Tuesday, September 30, 2008

Types and Trend of Student Loans

There are several types of loans available to students

The simplest categorization is into federal student loans and private loans. Federally funded loans are administered initially through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for. These federal programs disburse about $60 billion a year in loans, work-study support and grants. Stafford loans are the most common form of federal loans for students, but there are a variety of other federal payment plans - among them military / ROTC plans to pay for college.

Private student loans are administered by standard lending institutions. Among the most common are Citibank student loans and the Sallie Mae Signature student loans. These lenders are basically providing unsecured (or in some cases secured) loans to you as a student, and will most often charge higher interest rates than their federal counterparts.

Private and federal loans, along with scholarships, can be combined to fund your education. However, it's important that when it comes time to consolidate student loans, you do not mix the two types together. You should always consolidate your federal loans first, then separately consolidate private student loan debt. The benefits of consolidating your federal loans include: a lower interest rate (usually, but keep in mind that interest rates change every July 1), increasing the time for loan repayment to 30 years which reduces your monthly costs, and reducing the number of lending institutions you send checks to every month. For a more complete discussion of this topic and consolidation eligibility criteria, visit our page on how to consolidate student loans. Medical student loans fall into a special class, and are discussed on our medical school loans page.

Trends for student loans

Nearly 50% of recent college graduates took out student loans, with an average borrowed around $10,000 (1). Until recently, student loan interest rates ran between 6-8%. Recently, though, rates have fallen very low. As of fall 2003, Stafford loan interest rates were in 3-4% range (2).

Students who currently have loans, either a single loan or multiple loans, have a variety of options for reducing their payments and indebtedness. Because interest rates have fallen, loans can be consolidated or in some cases refinanced. When you're considering refinancing student loans or student loan consolidation, you need to compare interest rates before you consolidate federal student loans.

Please read this 2 article to make sure you understand what we talk about:

1. How to find best private student loan
2. Student loans trend

Thursday, September 25, 2008

How to get Funding you need?

Many times student loans are key to whether a young adult will be able to attend college. Without them, getting a higher education may remain an unattainable dream. Luckily, many people can get a student loan without a co-signer and even if your are not financially needy.

The first step to getting a student loan is to know how to apply for one. The very first thing you need to do is fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA. You can do this at www.fafsa.ed.gov. This application will help qualify or disqualify you for a federal Pell grant, which needs to be done for all students -- whether they will qualify or not -- before looking for any other student loans. The great thing about the FAFSA is that, even if you don't qualify for a Pell grant, it can help you qualify for a subsidized Stafford student loan where the US Department of Education pays all of the interest on the loan until repayment begins (6 months after you have left school -- whether it is because you graduated or dropped out).

What kind of loan or grant you get, and how much you are offered, will depend on your Expected Family Contribution -- otherwise known as EFC. If you can get a grant for some of your expenses, but not all of them, you will likely be able to obtain either a subsidized or unsubsidized student loan to pay for the rest. Even if you do not think that you will qualify for a grant or subsidized loan, you can still be offered one that is unsubsidized. This means that you will have to pay the interest from the start of the loan, but it may be easier to obtain a loan this way rather than by going to a private lender -- especially if you are a young student who does not yet have a credit rating and no other adult will co-sign for you.

Whether you get a grant, subsidized student loan, or an unsubsidized student loan, if you have money left over after all of your classes and books are paid for, you can use the remainder for living expenses. You can use it to pay the school for meals and a dorm for the year or to help pay for your own apartment and groceries. This may come in handy if you are not able to work enough hours while taking a heavy load of classes.

If you cannot get any funding after review of your FAFSA, or you are not offered enough, you can always try to get student loan funding through a private lender. This may be harder to accomplish and you may need to line up a co-signer -- such as your parents, spouse, or an older sibling -- who has a good credit record. These student loans should also be deferred until you leave school and include a 6 month grace period.

Ps: How about it? You know right now how to get your fund??

Tuesday, September 16, 2008

What is LowDown?

Student loans are a wonderful way to pay for graduate school. They are relatively easy to qualify for as long as you are not delinquent on any previous student loans. Usually there is no credit check, you just need to give the names of a few references which are only contacted in your lender is unable to reach you. A great option for paying for graduate school, student loans have easy qualifications except for delinquents on previous student loans. Usually no credit check occurs and only the names of a few references to be contacted in case of the lender's failure to contact you, is required.

