Government Student Loans - A General Guide

Federal student loans are more attractive than private loans because of their lower interest rates. Apart from other advantages, they offer many options to defer payment if the borrowers have trouble getting a job after completing school. A total of nine government student loans and scholarships programs are currently run by the federal government, with the state governments also running more than 600 such programs.

To apply for the federal government student loan programs, prospective loan applicant are required to fill the Free Application for Federal Student Aid (FAFSA), which requires details about their assets, dependency and income. It is quite a long form, and in 2010-2011 had more than 130 questions. The form is used to calculate the Expected Family Contribution (EFC) for each applicant, taking into consideration the household income of the applicant, the size of his or her family, assets and other such details. Depending on all these factors, the student may qualify. Even when they do not qualify, they can still get unsubsidized loans.

There are a number of different types of student loans. Broadly, these are Stafford Loans, Perkins Loans, Federal PLUS Loans, and the Graduate Consolidation Loans. Most of these loans require a credit check for the applicant, so if you want to take such a loan, you should keep a good credit history.

Stafford Loans

Stafford loans are the most widely used. They come in two varieties, the ones covered under Federal Family Education Loan Program (FFELP), and the ones covered under the Federal Direct Student Loan Program (FDSLP). The former are provided by private lenders, with the government guaranteeing the lenders against default by borrowers. The latter are also called Direct Loans, and are administered by what are called Direct Lending Schools. These can be subsidized as well as unsubsidized.

Stafford loans are one of the best government loans because the government pays off their interest while you attend school. Only once you have finished school do you have to start paying off the debt; and because their interest can be subsidized, their repayment is easier than for other loans. To be eligible for a Stafford loan, you must enroll in a college that participates in the Federal Family Education Loan Program. You also need to fill out the FAFSA form to get the subsidized Stafford loan.

Federal Perkins Loan

Federal Perkins Loans are available to graduate and undergraduate students who require financial aid more than others do. It is a campus-based program, in which the school acts as the lender using a pool of funds provided by the federal government. The Perkins Loan is one of the best loans a student can take - it comes with an interest rate of only 5%, with the federal government paying the interest during the period in which one is enrolled in the school, and during a 9-month grace period. Afterwards, there is a repayment period of up to 10 years.

As of 2009-2010, the Perkins program had a limit of $5,500 per year for undergraduate students, and a limit of $8,000 per year for graduates. The total lifetime limits for both were $27,500 and $60,000 respectively. Perkins loans are cancelled partially or fully for teachers who teach in designated low-income schools, and for Peace Corps volunteers. The amount of loans cancelled depends on the number of years in service as a teacher and a Peace Corps volunteer; for example, 3 years of service cancels 50% of debt.

Graduate PLUS Loan

Graduate PLUS loans offer the borrowers an unsubsidized loan for fees towards graduate and professional courses. It is guaranteed by the federal government, which means that if the borrower defaults, the government will pay the lender. Unlike Perkins, whose interest is applied only once the study period is over, the interest on Graduate PLUS starts getting applied from the time it is disbursed. Their interest rate is about 8.5%. The borrower should meet three criteria to be considered for this loan: first, they should be a US citizen, or a non-citizen with a valid Social Security number; second, they should pass a credit review; and third, they must not have defaulted on a federal education loan in the past.

Parent PLUS Loan

Parent PLUS loans are offered to the parents of the student involved. The Grad PLUS program is an offshoot of this particular program. Like the Grad PLUS loans, repayment of the Parent PLUS loans begins right after the time the loan is fully disbursed. Its interest rate is fixed at 7.9%, though many lenders will offer benefits that reduce the effective interest rate. Because it is borrowed by the parent, it is also the responsibility of the parent to repay the loan. Just like the Grad PLUS loan program, it requires that the borrower not have an adverse credit score.

Federal Consolidation Loan

Consolidation loans from the federal government allow a student-borrower to consolidate his or her Perkins, Stafford and Graduate PLUS loans into a single consolidated loan with a longer term of repayment. The longer term ensures lower monthly repayments. The interest rate for these loans is calculated by finding the weighted average of all the loans consolidated by a student, and rounding them off to 0.125%; the interest rate is ultimately capped at 8.25%.

Both the Perkins and Stafford loan programs require one to fill out the FAFSA form. With so many government student loans programs available to students to choose from, anyone without the means to pay for his or her education has no reason to stop their education due to monetary constraints.

There are many student loans to choose from.

Its difficult figuring out which government student loans you should apply for and how many student loans there actually are.

You can even learn more about getting student loans without cosigner.

Managing a Student Loan Online

Many students rely upon private student loans to pay for college. When they first enter into the process of applying for schools and funding, they may not fully understand what is involved in the process. For many students, once they have earned admission to college, paying for it is often addressed as an afterthought. Student loans are straightforward and low interest and used to attend school. Some students may need someone to co-sign the loan; although some may rely on their parents to set up everything for them. When it comes time to pay back the financial obligation, however, it is up to the student to make good on the promise of paying back the money borrowed. For many college graduates, this is unfamiliar territory.

Time
Forgetting about the existence of a student loan is common among college students. It may have been a minimum of four years since they borrowed the necessary money. With the large stack of papers or endless links to online funding from student aid offices, they may not remember applying for the loan, much less receiving it. For many, filling out paperwork or logging in to a student loan online application was just one more thing involved in the overwhelming process of choosing a future career path. While the student may forget about the loan, it does exist and can be managed while they are still in school or handled upon graduation.

Timing
Each student loan is different. Each individual should determine when they have agreed to pay back the money and should not wait for the lender to track them down after graduation. If they are unsure when the payments will begin, the information can be gained by going online and checking with the financial institution who lent them the college money. This is not available through every lender, but the more reputable and modern ones do offer this as an option.

Reliability
Students that manage their student loans responsibly will gain good credit standing. The money should be paid back according to the payment plan. Online payment plans are available, as well. The individual's student loan online payments can be linked to their bank accounts so that they never miss a payment and are always on time. This may be a new step for students who have never had payments automatically debited. If for any reason they believe that the money will not be in the account when the debit is made by the lender, the lender should be contacted right away. They may be able to make arrangements and possibly prevent additional fees due to overdraft and late payments. When bank accounts are closed, the lender should be notified and new debit arrangements made.

Why Get A Student Loan?
When going away to college is the priority and funding is secondary, students may be encouraged by their parents to secure any college money shortfall with a private student loan. Oftentimes students are denied government loans based on their parents' income or the allotted funding may have been used up on an older sibling. If they want to go to school and further their education and future earning potential, they get a student loan.

Access
For students who are somewhat disorganized, the options to check payments, pay dates, interest amounts and due dates are available. Debt consolidation for multiple loans is also available for online management. Online access makes it faster for students to manage their financial obligations through the convenience of the Internet.

The author is a freelance journalist who writes frequently on how to apply for a private student loan and the options available for student loan for those planning to enter college.

Paying for College: Three Methods

In today's nasty economy it is really easy to brush off college as too expensive or too time consuming. Tuition rates are continuing to rise and employment is continuing to fall. However, it is still a fact that those with a Bachelor's degree or higher will earn exponentially more money than those with only a high school education. This is why it is important to exhaust all possibilities when it comes to earning a degree from a good school, including taking out student loans.

Financial Aid and You

There is no reason to think that you are alone in your struggle to afford college. In fact all major universities have a Financial Aid office dedicated to finding funds to send each and every student through their school. The professionals in these offices will work out a plan with you in order to meet your needs as far as education as well as living expenses are concerned for the duration of your time at their school. Financial Aid can help you earn scholarships, pay tuition on an installment basis as well as apply for different types of loans from both the federal government and private lenders.

Scholarships

Obviously your best bet to pay for college is a scholarship which will pay part or all of your tuition fees for you with no obligation for repayment. One of the best methods of obtaining a scholarship is through a special skill such as a sport or musical instrument, though academics are of paramount importance as well. You need to maintain a high GPA and make sure to get the highest score possible on standardized tests such as the SAT and ACT in order to increase your chances for scholarship money.

Installment Plans

Another option that you may take up is to pay your tuition in installments instead of all at once at the commencement of a semester. By breaking payments up into smaller chunks you may be able to find a part time job that can cover these costs. This plan can also be used in conjunction with scholarship money if you do not get all of your tuition paid or you can take out a loan for part of your tuition and then pay the rest as you go.

