation Center.
You may choose to pay off your loan early or make larger payments than the minimum required amount every month. Check with the staff at the Student Loan Consolidation Center to make sure that you will not be charged a penalty for paying off the loan early.
If your goal is to lower your monthly payment, you may be interested in extending the term of the loan over a longer period of time. Keep in mind, though, that if you choose to extend the term of your student loan, you will pay more in interest in the long run. Weigh the pros and cons before deciding.
However, if your current financial situation is such that you, student loan consolidation
, are having issues with cash flow and you need to get some breathing room now, taking steps to lower your monthly payment may be the best solution to the problem. In addition to the Student Loan Consolidation Center, the Sallie Mae Foundation also offers student loan consolidation services.
John Mailer
isnare.com
Top Five Tips For College Freshmen And Sophmores
Posted by: | Comments1. Let Your Major Pick You
A lot of college students ask me what majors will look best on paper when it comes time to apply for a job or to graduate school. At this point in your college education, you really have no business committing to a career yet. You should be exploring – different classes, different internships and part-time jobs, different activities, different professors. Take a wide variety of classes, even if variety is not mandated by your school’s graduation requirements, and you’ll figure out pretty quickly which ones you’re passionate about.
2. Follow the Professors
Find out who the best teachers are and load up on those classes. The best teachers could lecture every day on the history of Brazilian trade unions and you’d still be fascinated and learn how to think. A site like RateMyProfessors.com has its limitations, but it’s just one more resource, college loan, to help you find the best ones. (And if you want to see that, college loan, shoe on the other foot, check out RateYourStudents.Blogspot.com.) Start cultivating relationships with your professors – be engaged in class, college loan, and talk to them during office hours. Don’t be afraid to ask for help. Aside from the academic benefits, you’ll need them for graduate school recommendations in just a few years, and sometimes they have industry contacts as well.
3. Do Your Own Career Research
Many professors and college administrators (including folks at the career center) haven’t spent much time outside of academia, so don’t treat them as your only resources as you explore careers and line up internships or, college loan, other job opportunities. Make every summer in college a strategic part of your post-graduation career planning – many employers make permanent offers to their summer interns.
4. Be Smart About Your, college loan, Financial Future
Most people borrow for college, and for every dollar you spend now, you’ll be paying up to two in the future, depending on how long it takes you to pay back your loans. Check out financial planning calculators — FinAid.org has good ones — to figure out how much money you need to be making after graduation to make your monthly loan payments. Save your credit cards for emergencies, and don’t, college loan, fall for those seductive, college loan, credit card pitches on campus. Get in the habit of tracking your spending (check, college loan, out Moneypants.com) – it’s, college loan,, college loan, a habit that will serve you, college loan, well for the rest of your life.
5. If, college loan, You Lose Your Bearings, Take a Breather
Sometimes life gets in the way of our best intentions. You won’t be able to go back and do college over again, so make sure you can give school your undivided attention while you’re, college loan, there. If external circumstances make that impossible (a recurring or serious illness, serious family difficulties, needing to work more than 20 hours per week), explore taking a semester or even a year off, college loan, to get a handle on whatever that problem is. Most students in these situations try to push through the crisis, and their transcripts end up looking like train wrecks. They’ll have to explain, college loan, and make excuses for their grades for a long time to come. You’re much better off showing people a transcript with great grades and having to explain why you needed to take time out in the middle.
Anna Ivey
isnare.com
College Debt – How To Avoid It, And How To Get Out Of It
Posted by: | CommentsBecause most college students are using loans to finance their college education,, college loan, the debt level of recent graduates is rising rapidly. On average, students graduate owing $12,000-$16,000 in student loans and another $2,000 in credit card debt, college loan, . Is this the price you have to pay for higher education, or can you avoid college debt in the first place?
The, college loan, secret to avoiding college debt is to plan wisely and take advantage of the many opportunities to reduce college costs before and during your college years.
Planning ahead
You can avoid college debt by making wise high school, college loan, decisions:
Take advanced placement classes
Take all the advanced placement classes you can in high school–every AP exam you pass means one less class you need to take in college.
Keep your grades up
Scholarships can be competitive, and even the grades you make early in your high school years can mean the difference in winning or losing. Don’t make the mistake of thinking you can save the hard work for your junior and senior years!
Stay involved
Scholarships also may depend on community and school involvement.
