Private Education Loans Should Be Carefully Compared Before Borrowing

For many families, borrowing is one of the key components of financing a college education. To that end, a family may utilize one of the many education loan options that are available, such as private education loan programs available from lenders.When a family borrows an education loan, they essentially rely on future income sources to pay college costs, as they will be repaying the education loan back in the future. Since loans need to be paid back, the loan repayment will be an added responsibility in the future and one that needs to be taken very seriously. Loans are not free and actually can be very expensive. It is imperative that if you do borrow a private education loan that you be a smart borrower, as decisions that you make now will impact your life style and options in the future. Students should first maximize loan borrowing through the Federal Direct Stafford Loan Programs, if eligible, which have favorable terms, various repayment options, and typically are the lowest cost loans.

Private education loans, also referred to as alternative loans, are credit based loans offered by lenders, including banks, credit unions, state agencies, and private companies. It is important to understand the role of credit in the private loan process, as private loans are not automatic financing options. Private loan programs use a borrower's and co-borrower's (if applicable) credit worthiness as a determinant when considering applicants for private loan eligibility. A borrower's credit worthiness not only determines if they are approved for the loan, but has a bearing on the interest rate assigned to the loan. Ultimately, when talking about private loans, your credit rating is a very important contributing factor in the private loan review process.

Although specific lender underwriting guidelines are proprietary information and unpublished to the consumer, it is known that the strength of the applicant's credit is a large factor. With that said, it is a worthwhile exercise to review your personal credit standing regardless, as establishing and maintaining good credit is vital for many reasons. In general, credit is the basis of most consumer borrowing, thus being proactive with credit is a positive practice.

Before borrowing a private education loan, you should carefully compare the terms, repayment details, and total cost of the loan, including interest rate and fees. Loan terms and repayment details vary greatly among lenders and between loan programs, so do be sure to compare loan details carefully and ask the lender many questions when reviewing loan programs. Important information to inquire about includes whether the rate is fixed or variable, if the loan incurs any fees, if there is a prepayment penalty, what the length of the repayment term is, and if there are any deferment or forbearance provisions available. Loan applicants will be provided with a disclosure notice with the financing details of the loan which provides a good opportunity for the borrower to review the minute details of the loan prior to committing. Just be sure to ask many questions and compare several loan programs before committing to a specific. rams.

Financial Aid $ense is a newly updated publication and a VITAL read for anyone with college bound children. Financial Aid $ense will help you decipher the college financing process, including applying for financial aid, searching for scholarships, comparing award letters, navigating student and private loan programs, and ultimately figuring out how to pay the college bill. 

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How to Postpone Paying Off Student Loans

Many of us have student loans and it's hard to pay them back all at once. If you're in this place, you should not think you're alone. In fact, most of the customers of student loan programs have financial difficulties at one time or another. If you find yourself in this place, you may wonder if there are ways to postpone those payments. Well, here's your good news: There is!

The companies who offer student loans realize that everyone needs a little help sometimes. If you have just lost your job and you're trying to decide which bill to pay, then student loans are probably going to lose. These representatives know you're trying to take care of your loved ones first and then concentrate on any additional bills you owe. This is why they offer these assistance programs in the first place.

Asking for a Deferment

In these cases, you can contact the student loan provider and tell them of your unemployment. They may give you a six-month deferment so you can get back on your feet. Most of the time, there will be a set amount of deferment time that you qualify for automatically. This should be lined out in the documents you originally signed when you agreed to the student loan terms. Then, you'll have data to reference before you call and ask for them to be put in place.

Qualifying for a Forbearance

Other financial difficulties may arise in terms of having to move or even surrender a vehicle back to the finance company. If this is the case and you have fallen behind on your payments, simply be honest with the student loan provider. It's up to them, but they can sometimes give you a forbearance depending on the situation.

This terms means that any late or missing payments up to that point are brought current. It keeps your credit score current and won't have any negative affect on your credit report. This is not an option you can use all the time, but it is something to consider during times of unexpected hardship.

