Consolidate Student Loans – Paying the Cost of Education

Introduction

Includes the cost of higher education is not easy these days with their prices sky booming. You may have opted for students to borrow the cost of your student life and if you do not pay, you can choose to consolidate student loans. Not only lending money to you and make you a new loan, instead if you're running more than one student loan, you cancombine them into a loan and can have easier repayment terms.

Interest rates and repayment

real interest rate may be different for you in the consolidation of student loans for you. You can always negotiate a better interest rate by paying regularly. The payment may be about 30-30 years for the consolidation of student loans.

standard conditions

Every British citizen is currently a student loan canstudent loan applications. However, the applicant or co-signer or both must be aged 18 years. Just to show identity cards with addresses and documents proving ownership of a number, if you apply for secured loans. You can apply even if you have bad credit history, CCJs etc against your debt.

General Characteristics

With these loans, borrowers get various benefits such as flexible payment options, no credit checkborrowers, reduce interest rates if repayments are made regularly without fail.

The best thing is that these loans are available online and you can apply directly online. So no need to run around the office. In addition, it will help you get the loan approved quickly. The loans are unsecured and secured at a time. If you have a property and want to make good use of it, you can choose to loans secured by placing it asmortgage with better terms. Otherwise, unsecured consolidation of student loans is always there for you.

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This entry was posted on Friday, October 1st, 2010 at 9:40 am and is filed under The Student Loan Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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Introduction to basics of Stafford Student Loan

Back in 1965 the Congress launched the Federal Family Education Loan Program (FFELP) to provide financial support for students. An element of this program is the Stafford loan was originally designed only to assist students in financial difficulty, but really now more than 90% of all education lending from the federal government.

Stafford loans over time has changed with changing conditions and today there are two main types of> Loans – subsidized and unsubsidized.

In the case of subsidized loans the government to take responsibility for the payment of accrued interest on a loan from the date the loan is made until the student must begin repayment. Usually a student does not pay when he was enrolled in a research program is classified as a major program "part time" has, and for a grace maximum period of six months after the end of their course. However, students can begin to make a payment at an earlier date if he wants to.

As subsidized interest rates, loans are usually awarded on the basis of need and senior officials from both a student and their family income to determine whether or not students for a subsidized loan. Stafford Student Eligible candidates should complete a Free Application for Federal> Student Aid (FAFSA) application form, including details on income and each student will be issued a number of families is called the expected contribution (EFC) calculated from data on expected income.

About two-thirds of all subsidized Stafford loans are granted to students whose parents have adjusted gross incomes under $ 50,000 per year. One part is offered to families in a 50-100000 per year. However at this timemeaning of "need" becomes a bit translucent and slightly less than one tenth of the loan assistance is granted to students whose family income from the combination of more than $ 100,000.

In the case of those students who do not qualify for a loan can enjoy the most benefits of subsidized Stafford loan. The main difference here is that students will be required to meet interest payments on the loan, but again no paymentusually begin until six months after the end of the program students learn.

Unsubsidized Stafford loan can be very expensive as the interest accrued during the study and therefore the amount of capital and the final payment will also increase. Consider a simple example.

Suppose a student who borrowed a total of $ 5,000 the first year and the interest rate is 6.8%. interest rates at year endaccumulation was $ 340 and will be added to the loan. The students next year, then $ 5340 will bear interest at 6.8% which comes with some $ 363 bringing the total debt in two years to 5703 $. This example is not quite true that the interest is calculated monthly increase, but it still shows the principles of the loans.

Depending on the amount borrowed and the repayment period begins annual before it can besee that a student may pay the price very reasonable to delay repayment of Stafford loans.

Although this seems expensive, it should be noted that many alternative methods for meeting the cost of college is expensive and many more students can afford to go to college without a loan Stafford.

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This entry was posted on Saturday, October 2nd, 2010 at 6:10 am and is filed under The Student Loan Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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Student Loans – The best way to repay loans for students

As a recent college graduate, nothing can teach you more about responsibility and money management of student debt. Proactive manage your loans will help you save money and build your credit history. The best way to repay student loans is making regular payments for a lower interest rate, explore options for repayment plans, using available tax reduction, consolidation loans, and loan payment delayed (if necessary) to avoidattack on your credit report.

