What Happens When You Default: Student Loans

You can be considered in default of your student loans after one or two missed payments. Even if you make partial payments your account can go into a default status. This is not a bill that you can ignore without serious repercussions. You may think that you are just racking up a few late fees, but you could not be more wrong.

You will be charged late fees, of course, but what you may not realize is that these late fees can amount to more than you originally borrowed. There is no cap on how high your late fees can go. Collection efforts also come with a charge. The Department of Education has to hire a collection agency to do their dirty work and you get charged for it.

Your interest rate can jump up astronomically every month that you do not pay. This can also quickly raise your balance to way more than you ever thought possible. The Department of Education has the power to get their money by any means possible. Therefore, this huge number on paper will eventually come out of your pocket.

The IRS can send any refunds due to you directly to the student loan manager. This is usually their first line of defense when it comes to getting their money. They usually go to the IRS after ninety days of no payments, so it does not take long. Instead of getting your refund, you may get a letter stating that it has been sent to your student loan lender instead. If this amount does not cover the amount that you owe, then the next step is taken.

Your wages can be garnished and the amount you owe will start coming out of your paycheck. This can be devastating for most families and if you thought you were having trouble paying your bills before, try having your paycheck taken.

If that is still not enough, then they can sue you for the money that you owe. If you receive any kind of federal benefits, then they can intercept those as well. The bottom line is that you can not get away with not paying your student loans off.

If you are in default, call your loan manager and figure out the best steps to take. There are options like deferment, forbearance, and loan cancellation. Sometimes bankruptcy can dismiss student loans, but not always. The best thing to do is to lay out all of your options and come up with a solution. Some loans have income based payments that are adjustable depending on how much money you make. There are options out there for you, but you do have to ask. Paying off your student loans can be within your reach if you try.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Saving for College

College is expensive, it is no secret. Most parents want their child to have the best chance in life and college is a part of that plan. Millions of parents will struggle to afford college for their child. If you have more than one child, it can be even more important to start saving now.

With the cost of college reaching staggering amounts, many parents wonder if it is worth it. Statistics show that college educated men and women earn up to eighty-five percent more money throughout their lives than their high school educated peers. Consider your child’s college education an investment, not necessarily an extra expense.

Grants and scholarships are your first stop when figuring out how you are going to pay for college. These are not guaranteed and should not be counted on when you are making your savings plan. Time is your best asset when saving. Even very small amounts can grow to substantial sums over a few years time. Save whatever you can now and it could really pay off in the future.

Some people have a plan to pay as they go. This can work if you have both parents making a substantial salary and you are able to dedicate one salary to college. Many parents are under the impression that their child can work their way through college. It is true that many students are able to hold down part-time jobs, but the money made is generally trivial and most students’ grades will suffer if they have to work when they need to study. It really is unrealistic to think that your child will be able to contribute much to their education expenses.

Another option is to borrow now, pay later. Student loans and financial aid can be very helpful. Over half, almost two-thirds, of all students in college have financial aid and student loans to get them through. Many parents can take on some loans themselves to help lighten the burden on their children. Some throw caution to the wind and leave everything up to student loans in their child’s name. Consider how much debt your child will be starting their life with. The final amount after four years of college is in the hundreds of thousands of dollars range. This amount can be like owing one or two hefty mortgages before they even consider buying a home. Many people are well into their thirties before they are able to pay off their student loans. What if your child marries someone with just as much debt? The burden can be extremely overwhelming and unmanageable. You need to do what you can now to lighten the load.

Parent loans, grants, scholarships, financial aid and private student loans are usually combined to spread the responsibility around so that no one person is overwhelmed by the whole amount. Many people would never be able to afford college if it were not for student loans, so they are most likely going to be part of your consideration when the time for college approaches. Save as much as you can now to help out your family for the future. If you do need student loans or private student loans to get you over those inevitable humps, shop around on sites that let you compare benefits, rates and flexible terms before you commit.


About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation.

The Benefits of Student Loans

Everyone knows that college can be very expensive. It is an investment in your future and should be handled as such. Hopefully you have some sort of savings to start. If not, that does not mean that college is beyond your reach.

