Smart use of your money and your credit in college will enable you to spend the money you earn when you graduate on things you really want like a new car or house instead of all of your income going towards dept repayment.
A short story from a graduate that experienced the journey follows. If I knew at 18 what I now at 28, I could have prevented so much disaster from happening. Instead, I owe $150,000 to student loan companies with no escape.
I hope that you will read this before you fall into this trap. At 18 college was a dream come true. I could study without parents to monitor my class attendance, my coffee intake, or my late-night slurpy runs to 7-11 with friends.
I had worked part-time as a teen, but had no savings or significant sense of financial responsibility. I decided to finance a private school liberal arts education in my native Southern California with student loans.
I qualified for some federal money. The rest of it would come from private loans. A few thousand lattes later and some new clothes each semester, the bills started to add up. So it was impeccable timing when the credit card solicitors hit me.
Finance charges and interest rates, what's that? These concepts did not matter at the time to me. I graduated four years later with $150,000 in student loans and $11,000 in credit card debt.
Use your student loan money to finance your education, not your lifestyle. Tuition, room and board, and textbooks are smart ways to spend your student loan money. You'll be paying these loans off for the next ten to 20 years, so use the money wisely.
In addition to student loans, a heavy burden is the credit card debt. In the first year of college the average debt was $2,169 on these cards. At interest rates of 15 to 18 percent, you will be paying off this credit debt into your 30s or 40s.
The way you handle your debt will follow you for many years. If you max out your credit line, don't pay your bills on time and keep collecting credit cards to add ways to obtain money, you'll have a very poor credit score after you graduate.
A budget helps you plan ahead by knowing how much money you have coming in and going out. It gives you the power you need and the peace of mind of knowing where your money is going. Plan to save money while in college so you can spend money on the items you really want when you graduate.
Court helps people to learn how to consolidate private student loans. You can read more of his work by visiting: http://whalehookloans.com
Wednesday, October 31, 2007
Student Loans 101
There are many ways for students to finance a college education, but one of the most common ways is through taking out a loan. There are loans specifically designed to cover the cost of higher education.
Types of Student Loans
Federal student loans have terms and conditions that are determined by the federal government. Federal loans may come directly from the federal government. Banks can also issue federal student loans.
Private student loans and their associated terms are issued by private banks.
Applying for Student Loans
To apply for federal loans, prospective students need to complete a FAFSA, or Free Application for Federal Student Aid. This application will request personal information such as your name, address, and social security number. It will also require you to submit information about your plans for school attendance for the upcoming year, including the type of degree you are working to obtain and your grade level. Lastly, the application will request detailed financial information from you and your parents to determine the type of aid you will be eligible for.
When applying for a private student loan, the application process is less detailed. However, the requirement for loan approval are stricter than with federal loans. Private lenders will check your credit history and your income before approving you for a loan.
With both federal and private lenders, they will confirm that you will actually be attending school before granting you the loan.
Student Loan costs
The rate of interest applied to the loan determines the cost of the loan. The lower the interest rate, the less the loan will cost you.
Be aware that interest begins accruing on your loan as soon as you receive it. If you have a federal loan, the government may pay the interest whild you are in school. With other types of loans, you are responsible for paying the interest while you are enrolled in school. There are options for deferring interest payments until after graduation, but if you choose to defer these payments, the interest will be added to the balance of your loan, thereby increasing the total amount owed.
Repaying Student Loans
You usually have a six month grace period after graduation before you must begin making payments on your loan. Once the grace period ends, you must make regular payments on the student loan if you want to remain in good standing with the lender. You should contact the lender prior to the end of the grace period to determine the exact amount of your monthly payments and to learn what options are available to you.
Peter Kenny is a writer for Finance 123. Please visit us at http://www.finance-123.com/credit-cards/reward-credit-cards and http://www.shopsmartloans.com/home-equity-loans
Types of Student Loans
Federal student loans have terms and conditions that are determined by the federal government. Federal loans may come directly from the federal government. Banks can also issue federal student loans.
Private student loans and their associated terms are issued by private banks.