Regular payment

Paid regularly and promptly. If you make 48 consecutive on time payments, most private lenders will knock two percentage points in interest rates. Also, if you direct the bank to transfer payments electronically from your checking account, many lenders will reduce by a quarter percentage point to you.

Visit the payment plan

Ask other forms of payment. If you have any difficulty in meeting yourpayment, payment plan request for a replacement. Assuming your salary will increase over time, you can have a graduated repayment plan. You start with a low monthly payment only gradually in the period from 12 to 30 years depending on the size of the loan.

If your income changes because you're self-employed, you can also implement a plan to pay income-sensitive or income. As your earnings increase or decrease, the amount you owe. Under terms of incomeavailable through the Department of Education direct loan borrowers, any balance is forgiven after 25 years, although the amount released would be taxed as income. One caveat: repayment plan replacement will cost you more interest because you have to repay your loan in a long time.

Using tax breaks

Take advantage of tax benefits. The federal government provides help for taxpayers with a student loan. Suppose your incomeyou qualify, you can deduct the interest you pay up to $ 2,500 per year. income limit must be deducted in whole or in part, is less than $ 65,000 annually for singles, and less than $ 130,000 for couples joint statement.

Consolidation Loan

Remember that if you have more than one loan, you can synthesize. This means that a new interest rate is applied to your own excellence. Rate equal to the average price ofall loans does not exceed 8.25 percent. During your repayment, lenders may offer discounts, especially if you have a record of timely repayment.

late payment of loan (in difficult times)

If, by consolidating, you extend your repayment period could significantly increase the total interest you pay. And if you've exhausted your options and can not get relief, you can temporarily suspend your payments. If you loseor leave your job or return to school, you can ask your lender to temporarily postpone the repayment. If you get a deferment for a subsidized Stafford loans, the government is paying interest due during your suspension. If you can not get a deferment, you can defer payments for a year by asking for forbearance. Interest rates continue to accumulate, but you avoid default and get a nasty assault on your creditrecord.

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This entry was posted on Wednesday, September 29th, 2010 at 5:12 pm and is filed under The Student Loan Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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University Loans – Compare Student Loan Consolidation

If you have a student loan then you probably know what I mean when I tell you they are a-double blade sword. On the one hand, if you did not get the loan you would not have been able to finish college and you are qualified to hold. On the other hand, if you do not get a loan and you do not have anything that makes payments to you can pay all your other bills on time or you can buy a nice car addition, perhaps even to live in abest.

If you're really having trouble with your payment and may even lose your good credit rating because of them, then you really might want to consider a college loan consolidation.

With this type of loan, like a standard loan, all your loans consolidated into your high interest loan with a lower interest rate allows you to make a single payment. What really makes life much easier and much moremanageable.

The loan may actually be an excellent solution for you. Especially if you're behind and I tried every option for deferment or forbearance may be included with your current loan. Several times, with a direct loan consolidation you get a clean sweep of your loan. None late payment or old problems have more influence.

With the new loan, you may, if necessary, to take advantage of the delay and Ring again. I hope it will not be necessary because you, then most often get a lower interest rate that gives you a much smaller payment. A great advantage of this loan to ensure that your other loans appear on your credit report paid which is good for your score.

With this loan are basically four different payment plans available for you to choose what they from.To understand that you really need to consider> Student loans than most so you will know the loan to meet your needs and the best budget before deciding.

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This entry was posted on Tuesday, September 28th, 2010 at 8:02 pm and is filed under The Student Loan Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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The Balancing Act of a Part-Time Job and a Full-Time Student

Though we would like to play ultimate Frisbee all day, read books of our choice all night, and make time for eight hours of sleep in between all of that, it isn’t possible while being an employed student. The reality of college life is that there are hours spent daily on textbook readings, writing papers, working so that tuition is paid for, and then class. For some reason I thought I would be much more willing to do work once I was in college. And that is partially true, because what I am learning is applicable to my future career and that glorious diploma.

But overall, there are just a lot more activities cramped into a smaller amount of time. That is the college life, and we are supposed to deal with it somehow. There are some practical things students can do to balance a life of school, work, sleep and play. So why didn’t they tell us these things before we started this kind of life? Because they say we are supposed to learn on our own.  They are right in doing this. But now I will tell you some things that have been helpful to me on this journey thus far.

