Student Loans: How Much to Borrow

Most parents expect that their children will need to borrow money to go to college. They are right. College costs are a lot higher than most parents can afford. This leaves parents and students in the position of figuring out how much to borrow when the time comes. The truth is, it can really pay off for you and your child to do the research before you borrow.

Most people just have not had the need to get a student loan before. Or if they did, a lot of things have changed since then and they may have a lot of questions. The first step is to work with the school of your choice or your high school counselor to figure out what scholarships and grants are available. Apply and try your hardest to get your hands on some of this money.

Figure out what you can afford on your own. The biggest mistake you can make when getting student loans or private student loans is to borrow too much money. Some people assume that they can just worry about it later and get a little extra cash to put aside for emergencies. But, most people that do this do not use the money for an emergency, or they end up paying a lot of interest on money that is sitting stagnant in an account.

After you determine what you or your child can afford to put towards college every month, figure out what the actual cost of college will be. It will be a lot more than tuition alone. You need to consider housing, food, bills, gas, car repairs, books and other fees that may pop up. Then do not borrow any more than that amount.
Some parents are tempted to tell their students that they will just have to work to make up the difference. Most students do work through college, but it is unlikely that they will have time to work very much if they are going to pass the classes that they are working to pay for. College students do not have the training or experience to get high paying jobs either. They are better off working with the school to get jobs or internships that get them some experience in their field. Time spent this way is far more beneficial to them in the long run, but do not expect them to make hardly any money doing it.

Once you determine the amount of money that you need to borrow, go to a web site that compares many different lenders and programs. Also work with your school, but do not let them be your only resource. Doing some legwork on your own could make a big difference when shopping 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.

Are 529 Plans a Good Idea in this Market?

A 529 Plan is a way to save money for college that can give you some tax breaks. Many people have been worried about investing with the recent market fluctuations. If you already have a 529 plan, you may be worried about your balance dropping with the market. If you are in the process of saving, you may take this time to decide, under the advice of a financial advisor, if you are more comfortable investing in more stable entities or if you are okay with the fluctuations in the long run.
Some people may have been advised to invest in risky stocks because they had a long time to save for college. This is not necessarily bad advice, if you have a high risk tolerance. If it makes you squeamish to see your balance rise and drop dramatically, you may choose to invest in something a little more stable, such as a mutual fund invested in stocks and bonds. This is the area of investing that a lot of long-term investors end up in.
Not many people are willing to watch their investment plummet with the market. Some may have loved being more daring back before 2000, but maybe not so much now. With over 100% returns, many people were just throwing money into risky investments, with wide blind eyes. You have to look at long term results and understand that these results are achieved by fund managers over time. There may have been some major fluctuations up and down during the years that you are looking at. Mutual funds with stocks and bonds give you some risk so that there is potential for faster growth than a bond fund, but that does not necessarily mean that there will be more growth than a bond fund.
If you are getting closer to needing the money in the 529 plan, then you may want to go even more conservative and stick to mutual funds invested in bonds. Bonds can even be backed by the government. Since the government has taxing power, the chance of government bonds losing money is very slim. These types of funds can be fairly stable.
Bond funds offer dividend payments that can be reinvested into your plan. This may or may not be the best thing for you, depending on your tolerance and also your time frame. Generally speaking, if you have many years to save, then some risk can usually be afforded because you have time to wait out the market lows. The fluctuations can be worth it and sometimes really pay off if you have a stomach for your money constantly rising and falling.
Talk with a financial advisor about assessing your risk tolerance before you decide where to invest your money. The 529 plan is a great way to save money and get some tax breaks. You can even get tax breaks if your plan loses money, deducting the loss of principal from your income. These benefits combined with scholarships, grants, student loans and private student loans can help you get your child through college.

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.

Investing for College Basics

Many people are really not very experienced when it comes to investing for college. It does not have to be hard or confusing if you just follow some simple guidelines.
The first rule of the stock market is that it is going to fluctuate up and down. Most ordinary investors stick to mutual funds, which helps them spread their money around over many investments at once, keeping the eggs out of one basket, so to speak. Mutual funds are a fairly easy place to start learning how to invest.
Saving for college is a good way to learn how to invest as well, especially if you start early. Let’s say that you have fifteen years to save for that first year of college. That gives you almost twenty years before the last year. This is a very long time to invest. You will likely see the stock market jump around wildly, reaching new highs and new lows along the way. Your balance will reflect the fluctuations.
Some people have been scared to put money into their college investments lately, since the market is at a very low point. People generally get excited when their balance goes way up and they throw more money in. This is really the opposite of what would be the most profitable, so you have to learn to keep your head on straight in times of high and low markets.
If the market is up really high and the returns are looking incredible, this is also when the investment is at its most expensive, getting you less shares for more money. When it is really low and scaring people off, that is when it is at its cheapest. You have to keep your eye on the prize.
The market fluctuates with emotions as well as the economy. Even savvy investors find it hard to buy low and sell high. They may see numbers rising and want to get in on the action, driving it even higher. When a lot of them do it at once, they can inflate the value of something beyond what it is really worth. Then they all sell, sell, sell and drive it back down. If it goes wildly high when people are excited, this does not necessarily mean that the stocks are really worth what people are paying, and eventually there should be a correction. If it is really low because of fear, then eventually it may correct back to what it is really worth. That is, if investors pulling out do not bankrupt the company.
With a general understanding of the market fluctuations, you will need to determine how much risk you are willing to take with your money. In general, the longer you have to save, the more risk you can afford to take. But, if you can’t sleep at night or it makes you sick to watch your balance plummet, then you may want to consider safer avenues that still have potential for growth. Mutual funds that have a balance between stocks and bonds can be a little more stable while still allowing growth. As you approach college, you may want to move into safer investments, such as all bond funds, getting you out of the fluctuation game all together.
Talk with a qualified financial advisor about the best way to put your children through college. Save as much as you can as often as you can. Keep your credit clean so that you can get the best terms and rates on student loans if they become necessary. Take the time to plan out college savings and it could really pay off.

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.

Private Student Loans: Cosigners

If you are considering funding school or school expenses with private student loans, then you may be asked to get a cosigner for loan approval. Even if you are not asked, it may be a good idea to add a cosigner if possible.
Private student loan providers will look at your ability to repay the loan before they will approve you for it. This means that they will look at your income, how long you have held your job, and of course, your credit history. Your credit score may not be the only thing that they consider by looking at your credit report.
Lenders want to see how much debt you already have. They will most likely look for a debt to income ratio to help them determine if you can afford the loan payments without a lot of difficulty. They will also look at the history of loans and credit cards that you have had. They want to know if you have ever made late payments on loans or credit cards before.
If you do have a high amount of debt for your income, or if you have some questionable activity in your credit history, such as loan defaults or late payments, then you may not be approved for the loan. If you are approved, then you may be given strict guidelines and high interest rates or fees. This can make the loan more expensive and harder to manage, and can sometimes get you into even more credit trouble.
This is where a cosigner comes in. A lot of college students end up needing a cosigner because of their lack of income. Most college students work part-time while going to school, or they just do not make very much money yet. Another problem is credit history. Some have not learned their lesson yet, and have some recent bad activity on their credit report. Or they simply have not yet established credit. A short or non-existent credit history can bar you from being approved for a private student loan on your own.
Getting a cosigner, someone like a parent, can help you get approved for the loan. Not only that, it can help you get better rates and terms on the loan, making it cheaper and easier to pay off. Choose a cosigner that has good credit and high income if possible. This person will be responsible for your loan payments if you default or are unable to pay, so make sure that they are aware of that before they sign. If you do not make your payments, then you can ruin their credit as well as your own. Be careful with the amount that you accept, and do not take any more than you need or are able to pay back. Be responsible with your private student loans and you can build your own credit in the process.