Your first step to securing your financial future is to apply for scholarships and grants. These types of student aid do not have to be repaid. Therefore, they are going to be your best and first option when it comes to paying for college. The problem with scholarships and grants is that not everyone qualifies. Even if you do qualify, the amount that you receive may not be enough to cover all of your expenses. This is where student loans come in.

Student loans can be taken out by students to help pay for college. Student loans have special provisions to help students with little or no credit qualify. Student loans are granted under the assumption that once you graduate, you should be able to make a higher income and pay back the loans.

A lot of students are under the assumption that they will graduate college and get a job paying them a hefty salary. This is not always the case. Many jobs require a few years experience at one company before they will pay you for what you may think you are worth. Therefore, paying back student loans may not be as easy as you had planned.

This is where the benefits of student loans over conventional loans come in. For one, you are not expected to make payments or accrue interest on your student loans until after you graduate. These types of loans are set up with all sorts of provisions for repayment. If you get into a bind, contact the company that manages your student loans. You may qualify for deferred payments or some other sort of payment help.

Incentives are another thing to consider when you are shopping around for student loans. Many offer interest rates that reduce over time if you make timely payments. Ask about fees and compare payback options. Student loans generally have lower fees and more flexibility than conventional loans. The same is true for private student loans. These allow for a cosigner and you may be able to take advantage of your parent’s good credit.

Getting through school on student loans is a must for most students today. Paying them back on time can really help build your credit and get you off on the right foot. Be responsible with your student loans and shop around before you commit. Making the right decision now can benefit you for years to come. Look for web sites that offer to compare student loans and private student loans from many different companies. This way you are sure to make a decision that you can live with.

Can I Default on My Student Loan?

If you have been struggling to pay off your student loans then you may have questions about defaulting. Some people get into financial trouble and are unable to pay their monthly rates. This can get you into a heap of trouble. Your interest rates can be raised, you can be charged a lot of fees and your credit can be affected. You need to understand the terms of your loan and figure out how to avoid ruining your credit.

The first thing to figure out is what type of loan you have. There are Federal Student Loans, parent loans, private student loans and so forth. If you do not have a copy of your loan agreement then you should request it from your account management company.

One great feature of student loans is that they usually have special circumstance relief benefits built in. You may be able to suspend your payments until you are back on your feet without incurring a lot of fees or interest. You need to contact the company that manages your student loans as soon as possible. If you simply default or stop paying, then they can take steps to collect from you. This can be more severe than threatening letters in the mail. For some types of loans, they can garnish wages and get your tax refund before you to recoup the money that you owe them. Your credit will be ruined and your loan balance will steadily increase with every collection effort.

You may be able to get your student loans cancelled, deferred or you can go into forbearance.

Deferment has to be granted by your student loan lender. They only take special specific circumstances into consideration when deciding whether or not to grant you a deferment. Financial hardship, unemployment or returning to school are the three main reasons for companies to grant a deferment. This will only get you out of payments for a short time, but that could be long enough for you to get back on your feet.

Cancellation of your student loans means that you never have to pay them back. Only extreme circumstances qualify for loan cancellation. For example, if the person that is responsible for the loan dies, then it may be cancelled. If you are permanently disabled and are unable to work, then your loan can be cancelled. There really are not any other reasons that a company will consider if you want your loan cancelled, but if you have some other rare special circumstance, it does not hurt to ask.

Deferment stops your payments for a period of time where interest and fees are also halted. This is really your best bet for some payment relief. Some loans defer interest payments only where others defer all of your fees and payments. Ask your lender about what you may qualify for. If you do not qualify for deferment, forbearance is your next stop. Forbearance only stops your payments for a short period of time and interest always continues to mount during this time. Most people just having trouble making ends meet can usually get a forbearance granted. Deferment is a lot harder to qualify for.