Addressing procrastination: If I would have realized it was okay to say ‘no’ to friends, then I would have said it a lot earlier and a lot more. But one of the issues (partially) is that there is always a trip to Bubble Tea or another episode of Lost being watched. It’s so easy to make the decision to put off homework until 11 pm. And then when the time comes to do work there is a lack of motivation and an overwhelming presence of drowsiness. For me, the drowsiness usually trumps the little motivation that is there and I submit to defeat once more. The moral of the story is, just say ‘no’ when you know you should go do what needs to be done. Having a flexible job is extremely helpful when you are a student. During the weeks when classes are heavier, it is reassuring to be able to reschedule work around big exams and study sessions. The flexibility may rest upon the duties of the job, your employer, and other factors. If working for your school, chances are they are going to be more flexible when it comes to your hours and your schedule around high-stress weeks. Even the fact that you are a student should be proof to your employer that you are a student first, but your job is still important to you. All in all, try to find a job with flexible hours in case school gets too heavy. At the beginning of each quarter or semester, create a schedule for classes, work, important events and deadlines. Having this information down in print will be a relief when deadlines are approaching and stress levels start rising. Having a schedule and sticking to it is the goal. If this goal is attained, you have succeeded in self-discipline and organization skills. Juggling classes and work is no easy task, but it is definitely doable. Pencil yourself in. Intentionally take time out of your week for yourself. This time should be spent doing whatever it is that you love, or whatever will keep the big picture in mind. Whether it is going for a run, playing a good game of chess or laying in the grass and looking at the clouds, make that time for yourself during the hustle and bustle of the week that requires more work than play. Go to bed and wake up at the same time everyday. Doing this will help you get into a groove for your schedule, regardless of what you have planned for the day.

Best of luck to you on balancing the different aspects of your life. Knowing what your priorities are is key. Do this and you will not have to worry about missing deadlines because another area of your life is too overwhelming.

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Get Rid of Student Loans Starting NOW!

I was never a fan of handing over those yellow paper dollars to my opponent because I landed on his piece of property on Illinois Ave. Just like handing over those fake paper dollars in Monopoly, paying off student loans will feel the same way. But in the game of Monopoly, it does feel better when I make an investment by buying a piece of property. And paying off student loans should feel like making an investment in Monopoly. Though at first all you see is money being taken from your bank account, later you will see the results when people start paying you for landing on your square… Or rather when your student loans diminish. There are positives to making those monthly payments. The burden is being relieved.

Photo by Mikael Miettinen

There are 4 options that can all be negotiated with your lender, whether it was a private lender before the law on private student loans changed, or whether your sole lenders are companies backed by the government. After graduation there will be a 6-9 month grace period where graduates will not have to pay off student loans, so they have time to look for a job (so they can afford the payments). Unless the graduate is in forbearance with their lender, which allows more of a grace period, he or she will start paying off loans with an amount that is negotiated with the lender. The minimum is usually about $50. Graduates are able to switch their payments to larger payments monthly. The most important thing is to stay on the same page with the lender.

Graduates who have found a well-paying job soon after graduation will start paying off loans in the form of standard payment. This is the best option because loans will be paid off after 10 years, and it has the best interest rate. While this is the quickest payment option, it is also requires the highest monthly payments.

This option is for graduates who have found a job that starts off with a decent wage that will steadily increase over time. The loan payments will start off by mirroring the small wage and over the next couple of years for the next 10-30 years the payments will increase like the graduate’s wage.

This payment option is set up so that monthly payments will be based off of what the graduate is making in their current income. This is for those who have seasonal jobs, or jobs that fluctuate with seasons. With this option, graduates will have 15 years to pay off their loans.

This payment plan has the worst interest rate, because the payer has chosen to pay the least amount per month. This means that by the end of the 30 years it takes to pay off the loan, the loan payer will have paid almost double than they initially borrowed.

If you have questions about any of these options, contact your lender. Or ask your mother, she usually knows.

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Am I Responsible For My Ex Husbands Student Loans?