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.

When Will I See My Student Loan Money?

What a relief. You finally finished filling out all of those forms. You returned everything you were supposed to return by the right dates. You finally got approval and have been awarded a specific amount of money through a student loan program. Now you are watching the mail and nothing is happening. This has many students wondering, “When will I see my student loan money?”
When and how student loan money is distributed depends on what type of loan you received. For example, Stafford Loan money can only be distributed one-half at a time. Even then, it depends on whether you were awarded a Federal Direct Loan (FDLP) or a Federal Family Education Loan (FFEL), commonly known as PLUS loans, for parents.
If you are looking for Federal Direct Loan money, then you will not actually get a check. The check is sent from the U.S. Treasury to the Department of Education. Then they will send it to your school. So, one-half of your student loan money has probably been sent to your school. Your school will use the money to pay for your tuition, books, room and board, or any other school fees that come up. Then they will receive the other half. They will use that half for any remaining fees and then present you with the remainder in the form of check or cash.
Federal Direct Loans have a six month grace period in which you do not have to start paying back the loan. If you were awarded a subsidized loan, then the interest is subsidized by the government. This means that the government pays the interest on the loan for you while you are in school. If your loan is unsubsidized, then you will be responsible for all interest that accumulates while you attend school.
Federal Family Education Loans are loans taken out by parents that wish to pay for their child’s tuition, room and board, books and other expenses. These payments are also sent out to the school one-half of the total amount at a time. The money will, again, be applied to tuition, room and board, books and other expenses. Your parents will receive any remaining funds and they are responsible for making the payments on the loan. There is not a deferment period on these types of loans and your parents will need to start making payments as soon as the funds are dispersed.
So, you can stop checking your mail for student loans. They are probably on their way to your school if they are not there already.

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.

Will the Market Affect Student Loans?

Market fluctuation is normal, but recent declines have grabbed the attention of everyone. Students and parents may be feeling the crunch. Credit based student loans may be harder to get. We may assume that we know what will happen. Fewer loans may be available. Rates could increase. As a result, more people may default on loans causing things to look even worse for the future. But is this really how it will happen?
Not necessarily. The main reason for loan defaults in the past has been that loans have been generously given out in amounts that maybe they should not have been. Everyone was issuing high-risk volatile unsecured debt to just about anyone. This tightening of the belt should help everyone’s situation improve.
The crunch can also help to balance the scales between private and state schools. Private schools have been able to charge whatever they wanted in the past. They could constantly increase tuition rates knowing that basically everyone that wanted to could get a student loan to cover it. They also were not very concerned about students defaulting later because their upper education reputation would almost guarantee higher paying jobs for their graduates.
State schools are reporting little or no difficulty in getting Federal Student Loans for their students. Private schools are having the greatest difficulty because they do not always have access to the funding that state schools receive. Without the money to offer scholarships to top potential students and without paying students having the ability to secure enormous student loans, they have to consider the alternative of lowering their costs and tuition rates.
This can make a private school higher education possible for more students. It can drive more students unable to obtain large loans to the state schools. This brings in more money for the schools to use for loans and there is a trickle down affect. College educations become more balanced, tuition can be lowered, and students will no longer be given big loans that they can never repay.
All of the problems that we have created can certainly start to even themselves out because of the market crisis. It really may turn out that everything is more fair and an even playing field for most people involved. At the same time, a lot of student loan programs are being restructured so that students and parents are not left destitute for sometimes decades after graduation. Student loans and private student loans will be getting more organized, widely available and with flexible terms so that defaulting is no longer such a concern for lenders.

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.

What Types of Student Loans are there?

Many people do not know where to start when considering student loans or even private student loans. The first thing you should do is study up on the different types of loans that are available. You may consider taking notes so that you can carefully review the different types and determine what you might qualify for and what types would best fit your financial situation.
First you apply for all of the grants and scholarships you can get your hands on. When you determine how much of your tuition will be covered by these types of awards, then you will have an idea of how much student loan money you should apply for. Remember to pay as much out of pocket as possible so that you or your parents do not end up in over your heads when the loan payments come due.
The first loan that most people apply for is the Stafford Loan. Stafford loans are subsidized by the government so your interest is paid for you as long as you are in school. If you have a life crisis that falls into the Stafford Loan guidelines, you may qualify for a loan deferment later on. Again, the government will make the interest payments for you while you are getting back on your feet. Having the government involved makes lending you money a lot less risky. For this reason, you can receive some of the best rates and terms available on Stafford Loans. You also do not have to start making payments until after graduation.
The Government Subsidized Stafford Loan has strict income guidelines and everyone may not qualify. If you do not, then you may qualify for an Unsubsidized Stafford Loan. In this loan, the government is not involved so you will be solely responsible for all of your payments and interest. You will still be able to defer payments until after graduation and in the case of a qualifying emergency. These types of Stafford Loans are the ones that most people qualify for and hope to get.
If your Stafford Loan money is not enough or if you simply do not qualify, your parents may choose to apply for a Federal Plus Loan. Low income families may qualify for a Federal Perkins Loan. These loans are the responsibility of the parents to pay off. They have good terms and interest rates. If you do not qualify, you may consider Private Student Loans.
Private Student Loans can be taken out by parents or students. The application process is a lot quicker and easier than Federal Loans and the terms are still favorable. Private Student Loans have more strict terms and may have higher interest rates, but you have the freedom to use Private Student Loans for whatever you need while you are in college. Your credit will determine what types of terms and rates you receive for your 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.

Stafford Loan Basics

Most people struggle to pay for college. If you are looking for financial assistance, you may be considering a Stafford Loan. Before you start applying for loans, make sure that you have exhausted all grant and scholarship opportunities. If you can obtain grant money or scholarship money, then you will not have to pay back the money that you receive. The fact of the matter is, that most of the time students are not able to secure enough funding through these avenues to pay for the school that they need. This has the majority of parents and students turning to student loans for help.
Getting student loans can be confusing if you do not know where to start. Many people start with the Stafford Loan for many reasons. First of all, the Stafford Loan has a fairly low interest rate and can usually beat out other types of loans in this area. The Stafford Loan also lets you put off, or defer, your repayment until after graduation. There are a few flexible repayment plans that you can choose from, making repayment fit your personal situation as closely as possible. This can help you to avoid lapses in payment and ultimately lose your good deal or tarnish your credit history.
Either the student or the parents can fill out the FAFSA (Free Application for Federal Student Aid) available online or through your school. This application will take many things into consideration when determining how much financial aid you are eligible for. It will consider the number of children attending college, income, number of people the family is supporting, savings including retirement accounts. The FAFSA will estimate how much your family can pay out of pocket for college expenses and a Stafford Loan may be awarded for the remainder.
This process is designed to keep people from taking out more in student loans than they need to. The formula used on the FAFSA is very accurate and most people are happy with the outcome. You will send in the FAFSA application and then wait for the Student Aid Report (SAR) to come in the mail. The SAR will let you know what you qualified for. If you approve the information, then another form will be sent to the school of your choice. An additional form will be sent to the state to see if you qualify for any additional monies from the state. After you fill out and approve the acceptance form, you will be sent details on how to get the money that you need.
If further assistance is needed, then you and your parents may look into other types of student loans or private student loans to fill in the gaps.