Loans

Student loans are the most common method used these days to pay for college. Obtained either through the federal government in the form of Stafford loans or through private banks, the advantage of taking an educational loan is that you do not need to repay it until you complete your study - either through graduation or disenrollment. You are also given very low (often fixed) interest rates that help to keep your monthly payments low when you land that first post-graduate job.

Using the internet is a great place to start to look for student loan money and the private lenders who offer it. There are several financially-based websites that will allow you to compare rates and loan amounts among several lenders as well as discuss the repayment plans that you will use after graduation.

Never Give Up

With the abundance of information available online about loans and scholarship options, there is no excuse for not going to college. Yes, the economy is bad right now, but that is all the more reason to get that leg up on the competition. A college degree is a great first step towards making that happen.

Joycelyn Crawford is the author of this article. For more information about Bad Credit Easy Loans and Unsecured Loans please visit EasyLoanForYou.com

Student Loans Open Opportunities Beyond What Students Can Afford

Student loans have allowed many students to get an education beyond what they or their families could normally afford. Some students are reluctant to attend school on a loan that will have to be repaid, but students who take advantage of these loans come out far better financially than their peers who do not attend college. In almost every case, a student is better off financially by accepting loans and receiving a college degree to pay back the loan than the student who skips college entirely.

Loans, grants and scholarships are the most frequent financial aids available to college and graduate students. Loans must be repaid to the lending institution upon graduation or if the student drops out of school. In most cases, the loan payments do not begin until 3 to 6 months after graduation. This gives students time to get a job and begin earning a paycheck before having to pay back loans. The interest rate is usually very low, far lower than what would be available from a traditional lending institution.

Student loans are available through the United States government. They are available to almost all students who are pursuing an education from a trade school, community college, junior college or university. They are also usually available to students who are attending grad school. If the student decides to pursue grad school directly after their bachelor's degree is complete, payments may be deferred until after graduate school is complete.

The student must maintain an acceptable grade point average in order to retain eligibility for the loans. Grants and scholarships also have requirements for keeping up a good grade point average. There is also a level of ethical behavior expected of students who receive these financial aids. Cheating and other on campus violations can result in the loss of the loan, grant or scholarship in some cases. Some financial aid offerings also expect recipients to maintain a level of off campus behavior, such as avoiding illegal drugs or other criminal activities.

Student loans can be applied for at the college or university where the student wishes to attend. The financial aid office of the institution usually has all of the forms needed and can tell the student if other documentation, such as a birth certificate, drivers license or social security card is needed. The student may also need to submit tax documents of their own or their parents in order to qualify for financial aid.

Alexander Sutton knows all too well how hard it can be to get started in the professional world. But now that he's established himself he'd like to share both his successes and failures in order help others enjoy the most efficient route to success. For more information, please visit Student Loans.

Summary Of Federal Student Loans And Grants

Every American student can qualify for federal grants and loans. Filing for these online is also easy to do. The free "screen-fillable" application, meaning an application that can be filled in on screen, online for the free application for federal student aid is called: FAFSA. There are three ways to apply for the funding. Any student can find the applications at several online sites. The most comprehensive site for finding and submitting this application is found at college.gov and opportunity.gov.

Some choose to download the PDF file applications and send them in. Others request applications be sent to them by calling 1-800-4-FED-AID (1-800-433-3243) or 319-337-5665 or the hearing impaired line which is TTY 1-800-730-8913. Another FAFSA filing option is to go the online site: FASFA4caster which can be found at: fafsa.ed.gov. If you have chosen to screen-fill your application there will be no option for saving the filing in your personal computer. The forecaster site will notify you of your eligibility soon after submitting the application.

Student aid and support described at these sites include both the federally sponsored grants as well as the federally sponsored loans. Borrowing through the federal government is a wiser choice when contemplating loan repayment. The government agencies are aware of the heavy burden student loans have placed on the learning public. It is for these reasons that our government is looking for new ways to ease these burdens.

If a student wishes to review the options for repayment of existing loans, there are now multiple approaches to this as well. There are student access points of entry to the National Student Loan Data Systems (NSLDS). If students search this site using the search terms Direct Consolidation Loans, there is more information to be found that may be helpful. At this site information about individual student loan status and disbursement payments can be found. This can be done by selecting the school year of application and the semester you plan to begin. If the beginning semester is a summer school program, then ask at the admissions office of the school you are to be attending for the verification of which application to choose.

For more information and student-told stories and advice for the application process with much "high-level" information provided, including pitfalls to avoid about why to go, what to do and how to pay then try using the search words "Student Aid on the Web" or, again, simply go to opportunity.gov.

Our legislators and governing leaders know it is in the nation's best interest to make college education easily accessible to America's next wave of workers. Our country is poised to begin a support of new avenues of provision for educational opportunities as the current administration has worked to protect the PELL grants and other monies that need to be available if we are to remain a well educated work force for a changing economic climate in our world today.

To learn more, visit the best loans website, where you will find many valuable articles about loans.

Get A Student Loan With Bad Credit: A How To Guide

Having bad credit due to poorly made financial decisions earlier in life is certainly a hard cross to bear. Especially if you wish to better your lot through an education, trying to finance such activities can be nearly impossible if your credit score is low. But there is no reason to use your bad credit as an excuse not to pursue your dreams, there are many bad credit student loan options available if you know what to do and where to look.

Get Counseling

Once you have made the decision to attend a particular school, your first step should be to contact that school's Financial Aid office to discuss your options. Many schools will provide free credit counseling or refer you to someone who can counsel you specifically related expenses and money incurred for the achievement of a higher education. Oftentimes, if a student is not approved for a traditional student loan, a bad credit student loan counselor will have the resources to direct that student to the proper private lenders who can and will offer loans to students with bad credit.

Federal Student Loans

The best way to get money for college is to use the programs sponsored by the government that offer to lend a certain amount of money each year to students at a low fixed interest rate. These loans, called Stafford and Perkins loans, are available to any US college student and often do not require a credit check.

Private Student Loans

Though government-secured loans are the best choice for college, if they do not provide enough money to cover all your expenses, there are other programs such as Sallie Mae and other private banks like Wells Fargo who offer student loan options. Oftentimes each institution will have a separate loan program designed for those needing student loans and who possess bad credit. These programs will offer different rates, fees and services. Since there are so many players to consider, it is really important that you shop around and compare the packages that each one offers against the others.

Co-Signers Provide another Option

If you cannot qualify or are uncomfortable taking a private loan to pay for school by yourself, then the next option that you have is to find a co-signer for your student loan. Therefore, your parents can help you if they have good credit. Though the burden to pay the loan is yours, their credit rating will help you to get better interest rates. It is important to remember, however, that your failure to repay a student loan that has a co-signer will negatively affect that person's credit as well. It is therefore important to discuss this choice with your loan counselor and your co-signer.

Take Your Time

The final option that you have available is credit repair. That is, even though your ultimate goal is to go to college and get a degree, you may be better off if you delay that for a while in order to work on repairing your bad credit. You can do this by making all payments on loans and credit cards on time, keeping track of your monthly finances as well as working to pay down your overall debt. You will also want to review a complete credit report to make sure that all the information on there is accurate and that you are not being penalized for something that you did not do.

Joycelyn Crawford is the author of this article. For more information about Bad Credit Easy Loans and Unsecured Loans please visit EasyLoanForYou.com

Scholarships for Mothers As a Guide to Your Successful Career

You cannot ensure your rights without being educated properly. Many mothers in the USA have begun married lives before completing their college education. As a result, they fall far behind to build a better career and get higher salary. This fact restricts them from leading a better life along with their children and family. However, the US government has recently taken initiatives to improve their lots. Scholarships for moms are government-aided programs that offer ten thousand dollars to the mothers who are single, married, working, or low-wagers. Scholarships for mothers need only a single form to fill up on scholarships4moms.net and this form can lead you to fulfill your long cherished dream.

The registration forms for scholarships for mothers are found on this website and need only a few minutes to fill up. You have to fill in the form according to the instructions provided with it. These guidelines on the form are needed to be followed until you are thanked by a confirmation page. That means you have finished the process and are eligible to receive the scholarship. You will be able to view information from schools or colleges available online and can choose one of their courses through this website. Moreover, a confirmation code will be sent to your email address soon after the completion of this form. These ten thousand dollar worth scholarships for moms are needed to fill in the form carefully so that one may not be rejected from the winner list. You have to fill in the blanks compulsorily which are marked with stars. As the success rate of scholarships for mothers is unbelievably high, you cannot help being careful while in filling the form.