Talk to your student loan provider about these options and work out a prolonged payment plan. Your interest payments will increase, but it will give you some immediate financial relief. Even though this does increase the payment amount, sometimes that additional span of time is worth paying for so you can plan better financially with your current income.

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Qualifications You Need in Order to Be Awarded a Federal Grant For College

The option to further one's education is far greater today than ever before. There are good programs set up to help students and their families, which almost anyone can qualify for. Those who qualify for any assistance will be a U.S. citizen, not owe for any previous federal loans, and be enrolled in an eligible program. There are three major types of financial assistance available: governmental grants, student loans, and scholarships.

Getting Started With FAFSA

Before any of these can be applied for, a student must fill out a Free Application for Student Financial Aid (FAFSA). The application is found on the FAFSA website online and will be used to determine eligibility.

Anyone under the age of 24 will be considered a dependent. Those over 24 will be independent. Dependent students will need their parent's financial information, as it will be used to determine eligibility for federal grant money. Independents will not need to provide parental documentation as the outcome is based on their own income. Any free money available will be applied to a student's account before any other type of financial aid can be awarded. Below are the three main programs for financial assistance:

Government Grants

Grants are means tested, or needs based. This means that qualification for them is based on a students income and other factors that may demonstrate the need for help. The most common grant available is the Pell Grant.

Pell grants are free money. They are most commonly provided for parents and adults who otherwise could not afford to attend a school. Pell or any other types of grants do not need to be paid back by the student. Once funds are released to the school, it will be applied first to tuition. The remaining balance is generally refunded to the student for help with buying books and other supplies.

Student Loans

Student loans are cash loans from the federal or state government, private companies or banks which are applied after any grants that were available to cover tuition and school costs. Loans are not means tested, or needs based, allowing anybody to borrow up to a set amount of money. The amount of the loan is determined by the educational program and can be used for living expenses.

Students do not need to qualify for grants to apply for loans, but having federal grants will not affect the ability to borrow money. Loans can help with transportation, food, and other living costs. Students typically have to start paying on their loans six months after they graduate or leave the program.

Scholarships

Scholarships are the last stop when looking for funding. All scholarships are different as far as their qualifications and guidelines go. Generally, there are only limited amounts of money the scholarship foundations can give out in any given year. So it is a good idea to apply to them as soon as possible. Many, but not all, will be largely based on a minimum G.P.A., area of study or major and financial need from the student. Information can be found through the school or on the Fafsa.gov website.

FAFSA Application

Once the FAFSA application is filled out and submitted online, it will be sent to the school or schools indicated on the student's application. Afterwards, the student will be notified by the federal government directly giving an estimate of how much aid the student qualifies for.

The total may be different from the amount awarded by the institution as they are the ones who determine what they can give. They try to fund as many students as possible.

The amount of aid can also go up each year as long as the student continues to meet requirements and repeats the process of filing their FAFSA each year.

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3 Tips for Overcoming Student Loan Debt

Student Loan Statistics

Up to 60 percent of undergraduates take out student loans to help finance their education, and they have an average debt of $23,000. The numbers of borrowers and the average amount borrowed increases with graduate degrees.

Many new graduates are unable to pay their loans when they graduate. This happens for many reasons. First, many students don't realize how much they will need to pay back each month once they graduate. In addition, some students overestimate how much money they will make once they graduate, or they overestimate their chances of finding a job in their chosen field. Up to 28 percent of students have reported that they have a great deal of difficulty paying back their loans. However, there are some strategies that a student can take to overcome their school loan debt.

Choose a Repayment Plan that Works for You

Many new graduates don't realize that they have options when they set up their college loan repayment plan. There are four general types of repayment plans to choose from:

1. Standard Repayment Plan - This plan is usually the first one offered by the lender. The terms of this plan include making regular, fixed payments for 10 years.

2. Graduated Repayment Plan - This plan allows the borrower to make lower payments to begin with, and then increases the amounts of the payments.