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.

529 Plans and Student Loans

Saving for college is always a good idea. Some people start with a regular savings account through their bank. Others choose to invest in mutual funds or other security. There are some state sponsored plans that can help you get the best tax benefit for your money.
These state plans are referred to as qualified tuition plans, 529 plans or 529 programs. The money you put in is actually invested, so there is some risk. This is much like a 401K plan where your contributions are invested. Every state in the US offers at least one 529 plan. If you invest in a Texas 529 plan, live in Alabama and your child chooses to go to school in New York, you can still use that Texas sponsored 529, as long as the school your child is attending qualifies. Basically, the 529 savings plan has to be used at an accredited school. Check online for eligible institutions before you choose a school.
There is also a prepaid 529 plan that works a little differently. This program allows you to prepay for college tuition in-state. If your child decides to go to school out of state, then all is not totally lost. You can transfer your prepaid 529 to another state, but depending on the state, you could end up losing part of your money.
Colleges can offer their own 529 plans. If you choose to prepay for a specific institution, make sure that you know what terms you are agreeing to. There may be special restrictions about transferring to another school.
The best thing about 529 plans is the tax breaks. State tax breaks can vary from state to state, so check with your state to get the facts. Many states offer a state tax deduction for contributions that you make to the plan. You will not get a federal tax break on the contributions, but your earnings will grow tax-deferred.
You remain in complete control of the 529 account. The money is not in the child’s name and you can take it out whenever you wish. If you use the distributions to pay for college tuition, the distributions are federally tax-free. Your state may also let you have tax-free withdrawals, but this depends on the state. If you want to take the money out and use it for something other than college, then the distribution will be a taxable event, federally and from your state. Additionally you will be charged a 10% penalty for withdrawing for something other than school.
Most people do not end up saving near enough for college and start looking for other forms of financial aid. There are a lot of special benefits and terms for college students who need to take out student loans or private student loans. Do your research and college could be easier to pay for than you planned.

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.

No Co-Signer Student Loans

Most students seek out some form of financial assistance when getting ready to pay for school. This is not surprising considering the cost of tuition. Even if you have saved a considerable amount for college, chances are you will quickly run out. The cost of living at college can become a huge burden to most people and that savings account just may not be enough. College costs can soar way above the money spent on tuition and books. If you are looking for student loans or private student loans with no co-signer, then you will need to do some research first.
There are a lot of different kinds of financial help out there. Most require that you have good credit, which sends many students searching for a co-signer. If having a co-signer just is not an option for you, then you may be limited to certain types of federal aid or private student loans. Of course, scholarship and grant money are best, but you may still end up needing additional help.
If you have good credit then you are in a good spot. Many college students have yet to establish their credit and can use student loans to do that. Lenders recognize the fact that students have a high potential to make a good salary when they graduate, so they are more lenient on loan amounts and interest rates.
If you are a student, you want to go for the best terms possible to begin. This means trying your hand at the Federal Student Loan level. Perkins loans and Stafford loans are fairly easy to qualify for. They also may have favorable terms for students, such as payments deferred until after graduation, low origination fees, fixed low interest rates and low fees. If you do not qualify or if you do not get enough money from these types of loans, then you may want to move into the financial aid sector through your school.
You will need to fill out a FAFSA, Free Application for Federal Student Aid, application. With this application, you can possibly get grant money or other Federal aid that is out there. You will need to fill this out for the Perkins or Stafford Loans as well. When you have exhausted all scholarship, grant, Perkins and Stafford Loan money, you may need to turn to a private lender for additional help.
Your school may offer a list of lenders to choose from, but you can actually compare many lenders at once by going online to look for private student loans. This service has ended the days of driving from bank to bank, putting multiple inquiries on your credit, and still possibly ending up with unfavorable terms. This could be a very important step when securing private student loans without a co-signer.

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.

Alternative Student Loans

Many students are awarded all types of financial aid and student loans that cover tuition. Unfortunately, college costs can far exceed the price of your class. Private student loans, or alternative loans, can help to bridge the gap between your financial aid, scholarships and living expenses.
Private student loans can be used for just about anything that you need while you are in school. You can use them for a laptop, car, food, and gasoline, whatever you need while you are in school. Many private student loans will allow you to defer payments on the loan until after graduation. This can be a big help when it comes to getting yourself through school.
You will need to do some comparison shopping before you apply for a private student loan. Compare rates, terms, perks and fees before you fill out an application. Some loans may require a hefty origination fee. Some may not offer deferred payments. Some will offer specials circumstance leeway with payments for future times of need. Educate yourself on the types of benefits you can receive from different types of private student loans before you apply.
Some students may get the idea to apply for as many loans as possible instead of doing the legwork and figuring out which private student loan is best before applying. This can be detrimental to your cause. This is because each application you put in reflects as a credit inquiry on your credit report, and can affect your credit rating. Your credit rating will determine whether or not you qualify for those better loans. So, do not jump the gun and just start filling out random applications, shop around and compare lenders before you commit.
Once you have your loan, stick to making payments on time, every time to protect your credit. Paying a loan on time can really help your credit score. Paying more than the minimum is also helpful. If you ever anticipate not being able to make a payment, call your lender right away. Keep in touch with them and make a concerted effort to resolve the situation. This could mean the difference in having a bad hit on your credit or keeping it blemish free. Do not ever blow off a loan payment. Every late payment goes on your credit. It can also cause you to lose good interest rates or other benefits.
Some private student loan lenders offer special reduced rates to customers that make on time payments for an extended period of time. One late payment could count you out of this special deal and could even cause your rate to increase.
Be wise and educate yourself about private student loans before you sign on the dotted line. Make sure that you know exactly how the payment plan works and work towards the goals of better rates and special deals. Keep your payments on time and your credit in check.

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.

Student Loan Market Struggles and Avoiding Default

Due to many recent defaults on student loans and fluctuations in the market, lenders are projecting lower and lower profits made on student loans. This has caused some lenders to pull out of the student loan market all together. The government has also cut subsidies to student loan lenders giving them less incentive to offer special rates.
This does not mean that you cannot find good rates and good terms on student loans. You may not see as many deals and incentives as you used to, but there are still good loans out there. You may just end up shopping around more than you expected. Use web sites that offer comparisons of terms and rates from many lenders to help bring some clarity to your search.
Once you have your student loan, it is important to follow the rules and avoid defaulting at all costs. Defaulting is a major problem that could be avoided if more people had shopped around before they got into a situation with a loan that may not have been the best fit for their situation. The internet gives us the advantage of sitting at home and doing our own research. Long gone are the days of driving from bank to bank, or just accepting the list of lenders that our school offered.
Avoiding default can be as simple as calling your lender. Ask about repayment programs. Some payments can be figured using your income, meaning that you pay more only when you make more money. Forbearance can be granted or payments can be deferred if you qualify. The trick is that you have to ask. Simply not making a payment is not a wise decision.
Student loans are considered in default after only sixty days. Your loan balance can jump up to more than you originally borrowed. Even bankruptcy does not make all student loans go away. Even worse, the government has the power to collect on many loans. They first go the IRS and take any refunds or credits that you have due. If the balance is not covered by that, then they can garnish your wages. You will have no control over the government getting to your money before you do. They even collect your Social Security benefits or any other government monies that you have coming to you. If they cannot get enough that way, then they can sue you.
Defaulting on student loans is a serious matter and you should take every step possible to avoid it. Make sure that the student loan you select meets your needs. Shop around and make sure that the terms are acceptable before you accept. Ask about special terms such as forbearance, deferments, financial hardships and repayment options. Once you have compared lenders and types of loans online, you will be better equipped to avoid defaulting on 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.

