Students and student loans – Get The Facts

With rising tuition fees in the world, a college education is inserted correctly out of the reach of an increasing number of deserving students each year. We must also understand that it's not just tuition that must be met for the payment "of a college student. There are big expenses and other miscellaneous items such as boarding, food , clothing, books, entertainment, etc. need care in general is good. Accordingcase, to obtain a student loan is probably the best choice ambitious students.

There are different options available regarding the types of student loans is concerned. This much student loan authority to pay college fees vary. However, the different options is also present another type of problem, especially when you try to understand the student loan program will work best your needs.

In this article we will discuss the different types of student loans, you can ask to help you choose the type that suit your requirements.

Consider three main types of student loans:

1. Direct Student Loans: If one opts for plan loans directly to students, they are obligated to repay the loan within six to nine months later, they completed the course> Loans. Interest rates in a plan for direct student loans are lower than the level of loans to students in other, mainly because the types of loans offered by schools in which students are supposed to under his or courses.

2:. Federal student loans student loans federal government, which are also called PLUS loans with low interest rate of 9% or less. Mostimportant feature of this scheme is the student loan lenders only consider personal credit history of applicants and in no way related to the income of the candidate. The guards who have dependent children who are enrolled in school full time or part time in a particular hospital is the only person eligible for a particular type of loan.

3. Guaranteed Student Loans: Guaranteed student loans, what is commonly calledsuch as Stafford loans are a popular option in the plans of different student loans, with interest rates significantly. There are two parts to the program of guaranteeing loans to students. They are subsidized and unsubsidized. If one opts for a soft loan, the government must pay interest on the principal amount, while students are in school. Type of loan is based purely on financialrequirements of the students involved.

Other secured loans, a loan that is unsubsidized, the interest rate must be paid while the student remains in school and the principal amount shall be refunded after the course ends.

The borrower must begin repaying the loan six months after course completion, regardless of the type ever to ensure that students who Schemeselected.

High school or university, is far from cheap these days, it is extremely important to make the right decision when applying for a student loan. Although it is guaranteed that the above mentioned three types of student loans will be approved by each university and of course, you will be informed as meticulous in your search for college funding. Remember that your course of life would have beenthreatening to take your decision only after getting the best financing options available.

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This entry was posted on Monday, September 27th, 2010 at 11:00 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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How to consolidate private student loans at a fixed price

Whether you are a recent graduate and / or have more than one student loan, you can find a way to save money. You can save money by consolidating private student loans at a fixed rate.

Why consolidate private student loans at a fixed price?

There are many benefits to consolidating your student loans. Consolidate your student loans simply means that youLenders have a combination of all student loans into one of you, ready and easy management, where you can pay a lump sum instead of trying to control your various loans payments, and balance. Once you graduate college you will be busy in your new career and new life. Management of various student loans will not be something you want on your daily schedule.

Some of the best benefits of yourPrivate student loans

Down Payment: By consolidating student loans individuals, you will get some financial relief by reducing the monthly payments from you.

Payment: Instead of following student loans vary your payments and different, you only have one worry, and an easy monthly payment.

Fixed interest rates lower: When youConsolidate your student loans, you will reap the benefits of a fixed interest rate and lower, thereby reducing term and overall payments through your lender for you.

Credit Rating: You can help to better assess your credit by consolidating your loans into one student loan if you pay only one lender. outstanding debts you have on your credit worse, he will find lenders and creditors. By creating a single loan of two or more loans outstanding, you will increase your credit rating.

Is it possible to consolidate private student loans at a fixed price?

Yes! Not only is it possible to consolidate student loans to your profile, but you also need to consolidate your student loans!

By consolidating student loans people, you will consolidate all students > Without the federal loan. You can include other private loans consolidation student debt, like any debt credit card, you can have as long as education is somehow linked. The only drawback to consolidating student loans is that you believe you do not want to combine student loans consolidate federal private and federal loans are not your students. It is because of your student Federal Government> Loans generally have lower interest rates for student loans to your profile. By consolidating all your loans, private, and you may lose some of your savings interest you. You can consolidate student loans federal government and from you, but you should have them separately to save lots of money in the long term.