It's surprising that half of one's student loans are subsidized. In subsidized student loans, interest is paid by the federal government and not by the borrower. Very low income is not necessary to qualify for subsidized loans as it takes income and family size into consideration with many individuals in families qualifying for one subsidized loan or the other.

Student loans make it possible for many to attend school. Often money can be taken out to pay for other expenses other than tuition, like a new computer, books and supplies and living expenses. Graduate students sometimes quit full-time jobs or opt for part-time hours to attend school. Personal loans help cover necessary living expenses. Most personal loans however, require credit check unlike traditional student loans.

Millions of students benefit from student loans without which school would be unaffordable. But certain factors need to be remembered before signing the paperwork. Applying and getting approval for student loans will make it appear as debt on credit report, even if indicates one is not in repayment status. It can nevertheless affect credit score adversely. For example currently the money one makes may not be sufficient to pay the monthly-anticipated payment on the loan after graduation. The credit score will then reflect too much debt compared to current income. For the credit agencies the fact that one is currently in school and after graduation will be likely to earn more and have no more problems with repayment of loan, is not considered. It can affect the ability to apply for any other loan while still in school.

Sallie Mae Servicing lists out several serious implications on delinquency on student loans:
--Default can be reported to all national credit bureaus making it likely to affect financing of any future purchase like a home or automobile.
--The cost of the loan can increase with late fees and other charges.
--Entitlements may be lost for deferment or forbearance options.
--Many repayment options can be lost like income sensitive or graduated repayment.
--Eligibility for future student financial aid may be lost.
--Wages can be garnished.
--IRS refunds can be seized by the Department of Education.
--One can be sued for the balance on the loan.
(Source: http://www.salliemae.com/)

Therefore first one should be aware that student loans don't just disappear unless they are repaid. Fortunately the options are many. One is to stop attending due to a break in education or on graduation, to start a grace period. Six months follow before the estimated first payment is scheduled to start. In the grace period the interest rate is lower than during the repayment period. The grace period gives you a chance to find a job to begin payments for student loans.

Most students have more than one student loan, with usually one for each school year. If you qualify for subsidized student loans, the government pays the interest on the subsidized student loans. One could have half of his loans subsidized and the other half, not. Consolidating student loans can enable you to save yourself the efforts in separate payments for each loan and money as your loans are all combined into one. Consolidation during the grace period saves you substantial amount. For loans amounting to over $40,000, your payments can stretch to over 30 years.

Several other repayment options can be found by going to http://www.salliemae.com/. The best advice one can get is to research options thoroughly for the payment plan that would work best for you.

PS: I guess, its another good information. Why not you give a try first??

Monday, September 15, 2008

Did you know 2 Ways to Reduce Debt Burden?

Eligibility for federal student loan consolidation

DId you know what is that mean?

You are eligible to consolidate federal student loans when:

# You are no longer enrolled in school (defined as being enrolled less than half time)
# You must be in the "grace period" of the loan or must be actively repaying your loan.
# Most consolidation companies require a minimum loan amount, $10,000 is typical.

The difference between federal and private student loans

Federal student loans have advantages over private loans. For example, interest on the loan is tax deductable, 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.

So, it's important to not consolidate federal and private loans together. Consolidate all your federal student loans first, then separately consolidate your private loans. If you were to mix the public and private loans you would have to take out a single private loan that loses all the benefits of the federal loans. Keep government student loan consolidation separate from private loan consolidation.

Student loan debt

About 50% of recent college graduates took out student loans, with an average borrowed around $10,000 (ref. 3). In the last three years, rates have fallen very low. As of fall 2003, Stafford loan interest rates were in 3-4% range (ref. 2). Consolidation interest rates can be much lower (under 2%), but this comes with very specific requirements - like good repayment history.

Like any debt, student loans can influence your credit and your future decisions. Students who borrowed a substantial amount for college (more than $5000) are less likely to pursue higher education (ref. 3). In addition, student loan debt that exceeds 8% of your income can be seen negatively when your credit gets assessed for future loans.

Two ways to reduce the debt burden are:

1) reduce or eliminate the principal balance. Specific types of loans can sometimes be forgiven by service or other higher education - look into the specific student loan program you have.

2) Reduce your monthly payment. Since debt burden is measured by comparing your loan payment to your income, reducing your payment helps your credit evaluation.

Ps: Ok. Did you understand now?

Debt Plans

Break free from the cycle of debtwith the help of the debt specialists!



Thursday, September 11, 2008

How to Save money for Adult Student Like Us?