Where is my Student Loan Money?

Turmoil in the market has caused many companies to suspend student loans and private student loans leaving many students empty handed this school year. Many companies have discontinued offering Federal Student Loans as well. Lots of students, left empty handed, have turned to their schools to get the loans that they need.
What they may not realize is that there are a lot of reputable lenders still out there offering good rates and terms for student loans. Shopping around could really pay off. If you are a student in immediate need of a loan for school, do not panic and run straight to the first person that offers you a loan. It actually does not take as long as you would expect to compare lenders. Look for web sites that offer many different types of student loans and private student loans. These comparison sites can be crucial in your student loan shopping.
You can compare only companies and lenders that fit your criteria. This will help you to quickly narrow down the field and make a good decision that will reward you for years to come. Choosing a company to borrow from can be a very important part of getting your student loans. Use the tools that are out there to make sure that you make a wise decision.
Make a list of your questions and compare lenders. If you have good credit, then you could be eligible for some private student loans. They are quick and easy to get, in general. Check to see if the loan you need will require a co-signer. Look at interest rates, but be sure to weigh good interest rates against other factors. For instance, some lenders will offer great interest rates to attract borrowers, but be sure you understand the fine print. There may be hefty origination fees due at the beginning of the loan. They may have other fees built in that will end up costing you more than a loan at a higher interest rate with better terms.
When taking on a student loan, make sure you have the facts. Some offer fixed interest rates which can make them easier to manage. Some offer deferment, allowing you to not make payments until you are out of school. Some will offer no interest accrual while you are in school. Other perks may include putting off payments when you have a financial hardship. There are lots of payment plans to choose from, depending on which type of loan you receive.
Make sure that you do not accept the first thing that comes along until you research each type of loan and lender. Getting the right student loans for yourself can be done quickly and wisely if you take a little time to do it right.

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.

Turning to Private Student Loans

College is getting more and more expensive along with gas, housing, and many other aspects of our lives. Many people find it very difficult if not impossible to save for their children’s education despite their best efforts. Many students are able to get grants and scholarships to help fund their education, but often those monies run out or fall short of what is truly needed to go to school. More than half of all students are now turning to student loans to help fill in the gaps between jobs, money saved, scholarships and grants.
There are many types of student loans. Most often, students will apply for Federal student financial aid. Stafford Loans, Federal Perkins Loans and even PLUS Loans for parents may not be enough. If you do not qualify or if you simply do not get enough money from your Federal efforts, then check with your school. Many schools offer their own loans. State Aid is also available to many families that can help pay for your school. Some loans have restrictions and can only be used for tuition, room and board or books. College can become extremely expensive and extra money is almost always needed. Many students just need help paying for food and gas. Private Student Loans are becoming a popular option to help pay for some of these extra expenses.
Private Student Loans are not backed or subsidized by the government like other types of student loans. These types of loans are much like standard loans. They are backed by financial institutions and banks. Private Student Loans can be dispersed directly to the school of your choice to help pay for normal college expenses. They can also be paid directly to you and can be used for just about any college expense. Federal loans generally have a loan limit. This can leave a lot of students short. Private Student Loans do not really have a cap. You can borrow as much as you qualify for. Most Private Student Loan lenders require good credit, occasionally a cosigner, proof of enrollment in school, and a verifiable income. Standards can vary from lender to lender, so shop around. Some web sites offer submission to multiple institutions so that you can compare rates, terms and amounts approved by many institutions at once.
Many people think that private student loans will have a high interest rate. This is not necessarily true. They usually have a slightly higher rate than government backed Federal loans, but lower rates than conventional loans. When shopping around, check out and compare rates, terms and payback plans. Also be aware of origination fees, fiduciary fees, late fees and other types of fees. You should be made aware of all fees as well as the annual percentage rate before you take out a loan. Some lenders may offer special benefits that make them more similar to Federal loans, such as deferred payments until after graduation or forebearences which allow you to suspend payments during times of financial struggle. It can be hard to qualify for a forebearence, so make sure that you are aware of all the details before you make your decision.

How to Financially Get Through College

When you go to college, you have your future on your mind. Choosing a major, meeting new friends and enjoying your new-found independence can make college a very exciting time. Books, car payments, tuition, life necessities, travel and lab fees can also make college a very expensive part of your life. Many students need a little help along the way. In fact, the majority of students are now taking out student loans to get them through these expensive years.

When you start shopping around for student loans, there are a few things you should know. In the past, loans have been very hard to obtain. Students could just about never qualify due to the fact that almost every lender required a high-paying steady job. Very few college students have the time or the experience to get a qualifying job. Today, the rules are a lot more lenient. Lenders recognize that students may not have money now, but they are in college working on starting a career. Since college educated employees should make considerably more money than their non-educated peers, the potential for college students to pay back loans is much higher than other people without that high-paying steady job.

Be smart about the amount that you take out. Keep in mind that lenders may be counting on your lack of experience with dealing with money. They may have hefty penalties for late payments. They may try to sneak in some yearly or monthly fees on top of your annual percentage rate (APR). Make sure that you read the fine print and compare many loans before accepting one. Check payment schedules and pay attention to dates. Many companies have a 28-30 day billing cycle, making your monthly payment due just a little earlier each month. Over time, you may find your payment due at the beginning of the month instead of the end. Little traps like this are legal and it is up to you to pay attention to the terms of the loan.

Make every payment on-time and pay more than the minimum if at all possible. When you are in college, you are just starting out on your personal credit journey. When your credit is fresh, one late payment can be a major blemish on your record. This can bar you from future car loans or mortgage loans. Use student loans, which generally have better terms and payback options than conventional loans, to build your credit and show your responsibility on your credit.

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.

Do I Need a Stafford Loan?

College can cost more than most parents prepare for. The cost of college has been steadily on the rise for many years. Most experts agree that college costs will continue to increase unless something drastic happens. Historically, college expenses and tuition has risen about seven percent a year and it is expected to continue to do so. This has many people turning to student loans for help. One type of loan, which we will discuss here, is called a Stafford Loan.

Stafford Loans are student loans configured in a way that allows you to defer your payments until after you graduate. There are multiple payment plans to choose from and the interest rates are considerably lower than other types of loans.

When trying to qualify for a Stafford Loan, your income will be considered. In addition, the number of people in your family, other children enrolled in college, your assets and your retirement accounts will also be taken into consideration. All of these things will be put into a formula which will estimate the amount that your family will be able to financially contribute to college. Once that amount is determined, the Stafford Loan amount will be calculated based on the outcome.

To start the process, you need to fill out a Free Application for Federal Student Aid (FAFSA) form. You can get a hard copy from your school or fill this application out online. The FAFSA application can be filled out by either the parents or the student. You will need to fill it out every year that you would like to receive financial aid. The FAFSA application will determine how much financial aid you are qualified to receive from the government and from the school that you will be attending.