Search for scholarships and grants
Scholarships and grants are the best money source for college because it is money that doesn’t have to be repaid. To find out about grants and scholarships, visit your high school career counselor and the Financial Aid Office of your intended college, college loan, . You can also search the internet for scholarships and grants.
Investigate public service options
The United States Military, National Health Service Corps, and Americorps, college loan, will give you money for your education in exchange for your signing up for a “tour of duty.” The time commitment ranges from 10-12 months to 8 years.
Living wisely
The chances to make wise decisions and avoid debt continue into your college years.
Start out in a community college
Most towns and cities have two-year community colleges where you can take your basic courses at less, college loan, cost than at, college loan, a four-year college or university. Just investigate, college loan, to make sure your community college credits will transfer.
Take advantage of Work-Study programs
If you qualify for the federal work-study program,, college loan, take advantage of it! You will have an on-campus job, possibly, college loan, in your field of study.
Or work for the school
Many colleges give discounted or free tuition to employees and their family members. There are lots of non-teaching jobs, college loan, on campus that you can apply for.
Live frugally
Live at home or get a roommate. Avoid expensive spring break trips. Buy used textbooks,, college loan, and sell your books at the end of the semester.
I already have a loan. Now what?
If you, college loan, have a federal student loan, it is possible to have your loan debt discharged (canceled) or reduced, under certain specific circumstances:
You die or become totally and permanently disabled
Your school closed before you could complete your program
You work in certain designated public school service professions (such as teaching in a low-income school)
You file for bankruptcy (only if the bankruptcy court rules that repayment, college loan, would cause undue hardship.)
As you can see, there are many steps to avoiding or relieving college debt. To best manage your debt it is wise to implement a combination of the strategies listed above that work best for you.
This article is distributed by NextStudent www.NextStudent.com.
Vanessa McHooley
isnare.com
Prepare College Students For Financial Health
Posted by: | CommentsWhen your children head off to college, you’re sending them out into the world to start life on their own. Before they, student Federal loan
, leave, you’ll probably coach them on the things they’ll need to know — like how to do laundry, cook their favorite dish, and budget their time and money. But many parents, student Federal loan
, forget to address two areas that can have a significant, long-term impact on their children’s financial health — managing their credit and protecting their identity.
The Lure of Easy, student Federal loan
, Credit
As soon as they arrive on campus, students are bombarded with credit card offers. Credit card marketers reach out to college students in an effort to be the first credit card in the wallet and to build loyalty early. Credit is easy to get, and for students not used to having a credit card,, student Federal loan
, it is all too easy to end up deep in debt thanks to maxing out multiple credit cards. To avoid this pitfall, talk to your child about how many credit cards he or she should have, student Federal loan
, and how to use them responsibly.
Students should know that their credit history will follow them long after they leave college and can impact their future, student Federal loan
, purchasing power. Students also should keep in mind that having too many credit cards or failing to pay balances on time can affect their credit scores and result in higher interest rates when they are ready to buy a car or finance their first home.
Identity Thieves Prey on Young
In addition to being hard to pass up, credit offers are an easy way for identity thieves to gain personal information about students. Statistics show that young adults represent a large and growing segment targeted by identity thieves. According to the Federal Trade Commission’s Identity Theft Data Clearinghouse, of the more than 255,000 identity theft complaints filed, student Federal loan
, with the U.S. Federal Trade Commission in 2005, 5 percent involved people under the age of 18. That’s up from 3 percent in 2003 and is the age category that grew the most in the two-year, student Federal loan
, period. College students and young adults age 18 to 29 make up 29 percent of those filing complaints, the largest age category of victims.
College students are increasingly preyed upon by identity thieves because they typically have no credit history and are not as likely to keep a close eye on their credit. In addition, the college environment is ripe for identity theft as some educational institutions request Social Security numbers on various forms and may even post grades by Social Security number.
Credit 101
Teach your son or daughter to be vigilant about, student Federal loan
, protecting their personal information. In a dormitory environment, it is, student Federal loan
, important not to leave any sensitive information out in the open — too many people come and go and the information may fall into the wrong hands. Here are some steps to help protect against identity theft:
1. Review the basics about credit reports, credit scores and why they are important. Urge your kids to learn all they can about identity theft from resources such as www.equifax.com. Show them what pre-approved credit offers look like, and remind them to shred credit applications instead of simply tossing them in the trash. Teach them to guard their Social Security number, giving it out only when absolutely necessary and when they are sure the request is legitimate.