Going to college is an important, expensive, and somewhat anxiety-provoking decision for anyone, but adult students especially face daunting challenges associated with school. If you are non-traditional student who is concerned about the costs of college in relation to all of the other obligations in your life, you are in good company. Nowadays, over 40% of college students are not recent high school graduates.

In addition to family, work, and other monetary obligations, the other main difference between non-traditional students and the majority of traditional students is reflected in federal financial aid procedures. If you are over 24 years old, then you are considered financially independent from your parents. While this may seem intuitive, it also greatly alters the way that students of different ages pay for college.

For tips on how to handle the costs of attending college as an adult student, read on.

* Even though traditional college students and adult students necessarily face college costs differently, there also is a bit of similarity among all students in how to plan for college costs. Just as is recommended for traditional college students, your first move toward financing your education absolutely should be filling out the FAFSA (Free Application for Federal Student Aid).

* Fill out the FAFSA as early as possible, even if you are not yet sure which school you will attend. Eligibility for aid is based partially on a first-come first-serve basis, and you might miss out on great opportunities by waiting. You especially do not want to miss out on potential grants, which do not need to be repaid. These include the Pell Grant, for which eligibility is based in part on one’s dependents -- which makes them ideal for many adult students, and the Workforce Improvement Grant, which is awarded specifically to adult students.

* Traditional students often do not have to worry about planning for their college costs because they have few financial obligations elsewhere (and usually help from parents), but this is not the case with adult students. If you are a prospective adult student, you need to start planning for your expenses as soon as possible. Develop a budget if you have not done so already, and see where you can cut back to use the money towards your tuition. This is important because…

* As an adult student, you do not want to take out any more in student loans than is absolutely necessary. In fact, your grant and scholarship search should be completely exhausted before you take out a loan. Whereas traditional students’ loans generally affect only them, your loans may affect the overall financial livelihood of your family. The fewer the costs that you must find a way to finance, the better.

* Scholarships are not just for those students fresh out of high school. There are plenty of grants and scholarships to go around, and actually there are many with specific eligibility requirements that are most easily met by adult students. For example, there are many scholarships and grants available to individuals in specific occupations or with certain types of volunteer experience.

* Do not pay any company for a scholarship search, because it simply is not necessary. In addition to books and websites full of scholarship opportunities, it may be wise to look right in your own community for financial assistance. Many community organizations, religious institutions, and social groups, as well as universities themselves, offer little-known scholarships for those individuals with enough initiative to find them.

* Before you fill out the FAFSA and apply for other types of aid, consider using some money that you have saved for paying off other debts. The financial assets that you possess affect your ability to receive student aid, so now is a great time to relieve some other financial obligations.

* Use your life experience to avoid taking unnecessary classes (and therefore, paying unnecessary tuition). Thousands of U.S. colleges give course credit to adult students who pass associated tests given through the College-Level Examination Program (CLEP). Ask your university if they are involved with this program, and/or if they offer alternative “life credits”.

* Speak with your human resources department at work about reimbursements for your educational costs. Many employers choose to help out with educational costs because your advanced education is great for them, it because this system also helps with recruitment.

* If you are a bit unsure about your decision to go to (or return to) college, consider taking a few classes as an at-large student first before making such a large financial commitment.

* Online courses are a great option for adult students. Not only do they provide the obvious benefit of working on one’s own time schedule, but they also can save you a substantial amount of money in commuting costs.

* If money is tight, ask a university representative about fee waivers for such expenses as application costs and lab fees.

* If you plan to go for a four-year degree, it might make sense financially if you do your first two years at a community college. Community college tuition usually is much cheaper than tuition at four-year schools.

As a final tip for those of you about to embark on a college career later in life, take advantage of a university resource that many traditional students do not utilize. If ever you have questions or concerns related to college expenses, meet with a financial aid officer at your school. It is his or her job to come up with a way for you to meet the financial obligations of your education, so do not let a few dollar signs get in the way of your academic goals. Best of luck in your college career!

Ps: But please choose a good one if you want to take a loan. Never take some loan that will kill you especially for highest rate loan.

You also need to read this 2 article to help you understand about student debt:

1. Studentloan
2. Debthelp

Sunday, September 7, 2008

What can I know about Medical Student Debt?

Did you have problem with your body? Did you feel healthy? Did you also have medical student debt and you in big problem with that? You should read this stories..