After the form is examined, you will receive a Student Aid Report (SAR) in the mail. The SAR will explain your eligibility based on all of the information that you provided. If you find no mistakes on the SAR, then all of the information will be sent to the school or schools that you selected on the FAFSA application. This form is called the ISIR. The ISIR is not only sent to the schools of your choice, but also to the state government organization responsible for determining any financial aid amounts that you may qualify for from your state.

Next, you will receive financial aid award letters from the schools detailing financial aid amounts that you are eligible for and how you can go about collecting the money. You must fill out the acceptance portion of the award letter and return it to the school that you wish to attend.

You do not necessarily need to be a low-income family to receive a Stafford Loan. Many other expenses are taken into consideration. It is generally accepted that the Stafford Loan is the first loan that you should apply for before exploring the options of other parent or student loans. Discover more about Stafford Loans, other student loans, private student loans and parent loans at www.student-loans.net.

Culinary Scholarships

You enjoy cooking and fine food. You have seen the reality television shows with the chefs competing for top chef and find it interesting. Whatever it is that gets your attention, you might find yourself interested in going to school to learn the art of culinary delights.

Although there aren’t a lot of scholarships available for culinary education, there also isn’t a lot of competition, making your odds of receiving a scholarship better.

So where do you look for culinary scholarship opportunities?

If you are still in high school, start with your Guidance Counselors to see what kinds of culinary scholarships and awards they know about, locally, regionally and nationally. Very often, the high schools themselves offer monetary rewards for good students, or the most dedicated from clubs and activities, which could include a cooking, home economics or vocational club. If not, at least, they should be able to steer you toward other sources because keeping track of that stuff is part of their job.

Most culinary institutes and university culinary programs offer scholarships to students attending their schools, either directly through the school or through business, benefactors and foundations that support the school. Many schools also offer them to students planning to attend.

Check out the bulletin board on campus for schools such as:

* The Art Institutes
* The Culinary Institute of America
* Pennsylvania College of Technology
* University of Nevada, Las Vegas

These kinds of scholarships are definitely the easiest to find out about, but somehow overlooked by a great many students who could benefit greatly from the funding… and from the prestige of winning!



Professional Culinary Organizations

By definition, professional organizations are designed to promote their profession. In large part, that entails the development of future professionals, and scholarships are a great way for them to promote that.

Going directly to National and Regional culinary institutes is of course the next course of action. Here are some samples:

1. American Academy of Chefs - The American Academy of Chefs, through the American Culinary Federation Foundation, offers educational scholarships to high school students beginning to seek a culinary or pastry arts degree, college students currently seeking a culinary or pastry arts degree, professional chefs already working in the culinary industry looking to further their education or get certified, and student culinary teams currently competing at ACF regional conferences or national convention.

2. Les Dames d'Escoffier - Les Dames d'Escoffier is a leadership culinary organization composed of women who have not only achieved success in their profession, but who contribute significantly to their communities. Since its incorporation 25 years ago, Les Dames d'Escoffier has followed its mission to elevate the profession through mentoring members and helping worthy students succeed in their culinary careers. I am very proud to be a member."

3. Women Chefs & Restaurateurs - The mission of Women Chefs & Restaurateurs (WCR) is to promote and enhance the education, advancement and connection of women in the culinary industry. Since WCR was founded in 1993, the association has offered unique scholarship and internship opportunities to its members.

4. Institute of Food Technologists - Professionals in the field improve the availability, nutrition, and safety of the world’s food supply. They bring scientific and technological innovation to an increasingly global marketplace. They give back to the community through teaching and leadership. This organization offers numerous scholarships in various fields of the food industry.

5. National Restaurant Association - The National Restaurant Association Educational Foundation (NRAEF) encourages and supports senior high school students, GED graduates, undergraduate students, ProStart COA, and educators who are committed to furthering their education and enhancing their careers in the restaurant and foodservice industry by awarding scholarships through its Scholarships.

6. International Cake Exploration Societé - CES promotes the art of cake decorating by awarding one or more annual scholarships to applicants deemed most likely to develop and promote the art form.

If you live in the following states, try these regional programs.
* American Culinary Federation, Piscataqua Chapter - Maine
* Golden Gate Restaurant Association Scholarship Foundation
* California Restaurant Association
* Channel Islands Chefs Association
* Illinois Restaurant Association
* Nations Capitol Chefs Association
* The Culinary Trust
* Wisconsin Restaurant Association

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

Engineering Scholarships

Engineering is a complex and growing field. There are many types of engineers including: aerospace engineering, agricultural engineering, architectural engineering, civil engineering, electrical engineering, environmental engineering, industrial engineering, manufacturing engineering, mechanical engineering and more. Studying to be an engineer can be costly, but fortunately there are a lot of scholarship and grant opportunities for interested students.

Here are just a few to choose from:

1. BMW/SAE Engineering Scholarship - This annual scholarship is provided by BMW AG in recognition of its commitment to excellence in engineering. BMW is world famous for designing and building luxury, high-performance passenger cars and motorcycles. This scholarship is in support of the SAE Foundation to ensure an adequate supply of well-trained engineers for the future. One $6,000 scholarship will be awarded at $1,500 per year for four years. A 3.0 grade point average must be maintained to renew the scholarship.

2. Edward D. Hendrickson/SAE Engineering Scholarship - Hendrickson International, a Boler Company, established an endowment to underwrite the scholarship in memory of the late Edward D. Hendrickson. One $4,000 scholarship will be awarded at $1,000 per year for four years. A 3.0 grade point average and continued engineering enrollment must be maintained to renew the scholarship.

3. SAE/Ford Partnership for Advanced Studies Scholarship - The Ford Partnership for Advanced Studies (Ford PAS) Scholarship was developed by the Ford Motor Company Fund. This annual scholarship is provided by Ford Motor Company to high school seniors who are a past or present student of a Ford PAS program at their high school or in a Ford PAS after-school/weekend/summer/college program. This scholarship is in support of the SAE Foundation to ensure an adequate supply of well-trained engineers for the future. One $5,000 scholarship will be awarded in the freshman year only.

4. SAE Women Engineers Committee Scholarship - The SAE Women Engineers Committee established this scholarship to encourage young women graduating from high school to enter the field of engineering. They are committed to increasing the diversity of SAE membership, especially by promoting the participation and leadership of women. Applicants must be female, have a 3.0 grade point average and be accepted into an ABET accredited engineering program. One $2,000 scholarship will be awarded for the freshman year only.

5. Tau Beta Pi/SAE Engineering Scholarship - The Tau Beta Pi Association, the engineering honor society, is the world's largest engineering society. Founding in 1885 in Bethlehem, Pennsylvania, Tau Beta Pi has initiated more than 492,000 members in 122 years.
Six scholarships valued at $1,000 each will be awarded for the freshman year only.

6. TMC/SAE Donald D. Dawson Technical Scholarship - SAE and The Maintenance Council of American Trucking Association have established this technical education scholarship to honor the leadership of Donald D. Dawson. One scholarship will be awarded each year. The student will receive $1,500 a year for up to four years as long as a 3.0 grade point average and continuing engineering enrollment is maintained.

7. Fred M. Young Sr./SAE Engineering Scholarship - The Young Radiator Company established this scholarship in memory of the company's founder, Fred M. Young, Sr. Mr. Young started the company in 1927 and saw it grow to become a major force in the field of Heat Transfer. One $4,000 scholarship will be awarded at $1,000 per year for four years. A 3.0 grade point average and continued engineering enrollment must be maintained to renew the scholarship.