Applying for Student Loans
To apply for federal loans, prospective students need to complete a FAFSA, or Free Application for Federal Student Aid. This application will request personal information such as your name, address, and social security number. It will also require you to submit information about your plans for school attendance for the upcoming year, including the type of degree you are working to obtain and your grade level. Lastly, the application will request detailed financial information from you and your parents to determine the type of aid you will be eligible for.
When applying for a private student loan, the application process is less detailed. However, the requirement for loan approval are stricter than with federal loans. Private lenders will check your credit history and your income before approving you for a loan.
With both federal and private lenders, they will confirm that you will actually be attending school before granting you the loan.
Student Loan costs
The rate of interest applied to the loan determines the cost of the loan. The lower the interest rate, the less the loan will cost you.
Be aware that interest begins accruing on your loan as soon as you receive it. If you have a federal loan, the government may pay the interest whild you are in school. With other types of loans, you are responsible for paying the interest while you are enrolled in school. There are options for deferring interest payments until after graduation, but if you choose to defer these payments, the interest will be added to the balance of your loan, thereby increasing the total amount owed.
Repaying Student Loans
You usually have a six month grace period after graduation before you must begin making payments on your loan. Once the grace period ends, you must make regular payments on the student loan if you want to remain in good standing with the lender. You should contact the lender prior to the end of the grace period to determine the exact amount of your monthly payments and to learn what options are available to you.
Peter Kenny is a writer for Finance 123. Please visit us at http://www.finance-123.com/credit-cards/reward-credit-cards and http://www.shopsmartloans.com/home-equity-loans
Choosing a Student Loan Lender
Student loans are a popular choice for funding a college education. Once the choice is made to use a student loans, they will become a major part of your financial life for years to come. This is why it is important to choose a lender that you will be able to work with for the entire duration of the loan. While you are evaluating your student loan options, there are a few important points to keep in mind.
Approval Method
Income and credit history are two key factors considered by most private student loan lenders. If you have a poor credit history, a low income, or both, it will be difficult to obtain a loan without a co-signer. Without a co-signer, you will need to look for alternative financing.
Federal student loans can be obtained without regard to credit or income. You must fill out a Free Application for Federal Student Aid, also known as a FAFSA. Copies of the application can be obtained from the financial aid office at your school or online.
Loan Terms
One of the most important factors you should consider when choosing a student loan lender should be the terms and conditions of the loan. Loan terms include the amount of the loan, the interest rate, whether the interest rate is variable, the grace period, and default conditions. Each lender will have different lending terms.
You should choose the lender with terms that will cost you the least amount of money over the life of the loan. Lenders that offer fixed rate loans are a good choice. With fixed rate loans you don't have to worry about what the interest charges will be from month to month.
Repayment Plans
A lender that offers a variety of repayment options is also a good choice. Regardless of what you expect your income to be after graduation, you'll never know for sure until you reach that point. Remember, the hardest part about taking out a student loan is repaying it.
Forebearance and Deferment Options
Forebearance and deferment options allow you to temporarily halt your student loan payments in the event you encounter some financial difficulties during the life of the loan. This will give you the peace of mind of knowing that you'll have one less bill to worry about while you focus on getting back on track financially. Without any forebearance and deferment options, you'll be required to continue paying on your loan even if you have financial hardship. Be aware of each lender's options in this area as well as the criteria for qualification.
Keep each of these factors in mind while choosing a student loan lender. Decide which points are most important to you and look for a lender that offers the best terms in that area.
Peter Kenny is a writer for Finance 123. Please visit us at http://www.finance-123.com/credit-cards/business-credit-cards and http://www.shopsmartloans.com/personal-loans
Approval Method
Income and credit history are two key factors considered by most private student loan lenders. If you have a poor credit history, a low income, or both, it will be difficult to obtain a loan without a co-signer. Without a co-signer, you will need to look for alternative financing.
Federal student loans can be obtained without regard to credit or income. You must fill out a Free Application for Federal Student Aid, also known as a FAFSA. Copies of the application can be obtained from the financial aid office at your school or online.
Loan Terms
One of the most important factors you should consider when choosing a student loan lender should be the terms and conditions of the loan. Loan terms include the amount of the loan, the interest rate, whether the interest rate is variable, the grace period, and default conditions. Each lender will have different lending terms.