The objective of this scholarship is to balance your motherhood so that you can get enough time, support, and money in order to boost your career up. Scholarships can offer also additional money if you need to further your study. Registration enables you to be the next competitor of this scholarship program. Scholarships for mothers help the US mothers in further ways. You can pay the school fees of your children with the rest of the money. Moreover, this scholarship influences directly the younger generation of this country as each children depends on its mother's success to a great extent. The exact tools needed to advance your career are provided with these scholarships for moms. The government has granted a large amount of budget for this program and you will not fail to get it if you provide the information correctly in this form.

Scholarships for mothers arrange online school or college courses for you. You will not have to leave your home to study in a school or college. I know many people who have already changed the direction of their lives with the aid of this scholarship. One of my colleagues has got this scholarship and she is now attending online courses to get a higher degree. She is happy to achieve what was beyond her capacity in the previous days and she believes it will help her get better jobs. In fact, scholarships for mothers have the best option that you need right now.

Apply for a FREE scholarship online

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Guide to Private Student Loan Consolidation

Private Student Education Loans

Private education loan consolidation means private loans cannot be comingled with Federal education loans. If you borrowed money with a private education loan, you will need a private education loan consolidation. By doing this you will reset the terms of the loan which may reduce your monthly payments. Usually the interest is not reduced. But if your credit score has improved since you originally applied for the first loan, you may qualify for a reduced interest rate. This may be the case now that you have graduated and gotten a job in your chose profession. You may now be a doctor making a good income and if you've been paying your bills on time your scores may have improved 100 points or more, which would definitely qualify you for a better credit score and lower interest rate.

Check with your existing bank to see if your current loans can be consolidated into a lower interest rate loan before you take it to another bank. They may be willing to help you rather than lose your business. If they are not helpful, shop around and find another lender who is willing to give you a private education loan consolidation. When shopping for a private student loan consolidation check to see if the loan is fixed or variable. What are the fees, origination fees, etc? And are there prepayment penalties? You should be able to pay an extra amount that is applied to your balance after collection costs; late charges outstanding interest and principal have been deducted from the payment. Any additional money left is considered prepayment and will be applied to the loan balance. There should be no extra fees associated with prepayment in the original loan. You will have to determine if the private student loan consolidation has fees of this nature.

Private education loan Consolidation Lenders

The Higher Education Act of 1965, The Higher Education Opportunity Act of 2008 and the amended Truth in Lending Act banned fees or penalties for early repayment of private education loans. The competitive institution did not charge prepayment penalties to keep the playing field even for all private lenders. Prepayment can provide a significant savings for the student. The total interest paid can be reduced by the extra payments being applied to the balance first and then the interest, ultimately saving thousand of dollars over the lifetime of a private student loan consolidation.

An EdSucceed Private student loan Consolidation through cuStudentLoans.org will provide loan consolidation for undergraduate students with debt of $7500 to $100,000 and graduate degree recipients with debt of up to $150,000 a 15-year loan. They have a 1.00% origination fee and a variable rate based on prime plus 1.5% to prime plus 4%. Your rate is based on credit and whether or not you select ACH payments. If you have a cosigner, you can release them after the first 12 year of on-time payments if other credit criteria are satisfied.

The student loan Network offers private college loan consolidation for a minimum of $10,000 to a maximum of $300,000. The repayment term ranges from 20-year for $40,000 or less to 30-year for above $40,000. The interest rate is based on 3-month LIBOR plus 5% to 3-month LIBOR plus 8.5%. The origination fee is also a range of 1% to 5%. There are no prepayment penalties and the cosigner is released after 4 years of timely payments and is based on the primary borrower's credit improving.

Wells Fargo offers private education loan consolidation. They will consolidate a minimum of $5000 and up to $40,000 or up to $100,000 depending on the borrower's credit. A 15-year term is provided with a variable rate. The interest ranges from prime plus 1% to prime plus 5.75%. The base rate is 3.25%. There is no origination fee associated with this loan. The rate is reduced.5% for automatic debit payments and the rate is reduced further for making 48 payments on time consecutively.

Currently, both Chase and Next Student have temporarily suspended their private student loan consolidation programs. Private student loan consolidations that are variable rate should be compared to a home equity loan with a fixed rate. If the comparison makes a home equity loan more attractive, and you own a home with enough equity in it to finance such a maneuver, this may be a better option than a variable rate loan.

Private Student College Loans And Federal College loans

The primary difference in private student loan consolidation and federal loan consolidation is private loan rates are higher than federal loans even in consolidation. Federal loans and private loans cannot be mixed into the same consolidation loan. A loan that mixes several loans together often reduces the rate of one or two of the loans and reduces the payment giving the borrower more years to pay. This cannot be done when the loans come from different sources. Guaranteed Student education loans or federal loans with much lower interest rates cannot be mixed with private non-guaranteed loans with much higher interest rates in a private education loan consolidation.

The Consequences Of Default

Private college loan consolidation is there to provide more manageable debt repayments, preventing default or reducing incidences of default. Defaulting on a student loan could result in the IRS offsetting or keeping your federal or state tax refunds and wage garnishments. If you are a federal employee, they can offset 15% of your pay to repay Education loans. You may have to pay additional collection costs, legal action may be taken against you and the credit bureaus will be notified and your credit rating will suffer. Bankruptcy is no longer an option. Student education loans cannot be included in a bankruptcy filing. The only option for reducing payments of a private education loan is a private college loan consolidation. Your total loan term may be extended, lessening your monthly payments.

Check with your loan holder to determine if a private student loan consolidation is the answer to your budget woes.

There is so much to know when you apply for financial aid. It's good to have a website you can get a lot of information all in one place.

Ready to Consolidate Your Student Loans? Here Are Some Tips To Follow

Hooray! You graduated. Your interviewing went well and you are starting your first real job. Now you will have to start paying back those student loans.

Should you consolidate? Probably. Here are some tips to help you do it right.

Hopefully you were able to qualify for more free financial aid (scholarships and grants) and less student loans in the process. If you were careful to keep education expenses down by using multiple cost reduction strategies, you probably have less student loan debt than the average graduate which is currently about $24,000. If so... congratulations. You have effectively planned and will start your new career on a positive path.

Here are some issues to consider when looking at consolidating your student loans. Every student's situation is different, so make sure that you weigh each option in light of your own personal financial strengths and weaknesses.

Consolidation Benefits And Tips:

1. One Payment Versus Multiple: One of the best features of a student loan consolidation is that you will be able to make only one monthly payment for the remainder of your loan. If you took multiple student loans over the years, possibly from different lenders and with different interest rates, a consolidation will streamline your loans and average your interest rate into one payment.

2. Negotiate Your Terms: Based on your loan balances, current income, job stability and future advancement potential, you can arrange to pay your loan back over a shorter or longer period of time. When your loans are reviewed for consolidation, ask if there are any incentives or rebates for consolidating. If you have a small balance on a higher interest rate loan, consider keeping this separate and paying it off first which will enable you to lower your other loan rates upon consolidation.

3. Auto Debit Program: Many lenders will offer a.25% to.50% interest rate reduction if you elect to have your loan payments automatically deducted from your checking, savings or brokerage account. If they don't offer it up front, be sure to ask about it and fill out the necessary forms to get your discount.

4.On Time Rate Reductions: Some lenders will also offer a.50% to 1.00% rate reduction after you have successfully paid 36 months of on time payments. If you use the auto-debit program, this should be easy to accomplish. But if not, make sure that you pay every payment on time or early. If you are even one day late for one payment, your entire 36 month period could start all over.

5. Private Versus Federal Loans: If you were forced to take private student loans in addition to your federal loans, you may want to keep them separate. Private loans have less government oversight than your federal student loans, so if you blend them together upon consolidation, you are now bound by the stricter federal guidelines on the entire new loan. This may be detrimental if you run into a financial hardship in the future.