Be sure to call your account manager when you have questions about your student loansstudent loans.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Combat Stress as a College Student

If you are a college student, you are probably no stranger to stress. With constant deadlines, projects and exams—not to mention the demands of work and a social life—the pressure can be enough to incite both short-term and long-term stress. Chronic stress is not just an inconvenience. It initiates chemical changes in your body that can have a long term negative impact on your health and well-being.

Stress can be caused by the demands of college, but can also stem from many other issues. Some major stressors are the death of a loved one, illness, loss of employment and divorce. Even happy events that reflect a major change in routine, such as marriage or a promotion, can be the root of stress. Taking steps to alleviate stress is essential to your health and to establishing balance.

While life will always have a way of throwing at us situations we cannot possibly anticipate, some stress can and should be avoided. When you sense feelings of stress, think consciously about the true source of the tension. Is it the upcoming deadline for a project, or is it a relationship issue? Is it financial? Though stress is not always the result of a one determinable factor, being conscious about the circumstances causing your stress can help you figure out what actions to take to alleviate it. Here are some ways to avoid preventable stress:

-Know your limits. Do not set yourself up for unnecessary stress by taking on more responsibility than you can comfortably handle. Assess the extent of stress you feel with your current level of responsibility and free time before committing to additional social, school or work related obligations. Having a healthy balance in the various aspects of your life contributes to success in each aspect individually.

-Take time to relax. Even if you have to squeeze it in, even if for just ten minutes, allow yourself opportunities to relax. The busy college lifestyle can keep you on the go all day long, giving you little time to regroup and rejuvenate. What you need to succeed in college are determination and consistency, not the superpower to accomplish everything at once.

-Do not procrastinate. The anticipation of a stress inducing event can be as stressful as the event itself. If you put off studying for a test, for instance, you are prolonging the anticipation while doing nothing to prepare yourself. While short-lived stress is natural and can be motivating, chronic stress can cause difficulty sleeping, an inability to concentrate, a compromised immune system and long-term health risks. Managing your time wisely can prevent a lot of stress by reducing anticipation and increasing your sense of control.

-Be conscious of the company you keep. If a particular relationship consistently causes you stress, whether it be with a friend or partner, you may want to evaluate whether the relationship is worth the effort. If not, it may be in your best interest to spend less time with the person or end the relationship.

Some techniques that can be used to alleviate stress are exercising, getting enough sleep, eating a healthy diet and meditation. If these or other stress management techniques do not work for you, you may consider speaking with a medical professional about your stress level. Being a college student is inherently demanding, and stress management is an important component of establishing a healthy life balance.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net

Secured Credit Cards Empower Consumers to Rebound from Bad Credit

Consumers seeking to put a marred financial past behind them and build a solid credit score often reach a dismal juncture – working toward good credit seems impossible when lenders will not extend you credit due to a blemished credit history. Even with a history of meticulously managed finances, an applicant can be denied approval for a credit card or loan due to a lack of prolonged credit history. If you must have credit to get credit, how does anyone get started or offset past mistakes?

If you have encountered this predicament, congratulations! You have already taken the first step toward a brighter financial future by deciding to proactively improve your credit score. Not only will a solid credit score pave the way for opportunities such as home and vehicle ownership, it will earn you better interest rates, translating to true short and long-term savings. With good credit on your side, you can qualify for accounts with utility companies, cellular phone services and credit cards with the most attractive limits and rates.

A secured credit card can be an excellent tool to help jumpstart credit for those with poor or no credit. To obtain a secured credit card, you must deposit a specified cash amount into a designated account to serve as collateral for the credit line. Most secured credit cards carry a limit equal to the amount you put up, initially, though many will raise your limit periodically over time if you manage the card wisely. If you decide that a secured credit card is appropriate for your financial situation, be sure to shop around for a card suitable for your needs, and read the fine print. Some specifics to analyze for each credit card in consideration are:

-Does the card issuer report to the three major credit bureaus? Ideally, your secured credit card will be utilized as an instrument for improving your credit score in addition to affording you the convenience and peace of mind that a credit card provides. Ensuring that your responsible habits will be reported to the bureaus is fundamental to improving your score.