8. Detroit Section SAE Technical Scholarship - Established in 2001, this scholarship is sponsored by the SAE Detroit Section to encourage children and grandchildren of current Detroit Section members to pursue careers in engineering or the sciences. The Section recognizes that there is a need for more student candidates in these fields, as a shortage of qualified graduates is expected in future years.

Two $3,500 renewable freshman scholarship will be awarded. Student must maintain a 2.5 grade point average and remain in good standing at the college or university in order to qualify for scholarship renewal. A student having completed a two-year program may continue for an additional consecutive two years at a second school offering a complete engineering or science baccalaureate degree program.

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

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.

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.

Health Professions Student Loans (HPSL)

Students seeking a degree in a health profession may qualify for the Health Professions Student Loans program. These types of student loans are awarded by the school that you wish to attend. Students that qualify need to be considered to be in financial need. To get a Health Professions Student Loan, your degree needs to be in veterinary medicine, optometry, dentistry, pharmacy or podiatric medicine. Funds are available to schools offering these degrees from the federal government and you may qualify for student loans through one of these schools. Remember, the government has a goal here. They want more physicians and health care providers in our country. They want to help and if you can meet certain criteria, then you could be on your way to medical school.

There are a few criteria that you need to meet in order to qualify for a Health Professions Student Loan. First, you must be a citizen of the United States or one of its territories. Second, you have to be accepted into the school medical program. This acceptance depends on your application, grades and possibly recommendations from past teachers. If you do not keep your grades up while participating in the HPSL program, then the school is obligated to take your funding away. This program is designated for students who show enough potential to be successful in medical school, graduate, then go on to make enough money to pay it back. This is generally what happens, and that is why the HPSL has such good terms for repayment of the loan monies received.

Your financial needs are investigated before you can be awarded an HPSL. The family’s finances and contributions are considered unless you are a graduate student or are deemed independent. Amounts awarded are adjusted for other forms of financial aid received.

The payoff terms of the HPSL are at a fixed, low interest rate. The HPSL can have better terms than other types of loans and student aid because of the future earning potential of the students. This makes the loan less of a risk for the lender. Interest does not accumulate when you are enrolled as a full-time student. There is also a one year grace period when interest is not accumulating. The one year grace period covers you for payments and interest if you graduate or withdraw. It also covers you for a year if you drop down to part-time. You can have up to ten years total to repay the Health Professions Student Loan monies.

If you do not qualify or have maxed out the amount of financial aid that you can receive from your school, you should consider private student loans from a lender. Web sites such as www.student-loans.net offer you many choices of lenders and lots of valuable information when selecting the private student loans that may be right for you.

Is College Worth the Cost?

It is no secret that college tuition and expenses have been on a steady rise for many years. This has many families worried that they will not be able to afford to send their kids to college. Many even shy away from encouraging their children to dream of a college education. Trade skills are almost being forced on the younger generation. The daunting and staggering college costs are changing the way that we raise our kids.

Imagine if you were told not to dream. What if you told your parents that you wanted to be a doctor and they just had to turn you down? What does this do to the self esteem of a young child? Many families, college educated or not, struggle to keep up with housing costs and the cost of living in general. Saving for college simply is not in the cards for a lot more families than many would like to believe. What does this mean for the future of our country?

We are trending towards generation after generation of minimum wage and poverty level workers. What happens then? They can not afford college for their children and so the cycle continues. If you have been worried about affording college for your children, then there are some things that you should realize.

So, you are wondering if college is really worth the cost. Consider college an investment. Not only is college an investment in your child’s self esteem and job satisfaction, but it is also an investment in your family and country. College graduates earn an average of sixty percent more than their peers. This makes an earning difference of almost one million dollars over a lifetime. With all of the college grants, financial aid, student and parent loans, there is almost no excuse for denying your child this investment in their future.

You may have to make short-term sacrifices to afford loan payments, but it should be well worth the effort. Students can defer payments until after they graduate. There are even payment plans that are income based, which means that your child will not have to pay more than they can afford as they get older. If you are worried about being responsible for hefty loan payments between times of employment, do not worry too much. Most student loans have deferment periods that can put your payments on hold until you are employed again. The government and loan companies have all sorts of special benefits and payment breaks for student loans.

Our government does want our children to be able to afford college. We need professionals in our society to function. This does not mean that the rich are the only ones able to get educated and continue to be rich. Many loans are income based and your child can get just about as much help as they need. If they do not get as much as you need for actual college costs, then there are parent PLUS loans and private student loans to consider. These are available on top of Federal Student Loans, scholarships and financial aid. Do not stifle your child’s dreams. Encourage them to make a better life for themselves as well as their children and grandchildren. Choosing to go to college can affect many generations to come and, yes, our families’ futures are worth the cost.

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.

Plus Loans and the FFEL Program

If you have a dependant child enrolled in college, then you may qualify for a PLUS Loan. PLUS Loans are also known as parent loans in the world of student loans and financial aid. PLUS Loans are available through the Federal Family Education Loan (FFEL) Program. They are also available through the William D. Ford Federal Direct Loan Program. As a parent of a student, your credit history will come into play when applying for a PLUS Loan.

If your child is already receiving financial aid or other student loans, then you may or may not qualify for an additional PLUS Loan during the same enrollment period. Your child has to be enrolled at least half time in an eligible school for you to receive PLUS Loan money. Applications for PLUS Loans are available through lenders or directly from the school. You may consider going through a company that matches you with the lender that’s best for you, or at least gives you many different lenders to choose from. If a school offers you one lender for a PLUS Loan, then make sure that you check around and consider all of your options. The one that they offer you may not be the best deal around.

If your credit as a parent is not that great, then you still may qualify for a PLUS Loan if you can exhibit certain extenuating circumstances. Check with the lenders for specifics that could help qualify you for the loan. Parents can borrow as much money as the student needs to attend college. If the student is already receiving some financial aid, then it is considered and subtracted from the cost of attendance. You can not borrow more than the cost of attendance with a PLUS Loan.

PLUS Loan money is sent directly to the school. Money can be put towards tuition, room and board, school fees and other school related expenses. Any extra money borrowed that is not necessary for school will be sent directly to you, the parent. You can choose to have the money deposited in a school account where it will be held for future school needs. In any case, all of the remaining money must be used for school and school expenses.

The interest rate on PLUS Loans is currently 8.02 percent. This rate changes every year on the first of July. There are also fees associated with PLUS Loans. Usually when there is a loan payment dispersed, which can be one or two times per enrollment period, the parents will pay a 4 percent fee. This money goes to the lender and/or the government to keep the cost of managing PLUS Loans down to a minimum. You don’t get the luxury of a grace period with a PLUS Loan like you do with some other types of student aid. Payments start immediately after the first disbursement is made, or within sixty days of the first disbursement. As soon as the first disbursement is made, interest starts accruing and continues to accrue for the life of the loan.

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.

Student Loan Payment Options

If you have a high amount of student loans that you are struggling to pay off, then you may have questions about how to handle it. There are provisions with most types of student loans that allow you to defer payments or adjust payments to meet your needs. Check with your lender for specifics. Here, we will discuss common options when it comes to paying down your student loans.

If you are really in over your head and have considered bankruptcy, be prepared. Bankruptcy is not an option for federal student loans. They will not go away or be discharged even if you are filing bankruptcy. You do have some options though. You can apply to change the pay off terms of your student loans. Instead of struggling to pay them off in ten years, you can stretch them out to thirty years. This, of course, would end up costing you more interest in the long run, but it could relieve the stress of large monthly payments. If you’re missing payments because they’re too high, then it will end up costing you more anyway, not to mention that you can ruin your credit by missing payments.