Summary:

Student loans are becoming a larger part of life for most college graduates these days. As education costs continue to rise and financial aid continues to shrink, making smart decisions during college and after graduation can save you hundreds, even thousands of dollars. Consolidating student loans can make your life, record keeping and finances easier to maintain. Once you have a steady income, make the move, you'll be glad you did.

If you would like to discover more strategies specifically designed to help maximize financial aid and reduce the high costs associated with college, you can download your FREE College Cost Savings Kit by clicking here. Download, print and share it with your friends or family. I'm confident it will help you to find new ways to save and get the most out of your college education... and do it all for less.

About the Author:

Keith Maderer is a financial expert and father of five. He has been a financial adviser in the Western New York for over 30 years. He is the owner of SENIOR Financial and Tax Associates and is the founder of the Maderer Foundation, a private scholarship program for area youth since 2006.

Keith is the author of "How To Get Your College Education For Less". Available on Amazon.com - ISBN No: 978-1-4538-2053-7. This book is filled with practical strategies you can use right now to save money on college.

You can get your FREE College Cost Savings Kit, or check out his blog by visiting http://www.collegeeducationforless.com/

How to Earn Money While Repaying Your Student Loan Debt

Repaying your student loans takes most people years to do and can halt progress in your life for years both personally and financially. If you are still repaying the money you borrowed for your education when you are in your thirties, it can stop you from getting married and having a family of your own if that is something you plan to do. It can also stop you from building retirement funds and you may have to work and extra ten or fifteen years than you would have like to because you do not have enough money in your retirement account or accounts to retire on.

No one wants to be working forty hours a week when they are eighty years old. This is why learning strategies to save and earn money while at the same time as you are repaying your student debt is very important to learn and will benefit you for the rest of your life.

The first thing you need to do is understand everything about the loans that you are paying back. When students borrow money while they are in studying at a higher education learning facility, they are normally given lower and sometimes even fixed interest rates to make them easier to pay back. Now, as a college graduate you may have significant credit card debt.

The average recent graduate has about twenty-five hundred dollars in credit card debt. Credit cards charge a lot more interest than your student loans do so this is something to consider when you are paying your debts. You want to pay money back to the things with the highest interests first to save you money in the long run. Once you have paid off your credit card debt, you are ready to start saving money for your retirement while removing the debt you accumulated as a student.

Most companies will match your any contributions you make to your company retirement find while you are working at that company. If you are working for a company, you likely will have the option to do this. Most people do not begin putting money in their retirements for years because as soon as a company hires them, they have to start paying back their debts.

You want to do both at the same time. Now I know you are thinking that this only works if you are making tons of money which you are probably not. That is not true at all though. Only contribute the minimum amount of money per month that you need in order for your company to give you a one hundred percent match on your retirement. You may be into your late twenties or even early thirties when you finally finish paying off your student loans. Other people you attended college with may have had those loans paid off years before you did. The difference will be the extra figures you have in your retirement account when it comes time to retire.

Since you're actively seeking student loans then you should definitely look into these options for the best student loans available to you.

Student Loan Fast

To obtain a fast student loan one can apply for an unsubsidized loan or a subsidized loan. A subsidized loan is a money from the governmental that is easy to apply for to help pay for your higher education. You apply for subsidized money right in the financial aid office at your college or university. Subsidized loans are fast student loans to obtain. You want to get your subsidized agreement in place before your unsubsidized agreement because the government reduces the cost of the interest that accrues on your loan while you are in school and during the six month grace period when you are not obligated to immediately repay your loan as you settle into your new career. So from the time you start school until six months after your interest is not added onto the amount you borrowed. That is why you want to get your subsidized information first.

After you find out from the financial aid office what your subsidized loan will cover, then you want to apply for your unsubsidized student loan. You do usually apply for them both at the same time anyway. An unsubsidized loan is also a fast student loan to receive approval for. You must pay interest on a unsubsidized agreement however. While you are in school and during the six months after when you are not obligated to repay your loan, interest does accrue on the loan. The interest at 6.8% would be $68.00 per each $1,000.00 you borrow. There is currently a $2,000 a year limit on unsubsidized loans. If you don't qualify for subsidized monies you may qualify for unsubsidized monies.

These government released monetary agreements for higher education are known as Stafford Loans. The maximum amount a freshman in school can borrow is $3,500 if the student is a dependent of his or her parents and $7,500 if the student is an independent student. A sophomore dependent student can borrow $4,500 while an independent student can borrow $8,500. A junior or senior may borrow $5,500 if they are a dependent student and an independent student may borrow $10,500 a year.

If a student takes out these loans and then does not graduate and drops out of school, or even if they just drop down below the status of a half-time student then repayment must begin six months after that just as it does when a student graduates. Repayment terms can be determined at that time. The government does offer income-sensitive payments and a few other repayment plan options for the fast student loan that you receive quickly when you begin you higher educational journey.

If you enjoyed this article, you will surely like Fast Student Loans. For more information please visit About Student Loans.

How To Get A Fast Student Loan

If you are a student facing unexpected expenses then it would be in your best interest to apply for a fast student loan. In many cases you'll find that you have a shortage of funds because standard college loans usually doesn't cover all of your expenses like transport, text books, computer equipment etc. Fast student loans are also called emergency loans because it is designed to allow students access to instant cash in cases of emergencies. These loans can be processed within one day for up to $20,000.

The hassle free availability of these loans can benefit those students who are unable work part time for additional income whilst studying. So if you are unsure about how to get a fast student loan, here are 5 simple steps you can follow that guarantees a successful loan application.

1. Where can I apply for the loan?

Visit your college's financial office. Most colleges have their own loan providers they deal with, so chances are good that this will be a reputable company or you can approach your own private bank. Complete the loan application form and submit it together with your student identification card. Please note that your student identification card needs to be valid for current semester which you are registered for.

2. When are these loans available?

Besides the quick access to fast student loans there are no deadlines for applications. You can submit an application at anytime during the year.

3. What is the interest rate of the loan?

The interest rates ranges from $15 - $30 dollars per $100 US dollars of the entire loan amount. The interest rates are not fixed which leaves room for you to negotiate a reduced rate with the loan provider. In most cases your credit rating determines the amount of interest to be repaid on the loan. Interest continues to accumulate whilst your repayments will be deferred which can be added to your existing loan balance when payment commences.

4. When do I start repaying the loan?

The loan repayment starts 30 days after your application was approved. If you wish to extend the repayment period then you can also add the loan amount to your existing student loan balance for consolidation. This means that your total loan balance will be recalculated into a single loan amount to be repaid on a monthly basis.

4. How soon can I expect the money in my bank account?

As soon as you submitted and signed the required loan application documents, the information it usually takes one to two days upon verification of the information you have provided. You have a choice to receive the funds via an electronic transfer directly into your bank account or by check.

If you fail to qualify for a fast student loan, because you are less than 18 years of age or because of a poor credit rating then you should look at getting a credit worthy a co-signer to submit a joint application for the loan. Some companies might still approve the loan even though you have a poor credit rating without a co-signer, however they do usually charge exorbitant interest rates. This loan is known as a fast student loan with bad credit. Another option to consider is emergency student loans because they are less stringent in their approval of loan applications.

To learn more about more about Emergency Student Loans, visit us at realstudentloan.com. This website is jam packed with practical information about various other student loans for you to put to immediate use.

Debt Consolidation - Student Loans

For many students graduating from college the last thing on their minds is how to repay the many loans they may have accumulated over the course of their studies. They are frequently more focused on celebrating graduation as well as finding a job. However, it doesn't take long for multiple bills to start coming in as, rarely, does a single provider cover all costs associated with higher education.

For those facing the dilemma of impending multiple student loans there are debt consolidation programs designed to combine payments so they are more affordable for those who will, likely, begin employment at the bottom level. Depending on the career choice, the amount of net income can vary widely and, sometimes, the income will not cover all payments once they are totaled.

The majority of consolidation loans extend the repayment period once loan amounts are combined and a total is calculated. For graduates this makes the cost of borrowing more affordable, but it's important to remember that the longer it takes to repay a loan the higher the repayment since interest will accrue for a longer period of time. Therefore, it's best to repay as much as possible while still in school in order to prevent being burdened by debt upon graduation.

These loans have many benefits that serve to relieve financial stress while trying to start a new life. The overall interest rate is generally lower since the length of the loan is extended. These loans are frequently locked into a fixed rate rather than changing over time. The result is lower payments and the ability to have the peace-of-mind that comes with knowing that multiple payments will not be coming in the mail every month.