2, student Federal loan
, . Regardless of whether you think your child has a credit history, help them check to see if a credit report exists and ensure that it contains no fraudulent items.
3. Give a credit “care package.” Purchase a shredder for the dorm room and a small storage item like a security box or fire safe to hold sensitive information.
4. Take advantage of credit monitoring. If your child is credit active with, student Federal loan
, a student loan or credit card, consider buying them a credit monitoring product like Equifax Credit Watch™ Gold with 3-in-1 Monitoring. It alerts your child, student Federal loan
, to potentially fraudulent activity as well as significant changes in credit balances that might warn the student to curtail spending until some debt is paid off. If you already have the service for yourself, you can add family members at a discount.
A little extra preparation before your child leaves for college can head off big problems before they happen.
Orlando Clark
articledashboard.com
How To Handle Student Loans Appropriatly
Posted by: | CommentsFrom The Desk Of: Michael VanWormer – Internet Research/Webmaster Homebizshowroom.com
Dear Student,
It is often said that the most effective debt management strategy is to be debt-free. But, in order to pay for your college education, you may need to take out student loans.
Student, student Federal loan
, loans are applied by many people these days. It is for the hope that student loans can greatly support their education. Well, that is primarily the purpose of student, student Federal loan
,, student Federal loan
, loans, but there are some instances that getting student loans is what lead people to be buried deep in debt. This is common among those who failed to repay their debts or those who actually escape from their obligations.
Now, planning for successful repayment involves a lot of considerations. The planning should start before you place and strike your pen on your first promissory note. Just as you are making a commitment to your career by way, student Federal loan
, of investing time and money in higher education, you should also make a commitment to your financial future by, student, student Federal loan
, Federal loan
, way of effectively managing your student loans from the beginning.
Here are the most recommended, student Federal loan
, tips and tactics that may help you handle your student loan debt effectively and repay the loans successfully.
Tip #1: Do Your Own Research
Always note that not all loans are the same. Some of them, such as the ones provided by the Indiana Secondary Market for instance, offer benefits during school as well as after graduation in the form of repayment incentives, while other do not. They will pay the 3 percent origination fee normally charged on Federal Family Education Loan Program (FFELP) loans, and this process actually means more money for the books, school supplies and living expenses. And, after you graduated, there is a chance that you will be qualified for reduced interest rates especially when you ready your payments up on automatic withdraw. So, with the differences in student loans, it is necessary that you do your research before signing the first promissory note.
Tip #2: Pay Attention to the Mail
Typically, every borrower receives important information regarding the student loan he or she took out. The mail usually comes in before, during and after school. So, it is somehow important that you read all of the materials you receive carefully. In case, you have questions, the source of the materials is available to welcome you with your questions. Dont hesitate to ask, and never ignore the correspondence or you may miss out a very vital deadlines or details about your loans.
Tip #3: Be Organized
When taking out student loan from a particular institution, it is always best to save all of your student loan documents and correspondences. This makes you aware of what exactly youve agreed, what is expected from you as a student loan borrower, and how much you have borrowed. At the start of the student loan process, you may find it unnecessary to keep all the documents, but when the repayment period is approaching, there is a great possibility that you may refer, student Federal loan
, to some or all of these documents.
To makes things easier for you, begin by setting up an easy to use record-keeping system where you can store your student loan documents and correspondence. As, student Federal loan
, you may know, there, student Federal loan
, are a number of books and software products on personal finance to help you get started. Whatever you may use, whether file folders, binders, portfolios, or envelopes, it is a good idea that you set up one folder for every type of loan or account you have and keep the items sorted accordingly.
Here is what you should keep:
ท Important documents like your student loan applications, promissory notes, disbursement and disclosure statements, as well as loan transfer notices.
ท Copies of all correspondences between you and your student loan lender, loan holder, and/or servicer, including your schools financial aid office.
ท Addresses and telephone numbers of your lender, loan holder, and servicer. These must be maintained up-to-date.
ท The name, the date and time of the conversation, as well as a summary of what you have discussed. These must, student Federal loan
, be considered especially when you are speaking with anyone regarding your student loans as these may be valuable for future reference or clarification.
Also, when setting up your record-keeping system, be sure that it is comfortable to use. This means a system that you will find easy to maintain over the life of the loan. This record-keeping system must also be secured from theft, student Federal loan
, or fire. Many experts also suggest that you should keep all your,, student Federal loan
, student Federal loan
, student loan related documents and correspondences until all the education loans youve taken have been fully repaid.