Penny M. from Oregon asked: I’m an older woman who wants to go to College. I have two kids that are 10 and 13. My problem is that every time I apply for student loans, they decline me because of some outstanding student loans that are my ex-husbands. I’ve been told by more than several of these loan companies that since we were married, I’m responsible for half of these loans. It doesn’t seem fair that I can’t get a Student Loan because my ex-husband didn’t pay off his $30,000 student loans. I can’t afford to pay these loans myself and my ex husband refuses to pay on them. How can I get money to go to College?

Student Loan Advice: Well Penny, that all depends. This is one area that I’m a little vague on, having never went through a divorce myself. Hopefully I can steer you in the right direction to get some help on whether or not you’re responsible for your ex husbands student loans.

First off though, it sounds like you had this debt when you were married? Why weren’t you paying on it then? Or were you and your husband just planning on stiffing the student loan lender? And now you’re wondering why they won’t give you a loan? Penny…Penny…Penny!

From what I understand, if this debt was not taken care of in bankruptcy court and the court didn’t state who was to pay it, then yes you liable for part, half or maybe all of it if he decides not to pay it. There is a chance you might be able to take him back to court and get the debt put on him, but you’ll need to talk to an attorney to see what all your options are concerning this debt. I think having him refinance the student loans or getting a home equity loan to pay them off would be a good thing if you and your attorney decide that’s the way to go.

Here a few of my thoughts on it. Nothing concrete, just my gut feeling having dealt with education loans and other types of debt.

It’s possible you may be able to pay them something even if its fifty bucks a month. After a while you may be able to get them to give you a student loan.

But if none of the above is an option, then you’ll have to resort to going to night school and paying for it yourself. During that time, get really chummy with your Teachers and Counselors. After a semester or two, start asking them about scholarships and grants that may be available to you.

Once you’ve made yourself a better candidate you can apply for scholarships and merit loans. Scholarships are generally free money for school and merit loans are generally based upon your academic worth rather then your credit situation.

You can still get your education, but it will likely be more difficult. If you really want it, you’ll find a way to get it. It’s likely that it will take you a little longer, but it’s still attainable. Probably the first step is taking action to get your ex husbands student loans paid off or at least starting to pay on them.

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Student Loan Bill Goes To President

Well, you know it had to happen. The Student Loan Bill goes to the President for his signature. This will put many of the student loan subsidies under the Governments control…yikes! You know, the same government that thought it was a good idea to bail out banks and auto companies. The same Government that started the Cash For Clunkers program and underfunded and miscalculated, not once…oh no…but twice in two months!

This bill that went to President Obama is suppose to make college more affordable for students that have a hard time paying for it. In a lot of ways, it reminds me of efforts by many States to legalize gambling under the pretense of the proceeds going to education. Now we find out that our schools are still under funded or the money has been misappropriated.

What happened to the tax dollars these States were using before the gambling proceeds? Why are some States still increasing property taxes to pay for education when they’re having record amounts of gambling proceeds coming in?

When you discover the answer to those questions you’ll find out why it’s a bad idea to give the Government full control over the Student loan programs.

You think education is expensive now, just wait! You think filling out all that paper work for a student loan was a pain in the who-haa, wait until Uncle Obama get’s done with the process.

Under this new bill, Pell Grants are suppose to increase to $6900 over the next decade. WHAT? OVER THE NEXT DECADE???

Why will it take 10 years to increase the Pell Grant amount? Do you think that College cost will rise as slow as the maximum amount  you can apply for under a Pell Grant?

Hell no! This bill does nothing at all to curb college cost! Perhaps the Government wouldn’t have to throw our taxdollars at this if they would sit down and find ways to reduce the cost of college in the first place!

But then, Politicians wouldn’t be able to get their greedy little hands on taxpayers money and they just can’t have that! So when the student loan bill goes to the President, don’t cheer, be afraid, very afraid of your education and future!

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Illinois Denies Student Loans To Students

If you live in Illinois and you’re needing financial assistance in the way of an Illinois student loan, don’t hold your breath. The state of Illinois is denying student loans to as many as 130,000 students this year and perhaps even more next year. Many of these student loan request are from students looking for Student Loans For Vocational School.