-What is the interest rate? The interest rate is an important consideration for any credit account. Interest charges combined with other fees associated with a secured card can accumulate quickly if the account carries a balance, which alone can be enough to reach or exceed your credit limit.

-What fees are associated with the credit card account? The wide range of fees associated with different secured credit cards is further testament to the value of comparison shopping. Among your options, eliminate any issuers who charge exorbitant fees that are seemingly non-standard. Bear in mind that initial offers and advertisements are designed to make money and do not necessarily reveal in their entirety all of the terms of an agreement. The importance of reading the fine print cannot be overemphasized.

-How long until I am eligible for an unsecured card? Most secured cards carry with them the opportunity to become unsecured after the account has been managed responsibly for a specified period of time, often one year.

If you have poor credit or have declared bankruptcy, you may also want to discuss with each issuer whether applicants under your circumstances can be approved for a secured credit card. Some institutions limit secured credit cards to applicants with no credit history.

Building your credit score is about building trust. You must prove to the credit bureaus, and ultimately the lenders who rely upon them, that you are trustworthy and capable of paying back the debts you owe within the agreed upon timeframes. Working toward a strong credit score takes meticulous attention to financial obligations over a long period of time. A well managed secured credit card is one tool that can serve as a stepping stone to excellent credit.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net

Why Students Should Look At Internships

If you're a college student who is career minded, you have no doubt heard an earful about internships. And while internships might just sound like a bunch of extra work for very little reward, there are some pretty good reasons to consider going after the experience. Internships offer a gateway to real-world work experience, full-time jobs and networking opportunities that would be tough to get anywhere else.

Most employers (87.2 percent) interviewed by the National Association of Colleges and Employers (NACE) said their new hires do have internship or co-op experiences. Nearly 40 percent of interns are offered full-time jobs upon graduation.

Differing from summer jobs, internships tend to be in a student’s area of major study, include college credit, and require special evaluation from both employer and UI faculty. Pay varies from none to minimum wage and can be as much as $15 per hour.

Employers find students without internships may be more likely to “have unrealistic views of work, lack maturing and work ethic, lack commitment to the organization, and possess less awareness of business etiquette,” claims a recent NACE survey.

The work experience you'll get from a good internship trumps anything you'll get making coffee at Starbucks or flipping Big Macs - and probably pays better too! On top of that, working in the industry will give you perspective on what you really want to do with your life before you're stuck in a job you may not enjoy.

Leveraging a simple internship into a full-time job is another reason to go after and internship. Many firms approach intern candidates as they would applicants for a "real" job - they're looking for people who can fill a more permanent role after they graduate. As a result, many large firms make full-time offers to a large portion of their interns after they complete their programs and degree work.

Networking is another big reason to pursue an internship. Interns often do the same work as a first-year professional, and get the same chances to interact with senior employees. Having a good relationship with higher-ups could mean a quicker path to promotion in the future. And even if you decide not to take an offer with the company you interned with, saving a manager or recruiter's business card is a good move if you decide to hit the job circuit later on.

As with your college hunt, prestige should be a factor when you're trying to pick a company to intern for. If you're interested in banking, working as an intern at a big-name like Bank of New York and J.P. Morgan Chase is probably going to carry more weight than if you work for your local Savings & Loan over the summer. For most, going with a top-tier firm for an internship will make you a more desirable job candidate.

Unlike full-time jobs, which could be available all year long, many internships have strict deadlines that you'll want to stay ahead of. Lots of internships take place during the summer, so deadlines tend to fall in the later winter and early spring. If you're considering working for a particular company, find out whether it has any deadlines looming.

One of the best ways to get your foot in the internship door is by developing a relationship with your recruiter. Lots of companies now have online internship applications that prefer the "don't call us, we'll call you" approach to job applications. Don't hesitate to look up a recruiter's name (this can often be found on the contact page of a firm's website), and send an email. If you're lucky enough to get multiple offers, but are still waiting for that one firm, make sure to let recruiters from your top choices know so that you can speed the process along.

When all your research and applications have gone out and you're starting to hear back from a few employers, now is the time to really figure out what you can and want to do.

Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net

Time Management Tips for Balancing College and Work

Whether attending college straight out of high school or returning to school later in life, many college students find themselves overwhelmed by the demands of balancing work and school. Even with the financial assistance of student loans or grants, it is often necessary for students to maintain employment during college in order to make ends meet and uphold financial responsibilities. Whether you work full time and are a part time student, or work part time and attend college school full time, it is too much for most people to do both full time. Being a part time student may cause you to spend longer completing your degree, but preventing overload will have a positive impact on both your grades and your work performance in the long run.

When you are juggling the multiple responsibilities involved with college and work, it is crucial to stay organized and know your schedule for each in advance. Simply feeling that you have a lot to do without having set aside the time to accomplish specific tasks can make your workload seem overwhelming, even when realistically you have plenty of time for everything. Know your work schedule at least a week or two in advance, as well as the projects, assignments and tests coming up in each of your classes. Then schedule time to cover all of your responsibilities, and stick to the schedule. If your study habits mainly consist of night-before cramming sessions, a new approach is critical when you have a work schedule to consider.

One effective way to establish balance in a lifestyle driven by paychecks and GPAs is to imagine your time in blocks, and focus your attention only on the activity you must accomplish during that block of time. Resist the temptation to worry about an upcoming Calculus test while you are at work, and likewise, try not to get distracted thinking about work issues when you are in class. Schedule the blocks of time you need for each activity, such as working for five hours, and studying for an upcoming test for three hours on a particular day. Avoid planning your only study time at an unreasonable time, such as after a twelve hour workday. Consider the physical and mental demands of your job, and arrange a schedule that is balanced such that you can focus completely on the task at hand.

If you are in college for the first time and are not attached to a particular job, an on campus job can provide great flexibility and convenience as an employment option for students. Through on campus employment, you may get lucky and find a position in which it is acceptable to study while on the job, such as running the help desk at the school library.

Regardless of how well you plan and perform in work and school, doing your best in both is undoubtedly a challenge. After all, if it were easy, everyone would have a degree or three. Even with the demands of working toward a degree while advancing your career, not to mention family and a social life, perseverance is critical to success. Maintaining focus on achieving your short and long term career goals is a good way to stay motivated on a particularly hectic day.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net

Stafford Loan Limits and Alternatives

Subprime mortgage lending has taken a toll on the student loan industry. By association, these defaulted mortgage loan side effects have trickled down to the student loan sector. The government, in an effort to increase the amount of money available for Federal student loans, has cut back on subsidies offered to schools and lenders. This means that they will not make such an excess in profit paid for by the taxpayers and students paying high rates for their financial aid. Many lenders have pulled out of the game and others still offering student loans have increased rates, decreased benefit and tightened up approval rates.

Stafford Loans are probably the most popular of all the student loans. They are still available and are backed by the Federal Government. They have, however, reduced the amount of money available to each student. Students independent of parents can only get up to $46,000 for four years. Students that are dependants of their parents can only get up to $23,000. This may sound like a lot to some people, but you have to consider that many schools charge in upwards of $40,000 per year for tuition alone. College tuition rates historically have doubled about every four years.

Because of higher and higher tuition rates, many families have turned to community colleges and trade schools over state or private colleges. Although cheaper, parents and students are figuring out that they have a harder time getting loan money for these schools. It seems that you have to have money to make money. Better schools should produce professionals making more money, so these are the students that are being approved. It leaves many people feeling that you have to be upper class in order to send your child to school.

This is not necessarily the case. There are other types of funding out there. You may not be able to get the rates and benefits that you used to, but you can still find student loans. Private student loans are on the rise since Stafford and other federally backed student loans have decreased and become stricter on schools, lenders and families. Parents and students need to be savvy when they are shopping around.