Tip #4:, student Federal loan
, Be present at All Required Entrance and Exit Sessions
When you take out student loan, you will be required to complete student loan counseling sessions. This is often considered when you first obtain the loan and upon graduation. Also, it is worth noting that some schools these days offer, student Federal loan
, this on-line and the sessions will not require a great amount of your, student Federal loan
, time. However, they will provide you with a great deal of information on your right and responsibilities as a borrower.
Tip #5: Learn to Manage Money like, student Federal loan
, an Expert
It has been said that if you live like a professional while you are in school, you will live like a student once youve finished your degree., student Federal loan
, In other words, it is important that you know very well how to handle your money while you are attending school. This will help you lessen the total amount you end up borrowing, and in turn, the amount you will responsible for repaying.
Here are some of the tactics that are worth considering:
ท Develop realistic budgets for while you are attending school and even after you graduate. This will allow you to borrow not more than you need, giving you a great chance to repay your loans.
ท Learn to live as cheaply as you can. Always remember that you are just a student. You will enjoy a more comfortable lifestyle once youve graduated especially if you lessen your borrowing while you are in school. Some of the most recommended ideas for how to be thrifty include getting a roommate, renting a movie instead of going out to the theater, as well as bringing your lunch from home instead of eating out. Be thrifty as possible.
ท For any credit card bills you receive, try to pay the full amount due.
ท Establish a budget for yourself and follow it. While you are in school, it is important that you know how to resist the urge of using credit cards or your student loan funds to purchase things that are included in your budget. Dont just buy unnecessary things.
ท If possible, explore work-study or other part-time employment. As often said, it may give you an opportunity for you to study or obtain valuable,, student Federal loan
, student Federal loan
, professional experience, other than help cover overheads.
Tip #6: Maintain at least Half-Time Enrollment
Considering a half-time, student Federal loan
, enrollment is highly, student Federal loan
, necessary in order for you to qualify for an in-school deferment. The half-time, student Federal loan
, enrollment normally takes six credit hours. Regarding your schools requirements for half-time status, see your financial aid officer.
Tip #7: Take Advantage of Tax Savings
Some of the student who takes out student loans qualifies for tax credits. To see your own status, check with your tax advisor. The credits are actually based on your, student Federal loan
, qualified tuition payments, and they can help reduce the amount of Federal tax you pay. Now, if you are paying interest on a student loam, you may also be able to take a deduction on your Federal tax return for those interest payments. Therefore, to obtain the full benefit of the credits as well as the deductions, grab the opportunity of employing the additional tax refund to pay down your student loan debt, or perhaps to handle your educational overheads.
Tip #8: Repayment Tips
As you enter the repayment period, note that being, student Federal loan
, aware of your student loan obligations is very crucial. This is where the student loan, student Federal loan
, default usually happens. It occurs when you fail to pay back the loan as agreed or meet the other terms of your promissory note. The promissory note for each of the loans must then be referred prior to your graduation or before you leave school so that you know what your rights and responsibilities are in repayment.
Here is what you should do, student Federal loan
, as you enter the repayment period:
ท Send your education loan payments when due every month, for the full monthly payment amount or more. This must be done regardless of whether or not you receive a bill.
ท Note and understand the repayment options provided by your student loan lenders, student Federal loan
, . With some available options, there is a possibility that you can lessen the total cost of the loan by making a high monthly payment. Other options may even lessen your initial monthly payments and may make it easier for you to pay back your leans early in your career.
ท Understand the deferment as well as forbearance. In case you need them, just learn to exercise your options.
ท Remember that the loan consolidation and its repayment options have its pros and cons. So, understand them.
ท Keep your school, lender or, student Federal loan
, servicer informed of your whereabouts. Contact them immediately if you change your name or address; have questions about billing statements; have problems making your scheduled payment on time; or if you want information on or application for deferment or forbearance.
ท Read, note and understand all the correspondence you receive from your student loan lender, loan holder, or servicer. And, respond them promptly if asked to do so.
For Further Information
If for instance you need further information regarding your student loans, always remember that the financial aid staff at your school is probably your most important resource. However, there are also some consult publications from federal and state governments, lenders and scholarship granting organizations, and financial ad guidebooks that are available from your local bookstore. They are great enough for you to start your own search.
Michael VanWormer
articlecity.com