So why were so many Illinois students denied financial aid? Because they applied after May 15. However, this date was much earlier than the official cut off date than those in years past.

I’d like to say that the above is the worst news there is if you’re an Illinois Student, but it isn’t. No student will receive financial aid for the second half of the 2009-2010 school year. Ouch!

Hey, we only have the politicians to blame for this mess! Their out of control spending has the Springfield in a financial mess and yet they continue to blow your taxes! And these are the people we hired to represent our interest!

The number of financial assistance rose by 27% this year, the most ever as over 200k students sought financial aid from the State.

Well, for one thing, you really want to watch out for the deadlines to get your applications in. Of course, if the Illinois politicians don’t get off their butts and fund these programs, then all of it will be for naught. But applying early as possible will help you get in line for financial assistance.

Don’t forget you have Federal Grants, Scholarships and Student Loans to try and become eligible for.

Also, even though many corporations are cutting back, there are still corporate scholarships as well as institutional scholarships to be had. You’ll just have to dig a little deeper and a little harder to find them.

And I know many of you don’t want to hear this, especially in this day and age of “I want it now”, but some of you may have to work your way through college while others of you will have to get a job and save your money. Sure, it’s not the easiest way, but at least once you get done with college, you won’t have no student loans to pay back by going this route!

Basically it will come down to you being responsible for your own education. Geez, that’s scary huh, not having the Government to give everything to you. Let this be a lesson to your young people right now. This is exactly what happens when your rely on the Government for anything. Sooner or later they’re going to fail you! Learn to be self reliant from Government programs and fend for yourself. Then when those needed Illinois student loans or other financial aid can’t get it, you’ll be way ahead of the game!

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Students and Parents Face Largest Student Aid Increases In Years

You know it was coming with the shape that the economy is in. Most Colleges and Universities are saying that Students and Parents should brace for an increase in student aid. Not just any increase, but one of the largest increases in recent times.

For example, New York Students are already feeling the pinch as State colleges did a mid-year price increase on tuition. The cost of the increase was a huge 14%. One of the largest increases in the Country.

Florida and California students can expect to see increases in their State’s tuition cost by as much as 10%.

And what’s worse, many of these Colleges are also cutting back on benefits that were once a part of the Tuition cost. So not only are the Students or Parents paying more, they’ll be getting less for their money.

It’s a crying shame really. Politicians go on and on about increasing financial aid for students yet they do nothing to help actually curb the cost of College itself! All they can think of is spend, spend and spend some more. No wonder our Country is in the shape it’s in. It seems the last two Presidents just want to throw money at our problems and our elected officials are more than happy to go along. Their only disagreement seems to be whether the R or D gets the credit!

So now not only is it going to be harder to get the same amount of financial help as it was before, the actual cost for Parents are going to go up as well. Parents or Students will have to come up with more money in order to meet their financial needs at college.

Student aid increases can be seen across the board. The most shocking increase though looks like it will be at Community and Technical colleges. These have always been a low cost alternative for many students, but the greatest increase in College cost looks like it will hit these schools hardest.

If you’re planning on attending a technical school or community college in the future, you had better start planning and saving now. Don’t wait. Start applying for student loans for community colleges as soon as your elgible. You’ll also want to look at any grants or scholarships that may be available to your or your family. This will be the time you want to look high and low for all the student aid you can find.

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Student Loan Lifetime Maximum – Do You Know Yours?

The world is in a state of financial regression. A lot of companies and industries have shut down. People after people are laid off by their employers trying to cut back on costs and budget. It is not a mystery why college students often resort to college student loans. Some get lucky because their parents’ businesses or source of income somehow survive against the global recession and can therefore afford to send them to college. But for those lower halves of society’s pie-chart, knowing and understanding student loans are a big help… most especially, when it is about student loan lifetime maximum.

Often times, a college student who borrows money, would wonder how much is their limit and what happens after they reach this limit. Should they stop going to school and concentrate on working in order to pay off the loan and be able to borrow some more money to go back to school? Maybe not a good idea though, since most of students who have dropped out from college have a hard time of going back to school.