In a recent study by the Association of American Medical Colleges (3) the cost of private medical schools has risen 165% and the cost of public medical schools has gone up 312% over the last 20 years. A similar study by the AMA (4) found that medical school costs have increased substantially more than the Consumer Price Index (inflation). The average medical student graduates with nearly $100,000 in student loan debt (Medical School Loans).

Compound this with slow physician salary growth, young physicians are faced with increasing difficulty in paying their college student loans and medical student loans.

The good news is that medical schools, and importantly the organization that licenses medical schools, recognize the problem. During the re-accreditation processes he LCME (Liaison Committee on Medical Education) asks every medical school how they intend to reduce medical debt. This puts pressure on the schools to either reduce costs or find creative ways to help students finance their debt.

Please read this 2 article before you think you in crazy mode!

1. Debt settlement
2. Student Loan in Denmark

Ps: I don't think i have problem with my body right now. But i don't know what will happen in future..

Friday, September 5, 2008

What should i call? Student loans or Education loans?

What is studentloan? Did you have problem with loan when you still student??

An education loan is a form of financial aid that must be repaid, with interest. (Scholarships, on the other hand, do not have to be repaid.)

Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment. A recent innovation is peer-to-peer education loans.

Federal law sets the maximum interest rates and fees that lenders may charge for federally-guaranteed loans. Nothing prevents a lender from charging lower fees. Many lenders offer a variety of student loan discounts to attract borrowers.

Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.) For federal student loan debt (excluding PLUS Loans), the figures are 62.2% and $17,036. Average cumulative debt increases by about 3% or approximately $550 a year. When one includes PLUS loans in the total, the average cumulative debt incurred is $21,899. (Approximately one in ten (10.8%) parents borrow PLUS loans for their children's college education, with a cumulative PLUS loan debt of $16,317.)

Read the rest here

By the way, you can read at this 2 article. I believe its intersting!

1. Financial Aid
2. Federal Direct Consolidation

Thursday, September 4, 2008

UK Student Loan Issue

In the UK Student Loan entitlements are guaranteed, and are recovered using a means-tested system from the students future income. Student Loans in the UK can not be included in Bankruptcy, but do not affect a persons credit rating because the repayments are recovered from the students future salary at source by the employer before any income is paid, similar to Income Tax and National Insurance contributions. Many students however, are struggling with debt well after their courses have finished

The level of personal debt in the UK has also risen astonishingly in recent years:

"Total UK personal debt at the end of February 2008 stood at £1,421bn. The growth rate increased to 8.9% for the previous 12 months which equates to an increase of £111bn

Wednesday, September 3, 2008

Student in Debt Problem

As you know, i'm still student and need to pay for many thing like bills, food bills, internet bills and many thing. I hope i can pay all that with my own money and can reduce my debt a little. So, what can i do next??

Student debt is rising every year. College costs, as well as graduate school costs, have gone up faster than inflation. Pell grants have not kept, but, Stafford loan and other federal student loan interest rates are near record lows.

College Student Loan Debt

A recent study by the National Center for Education Statistics (1) shows that about 50% of recent college graduate have student loans, with an average student loan debt of $10,000. The average cost of college increases at twice the rate of inflation; the College Board (2) estimates that public school costs an average of about $13,000 a year and private schools costs $28,000.

Planning Your Financial Aid Package

There are a variety of financial aid options, from scholarships, grants, federal loans, and private student loans. There are several great resources for planning your financial aid. First, try the Student Aid Wizard from the US Federal Government Dept. of Education. Of course, individual schools provide scholarships to attract the students they want, but there are also many private or non-profit organizations that provide information on student aid. We've compiled a list of sites and organizations that provide Financial Aid and Student tax information.

Reducing Your Student Loan Debt Burden After College

Once you've graduated you have to start paying back your student loan debt. There are many ways to reduce to your debt load, the most common among them is to consolidate student loans or simply to refinance your student loans. There are two main benefits to student loan consolidation.

The bigger benefit is reducing interest rates, and therefore monthly payments and overall debt. Interest rates are near record lows now, so chances are you'll get a better rate now than when you first got your loan.

The second advantage is reducing the number of creditors. This makes it easier to keep track of your payments. More importantly, it means you only have to deal with one creditor if you're late with a payment or need to renegotiate your loan for some reason.

Of course, you can't consolidate student credit card debt in with your student loans - these are very different kinds of debt. However, you can consolidate credit card debt through private companies, and you can potentially consolidate your private student loans into the same loan. But remember, federally funded student loans have much lower interest rates than private loans, and if you roll them together you would be required to use the higher interest rate - so keep private and federal student loan consolidation programs separate.