You should choose the lender with terms that will cost you the least amount of money over the life of the loan. Lenders that offer fixed rate loans are a good choice. With fixed rate loans you don't have to worry about what the interest charges will be from month to month.
Repayment Plans
A lender that offers a variety of repayment options is also a good choice. Regardless of what you expect your income to be after graduation, you'll never know for sure until you reach that point. Remember, the hardest part about taking out a student loan is repaying it.
Forebearance and Deferment Options
Forebearance and deferment options allow you to temporarily halt your student loan payments in the event you encounter some financial difficulties during the life of the loan. This will give you the peace of mind of knowing that you'll have one less bill to worry about while you focus on getting back on track financially. Without any forebearance and deferment options, you'll be required to continue paying on your loan even if you have financial hardship. Be aware of each lender's options in this area as well as the criteria for qualification.
Keep each of these factors in mind while choosing a student loan lender. Decide which points are most important to you and look for a lender that offers the best terms in that area.
Peter Kenny is a writer for Finance 123. Please visit us at http://www.finance-123.com/credit-cards/business-credit-cards and http://www.shopsmartloans.com/personal-loans
Monday, October 29, 2007
Federal Student Loan - For Debt Consolidation
Higher education costs have almost skyrocketed in last few decades. So education requirements are often more than one loan. Students are sometimes employed but receive very low salaries at entry level and they are left with staggering debt burdens.
Even though they possess considerable talent they are unable to pursue higher educational needs because of their financial situations at home. If they desire to continue their education then they have to apply for student loans that are an additional cost burden to the family and the student who do not have the financial capacity to repay the loans.
Federal student loans for debt consolidation have been designed to help the students by combining all their debts into a single loan to be paid monthly. This makes their life more easy and they do not have to live in the threat of debt burdens just when their careers are about to start.
These loans are designed to tailor to the needs of different student from different background and challenges. So there is one best deal for each one of those who apply for such loans. Each of these loan packages designed distinctly exhibit diverse interest rates.
Applying for federal student loan consolidation requires a little bit of research on the net. There are many online links that offers excellent consolidation opportunities for students.
A Federal student loan consolidation bears lower interest rate and makes repayment a much easier task for students. This loan does not require a co-signer. No credit check is performed from the lending agency while approving this loan.
This Federal consolidation loan does not have hidden charges or processing fees during the time of application and over the loan period. Penalties for early repayment are also never charged.
Before you choose your lender you just need to know your package very well. You also need to know the kind of support your lending agency is going to provide over the loan period. If you have other loans with one lender then it is best that you approach the same lender to consolidate your existing loans into a single federal consolidation loan.
Choosing the lender is definitely important to ensure that you are offered the best deal at competitive market rate and you need to worry about your credit reporting status. Please ensure that your lending agency reports your timely payment to the credit bureaus and your credit score is up to date. Otherwise there is no point choosing a lender who is reluctant to do so and in this process your credit history gets marred even before it is created properly.
Find more Debt help info @ http://www.MY-DEBT-CONSOLIDATION-SOURCE.INFO and debt reduction info @ http://www.MY-DEBT-CONSOLIDATION-SOURCE.INFO/sitemap.php online. For Weight loss related articles: http://www.weightloss-fyi.info
Even though they possess considerable talent they are unable to pursue higher educational needs because of their financial situations at home. If they desire to continue their education then they have to apply for student loans that are an additional cost burden to the family and the student who do not have the financial capacity to repay the loans.
Federal student loans for debt consolidation have been designed to help the students by combining all their debts into a single loan to be paid monthly. This makes their life more easy and they do not have to live in the threat of debt burdens just when their careers are about to start.
These loans are designed to tailor to the needs of different student from different background and challenges. So there is one best deal for each one of those who apply for such loans. Each of these loan packages designed distinctly exhibit diverse interest rates.
Applying for federal student loan consolidation requires a little bit of research on the net. There are many online links that offers excellent consolidation opportunities for students.
A Federal student loan consolidation bears lower interest rate and makes repayment a much easier task for students. This loan does not require a co-signer. No credit check is performed from the lending agency while approving this loan.
This Federal consolidation loan does not have hidden charges or processing fees during the time of application and over the loan period. Penalties for early repayment are also never charged.