Filing bankruptcy with a private student loan is not any better. There is a provision for undue hardship, but the standards are extremely hard to meet. If you can meet the requirements, then it is possible to get a private student loan discharged. This provision is very rarely awarded. You should consider different ways of paying off your student loans if possible.

One option is to talk to your lender about a graduated repayment plan. This plan allows you to start out at low payments that steadily increase over time. This gives you some time to build your income up to a point where you can afford the larger payments. Payments are figured generally once every two years, so you have some time to prepare when the payments increase.

Another option is setting up an income based repayment plan. This plan uses your adjusted gross income each year to figure the payment that you can afford. The payment is based also on the size of the loan. How many members you have in your family is also taken into consideration. Many find this a very effective way to budget for student loan payments.

In times of extreme hardship, you may qualify to defer your loan payments. This doesn’t mean that they are discharged or gone, but simply put off until a later date. Many types of student loans will not have interest accruing during the deferment period. If you don’t qualify for deferment, you may qualify for forbearance. Forbearance is like deferment, in that you can postpone payments for a set length of time. Unlike deferment, forbearance options do accumulate interest during the period that you are not making payments.

In general, you should try to pay off your student loans whenever you come into extra money. All debts need to be taken seriously and you should always pay as much as you can afford. If you are in some trouble and need to change the terms or put off monthly payments for a while, contact the custodian of the loan. Manage it well, and you can be on your way to paying off 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.

Reasons you may not want to save for your children’s college

It goes against everything we are told, to save for our children’s college, starting when they are young. The truth is, it's fiscally irresponsible to spend your retirement money on your children's education.

We all know college can be very, very expensive. With that, we tell ourselves that we'd better start saving if we want our kids to get an education and a good job. Private colleges currently cost more than $25,000 per year, and even in-state public universities cost more than $12,000 per year. Few people can fork over that kind of money without planning ahead.

But are we really in deep trouble if we don't have a college fund set up for our 5-year-old? How should we balance saving for college with other financial goals?

Sometimes, putting money into education funds is not the best use of your money. Here's why:

• You can't get a loan for retirement
• Other financial goals come first. It's heresy to some, but it's true: Your retirement plans are more important than your children's college funds. Your kids can get through college somehow, and you will probably find a way to help them, but it's more important to plan for your retirement. Remember, your kids can get student loans, but there's no such thing as a retirement loan.
• If you have to choose between putting money in the kids' college funds and buying a house, buy the house. You may be able to pay tuition with a home-equity loan when the time comes.
• Education funds are not always the best way


Typical education savings plans may have drawbacks, such as:

• Limited investment options. Many education funds pay only interest; others let you invest in the stock market. You can't use the typical education fund to invest directly in real estate or start a small business, for example. Compare the rate of return you expect with what you could receive in alternate investments.
• Difficulty predicting future tax benefits. Tax rules change, and it's hard to predict future income levels. Sometimes by the time kids reach college age, their parents' income level is too high for certain tax advantages they'd been counting on.
• Financial aid considerations. Students are expected to contribute a higher percentage of their savings to their college education than their parents, so placing money in your child's name may hurt their chances of getting financial aid. You may be better off keeping the money in your name.

If you want your child to appreciate the investment in their education, working with them in helping pay for their own college can have its benefits. Every year a number of freshmen trek off to college on their parents' hard-saved money, only to spend more time the first few semesters partying than studying. Would they crack the books more if they were paying the bill? Even the most responsible kids seem to do better in college when they help pay for it.

Students can start at a community college at relatively low cost. In California, for example, the annual cost for tuition, books and supplies at a community college is about $1,500. After two years, students can transfer to a four-year college and graduate with the same degree as students who started there.

Recent trends, such as taking courses online or getting college credit before graduating from high school, can also help cut the total cost of a degree.

If you decide to set up education funds for your children, ask your tax professional about the options that will give you the most flexibility and the best after-tax return for your situation.

Remember to pay attention to your own overall financial picture first, however. It's a good idea to keep some investments accessible for projects such as paying college tuition, but designated college funds are not the only way to go. Whatever your family's needs may be in the future, the best way to be sure you can meet them is to make sure you are on the right track for all your financial goals.

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

Researching Scholarship Opportunities

You are ready to go to college or maybe your child is and you want to know what types of scholarships are available. Maybe you are asking yourself where to start? If so, here are a few tips.

Scholarships are either given by colleges or universities that you plan to attend or by the private sector. But most scholarships are private-sector, that is scholarships that are offered by businesses, professional associations, community service organizations and individuals. Both types of scholarships often requires an application and some type of essay.

Before researching scholarships, know that most have some sort of criteria that you must meet before qualifying. This criteria can be academic performance, financial need or even race, ancestry, sexual orientation and hobbies. Making a list of all of your hobbies, clubs or organizations you have belonged to, whether your parents have belonged to organizations or the armed services, and what your interests are, will help you with your search.

To search for scholarships you can use the Internet, libraries and college counseling and financial aid offices.

Using the Internet and search engines such as Google and directories such as Yahoo! Requires some research skills. Simply typing in the world scholarships and return over 60 million results. Typing in scholarships for women will narrow the results substantially. Add to the search text your major, such as women engineering scholarships to refine results further. Search by all germane academic and personal factors, including your specifics from your list, and combine these where apt; examples include: engineering scholarships, engineering scholarships women, chemical engineering scholarships women, Filipina scholarships, etc.

Most colleges and universities will have a library collection of texts on funding your education and librarians have a great deal of expertise on how to search printed material and the Web. University libraries customarily have larger collections and more resources than community colleges and you can search the catalogs over the Web.

Local public libraries may be useful in several ways. They may have a collection of financial aid and scholarship texts, and the professional librarians may be able to help your search. Public libraries may also have information on local and regional organizations, such as university alumni, association branches, community service clubs and organizations, chambers of commerce, religious institutes, and professional associations that may offer scholarships. Local organizations may offer substantial scholarships, some of which may be renewable. Use the library to get contact information and ask the organization about scholarship offerings and whom to contact for application material.

Check with counselors and professors at your college and the college(s) to which you plan to transfer for scholarship information. Professors in your major may know of scholarships in their field or of professional associations that may offer scholarships.

Check also with employers in your major field. Organizations, such as hospitals, may assist employees who will commit to working for a period of time after graduation. Some hospital work-study programs offer 40 hours pay while the employee works 20 hours and attend a college nursing program for 20 hours work week. Many employers offer tuition assistance programs to help employees gain expertise related to the company’s business or operating areas or needs. Some universities offer free or reduced tuition for their employees.

There are many scholarship opportunities out there, the difference in who finds them is how they conduct their research.

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

Are Private Student Loans Right for Me?

With higher education costs soaring, more and more students are turning to financial aid for help. Federal student aid offers grants, loans and other types of assistance. Federal aid is by far the biggest supplier of money to students for college. Federal loans include not only grants, but also campus-based loans, Stafford Loans, and PLUS loans for parents and graduate students. The problem is, a lot of students don’t qualify for Federal help and are turning to other sources for help with their college funding.

Nonfederal scholarships and funding may be provided by your state. Check with your school to see if you may qualify for one of the state programs. If you do receive Federal or State Aid, then you may still need more money. College is expensive and includes tuition, books, room and board, as well as travel expenses, bills and food. More students than ever are turning to Private Student Loans for financial assistance with all of the costs that college brings.