3. Extended Repayment Plan - This extended plan stretches out the payments for up to 30 years.

4. Income-Contingent Repayment Plan - This plan adjusts the amount of the payments to make them manageable for your income level.

Investigate Loan Forgiveness Programs

New graduates working in some fields may have the option to have some of their school loans forgiven. For example, public school teachers working in disadvantages school districts can have their loans forgiven after they make payments for 10 years. These programs have expanded since 2010, allowing more people to take advantage of them.

If you aren't eligible for a student loan forgiveness program, volunteering may reduce your student loan debt. For example, participating in some volunteer programs, such as the Peace Corps or AmeriCorps, can cut thousands of dollars off your student loan debt when you agree to volunteer for a specific time period. These programs aren't for everyone because most of them represent a significant time commitment that will probably prevent you from working a regular job. However, if this volunteer experience will improve your job skills or your chances of finding employment, you may benefit from the experience as well as the loan forgiveness.

Pay as Much as Possible

If you are making payments on your student loans, pay as much as you can afford. Making more than the minimum required payment can significantly reduce your principle over time. When you make a payment, the late fees are paid first, then the interest that you owe, and finally, the rest of the money goes toward the principle. When you may more than the minimum amount on the loan, the amount that you pay over the minimum is directly applied to the principle. If you do this each month, you will reduce your principle much more quickly than you would if you only made the minimum payments.

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Student Loan Consolidation Program: Is This a Good Option for You?

If you have a student loan and you are currently suffering from a serious financial condition, then student loan consolidation program is one of the most reliable solutions. Having a huge debt without a stable source of income can be very alarming. There is a great possibility for your debts to cause you too much stress and depression. Luckily, there are several ways for you to consolidate your student loan and doing this allows you to be finally free of debt. All it takes is for you to conduct your research about this option so you will know exactly how to make it work to your greatest advantage.

There are a number of lenders that offer good debt consolidation programs. However, you have to be very careful in conducting your research about each of your options so you will get the chance to obtain the most appropriate program for you. In your attempt to search for the most reliable consolidation program, it is advisable for you to never rush things. It is important for you to get useful advices first from a number of reliable sources before you ever visit a bank, a lending company or any other financial group to finally start consolidating your debt.

In your search for the best student loan consolidation program, it is advisable for you to become aware of the different factors that could affect your choice. One of these factors is your current credit rating. Keep in mind that if you apply for a consolidation program, the financial company will be checking out your credit score. If you have a good score, then there is a great tendency for your application to be approved. The approved debt consolidation application will also entitle you to obtain lower rates of interest.

It is also advisable for you to learn about your debt consolidation options. The first option that you have is that which is referred to as the standard payment of your fixed monthly installments. This option is perfect for you if you have the confidence of getting a job which has a decent remuneration immediately. However, you have to bear in mind that even if you get employed, there is still a possibility for you to lose it for one reason or another like a sudden change in company policy. Another of your many options is the graduated payment plan. In this option, you are given the opportunity to decrease your initial loan payments. Since the initial payments are kept low, you can use this period to pay off any pending bills that you have including your short term loans such as car loans.

You still have other options when it comes to consolidating your debt including the variable plan and the extended payment plan. All it takes is for you to find out which among them can work suitably for your specific needs. It is also important for you to take note of the fact that even if student loan consolidation program is considered to be a complex process, it is still a huge help in ensuring that you deal with your debts in the most effective manner possible.

Are you in need of student loan consolidation? 

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You Think Your Student Loans Are High - What If You Drop Out and Don't Finish Your PhD Program?

The other day, I was talking to a medical student, and he explained all the hoops they made him jump through, amazing amount of incredible barriers between his education and his future as a doctor for humans. I say that because he said that many will not finish and become a dentist, nurse, or veterinarian by switching academic tracks. Let's talk about the stress, and psychological issues involved.