Before you choose your lender you just need to know your package very well. You also need to know the kind of support your lending agency is going to provide over the loan period. If you have other loans with one lender then it is best that you approach the same lender to consolidate your existing loans into a single federal consolidation loan.
Choosing the lender is definitely important to ensure that you are offered the best deal at competitive market rate and you need to worry about your credit reporting status. Please ensure that your lending agency reports your timely payment to the credit bureaus and your credit score is up to date. Otherwise there is no point choosing a lender who is reluctant to do so and in this process your credit history gets marred even before it is created properly.
Find more Debt help info @ http://www.MY-DEBT-CONSOLIDATION-SOURCE.INFO and debt reduction info @ http://www.MY-DEBT-CONSOLIDATION-SOURCE.INFO/sitemap.php online. For Weight loss related articles: http://www.weightloss-fyi.info
Saturday, October 27, 2007
Student Loans and Financial Hardships
There are times in everyone's lives when finances become tight and it becomes difficult to make ends meet. Most student loan lenders are aware of this and have options available to you during times of financial hardship. Deferment and forebearance options may be available to you depending upon your circumstances.
Deferment
Derferment refers to postponing your loan payments for a certain amount of time. If you still remain in school at least half-time, most lenders will automatically defer your student loan until six months after you've stopped taking classes or you've graduated. Difficulty finding a job and economic hardship are two more reasons a lender may allow you to defer your loan payments.
Interest continues to accrue on your loan even when it is being deferred. You have the option of paying this interest if possible. Keep in mind that if you don't pay interest, it will be added to the balance of your loan, usually when the deferment period ends. If this happens, you may end up owing more than you orginally borrowed.
Forebearance
Another option available to help you in times of financial hardship is loan forebearance. There are several types of forebearance avaialble:
1. Reducing your loan payments allows you to make lower monthly payments on your loan. If these payments aren't enough to cover the interest, it will capitalize periodically. When this happens, it is addded to the balance of the loan, making the amount owned higher.
2. Extended payments will lengthen the term of your loan, thereby making the monthly payments lower. By extending the length of your loan, you will end up paying more in interest over the life of the loan than you would have if you stayed with the shorter term.
3. Temporary postponement of payments is similar to derferment. You and your lender agree on a period of time that you will be allowed to stop making payments. Interest will continue to accrue during this time.
Various lenders will have different requirements for deferment and forebearance. Some will require a fee for the convenience, while others may require you to fill out forms verifying your financial circomstances.
If you find yourself having difficulty making your monthly loan payments, the best option is to contact your lender immediately to avoid defaulting on the loan. If you don't, you may forfeit your derferment or forbearance options.
Peter Kenny is a writer for Finance 123. Please visit us at http://www.finance-123.com/debt-consolidation and http://www.shopsmartloans.com/auto-loans
Deferment
Derferment refers to postponing your loan payments for a certain amount of time. If you still remain in school at least half-time, most lenders will automatically defer your student loan until six months after you've stopped taking classes or you've graduated. Difficulty finding a job and economic hardship are two more reasons a lender may allow you to defer your loan payments.
Interest continues to accrue on your loan even when it is being deferred. You have the option of paying this interest if possible. Keep in mind that if you don't pay interest, it will be added to the balance of your loan, usually when the deferment period ends. If this happens, you may end up owing more than you orginally borrowed.
Forebearance
Another option available to help you in times of financial hardship is loan forebearance. There are several types of forebearance avaialble:
1. Reducing your loan payments allows you to make lower monthly payments on your loan. If these payments aren't enough to cover the interest, it will capitalize periodically. When this happens, it is addded to the balance of the loan, making the amount owned higher.
2. Extended payments will lengthen the term of your loan, thereby making the monthly payments lower. By extending the length of your loan, you will end up paying more in interest over the life of the loan than you would have if you stayed with the shorter term.
3. Temporary postponement of payments is similar to derferment. You and your lender agree on a period of time that you will be allowed to stop making payments. Interest will continue to accrue during this time.
Various lenders will have different requirements for deferment and forebearance. Some will require a fee for the convenience, while others may require you to fill out forms verifying your financial circomstances.