The lifetime limit is the maximum amount a student can get from subsidized and unsubsidized loans. Currently the amounts are as follows (this is only an guestimate, as the totals may have changed by the time you read this):

Lifetime maximum for graduates and undergraduates is $138,500 with no more than $65,500 in subsidized loansGraduate school -total limit for non-medical students is approximately $138,000Medical students can get up to $200,000 in student loans.Independent student are eligible for additional $23,000 in unsubsidized loan.

If a student’s loan reaches its lifetime maximum limit, he or she could stop school and work to make payments for that loan. Once they pay, these installments will be subtracted from the limit given to them which enables the student to borrow again for him or her to continue schooling.

There is a thing called financial aid for students. This is pretty much offered for those students who are full time. They usually have limits to their loans but the government pays for the interest for the period of schooling. It is important to maintain academic status to keep that financial aid. If you are a part-time student, you are required to make regular payments on interests.

A lot of students should be more prudent when borrowing money for education. They have to make sure that they are keeping tabs on how much they are borrowing. Once a student graduates, the interests of his or her loans will begin to accumulate and if he or she doesn’t have any means of paying for them, it will reflect badly on her credit report once she applies for a job.

Good thing there is help available to those who have reached their student loan lifetime maximum. They just have to be aggressive in seeking help and make sure they deal with the problem before it goes out of control.

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Student Loan Forgiveness – Some Of Your Options

When you have applied for a student loan, received it, went to college and then graduated but end up finding yourself unable to repay the loan at anytime during the payback period, there are things that you can do to minimize or simply wipe off your debts. This is called student loan forgiveness. Since there are many borrowers who have not paid their debts, this program was designed to give them an option on paying back their debt through social work. Although this is not a total guarantee that your student loan debt will be forgiven, it’s at least one way to pay back your student loans when there are no other options for you.

Here is a partial list of programs that you as a borrower can try and enter to help pay back those nasty student loans!

Healthcare professionals who have not paid off his or her debts may become employed by rendering medical assistance in economically backward, disaster-affected or even war-affected regions. This usually happens especially when there is a shortage of medical professionals or because no other professionals want to go there. By rendering your services in this area, your debts forgiven or reduced.

You can also look into private institutions that are willing to pay for your debts in exchange for your employment into areas such as research and development and medical facilities where your expertise is needed.

Teaching is another option to get your student loans waived. You can teach in schools that are understaffed or have a majority of low income students. In most cases, if you teach the subjects Math and Science, your loan can be reduced more than the usual. The government also provided a method where you could teach to schools for children with special needs.

Providing service in the military is another alternative that you can choose for student loan debt forgiveness. You can join in the Peace Corps or any social service organizations, be it here or out of the country where your military services is needed.

This category is probably the most versatile of all as there are a lot of professions that can fit into this. You can be in the law enforcement as a police officer, highway patrol, or a traffic police. You can also work as a social worker for children, the elderly, and persons with disability, and other forms of servicing that can help in the community. This way, you do not only pay your debt, you can also help others as well.

Although your debt cannot be totally forgiven, these services stated above can still be availed to lessen or reduce your student loan debt. Generally, you can expect something like a 15% waiver in the first and second years of your services, 20% in the third and fourth year and 30% in the fifth year.

Five years to pay for your student loans can seem like a very long time, but it is a lot quicker than paying them off while you’re working at a low paying job. Student loan forgiveness may not be for everyone, but for those who have no other option, it can be a life preserver when you feel like you’re drowning in a sea of student loan debt!

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How Will The Health Care Bill Affect Student Loans?

While as student loans might obviously not be directly related to the new health care bill that is being processed by the Obama administration, there may be some closely related ties to the two that you missed. The health care bill is said to cover those of you in the United States who don’t already have a health care plan. It is primarily for the citizens who are less fortunate and have not been able to purchase health care.

Therefor, if you have been fortunate enough to afford health care either through a policy that your area of work has set in place for its employees or perhaps maybe you have purchased health care through a policy away from work, the new bill will not directly affect you.

Student loans have long been available to anyone who may be able to apply, properly use the student loans for college or other educational purposes, and then begin to pay back the loans only once their education has reached its end term. Now if your thinking logically, the health care bill should have no direct relation to any student loan policies, but we have seen stranger things happen in Washington haven’t we?