Private Student Loans are essentially like regular loans. You must qualify for the loans and may be required to have a cosigner. The difference is that Private Student Loans usually have more flexible repayment schedules to accommodate students. For example, you may not be required to begin repayment of the loan until after you graduate or withdraw from school. Rates can be quite good based on your credit history and income. Be aware that there are a lot of subprime loans out there, which can have very high interest rates and may not be the best option for you.

When you take out a Private Student Loan, you are taking on a serious responsibility. You must strictly adhere to the terms and conditions explained in your contract. Failure to make an on-time payment will be reflected in your credit history for years. Late payments or failed payments on loans are big influences on your credit score. On the other hand, being responsible with your payments and always making them on-time can help you establish a good credit history. Paying on your Private Student Loan can help you show future lenders that you are financially responsible and mature.

If you are shopping for Private Student Loans, you may want to avoid companies or advisors that push one product or one certain lender. Especially beware if the product being pushed is at a high interest rate. Shop around to be sure that what you get is actually the best thing for you. This commitment will last for years, so take your time shopping around. Check out sites that feature many lenders and offer multiple products so that you know they are not biased or influenced by any one company. Do your research and Private Student Loans could help you bridge the financial gap on your journey through college.


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.

Consolidating Stafford Student Loans

After the student loan scandal of 2007, many alumni may be looking forward to consolidating their student loans this July. July is when the variable rates change on federal student loans. Alumni may be hoping to lock in low rates, combine multiple loans and lower their monthly payment. But before you jump on the consolidation bandwagon, there are a few things to consider.

The student loan scandal made many people afraid of the student loan lenders. But, now that guidelines are in place, it is a much safer time to consider student loan consolidation. Now when you start researching which lenders to consolidate with, you are more likely to get unbiased information. Keep in mind that you still need to make the final decisions on your own. Educate yourself before you pursue consolidation.

When you consolidate your student loans, you should consider what you want to accomplish. You may want to lower your monthly payments, lower your interest rate, lower the amount of time that it will take to pay off your student loan debt, or simplify your monthly bill paying schedule.

If your goal is to lower your monthly payments, you should consider repayment terms in your decision. Consolidating your loans generally does lower your payments, but it also tempts people into extend their loan terms. This can cause you to pay more interest in the long-run, so calculate how much more you’ll actually pay before you decide that this is the best option. Sometimes lowering your monthly payment by a little bit isn’t worth the extra time and money that it would take to pay it off. It just depends on what is right for you. See what many different lenders have to offer so that you can make an informed decision.

There are other reasons besides lowering your payment to consolidate student loans. Let’s say that you want to get a better interest rate. Keep in mind that you can’t consolidate over and over, so you’ll want to be sure that consolidation is the right move for you before you do it. If you have variable Stafford loans, then you need to wait and see if the rate actually goes down much. If it doesn’t really move, then it’s not worth wasting your consolidation option on. If you have a fixed rate Stafford loan, then you are at a fixed rate of 6.8 percent anyway and consolidating won’t lower it.

Sometimes consolidating is worth it just to get your bills together in one easy payment. This can help you pay your bills on time more consistently. Just be sure that you’re making the right move before you decide to consolidate your Stafford 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.

Consolidating Student Debt

Many students go through college not realizing how much money they’re spending. You can easily rack up a hefty amount of debt, just by charging a little here and there. Lots of students don’t take their credit card balances very seriously. They look at the minimum amount due and blow it off as just a small bill to pay. Even worse, they may not even consider this minimum amount as pressing, paying their regular utilities and other bills first. This can lead to credit card neglect. Student loans have a set amount due each month. This makes paying off the debt easier to attain.

Your credit card payment and student loan payment has to be made on time, every time. Late payments can stay on your credit report for years. Late fees are tremendous and your interest rate can go through the roof after one late payment on a credit card. Suddenly that great deal that you signed up for is gone and you’re stuck paying the maximum amount of interest and late fees on an ever-growing balance.

Keep up with your bills. Show some restraint when you need to use your credit card. Don’t use it for anything that you just want. Only use it for real emergencies and make every effort to come up with cash before you decide that you have to use your credit card. If you take out a student loan, only take out the amount that you need.

Call and set up an automatic payment plan with your creditors. Determine when you want your balance to be paid off and pay a set amount every month to achieve that goal. Student loans generally have this plan in place already.

Come up with an exact strategy to get your debt paid off. Debt consolidation could be an option if you have more than one credit card or loan out there. Basically, you combine all of your balances on to one bill. Get rid of extra credit cards so that you’re not tempted by them sitting in your wallet with a high limit of available credit.

When consolidating your debt, look for special student rates. Find a plan that has a low interest rate and the lowest fees. Once you’re debt is in one lump sum, then your payments overall can be lowered. You’ll have one amount due as well as one due date to keep up with.

Students find it very hard to have self restraint when it comes to shopping, eating out at restaurants and partying with their friends. Try to train yourself to save just a little each paycheck for times like these. Don’t turn to a life of debt and struggle just to go grab a sandwich with your friends or buy yet another pair of jeans. Become a bargain hunter and only take cash with you. You’ll reap the benefits and teach yourself some responsibility. Be proud of the money that you save and pay as much as possible to your credit card or student loan bill as often as possible. Every little bit counts when you’re getting yourself out of debt.

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.

Direct Student Loans

Direct loans are available to students entering college who need help paying for school. Direct loans are obtained through your school and are funded by the U.S. Department of Education. Contact your school’s financial aid office for more detailed information on how to get a direct student loan. Here we will discuss repayment options for direct student loans obtained through your school.

There are a few options to choose from, but you are allowed to change your plans as your life changes. The standard repayment plan is the most common plan. It allows you to repay your loan over a period of up to ten years. The payments are fixed and easy to budget for. This is the quickest plan for repaying your loan. The payments may be a little higher because of the short time frame. But, you’ll end up paying less interest in the long run and saving money.

If you can’t afford the larger monthly payments and need a little longer to pay back the loan, then you may consider the extended repayment plan. This plan gives you twelve to thirty years to repay the loan. The amount of time depends on the amount of money that you owe. Larger sums of money can be stretched out to longer lengths of time for repayment. Your payments are smaller and you’re taking longer to pay off the full amount, so you will end up paying more interest on the extended repayment plan.

The graduated repayment plan is a plan that assumes you’ll be making more and more money after you graduate. It starts out with a small minimum payment due. Then it will gradually increase the minimum until the loan is paid off. This graduated repayment plan, like the extended repayment plan, can take twelve to thirty years, depending on how much money you borrowed.

Another popular plan is the income contingent repayment plan. This plan gives you a little leeway in your payments. You can recalculate payments every year based on how much money you’re making. The more money you make, the more you will pay back. Your spouse’s income will be included in determining this amount if you are married. This plan gives you a maximum of twenty five years to repay your direct student loans.

Direct student loans are meant for school expenses only. There are other types of loans offered by banks and online lenders. Your school will work with other types of lenders besides the U.S. Department of Education. You will need other forms of income for expenses associated with school, such as clothing, groceries, rent, computers and bills. If you need some assistance, shop around for student loans. Private student loans are also available and can help you through your college years. Educate yourself and find out which options will be best for you. When paying off multiple student loans or private student loans, consider consolidation. Do your research and you should have a successful student loan experience.

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.