Reducing monthly payments also helps to keep all of your loans current (that is, it keeps you from having any defaulted student loans, which can affect your credit very badly).

Anyway, if you interested, you can read more about debt and student debt in this link:

1. Studentloan
3. Credit card debt

Ps: Huh, i feel crazy now and don't know how to start first..

Tuesday, September 2, 2008

Do you know about any Type of Student Loans?

So what types of student loans are available in the market today?

Federal Student Loan

This type of loan is not based on your credit score. The good thing about a federal student loan is its need-based structure. Students with bad credit can get the necessary funds as long as they meet the requirements. Applicants with bad credit may not be able to get approval for federally subsidized private loans, since credit is a factor in the approval process for these loans.

Private Funding

Getting private funding for your student loans can be even more difficult because credit verifications are necessary. Usually, there are also credit limits to students who have a bad credit history.

There are exceptions to this rule. For the most part, an average person doesn't get to access this type of loan.

As long as there is a demand for a certain product as service, private funding will always find ways to meet this demand. This enabled bad credit student loan products to be introduced.

Bad Credit Student Loan

Bad credit student loans are available to anyone who cares to apply for them. You should not expect the bad credit student loan to fund your four-year study in an expensive school, because the financing available is quite limited. Another issue you have to consider is how the private credit institutions that offer these products don't always offer a loan repayment plan until after you graduate.

These minor setbacks aside, bad credit student loan is probably the most viable way to finance further studies so you can have a chance to a more financially stable future.

Government Student Loans

It is important for students to remember while availing government student loans that they are financial obligations those need to be repaid. One has to pay attention to the various terms and conditions that are part of government student loans that help in funding one's school education. It is always better not to borrow more that what is required for repaying comfortably once the student were to complete schooling

Do you know a Guide to Bad Credit Card?

If your credit history has entries like default on payments of previous loans or country court judgments, you become a borrower with bad credit. So, when you apply for a loan, your case becomes that of bad credit loan.

For banks, this becomes a case full of risks because with your credit history, you are more likely to make late or even defaulted payments. As banks tend to go for safer investments, they have stringent loan selection process. They will usually steer away from loan applications from people who have bad credit history. And you have to do a lot of convincing to secure a bad credit loan from them.

However, you can still get a bad credit loan from some institutions. But these loans can cost you more as they come with high interest rates. Besides, you also have to prove to your intention of loan payback to these lenders.

But if you go for a secured loan or reduce the amount you want to borrow, you can brighten up your chances of loan approval. The lenders will still scrutinize your credit history to get an idea about your credit rating. They will offer you a deal only when they this rating satisfies their interests. After your loan has been sanctioned, you will be given the money that you have to pay back in monthly installments over a time period.

But you don't hit a dead end even if your loan application is rejected by reputed lending institutions. There are many lenders who cater to people with bad credit ratings. With a little bit of effort you may find a firm that doles out bad credit loans. So, what might be a substandard loan application for reputed banks becomes a normal loan application for many lenders.

Although, these types of lenders have developed their own selecting criteria, they are the only option left for bad credit loans. The catch here is the high interest rates they charge. These rates can be justified by the risks lenders have to take when they give out loans to people with bad credit history. And the financial regulators allow them to charge high rates because the loans are of substandard type.

But even with exorbitant interest rates, these lenders remain an alternative source of funding for people with bad credit history.

A bad credit rating does not always translate in to mismanagement of financial expenses. People who take care of their credits might also land up with bad credit ratings. A divorce or redundancies are some things one doesn't expect but their huge expenses might affect your credit ratings. There are many people who land up with bad credit ratings because they were too young and inexperienced to deal with credits.

However, if you already have a bad credit rating you should see to it that you make timely payments on your other loans. A few slips and careless attitude will only earn you a place in the credit blacklist.

Ps: Remember, for student. Its something bad if you use it for wrong way!

How I can running out from Debt?

I have problem with debt now. This is my debt and i need to settle it in 1 year. I hope i can do that and want to earn more money every month to pay my debt. I want to run out from Debt!!

This is my current debt:
1. Student loan debt
2. Car loan debt
3. House loan debt
4. Friends loan debt
5. My mother loan debt

And i need money for many thing soon. I hope i can do that and have good management with my finance and can settle my debt.