As things get tougher and tougher as you go, worse, those college student loans stack up, and you get to pay those regardless of whether you ever get degreed or not, and it's not like most college degrees, there isn't a lot of grade inflation going on, you compete and either succeed or fail on your own. Most cannot make it all the way through, and this causes huge stress, disappointed parents, alienation, and often depression. For my acquaintance, well he is a super star and he has continued to graduate in the top of his class, of course, he has zero free time.

To get a medical degree and become a doctor, providing you last that long going through medical school, you could easily spend $250,000 to $400,000 in tuition costs, books, and you might owe all that money back in student loans. If for some reason you were to drop out, regardless of the reason, you still owe all that money back. What is a college student to do? Let's say someone is going for their PhD to become a neurologist, if for some reason they don't complete all that classwork, and if they go to one of the top colleges, who knows how much they could owe on all those student loans before it's all over.

Even if they go to a fallback position, that is to say another medical profession which doesn't pay as much, they will be paying off those student loans for decades to come. Now I hate to speculate, because recently there was a terrible tragedy in Colorado where a PhD neurology student walked into a movie theater and gunned down a bunch of people, and it turns out the shooter was in the process of leaving his PhD program (dropping out) at the University. Imagine the stress? Is that what drove him over the edge?

And even if it didn't, now with ObamaCare many of these kids will get out of college, going into the workforce, and their salaries in the future will be limited by our socialist medicine schemes here the United States. If they've already started medical school, thinking that they will be able to pay off those student loans because they will be making big bucks in the future, well, none of that is guaranteed anymore, in fact, it's not very likely. Do you see my point here? Indeed I hope you will please consider all this and think on it.

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Pros and Cons About Private Student Loans

Number of banking institutions provide college loans to help learners manage to pay for their academic expenses. Before considering private college loans though, a college student should try to benefit from federal college loans due to subsidization. Loan providers normally offer private college loans for graduate students and undergraduate students.

Here are a couple of things one should know before acquiring loans from private lenders from any finance companies. First, the majority of private student loans would need co-signers. The reason is that students who are just admitted in school have no money to pay for tuition. Also, they usually do not have any kind of history of credit to indicate that they are able to pay back student loans on time. It raises danger for banks, thus the banks includes cosigner who can guarantee that the student will repay the student loan debt once graduated. Most of cosigners are usually parents of prospective college students or close family members. During asking for loans from private lenders, lenders in general request personal reference, employment, annual income, and debt including car payments.

Either you as a borrower or your cosigner has wonderful history of credit, you will be able to save a lot from interest expenses. While federal loans are administered by students needs and financial situations, private student loans are centered on credit history. This means that individuals with great credit score commonly receive a better rate and other good aspects than people who have poor credit ratings. Loan providers check out this measurements as trustworthiness for their lending terms.

Many private lenders give you different types of repaying methods like government. As an example, students have a choice to make interest only or immediate repayments while they are in school. If you choose an interest only repayment, you don't have to manage to pay for accumulated interest amounts after graduation.. University students will have less burden with monthly payments with this option One of more popular choices students choose though is a deferred repayment. That means that students only focus on their school activities while in school, instead start paying back after graduating school.

Most of private lenders do not offer a grace period. Students with government loans typically get 6 - 9 months grace periods. Using this time schedule, people can launch a job and re-plan their financial strategies prior to they have to start making monthly payments. However unfortunately, this is usually not an alternative for people who have owned private student loans.

The rate is an additional concern students must look at. While all loans from government supply fixed rate of interests for debtors, a lot of banks offer adjustable interest rates. It means that if an individual has borrowed loans from private lenders and pay a monthly installment, the loan lender can change the rate based on lending plan. This of course increases the anxiety for college students. However, since the current emerging trend indicates that more loan providers are hunting to get more prospective customers, you will find loan institutes that also offer fixed rate of interests also.

Student Loans Info Center provides tips and advice on the subject of federal student loans and private student loans. You will find useful information on how to consolidate student loans and other educational areas.