Pell grants have been in place over the years to provide extra financing to low income students. Well just recently the education department has said the the recent Pell program is expected to run out of money in the upcoming years. What does this mean for low income students? Well, it means that their not going to have any government supported money given to them anymore ultimately causing more students to need to apply to student loans or look elsewhere for their money.

Now, the health care bill does not make any changes to existing student loans either but it does lower the maximum amount you can pay per month on your loans. The new bill will bring down the maximum amount you are allowed to pay per month from 15% of your total loan down to 10% also shortening the amount of time you have to pay back your loan from 25 years down to 20 years. Parents and students should take every necessary step to check into other sources of income for college such as grants and federal loans because they will be able to utilize these areas for funds.

Grants and federal loans have long been available for students to increase the amount of financial help available to them at the time of applying and entering college. Student loan companies are fighting the new bill because it can benefit students who may be applying. Anything that is going to bring down the company and lesson their profit is obviously going to hold and argument. The health care bill undoubtedly lessons the burden of student loans and can be seen as a satisfying addition to the loan process for students.

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Tagged With Federal Grants, health care bill, obama, Student Loans

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President Obama’s Stimulus Bill Promises Student Aid

The House of Representatives may be voting on President Obama’s stimulus bill that promises student aid, a.k.a. The American Recovery and Reinvestment Act, that could make the federal Pell Grant Program seem half its size in comparison. Obama’s stimulus bill could provide billions of dollars in spending and financial aid for many colleges and universities across the country. President Barack Obama’s request for an $825 billion stimulus financial aid package to combat the countries current recession and invest in health care, education and infrastructure programs was the basis for which he modeled this economic stimulus bill. The bill would enlarge the Pell Grant Program significantly. The Pell Grant Program distributes federal grants to around 6 million university students in the United States every year. Congress was warned last year by the Department of Education that the program would be facing a $6 billion shortfall in 2009 if additional funding is not obtained.

On a side note, the stimulus act increases funding for Pell Grants and goes to students from low and moderate income families to those who make less that $40,000 annually. The good news is Pell Grants don’t have to be repaid and you can use them for tuition and living expenses.

Funding for the program would be increased by this bill by about $15.6 billion but in 2008 was $16.2 billion. The maximum grant per student would be raised by from the current $500 per student, to a whopping $5,350 annually.

An increase of $2,000 per student in student loans and more tax credits for students is also wrapped into this bill. There is also a $490 million program which would support working students, as well as $6 billion dollars to modernize buildings, and $39 billion dollars available for state governments to distribute to public colleges and school districts across the country.

The house bill is expected to pass with most of the Democrats supporting the vote as well as President Barack Obama. Once it passes, it will most likely take several weeks for the bill to become law and the House and Senate also need to agree on bill that is an identical version before it can become law. Opposition for the bill is expected to come from the Republican side of the aisle. Some republicans have said that spending money on colleges that have billion dollar endowments is not the right way to approach it. It just so happens that the bill is loaded with hundreds of billions of dollars in spending on projects and programs which will not impact our ailing economy for many years, if they ever do.

The publisher of Finaid.com, Mark Kantrowitz estimates that the bill will raise the number of Pell Grant recipients by approximately 800,000. There are those that won’t get the maximum grant benefit because they will be on the fine line of eligibility.

Obama’s budget would in turn make the grants similar to many other entitlement programs like Social Security and

Medicare, by money automatically going into the program every year according to a formula.

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Tagged With obama's stimulus package, stimulus bill, stimulus financial aid, stimulus student loans, student loans stimulus bill

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Student Loans For Community Colleges and Vo-Tech Schools – Know Your Options

They over the top costs of typical four year colleges has pushed an ever increasing percentage of students to re-evaluate their education options at both the local and national community college level. In fact, many community colleges and vo-tech schools are now offering highly successful two to four year transfer programs as well as cutting edge technical programs for students.

Some of the most popular options for student loans for community college and vo-tech schools are as follows:

It is no secret that there is a monetary gap in what you will pay at a community college versus what you will pay at a traditional college. The difference can be found in the yearly tuition fees per student. The annual costs at a private college on average can run you well over $20,000 while with a community college, you can squeeze out a full two year program for under $5,000.00.