To figure out how much you would have to repay you can calculate payments based on a simple method. Let's say that you have $40,000 worth of combined loans by the time you graduate. Part will be at an 8% interest rate while others will be higher. Therefore, for every $1000 you borrowed you would repay about $200 per year. Once combined at a lower interest rate and extended to 10 years, however, you would repay $100 per year. By reducing the overall payment more available cash is provided. If loans have gone delinquent, late fees and over-limit charges can also be included or eliminated all together on consolidation occurs.

For many graduates student loan consolidation is the only viable option in order to prevent bankruptcy, for which student loans cannot be excused, or falling into arrears. It's important to research companies carefully who provide these types of loans. Understanding origination fees, repayment penalties, periods of repayment, and interest rates should all be taken into consideration before a final decision is made.

For more information on consolidating student loan debt, visit us at http://www.freedebtstressrelief.com/

Pay Back Student Loans: Here's How

Upon completing college one of the first major emotions that young people feel is relief. Finally, after four long years of study it is time to move on with life and start working towards your personal and professional goals. However, there is often one looming reminder of college days that new graduates at first forget: student loans. They are so easy to take since they do not require repayment until after graduation, but once you have hit that time adjusting to a working world with bills to pay can be rough.

Take Stock

Whether you have found a job or not, it is important to use the 6-month grace period offered for student loan repayment to take stock of all the money you owe and to whom. Student loans are commodities and often get bought, sold and traded by various financial institutions throughout the years that you spend in college - this is true whether your loans are private or federal. You need to learn who holds each of your loans and discuss repayment options with them as a primary step in getting a hold on your repayment.

This is even more important if you think finding gainful employment may take awhile. For the unemployed and the underemployed there are still several additional options that you can discuss with your lender.

Option 1: Income-Based Repayment

If you do have a job, then it is possible to work out a system with your lender whereby they deduct a portion of each paycheck on a biweekly or monthly basis. This way the repayment will be tailored to your income and an automatic payment that does not need to be fit into a monthly budget.

Option 2: Consolidation

If you took out several loans from both private and public lenders in order to finance your college education the best option for you after graduation is likely consolidation. In doing this you concentrate all your debt into one monthly payment and extend the prepayment period from 10 to 30 years. This choice had its advantages and drawbacks. Your interest rate can be very high for consolidated loans over $30,000 and the though the extended term reduces monthly payment remember that you will be paying back these loans long after you have celebrated many class reunions and you may even still be paying them when your own kids go to college.

Option 3: Loan Forgiveness through Service

The United States government has several programs that are designed to forgive certain student loan amounts through public service. The first, and most well-known, option is joining the military. If you enlist after graduation you can wave up to $20,000 of student loan debt through the GI Bill. The other option, Americorps and its off shoot Teach for America, offer jobs in high risk urban and isolated rural areas that will wave up to $5,000 per year of loan debt in addition to regular salary payments. There are also several high-needs fields such as social justice, social work and health services that will either pay loans back for you or forgive your loan debt if you pledge to work in those fields for a specified timeframe.

They Never Go Away

If you have a lot of student loan debt it is easy to get overwhelmed by the payments and the options in a declining economy. It is important to remember, however, that student loans are forever. Unlike car loans and mortgages that can be waved through bankruptcy and repossession, student loans will never go away. That is why it is important to work with a lending professional and outline a specific plan to get your student loans paid off so that you can start enjoying the fruit of your labor debt-free!

Joycelyn Crawford is the author of this article. For more information about Bad Credit Easy Loansand Unsecured Loans please visit EasyLoanForYou.com

Five Options for Funding Your College Education

Fall is finally coming around and it is time to head off to college, but how are you going to pay? Luckily, in today's financial world there are several ways to help pay for college.

1. Financial Aid- this is the best way to pay for college because the money is provided to you through the government. There are several types of government aid available but to be eligible for any aid, a student must fill out a FAFSA to receive any type of free aid or student loan from the government.

2. Grants- this is a type of free money available to those who apply for it. Grants are also usually given through the government to people who have filled out their FAFSA information. There are many grants available but a popular grant is known as the Pell Grant. The Pell Grant is given to individuals based off of their income. The lower the income the larger the grant and this is only true up to a certain amount. The maximum amount is determined every year based on the government's decision.

3. Federal Loans- this is a very popular way to pay for school. Every student is eligible for a certain amount of federal student's loans, to help them pay for college. This is also done through the FAFSA, and this is how a large amount of students pay for their schooling. Federal loans are split up into two types; subsidized and unsubsidized. A subsidized loan means that the government will pay for tuition while you are attending college.

4. Private Loans- Sometimes a student will choose a private school or a more expensive state school. In this case, federal student aid will not always cover the full cost of tuition. A student or his/her parents can take out a private loan to help cover tuition costs.

5. Scholarships- This type of funding is really important to the college payment circle. There are thousands of scholarships available to students of every age, race, and academic status. Some colleges offer students academic scholarships and athletic scholarships. Websites are available to help students search for the best scholarships available.

However a student decides to pay for college it is important to check into every resource. Filling out the FAFSA is the very first stop in earning free money for college. The FAFSA also allows a student to see if they are eligible for work study through their college of choice. Keep in mind that there are also deadlines to meet when filling out the FAFSA for scholarships, grants, and federal student loans.

Joann Carlisle is a writer who enjoys sharing her tips and experiences with information that she is knowledgeable in. For more information about student loan debt, Reduce Debt Faster

Student Loans: Cosigner Or No Cosigner?

Borrowing money for college is very normal. Over 50% of college students today need to take out student loans in order to afford going to school. However, there are many different loans you can obtain. If you are a young student with no credit or very little credit you may need to obtain a cosigner for your loans. However, as a cosigner there are many things to think about before you sign your name on the line. Consider the following pros and cons of cosigning and obtaining a cosigner for student loans.

Who Might Need a Cosigner?

Many students are barely eighteen when the head off for college. At this young age it is doubtful that you may have built up a good credit score. Building credit and obtaining a good credit score takes time. In this case you may need a cosigner for your student loans. This may also be the case if you are an older student who has a low credit score. Many lenders require a high credit score just to be approved for a loan. If you do have credit you might want to consider a cosigner because you can get lower interest rates. Incredible savings can be seen between someone with a credit score of 700 verses someone with a credit score or 600.

Possible Savings with a Cosigner

If you can obtain a cosigner for your loan there are enormous savings you may receive. If the cosigner can lower your interest rate from 8% to 5% you could have payments that are 50% less. Over the life of the loan you can expect a great deal of savings as well. If a loan has a 8% interest rate you will save over four thousand dollars compared to a loan with an interest rate of 12%. Even if you can qualify for a loan it may be in your best interest to have someone with a higher credit cosign.

Risks of Cosigning for Student Loans

As a parent or family member of a college student it may be tempting to cosign for student loans. However, there are risks associated with cosigning. Basically you are saying that you will pay off the debt if the student defaults on the note. As a parent you may have no problem taking this risk. However, you should understand that many students find it hard to pay back student loans in a timely manner. Once the student graduates from college monthly payments will begin even if the student hasn't found employment. You should be prepared in case you have to make payments during this period.

As a student having a cosigner for your student loans can help you get the best rates and the lowest payments. However, as the cosigner you have to be willing to take full responsibility for the student loans if the student can't pay. After all the loan company will report to your credit report if something goes wrong and they have trouble collecting on the note.

Since you're actively seeking student loans then you should definitely look into these options for the best student loans available to you.

Finding The Best Student Loan Company

Not only is good to find the best rate and terms, but it's also important to choose a reputable, trustworthy, and well known student loan company.

Deciding How Much Money You Need

If you're a student or a potential student, you will need to take the loan searching process very seriously. It's not a good idea to rush through things just so that you can get our loan money quickly. Instead, you should take extra care to ensure that you're making the right decision. Some students rush through the process and then find themselves in serious financial problems in the future.

You will first need to decide how much money that you need. In many cases, a student loan company will allow you to take out loans for each year of your schooling. This means you will need to sit down and figure out the costs of each semester, and then how much you need for the entire year. You don't want to take out a loan that is too small for your needs and you also don't want to take one out that's too large. Some students do take out larger loans in order to cover their living expenses, but this can be extremely costly and can make your loan payments very large in the future.