Some people go directly to their school or bank and just accept the bad news when they are turned away or offered horrible rates and terms. This is what the internet is for! We now have a huge selection of lenders at our fingertips and can shop around in hours instead of weeks. Doing your research can really pay off. Getting the best rates and terms consists of only visiting a few sites. Remember that this is a long-term commitment and you will need to live with your decision for a very long time. Sites such as www.student-loans.net allow you to shop multiple lenders at once, comparing rates, terms and lending limits without ever leaving your chair. Things should get better as the market recovers, but in the meantime, do not get stuck with more than you can afford because you did not shop around for your student loans.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Federal Student Loans Suspended?

The student loan industry faces many challenges. Lately, Federal subsidies have been cut back. This means that companies offering Federal student loans are no longer seeing a profit. Administering Federal student loans is no longer a viable option for most banks and other institutions. If they can only lose money by offering Federal student loans, then why should they offer them?

Many banks and institutions complain not only of the lack of subsidy money from the government, but also about the credit crisis. Subprime mortgage lending has run many banks into the ground. People are defaulting more than ever on home mortgages and costing the banks an arm and a leg. The rates have been affected all around. Credit is sometimes only being offered to only the best candidates and at a premium rate. Variable rates may be bound to skyrocket and many people will just be turned down.

Luckily, Congress just passed a bill to increase Federal student aid. This should increase the amount of money available to students, but it could be harder to find. The government subsidy money paid to financial institutions for administering Federal student loans has been significantly reduced. The subsidies had to be reduced in order for the government to have the money to lend, but the result is that many institutions can no longer afford to administer Federal student loans. The subsidies have not been taken away all together, only reduced. This was done to eliminate the taxpayer funded inflated profit being made by the lending institutions.

Many institutions will still offer Federal student loans and private student loans, but they may come at a higher price, require higher credit ratings or you may need a cosigner to qualify. Interest rates may have to go up to cover the cost. These types of loans are normally backed by bond securities, which investors are now turning their noses up at due to the credit problems today’s market is experiencing. All of these things combined are affecting student loans through a virtual domino effect.

All of this just means that you will need to be more diligent in your search for the student loan that is right for you. Although incentives and special circumstance loans are waning, you can still find student loans that meet your needs and bridge the gap between what you have saved and what you owe. Many people are finding that the internet is an invaluable resource when searching for student loans. Now you can go to sites such as www.student-loans.net and compare loans from multiple lenders. Unbiased information may be hard to come by at an individual bank or school, so do your research before you take on a Federal student loans or private student loans.


About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

College: Preferred Lenders List….Can You Trust It?

Many colleges will send you information about student loans and tuition rates. In fact, you may be bombarded with loan applications, financial aid information and credit offers. One thing that you will probably receive from the school of your choice is a preferred lenders list. This is a list of recommended lenders that provide student loans. Many people blindly go with the first company that accepts them from this list. Some will try the first three or four and then go with the best from that list. Is this really safe? How much extra are these misinformed people paying in the end? It could be more than you think.

Higher education is expensive. Many more students are finding it difficult to avoid getting student loans. Students and parents alike are most likely tired of filling out paperwork and researching schools by the time they apply for a student loan. So, this preferred lenders list seems awfully convenient for choosing the best loan for you, right? Not necessarily. Most schools refuse to disclose how they come up with this list. Many, many schools are under scrutiny for unfair practices when it comes to student loans.

Lots have been caught receiving illegal kickbacks from lenders in exchange for recommendations. The result is trusting parents and students ending up with extremely high interest rates, unfair loan terms and excessive fees. School employees receive cash, trips, cruises and gifts for recommending this bad deal as your best bet. Not all schools are corrupt, but it could really pay off to do some of your own research when searching for a student loan lender.

Fortunately, in this day and age, we have the internet at our fingertips. We do not have to take the word of the suited man behind the desk anymore. We can simply search for student loan lenders online. Companies like www.student-loans.net offer student loans from a multitude of lenders on one convenient site. You can narrow down a search for a loan that meets your needs and compare each lender, side by side, with no biased opinion to cloud your perception. Loan terms, percentage rates, fees and benefits are clearly defined for you to make an informed decision.