If you find yourself having difficulty making your monthly loan payments, the best option is to contact your lender immediately to avoid defaulting on the loan. If you don't, you may forfeit your derferment or forbearance options.
Peter Kenny is a writer for Finance 123. Please visit us at http://www.finance-123.com/debt-consolidation and http://www.shopsmartloans.com/auto-loans
Friday, October 26, 2007
Bad Credit Student Loan - A Real Trap?
You have found your self on the brink of drowning in debt, the waves of debt are lapping at your credit status on the brink of disaster. Ok, enough of the drama, I'm sure you get the picture.... so what are you options and what is the best cause of action? Or is it a trap.
A Bad Credit Student Loan can be a real trap - especially when looking at the private loans or other wise know as alternative loans. Firstly lets look at Student loan consolidation
A student who currently have loans being either a single student loan or a number of student loans have a range of different options to reduce repayments and debt and keep a wide birth from ending up with a Bad Loan . Interest rates have fallen, now loans can be consolidated or even in some cases refinanced. When you're considering refinancing consolidating, you need to compare interest rates before you consolidate.
First, lets look at Eligibility to avoid a Bad Credit.
You will find you are eligible to consolidate when:
- You're no longer enrolled in school (defined as being enrolled less than half time)
- You must be within the "grace period" of the loan or you must be actively repaying your loan.
- Most consolidation companies require a minimum loan amount, $10,000 is typical.
The difference between federal and private loans
Federal loans have advantages over private loans. For example, interest on the loan is tax deductible, the loan can sometimes be forgiven for certain types of service, and you can sometimes defer payments on the federal loan if you go back to school.
Private loans don't have these advantages - they are really just loans either secured or unsecured, and you have to pay them back just like any other loan.
It's essential you don't consolidate the federal and private loans together. Consolidate all of your federal loans as first step. Then separately consolidate your private loans. If you wanted to mix the public and private loans, then you would have to take out one single private loan that actually loses all the benefits of the federal student loans. Keep government student loan consolidation separate from private student loan consolidation.
A Private student loan which are unsecured and based on credit. The figures for opting for loans are only increasing as each year passes by. You will probably need to take out several scholarships, grants and loans in order to pay for your tuition, books and your living expenses.
Credit counseling is available in many student loan providers. While these companies are for-profit businesses. If you are denied a loan they will work with you to repair your credit.
Check out more about Bad Credit Student Loans visit http://www.american-studentloan.com
A Bad Credit Student Loan can be a real trap - especially when looking at the private loans or other wise know as alternative loans. Firstly lets look at Student loan consolidation
A student who currently have loans being either a single student loan or a number of student loans have a range of different options to reduce repayments and debt and keep a wide birth from ending up with a Bad Loan . Interest rates have fallen, now loans can be consolidated or even in some cases refinanced. When you're considering refinancing consolidating, you need to compare interest rates before you consolidate.
First, lets look at Eligibility to avoid a Bad Credit.
You will find you are eligible to consolidate when:
- You're no longer enrolled in school (defined as being enrolled less than half time)
- You must be within the "grace period" of the loan or you must be actively repaying your loan.
- Most consolidation companies require a minimum loan amount, $10,000 is typical.
The difference between federal and private loans
Federal loans have advantages over private loans. For example, interest on the loan is tax deductible, the loan can sometimes be forgiven for certain types of service, and you can sometimes defer payments on the federal loan if you go back to school.
Private loans don't have these advantages - they are really just loans either secured or unsecured, and you have to pay them back just like any other loan.
It's essential you don't consolidate the federal and private loans together. Consolidate all of your federal loans as first step. Then separately consolidate your private loans. If you wanted to mix the public and private loans, then you would have to take out one single private loan that actually loses all the benefits of the federal student loans. Keep government student loan consolidation separate from private student loan consolidation.
A Private student loan which are unsecured and based on credit. The figures for opting for loans are only increasing as each year passes by. You will probably need to take out several scholarships, grants and loans in order to pay for your tuition, books and your living expenses.
Credit counseling is available in many student loan providers. While these companies are for-profit businesses. If you are denied a loan they will work with you to repair your credit.
Check out more about Bad Credit Student Loans visit http://www.american-studentloan.com
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