Contacting a Student Loan Company

It's a good idea to contact several loan companies that you have an idea of all of your options. Not all companies will offer the same rates or terms. Sometimes a student loan company will allow you to wait to pay off the loan until a few months after your graduation. Others will make you make payments during your schooling. It's important that you understand the terms of your specific loans so that you don't accumulate additional interest without realizing it.

You can search around to try and get the best rate possible. While in many cases a student loan company will offer a pretty realistic interest rate, you may be able to find some companies that will offer you a better deal. It's also a good idea to consider a co-signed loan. This may allow you to find more savings because the company will also look at the credit of a parent or trusted family friend. This can be very beneficial for you.

If you're looking for a reliable and well-known student loan company, you may want to consider researching the following companies. Sallie Mae and AES are two very popular loan companies. If you ask many students which loan company they use, it will likely be one of those two. Some students prefer to work with a lesser known student loan company. This can give some students a more personal experience. Some students would rather not have to deal with a huge company because it can be more difficult to get assistance and information quickly.

It's important to understand that there may be some consequences to working with a lesser known student loan company. This may include different terms and problems with payments. If you work with a smaller company, it's a good idea to first check their reputation to make sure that you're making a smart choice. You don't want to lend money from a student loan company that is unreliable or untrustworthy.

Paying Back Your Student Loan

It's a good idea to review all of your financial statements after graduation. This includes carefully looking through the terms of your college loans. You will want to make sure that you're prepared to make smart financial decisions. Not paying or being careless and paying educational loans late is something that is not recommended. College loan debt plays a big part in your credit score. If you have a poor credit score due to your college loans, you may have trouble taking advantage of future financial opportunities such as purchasing a car or a new home.

If you're having a hard time finding a full-time job, or if you feel that you're unable to make your current monthly payments with the job that you have, you will want to talk with your student loan company. Many companies will allow you to choose a different payment plan. Many students choose to use a graduated payment plan in order to save some money for the first year or two out of college. This allows students to get back on their feet. With a graduated plan, you're able to pay a smaller monthly fee for the first couple of years of your payment plan. Your monthly rate will continue to go up every year after that. This allows you to find a better job that makes paying your bills much more affordable. There are also other options available such as income payment plan. This plan may extend the years of your payment plan, but it allows you to find a more affordable monthly rate. This is often a popular choice for new graduates.

Take the time to budget out your monthly expenses carefully so that you can be sure that you'll be able to pay your student loans. If possible, cut down on some of your expenses so that you can make room. You will want to work with your student loan company and try to pay off your loans in a reasonable amount of time. This will allow you to continue on with your life and be debt free.

Take your time when choosing your student loan company. With a little extra care and effort, you can be sure to find a reliable company.

You will also be able to get the money that you need to pay your school expenses while feeling confident in your student loan company selection.

But when it comes time for student loan payment, you will be glad you planned ahead and considered what was really important to you.

How to Finance Aircraft Mechanic School?

Prospective aircraft mechanic students can meet all the FAA knowledge and experience requirements for aircraft mechanic licensing, with one to two years of training in any of over 170 FAA Part 147 certified aviation maintenance schools. At a typical aircraft mechanic school, tuition and other expenses might be $15,000 to $35,000 once all the required coursework for FAA certification is completed. Room and board alone often is in the range of $8,000 to $10,000 per year.

So how is one to finance this debt? Scholarships and financing plans are usually made available at most aircraft mechanic schools. Nearly all students receive some sort of financial aid, and sometimes up to 2/3 of students receive either a scholarship or a grant. Often, in excess of 90% of the students receive a loan, usually in the range of $5,000 to $15,000.

Technical college students, who are seeking student loans, need to complete the Free Application for Federal Student Aid (FAFSA), available online. The FAFSA document is the starting point, allowing a determination of what student loans one is able to qualify for, in addition to grants that could be available, based upon your financial need. You can complete the application for free at the FAFSA website. When considering loan financing, it is very important to make sure you are attending a federally accredited institution. This can be checked at "The Department of Education Database of Accredited Postsecondary Institutions" website ope.ed. From this database, one can determine if an aircraft mechanic school is accredited, and the date of accreditation.

Some financial aid opportunities include Federal Pell Grants, Federal Stafford Loans, Alternative Student Loans, Federal Parent Loans for Undergraduate Students (PLUS), and also Veteran's Training.

Stafford Loans and PLUS Loans, which are usual in a higher education degree program, are generally not offered in a trade school environment, including most aircraft mechanic schools. This is a problem, and some alternative student loan programs, tailored to trade schools, have been devised. Often, private student loans have been used. These loans are needed when federal loans fall short of covering the costs of education.

Some lenders have come up with a new form of private student loan, or a "Technical Student Loan," that is specifically for students at trade or technical schools. Technical school loans have high loan limits and repayment plans which are very flexible, similar to many of the more traditional private loans. Sallie Mae has a Career Training Smart Loan which is a useful, very practical product for trade school students. The Career Training Smart Loan enables applicants to apply with a co-borrower if necessary, borrowing up to the full cost of an aircraft mechanic program, including all related expenses. The student borrower can benefit from flexible repayment terms and flexible interest rates. Purchase of special equipment, and aircraft mechanic tools, is also allowed under "related expenses."

Some requirements for obtaining a Career Training Smart Option Student Loan are:
You must be a United States citizen or a qualifying permanent resident.The school you attend must be licensed by the Department of Education in the state where it is located.The lender may also have strictly upheld additional requirements.The terms of your loan and interest rate, will also be based on your credit rating.

Private student loans are very different from federal student loans in an important regard: your credit score and history are important when evaluating a loan. If you have poor credit, and are trying to borrow using a private trade school loan, you need to apply with a co-signer, willing to help you, who has good credit. A useful, free service to check your credit score is at quizzle.com.

Your aircraft mechanic school requires you complete some entrance counseling, generally with a website specific to the school you attend. Start a dialog with your financial aid counselor at your school. Most technical schools require that you complete some form of entrance counseling before they become willing to release the funds from your student loan as payment for your aircraft mechanic school expenses. The counseling covers important loan information, as well as your responsibilities in paying it back once you are out of the program. In most cases you can choose your lender during your counseling session, as well as electronically signing a master promissory note agreeing to pay back your loan money.

Each aircraft mechanic school handles how they award and dispense student loans somewhat differently; this is why it's important to talk to your financial aid counselor! Possibly, additional steps are required post-loan processing, so be sensitive to the requirements at your specific school.

Click here to learn more about Aircraft Mechanic Schools ( http://aircraftmechanicschools.org/ ), and how you can get your FAA A&P Certification ( http://aircraftmechanicschools.org/aircraft-mechanic-training/ ).

College Student Loans: Follow These Borrowing Essentials

Going to college is a very exciting time for young adults all across the world. We also know that it's quite expensive, and there's a very large need for everyone to understand a few things about borrowing money. College student loans have been extraordinarily helpful for a myriad of students, who are looking for funding, but it comes with a major responsibility; you have to pay the money back with interest. For all of the responsible students out there, there are even more that may have a little trouble with paying back their student loans.

Here are some tips that can be of some assistance:

Borrow What You Need

This cannot be stressed enough. One of the easiest ways to assure some kind of trouble with student loans is to take too much money. While it may be tempting, and definitely a few justifications for it, it's best that it's simply not done. Calculate your education cost, the amount that your family will allocate to your education, as well as any awarded aid that you've received. From there, you can determine how much you'll actually need, not exactly the amount that the institution is willing to offer you. Of course, you don't have to accept all of the money that you happen to be offered.

Shop Around

When you're looking into student loans, you quickly come to understand that you have more than one option. And while there are definitely options, not all of them are the best. If you're thinking about alternative loans, you'll need to compare the fees, repayment options, borrower benefits, as well as the interest rates. There are times where these loans may be better than primary loans, and your college may recommend some lenders. Only you can decide whether they'll be the best for your endeavors. Also, be sure to check out a few Student Loan Comparison calculators, as they may be able to help.

Get a Job

If you're working, you simply won't have to borrow as much. While this may definitely make this a bit tougher for some students, it's a great way to assure that you're not paying a lot of the money back. Also, it helps the student learn a bit more responsibility, which may help them do better in school. In fact, most students who have some sort of job in college do quite a bit better than those who don't have a job at all.