If you are lucky enough to live at home while attending a college in your community, your pocket book will fair even better. Not only do the costs at community colleges depend upon on the types of programs that you pursue, but the location should be a strong consideration as well. There are some really great programs being offered at many of the community colleges and they are strong contenders for a fantastic learning experience. All that being said, go local when possible!

Federal student loans don’t apply if you are attending a community college, NOT! This is a common misconception and nothing could be further from the truth. Every year, there are millions of community college students who simply fail to file the proper application for financial aid. The application is called the FAFSA (Free Application for Federal Student Aid). You must do your homework and research to find out which financial solutions will apply in your particular situation. Check into “Types of Undergraduate Student Loans” and by all means, don’t forget to file the FAFSA.

Part Time or Full Time

If you plan on attending school part time or full time, you can still apply for federal loan assistance. Again, you will need to fill out the FAFSA (which can be done online). Be sure to watch for the deadline to submit your FAFSA application.

Nearly every student in the United States will qualify for some type of financial assistance through something called the “Stafford Loan Program”. The most popular types of Stafford Loans amongst students are the subsidized and unsubsidized loans. Their accessibility and affordability to almost every college student pursuing an education make them a top contender. By 2012 the Stafford Loan interest rate will be fixed at 3.4% making it a highly desirable means of financing.

Perkins Student Loans

Another popular loan program is the Perkins Loan and it is an aid program that is typically campus based. However, you still may qualify for this loan even though you attend a community college. You should check with your college aid financial office to see whether or not they participate in this program. Basically, the program works by using federal funds which are offered to participating educational institutions, both two year and four year. These funds are then made available to students who demonstrate a much greater need for financial assistance. These are long term low interest loans and the actual lender is the school itself.

Submit your FAFSA application as early as possible to the schools financial aid office. If your family’s financial status is a qualifier for this type of loan, the secret to an approval will be by getting your application in as early as possible. Especially since they are doled out on a first come, first served basis. There is only so much money to give out each year so don’t delay, get your application in quickly.

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Tagged With community college student loans, Student Loans, undergraduate student loans, vo-tech student loans

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How Many Times Can I Consolidate My Student Loans?

Brenda from Indiana asks: How many times can I possibly consolidate private student loans? Currently I have somewhere around $40,000 in student loans consolidated with Sallie Mae at about 10% interest rate. I would like to get a better interest rate and save some money on my monthly payment. Is this possible?

Student Loan Guru Answers: Well Brenda, as usual there is no black and white answer to this questions. There are many variables that will go into the answer. But first, let me start by saying a person should NEVER mix private student loan consolidation with federally backed student loans. They’re two different animals!

As you probably already know, consolidating loans is just replacing the loan or loans you already have and bringing them all under one loan. What you’re talking about is consolidating a consolidated loan. And the answer would be that as long as you qualify for a private loan, you can continue to consolidate private student loans, even though I do not consider this a good idea. Get one low interest rate and stick with it.

If you’re trying to consolidate a federal student loan, you still have options although you may not continue to consolidate them over and over in some circumstances.

Some companies DO lower the interest rate based on payment history. Mine were federal loans that were sold to Sallie Mae when i graduated. Sallie Mae has many programs that will help you lower your interest rates, as does many other lenders. Some will lower your rates if you sign up for their auto pay, others may lower your rates if you go a certain period of time making your payments on schedule. Still, others, including private lenders, may even lower your rates just for asking!

Many people go the entire length of their repayment period without consolidating, usually because the interest rates are usually higher than the federal rates. But I suppose if you have private loans this might be in the best interest for your wallet. Just remember, consolidated loans don’t qualify for any loan forgiveness programs that federal loans qualify for.

But then again, a lot of your private student loans may be eligible for bankruptcy if you ever find yourself in such a pickle. Although, if you’ve read this website for any length of time you know I seriously against that. It should only be your last ditch effort and I truly mean, last ditch! Sell the cat, dog, kids, etc before you go belly up because you’re going to regret it down the road. Then you won’t have to worry about how many times you can consolidate student loans!

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Tagged With 26k, Consolidate Loans, Consolidation Loans, how many times can I consolidate my student loans, Interest Rate, Loan Companies, Payment History, Private Loans, private student loans, Sallie Mae

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