In this spirit, you must consolidate federal student loans you first, thenConsolidate student loans to your staff. You'll save money by doing this, lower your interest rate, only one or two down payment made each month and create a better report and credit score for you.

See Also : Best Consolidating Student Loans Student Consolidation Best Consolidating Student Loans Student Loan Consolidation Companies Best Consolidating Student Loans Paying Student Loan

This entry was posted on Thursday, September 30th, 2010 at 1:23 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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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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How can I defer student loans while in the military?

John Agnew from Florida asked: I’m about join the NAVY and I want to defer my student loans until I’m finished with A schooling. I have Federal as well as State backed student loans. Who would be the best person to contact about this?

Student Loan Advice: Hi John. First off, thank you for your service to our Country! Sounds like you’re a stand up young man. Now, those student loans of yours.

There are actually two or more people/administrations that you’re going to want to contact. The first is the people who lent you the money. Both Federal and the State programs. They will inform you as to your options, or at least they are suppose to! From some of the people I’ve run across in those loans programs, about the only thing they can tell you is what time Lunch is and when quitting time is! Let’s hope you get someone who knows what they’re talking about when you contact them.

The other people you need to contact is the Navy itself. You may be surprised to find that the U.S. Military has many programs to help you pay for College. Even some of the Branches such as the Navy and Air Force have programs that help their people either pay off loans or at least pay on the loans. Wouldn’t it be cool if they stepped up and took your loans over? You can never tell, so find out who you’ll talk to in your neck of the woods.

Most people have heard of the G.I. Bill, but few know that it covers a great deal of area. They’re also not aware that there are other programs in the Military designed to help make your life easier when you go to enroll in College.

Plus, if you’re wise before signing up with the U.S. Military, you may be able to get your training absolutely free plus gain some experience in the field where you want to make your career. This is a very popular path to career training for those who want to become Nurses, Doctors, Engineers, Heavy Equipment Operators, Pilots and even Attorney’s.

Especially in this day and age. The U.S. Military is looking to pay for students college as long as they put in the time and go into a needed area of expertise. It’s a win-win situation for everyone involved. They get people the need to fill positions and you get a Class A education for little or no money.

So John, the future looks bright for you. I hope you take full advantage of the training and student loan benefits the U.S. Military will be offering.

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Will student loans affect my mortgage applicaton?

Linda R. from Ohio asked: I have $80,000 in several student loans, but since I consolidated all my student loans, the monthly payment is approximately $400. Other than this student loan, I’m debt free. Do mortgage lenders view student loan debt differently than other types of loans? Also, what other factors will they look at when determining my qualifications for a home loan?

Student Loan Guru: First off, congratulations Linda on being debt free other than your student loans. Since I’ve been involved with my Kids college education and spending a good amount of time helping other Parents send their kids to college, I can say that I’ve never seen a student loan that was in good standing being treated any different than any other type of long term debt.

In your case, about the only difference is that in the future, you could always ask for a hardship defference if something was to come up. But I’ve never seen a lender consider this when looking at a loan. There are too many other things that they’re worried about.

As long as the payments extend past 10 months in the future, the lender will only use your monthly payment as part of your qualifying ratios. The total debt isn’t that big of deal with most lenders. What will matter more is your payment history on the student loan: it should be perfect. It all comes down to the quality of your credit history (your FICO score) and your qualifying ratios of debt/income.

Something else you might want to consider due to the current state of the economy. You may want to hold off buying right now and focus and getting those student loans payed down until the employment climate stabilizes. Sure, you can always ask for a hardship deference, but that doesn’t necessarily mean you’ll get it. Plus, have you student loans paid down, or paid off altogether, will give you a big pile of cash to put down on your new home.

I wouldn’t even begin to think about buying a home if I couldn’t come up with at least 20% down. More would be great. I’d also look at a fixed rate, 15 year mortgage with payments no greater than 25% of your take home pay. If you can’t swing this, then you should step back and reconsider buying a home. Once you can swing it, then you’ll be setting yourself up to stay debt free for a long time.