If you're thinking about acquiring some student loans, it's best to understand some of the ways that will keep you from paying a lot of money back to the lender.

There are many student loans available online, visit my site to learn how to get a student loan the easy way.

The Understanding You Need Repaying Federal Student Loans

If you are graduating this spring, like tens of thousands of other new graduates, you're probably coming away from your time in college with a degree in one hand and student loans in the other that amount to tens of thousands of dollars. But not all loans are equally difficult to pay back. Federal student loans offer a degree of fairness in the options they come with.

Anyone who is fresh out of college and struggling to make their monthly payments will find these options a little accommodating.

The standard plan, which is what you get if you don't specify anything else, divides your student loan up so that you pay in equal monthly installments once a month for 10 years. It's your student loan paid back in 120 months.

To many who struggle to find their feet after college and to make their payments, 10 years is often too much pressure. The graduated plan makes a lot of sense. This is a plan that recognizes that asking for equal payments over ten years makes little sense to a fresh graduate who at the beginning of his career, making very little. Past the fifth year after college, such a person is probably going to be reasonably well-off. Why require someone to pay the same amount of money in the fifth year as they would in the first year when they are usually in bad financial shape? The graduated plan allows fresh graduates to repay their federal student loans by making lower payments in the beginning and bigger ones later on. The entire repayment period lasts 10 years. It does require that you pay a bigger slice of interest; but it should make life more bearable for many young people.

An extended repayment plan is something that students with at least $30,000 in federal student loans can opt for. This is where they are allowed to take 25 years to pay their loans back, even if they pay a great deal more interest than in the ten-year plans. But all of these methods basically don't make any allowances for how much you earn. The income-based repayment plan below does that.

If you have a great deal of debt but you have a very low income job, you can visit the Student Aid on the Web website to have very reasonable monthly payment worked out. Whatever doesn't get paid off in 25 years, they forgive you for it. There's a 30 year plan as well. That's where you apply with the Federal Direct Loan Program to consolidate all the student loans you owe everywhere. As you might expect, this could work out to be a little more expensive over the long run. But it gives you the reprieve you need at the moment.

Make A Difference For Yourself With Alternative Bad Credit Student Loans

No matter your who you are, no matter your financial circumstances, the wherewithal exists to borrow money. Nowadays, a poor credit history does not count for much except that any loan you take out is going to be more expensive in terms of higher interest rates and larger fees. And this holds true for students who happen to have bad credit and find themselves in need of financing for higher education. They just need to avail themselves of an alternative bad credit student loan.

Markets grow and the number of students increases.

Even as venues of availability increase for alternative bad credit student loans, the number of students is also expanding. This can impose some endurance or hardship to finally get your hands on the financing you, as a student, may need. Also, more students with financially insecure backgrounds are entering the realm of higher education than has been the case historically.

Youth and inexperience account for many bad credit scores.

Most youngsters embarking on the quest for a higher education often have no credit experience to speak of largely due to their age. Lacking this credit history, their parents often apply for a student loan on their behalf. Unfortunately, if the parents have poor credit histories, the student may not get the funds needed to embark on a college career. Lacking this support, the student often has to mine the funds for school themselves by seeking out alternative bad credit student loans.

Students can face high interest rates and unfavorable terms.

If the parents of a student cannot help with the college funding, students need to approach alternative lenders. These loans will cost more in terms of interest rates and fees charged. These loans will also have more challenging repayment terms. Many student loans often have a deferred repayment plan, allowing students time to get out of school and into gainful employment. Alternative loans typically have repayment schedules that begin immediately, while the student is still studying.

Loan consolidation could be one answer.

One way around this would be to take the expensive bad credit loan and at the end of the course of study, consolidate the loan with a student loan consolidator. With the prospect of employment high or imminent, the student may be able to get a better deal on interest rates with the consolidation. And chances are the repayment terms could become much more favorable, as well. Understand, the rates may still be higher than those offered to students with excellent credit.

The student loan market has changed considerably.

In the past, student loans were generally considered unsecured debt and lenders where mighty careful about funding such debt. Today, because of extensive government guarantees, there are more funding sources for alternative student loans than ever was the case, even for those loans taken by students with poor credit standings.

Lenders have recourse for their protection.

Garnering wages and seizing state and federal tax returns are some of the ways a lender has recourse should the borrower default on the loan. Also, many alternatives to default exist. These tighter controls and alternatives have created a more sustainable, and of course larger, source for alternative student loans, especially for those with poor credit histories.

Time can heal interest rate wounds.

If a bad credit student loan borrower is burdened with somewhat unfavorable repayment terms and perhaps hefty interest rates, time can help. If the borrower makes regular payments, perhaps even a bit more than required on a monthly basis, this sets a good record. After some time operating under these good repayment habits, the possibility exists that the loan could be refinanced at lower interest with more favorable repayment terms over the life of the new loan.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Unsecured Loans. Hilary publishes informative articles about loans for bad credit and other financial topics at FastGuaranteedLoans.com

Credit Crisis Hits Student Borrowers

Anthony Norton, a junior at the University of Massachusetts in Boston, just learned a tough lesson in economics:

The credit market crisis is spreading to student loans.

Norton thought he was set when he deposited a $16,000 student loan check to pay for summer classes and the fall semester. But when he started to pay bills for classes, rent, and other expenses last week, his checks bounced.

He was one of 500 students left in the lurch with the April 7 bankruptcy filing of The Education Resources Institute Inc., a Boston nonprofit that guarantees student loans. And his ordeal is only the latest example of chaos in the college loan market. More than 50 firms have abandoned or cut back their federal or private student loan programs this year, unable to raise money in the financial markets. Yesterday, Citigroup, one of the largest private lenders, said it would stop lending at some schools and end its federal loan consolidations.

While families used to secure student loans almost regardless of their credit history, "Those days are over," said Tony Erwin, director of financial aid services at Northeastern University in Boston and president of the Massachusetts Association of Student Financial Aid Administrators.

As students and parents begin the process of applying for financial aid and loans for the upcoming school year, Erwin warned, loans are going to be harder to come by and more expensive: "It's going to be a problem. There's no question about it."

Student loans have been among the easiest and cheapest loans to get - allowing millions of Americans to go to college as long as they promised to pay the bills after graduation. Given this year's challenging environment, many colleges are offering more assistance to students, such as more generous grants and direct government-backed loans with capped interest rates, such as Stafford loans.

But many families, especially those paying for private schools, will find that's not enough. For example, if a private college costs about $45,000 a year, a typical family will have to come up with at least $20,000 on their own, whether from loans or savings.

One Raynham mother and human resources executive was so concerned about nailing down private loans for her two sons in college that she applied in March, earlier than usual.

With $60,000 in tuition bills due this fall and her husband struggling with cancer, Lynne Tartaglia applied for $33,000 in loans from Massachusetts Educational Financing Authority, or MEFA. She received her approval on March 7.

Still, Tartaglia was nervous. So, loan agreement in hand, she contacted MEFA again. An e-mail she received in response said that Tartaglia had applied too early and that the rates and terms she was promised were not valid for the coming year. But she hopes they will honor her signed document.

MEFA's executive director, Thomas Graf, declined to comment on Tartaglia's loans. Earlier this week MEFA said it would no longer offer federally guaranteed loans - loans that 14,700 Bay State students took advantage of in the 2007-2008 school year. But Graf said he was "hopeful" that the 25-year-old nonprofit would be able to raise funds in the bond market to continue its private lending programs.

"I'd feel a lot better if I got something in writing saying 'your loans are all set,' " Tartaglia said. "Until they do that, we'll be waiting."

Norton, the UMass student whose Teri loan vanished,was in the dark for nine days, asking his brother for a temporary loan.

Teri spokeswoman Beth Bresnahan called the glitch "regrettable," explaining that the group's Chapter 11 bankruptcy reorganization had frozen its assets, including money earmarked for checks already in the mail.Teri is still in the process of contacting students; it said it will make good on the bounced checks and cover any fees or interest penalties students incurred as a result.

Yesterday, Norton said the money had finally been restored in his bank account."It was complete confusion. I just can't believe this happened," he said.