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How Refinancing Student Loans With Bad Credit Can Ease Financial Woes

College debt can be very large by the time a student reaches his or her final year in college, so taking control of the debt is crucial. Studies have concluded that graduates typically leave college with average debts of $30,000, but at some of the more famous institutions, college-goers can face as much as $75,000 in debts. It is not hard to understand, then, why refinancing student loans with bad credit is so important.

In general, lenders are quite happy to offer restructured loans to students, safe in the knowledge that once they begin their careers, the lenders are likely to reap the benefits. So, there is no shortage of consolidation programs to make repaying college debts less of a financial drain at what is a critical stage of their professional careers.

The benefits of these programs exist for everyone, with the borrowers seeing their financial woes eased, and lenders given the greatest assurance that the student loans will be paid back in full. But for many, the mechanics of these refinancing agreements can make the benefits confusing.

How Refinancing Agreements Work

The idea behind refinancing student loans with bad credit, as with all refinancing agreements, is that a desperate financial situation can be dealt with in a proactive way. In the short-term, it eases the pressure, but in the long run, it steers the borrower away from bankruptcy - a ruling that no-one wants to be branded with.

The basic arrangement is that the individual loans taken out over a college career are bought out by one consolidation loan, making repaying college debts less complicated and more affordable. The savings are possible because each individual loan has different interest rates, which is a more expensive situation than repaying the debt with just one interest rate charged.

And because all of the student loans are bought out, each of the lenders get their money back, and the credit score of the borrower is increased. So, everyone benefits from the deal.

Terms of Refinancing Agreements

Of course, the terms of the refinancing agreements are what make refinancing student loans with bad credit a good move. Poor terms will mean the difference will be small, and the debt will remain crippling. What also needs to be kept in mind, whether the loans taken out are from private lenders or are supported by the federal government.

It is not usually possible to mix the private and federal loans in one consolidation or refinancing program. This is because the terms of private consolidation program are designed to handle the specifics of the private loans, and is effective in bringing them together under one affordable interest rate. Repaying college debts created by federal loans can be managed by federal consolidation programs.

But the key factor in both cases is that, by consolidating all of the different student loans, the overall costs are lowered and the task of clearing the debt is made much more manageable.

Necessary Qualifying Criteria

There are some compromises to make, but while refinancing private student loans is a wise move, it is necessary for students and graduates to qualify for financing. In view of the fact that monthly repayments can be reduced by half, and that more income will be freed up for the borrower, repaying college debts in this way is highly beneficial.

Amongst the conditions typically included in consolidation programs is that the student has a certain level of debt (usually starting at $10,000), and an obvious difficulty in making repayments without help. In the case of recent graduates, at least 50% of the debt must remain. Once these terms are confirmed, the chance to finally get to grips with the crushing debt from these student loans can be secured.

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Student Loans With Bad Credit: How Approval Can Be Secured

Education is vital for building greater career prospects, but education is certainly not cheap. Between tuition fees and living expenses, the cost of college can be very high. Finding a source of funding is essential, and the good news is that applying for student loans with bad credit is not destined to end in disappointment, as most of us expect.

The financial background of college-goers is generally ignored by lenders, so securing financial aid to cover school fees and other expenses is pretty straightforward. In fact, getting loan approval depends on factors other than a credit history.

The right student loan option can vary, based on the specific situation the applicant is in, but approval is still very possible if some basic issues are considered in advance.

Lender Attitude to Students

Lenders have a very different opinion of students to other applicants. They know that students have little or no income, and yet they are willing to lend tens of thousands of dollars to them. The reason is that lending to students is an investment in the future, and for that reason, granting a student loan with bad credit is seen as a viable move.

The reason why lenders ignore low credit scores is that the future earning potential is typically higher. Unlike an employee seeking a loan, they are typically tied to a job and must work within that budget. A student, on the other hand, has the potential to earn much more, and so getting loan approval is much easier.