Some schools actually do research the preferred lenders list in order to simplify the student loan process for parents and students. So, you do not want to assume that every preferred lenders list you see is a scam. But, you should be aware that it may be preferred by the school and not you. Shop around before you commit. Student loans are a very long commitment and you want to be sure that you select the one with the terms that fit your need.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Scholarships For Aviation Enthusiasts

You love airplanes, you grew up wanting to be a pilot or maybe you just want to work around them. If so, there are a handful of scholarships available specifically for those students who are seeking aviation careers. Each scholarship has its own requirements and criteria – most are offered by organizations that support the love of aviation.

1. AERO Club of New England - The Aero Club of New England scholarships are awarded annually and recipients are selected on the basis of merit and need. ACONE's growing scholarship program provides a wonderful way for the Club and donors to assist deserving young people and to forge lasting relationships that can provide inspiration and support. Thanks to all that have worked to make this important part of ACONE a continued success.


2. AOPA (Aircraft Owners and Pilots Association) – AOPA offers two scholarships, the McAllister Memorial Scholarship and the Donald Burnside Memorial Scholarship.
The AOPA Air Safety Foundation/McAllister Memorial Scholarship is awarded annually and administered jointly by the AOPA Air Safety Foundation and the University Aviation Association. One award in the amount of $1,000 will be made to a promising young man or woman who, without assistance, would find it difficult to obtain a college education. Award will be made to U.S. citizens without regard to sex, race, religion or national origin.

The recipient must be enrolled in and plan to continue a college curriculum leading to a degree in the field of aviation. Previous recipients are not eligible.

Announcement of scholarship awards will be made annually on or about July 1 by the AOPA Air Safety Foundation after consideration of applications received by the deadline submission date. Recipients will be notified by letter. Applicants must meet the following criteria:

a. Be a college junior or senior at the time the application is submitted with at l east one semester/quarter to be completed after September 1, 2008.
b. Have achieved academic proficiency (grade point average) at time of application of 3.25 or better (on a 4.0 system).
c. Be enrolled in a baccalaureate level, non-engineering aviation degree program at a four-year institution and plan to continue the following year (community college students are eligible when they have transferred to a four-year institution). The applicant's college must be listed as an organization described in section 170( c) of the Internal Revenue Code of 1954.
d. Submit a 250-word maximum typed, double-spaced essay on: "Assuming that pilots who voluntarily engage in safety education are safer pilots, how can ASF reach the other group of pilots who don't think they need safety education?"
e. Application must be accompanied by an official transcript from applicant's college or university. The Registrar's Office can mail your official transcript to the below address or place in a sealed envelope so you can mail with your application form.


3. Astronaut Scholarship – This scholarship is supported by more than 70 astronauts from the Mercury, Gemini, Apollo, Skylab, and Shuttle programs. In efforts to help retain leadership in science and technology, this organization provides scholarships for college students who exhibit motivation, imagination, and exceptional performance in the science or engineering field of their major. To date, the foundation has awarded nearly $2.5 million in scholarships to 226 deserving students interested in aviation maintenance, being pilots or aerospace engineers.


4. Boeing National Merit Scholarship - Every year Boeing provides scholarships to children of Boeing employees who are selected as National Merit Scholarship winners. Students enter this academic competition their junior year of high school by taking the Preliminary Scholastic Aptitude Test/National Merit Scholarship Qualifying Test (PSAT/NMSQT) in the fall.

5. ROTC (Reserve Officer Training Corps) and Naval ROTC Programs offered by the Army, Marine Corps, Navy, and the Air Force, train qualified young men and women to become officers in those services upon graduation from college. ROTC is available in more than 1,000 colleges and universities throughout the U.S., both those that host ROTC units or detachments and those with cross-enrollment agreements with them. Requirements include taking a full course load, wearing uniforms once a week during military labs, drills, military science presentations, and other practical training activities.

Scholarships are competitively awarded on merit with main considerations are being High school academic record, SAT or ACT scores, extracurricular activities, and personal interview.

The length, value, and terms of ROTC scholarships vary by service. All services offer four-year scholarships that include full tuition, books, fees, and a monthly tax-free stipend.

Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net