Boston College's financial aid director, Bernard Pekala, said he's concerned about upheaval for families in the upcoming school year. So far, the only lenders that have committed to do student loans are big banks, like JPMorgan Chase & Co., Citizens Bank, Wachovia Corp., and Bank of America Corp. Pekala said banks will more closely examine borrowers' credit ratings and charge higher rates than government-backed lenders.

Some federally backed loans are capped at a 6.8 percent interest rate, while private loans can go into the double digits. The fact that interest rates, broadly, have dropped this year may offset some pain for borrowers.

But the slowing economy has many parents in worse financial shape than in the recent past. Some have lost jobs or houses, or seen their credit ratings drop. And home equity lines - a source of college borrowings for as many as a third of parents, estimates James Boyle, president of College Parents of America - also are going to be less reliable this year. Not only have home values fallen, but banks are less eager to extend these loans.

"Lots of parents are very nervous about it," said Karen Busanovich, a Woburn financial planner who specializes in student loans. "Home equity has been a good source in the past. Now they're saying, I don't have the equity in my home that I once had."

The chief of the Federal Reserve Bank of Boston, Eric S. Rosengren, said in an interviewthat no one expected the turmoil in the credit markets to last this long. It started last summer in subprime mortgages, and by February had spread to most debt markets, including auction-rate securities, where many nonprofits, like MEFA, borrow funds. In addition, the market for student loans that have been packaged and sold as securities dried up after last September.

Rosengren acknowledged the turmoil in the sector. "There are serious disruptions occurring," he said.

He said he believes efforts in Washington to make more federal backing available for loans will ultimately help students and families. Senator Edward M. Kennedy has introduced a bill that would increase federal aid and improve some federal loan programs.

In a statement, the Massachusetts Democrat said, "We can't allow the turmoil in the credit markets to become a barrier to college opportunity."

Non Profit Work Curtailed Because of Graduate School Debt

A report recently released by the Project on Student Debt, titled "Student Debt and the Class of 2009" states that college students who graduated in 2009 owe student loan debt amounting to an average of $24,000. The situation is worse for students continuing to pursue professional and advanced degrees. For example; law school graduates attending public school in the year 2008-2009 borrowed $66,045, while graduates attending private law school borrowed $100,001. These statistics were released by the American Bar Association's Legal Education Statistics.

Aside from these grim statistics, government positions and public service salaries are not attractive. This becomes an alarming trend when people who desire to work in the public service cannot afford to do so due to stagnant salaries. A study conducted in 2001 by Equal Justice Works found that 66% of students with law school debt were prevented from taking on government and public interest jobs. For instance, civil legal aid lawyers at entry level earn $40,000 on average. Repayment of student debt under the standard ten year plan would require the student to pay a monthly payment of $863. This is nearly impossible at their income level. Even if a student has taken a 30 year plan, the monthly payment would still amount to $500 per month.

Student debt and law school tuition fees have escalated sharply with fewer students being able to take on public service positions at low paying salaries. A few law school graduates get into the public service but leave once they have gained a couple of years experience. This is at a crucial time when they are experienced enough to provide invaluable legal service to clients and employers. This has led to employers in public services finding it difficult to retain layers or recruit new ones. They have vacancies that cannot be filled because new graduates cannot work for paltry fees.

Let's look at the consequences of graduates foregoing government and public work. For certain individuals it means giving up on their dreams of working closely with the community in either a school or non-profit organization. From a social aspect the non-profit and government sectors are unable to bring in and retain new graduates to do public work. This means that there will be fewer individuals working to improve care for the sick and elderly, provide education or preserve the environment. Ultimately, the most vulnerable and poorest in the communities suffer when these positions cannot be filled.

Fortunately, Congress passed two primary components in 2007 to assist students with their student debt. The Income Based Repayment plan substantially reduces monthly payments on student federal loans. The Public Service Loan Forgiveness offers total forgiveness on any federal loan once the student has made 120 monthly loan payments, working in a public service position. These two components have the capacity to relieve students of debt even amounting to thousands of dollars. The question on everyone's mind is if these opportunities were provided a generation ago would you have taken the job of your dreams? Or is there more work to be done?

At AdvisoryJournal we strive not just to educate people with our articles but also to empower them and bring more richness into their lives. Not only do we regularly review products and services we also provide sound financial advice on how to earn extra money, how to save money, how to manage your money and spend it wisely to ensure you always get the most out of your hard earned dollars.

What Is the "Real" Cost of College? The Answer Will Shock You!

We all know that sending your kid's to college although necessary, is very expensive. Unfortunately, many parents are shocked when they discover the real costs they never considered and it's often too late to do anything about.

So what are these costs? First, let's start with the Colleges themselves.

Estimated Cost of Attendance

Every college by law has to post their estimated annual Cost of Attendance on their school's website. The cost of attendance is much more that tuition and room & board. There are books, lab fees, travel expenses and other miscellaneous fees(this is where they throw everything else, even fees not yet know). This seems pretty straight forward right?...Wrong!

If you ask any parent who has sent their kid's to college if the quoted cost was higher or lower that what they really paid, the answer is always "We paid much more then we expected!' -100% of the time.

The single biggest cost factor though is how long it takes a college to graduate your child.

Parents are still under the false assumption that college is a 4-year financial commitment. The reality is that 53% of colleges cannot graduate their students in less than 6-years! Do you know for sure the schools you're planning on sending your kids to will hit the 4-year target? If not, your costs are already 50% higher that you may have thought! What is really shocking is that the colleges do NOT post these statistics on their websites so most parents are blind to this massive price variable.

Cost of Financing the College Costs

Statistically, less that 10% of families have saved enough money to send ONE of their children to college for ONE Year. This means that 90% of families have to finance the entire college bill (each year for each child) and 10% have to finance almost all of the college bill for one of their kid's and all of the bill for the rest!

Furthermore, most parents are unaware of how costly college loans are. The traditional Student Loans are 6.5% but are capped at $31,000 TOTAL for the entire time in college. The rest has to be financed by the parents at a rate of 7.9% plus 4% in fees! Each loan has a scheduled 10 year repayment period after graduation.

Let's do the math...Assuming 4-years in college @ $25,000 per year=$100,000 But, if loans are needed to pay the bill, your costs will look like this: $31,000(Student Loans) @ 6.5% repaid in 10 years=$42,240 Plus $69,000 (Parent Loans) @ 7.9% repaid in 10 years=$100,022 Total Cost=$142,262 Cost to Finance an already expensive college education= $42,262!

Wouldn't you rather spend that money elsewhere?

Opportunity Costs of Choosing the Wrong College

Many families, especially the middle and upper middle class families make all the wrong moves when choosing the college to spend their hard-earned money at. Unfortunately, the consequences are crippling for student and parent alike.

Opportunity cost of choosing the wrong college can be defined as the loss of potential gain elsewhere by NOT making better strategic choices. Examples of this opportunity cost would be:

How long it will take a college graduate before they land a job. This is caused by a college having a poor career placement history and limited opportunities for career advancing internships. If you child chooses the wrong college and it takes 2 years to get the job they always wanted, the opportunity cost would be Salary NOT earned over that 2 year period. If their staring salary is $35,000 then the opportunity cost would be $70,000 ($35,000 x 2 years waiting for a job)Poor college financing choices and the negative impact on your other life goals. Using the financing example above, the opportunity cost would be $42,262. This is YOUR money that you no longer have available to pay other household expenses, pay for other kid's activities or fund your retirement goals.Comparing colleges without considering their discount probabilities for your family. Let's assume you are considering two colleges with very similar sticker prices ($25k per year). With strategic student positioning & leveraging, College A will discount their price by $5,000 per year. This is a $20k savings over a four-year period. The opportunity cost of choosing to send your child to College B is what that $5,000 could have done for you elsewhere. In this example, let's use retirement. If you are 50 years of age and you plan to retire at 65, your opportunity cost on your future retirement would be $42,013 ($5,000 saved at 6% for 4 years and compounded until retirement @ age 65).

It is absolutely essential that you consider each and every one of these costs BEFORE you settle on a college.

Ignoring any of these cost factors is simply too expensive.

Ken Schreiber is the Host of 'College Bound' on AM560 WIND in Chicago.

If you would like additional information about Paying for College Without Draining Your Retirement, visit http://www.collegefundingexperts.com/ to access additional information and special consumer reports.