Simply put, a student loan is an investment, as much for the lender as the student taking it out. Statistics show that college-goers stick with their college lender, or bank, when they enter the working world. So, building a strong relationship with students pays.

Choosing Federal Loans

There is little doubt that, when it comes to seeking student loans with bad credit, the federal loan choice is the best. This is because the terms federal lenders set are much better for low-income applicants, with interest set at rock bottom fixed rates, and repayment schedules designed to lessen the pressure on borrowers.

The first step is to call into the financial aid office on campus and fill out an FAFSA form. With the information provided, a loan officer there can identify the federal loan best suited to the applicant and can advise on the best way forward. Typically, federal loans come at very low interest rates, and as long as the applicant qualifies for consideration, getting loan approval is pretty simple.

However, it is important to bear in mind that, like all loans, a student loan needs to be repaid. Even if there is no requirement to begin repayments until after graduation, eventually a repayment schedule will be applied and have to be adhered to.

Choosing Private Loans

Private loans are the more expensive lending option, but there are some advantages to them. Federal loans are designed to cover college fees and some living expenses, so they can sometimes fall short of what is required. But applying for private student loans with bad credit is as straightforward as applying for federal loans.

On the downside, the interest rates charged are higher so the loan package is more expensive. Also, while many lenders will grant a period of grace, some charge accumulative interest so that getting loan approval three years before graduation means a huge backlog of interest is due when repayments begin.So, it is important to approach a private student loan cautiously, and not without first calculating the full extent of the deal.

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Chase credit cards for students: why they are A good idea

To some lenders, a recipe for disaster is to hand a credit card to a student. The reasons are not particularly hard to understand, with students famed for prioritizing good times over responsible financial behavior. However, the availability of Chase credit cards for students flies in the face of such convention.

The move by Chase Bank is not as crazy as might seem, with advantages to both issuer and holder. The holders can benefit from a wide range of incentives, making it a valuable student financing option, and for the bank, the early relationship developed with the card holder can develop into something bigger in time.

And in any case, statistics show that students are amongst the most responsible credit card users in America. Professionals are actually more likely to max their credit card, so approving Chase credit cards is a worthwhile risk.

Options

There are several options available when it comes to choosing Chase credit cards for students, with both Visa and Mastercard offering varying terms. For example, Visa offer a Student Flexible Rewards card and a Student Free Cash card, with the only real difference between the two being the accumulation of user points for either free merchandise and gift certificates, or for cash-back and gift card programs.

The Student Mastercard, meanwhile, offers less in the way of cash-backs and gift vouchers and more in the way of building a sound credit history and access to financial independence. They are often issued through the college itself, which makes it a popular student financing option.

However, Chase credit cards do not offer free money, and all students are required to repay their credit balances on time. Otherwise, they can prove to be very expensive indeed.

Interest Rate Deal

The crippling factor for all credit card holders is the repayment of balances, and the interest rates that can be charged. The truth is that, despite their availability and apparent versatility, Chase credit cards for students are no different. Students need to know what rates they will be expected to pay.

Typically, whether the card chosen is Visa or Mastercard, the interest rates are the same. Variable APR ranges from 18% to 23%, which is quite high. But the rate rises to 32% when a payment is defaulting on, so this student financing option can prove quite expensive if not carefully managed. This is especially true if balances sit closer to the credit limit.

The key selling point, however, is that 0% interest is charged for the first 6 months, but once that period is over the repayment period of grace is just 20 days after the issue of the bill.

The Benefits

Of course, what makes the investment worthwhile for the student is the fact that the whole range of Chase credit cards for students allows them lower-cost access to great stuff.

For example, the Visa Student Flexible Rewards card offers a points system on which discounts can be secured. It offers 1 point for every dollar that is spent using the card, and once the minimum of 3,000 is accrued, discounts at stores and restaurants are available. When 25,000 points are collected, a free round-trip airline ticket from any major US airline is available.

As a student financing option, it is hard to argue against the use of Chase credit cards if the student using them is responsible with their spending. Being able to repay is the most important factor.

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