Now I know this is an unpopular view on buying a home, but those who tell you differently are usually up to their eyeballs in debt. Ever since I became debt free, things are a lot different. I don’t get upset over bad financial news I might here, I don’t worry about losing my job or my house and I sleep a lot better at night. Oh, did I tell you about the pile of cash I have saved and invested?

Many people will never realize how great it is to be debt free and all your hard earned money going into savings or investments. No, they have to have their stuff NOW! Of course, this is how this country got into this mess in the first place. People too impatient and greedy, not to mention lazy, to save their money and delay gratification. No, they wanted 100% home loans with adjustable rates. Okay, you got them, see what happened?!

Linda, you’re own your way to a very bright and lucrative future if you just remain patient and continue to pay off your student loan debt and do not go out and get into any other debt. Remember, slow and steady wins the race. It sounds like you’re doing everything right, just keep on this straight and narrow road and you’ll be able to buy the house of your dreams. And who knows, by the time you have those loans paid off, which shouldn’t be long, you may not need a mortgage broker for a home loan, you can just use your cash!

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Tagged With become debt free, dave ramsey, debt free, Flexibility, home loans, investing, Lenders, Mortgage, mortgage application, pay off your student loans, Student Debt, student loan consolidation, student loan debt, Student Loans, will student loans affect my mortgage application

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Can I put my student loans on a credit card and then file bankruptcy?

Kiro from Mass. asks: I’m over my head in student loan debt, but have good credit and lots of it. I thought up a plan to put my student loans on my credit cards and then file bankruptcy on the cards. What do you thing? Is this a good idea? It doesn’t bother me a bit that the bankruptcy will be on my credit report for 10 years. I’d rather be out of debt completely and then move to another country and start over. If anyone has ever used this method to get out from under massive credit card and student loan debt, I’d like to hear about it!

Student Loan Guru answers: Wow Kiro, I hope you’ll use some of the same creativity that you used in thinking up this scheme in the work environment. If you do, I can see you going a long ways in life…or maybe life in the pen…lol This is almost as bad as using your student loan to pay off your credit card debt.

For a moment, let’s ignore the fact that this plan is immoral and unethical. Which, I must say, says a lot about yourself as well. I guess I don’t have to tell you that these aren’t the qualities that most emmployers will be looking for huh? One of the biggest drawbacks that you’ll face with this scheme is that it appears that it’s not only student loan fraud, but it could also be considered bankruptcy fraud. This can land you behind bars for a few years.

But then, let’s pretend that it is ethical and not against the law…how would your scheme look then? Well, it will still stink!

You may think that a bankruptcy will only stay on your record for 10 years, but in reality, it will stay with you your entire life. It may or may not fall off your credit report in 10 years, but there are other ways lenders will learn about it.

10 years is a long time. A lot of things can change. You may want to move back to the States, buy a home, get another job, get married, etc. A bankruptcy can affect all these things.

Also, check me on this to make sure I’m right, but I believe the new bankruptcy laws will throw a wrench into your scheme as well. I don’t think newly acquired debt will be elgible for bankruptcy. So you see, as good as it sounded at first, your scheme is full of holes. The Politicians are way better schemers than you are!

And if you get caught, then having a criminal record can really put a kink into your future plans, especially if you move abroad. Many countries will not allow ex-cons to move into their country.

Your plan would have been perfect back in the 90's, but not any longer.

If I were you I would say consolidate your student loans and get a low interest rates and low payments. shop around for the best company. And what ever you’re quoted, have them send it to you in writing by mail. Do this because lenders sometimes say one thing and when you sign up the interest or payment is higher than what they told you it would be.

What ever you do, don’t dont dont let your loans default!!! Been there done that, not fun, You then cannot consolidate and they will try to bully you and demand you pay it all at once. They will threaten to garnish you and may try! As long as you are not in default you have options.

If you really have a good excuse for wanting to get rid of your debt, (other than you ran it up and now don’t want to pay for it) looking into declaring an economic hardship or forbearance. In some instances this can postpone your payments usually 6 months to a year. Of course the interest still adds on. But you have the option to pay just the interest or nothing. When its time to repay in a year you will probably be on your feet. If not request it again. I think you can do it maybe 3 or 4 times. Check with your counselor to make sure. Then make your payments and be done with the clowns.

If you have a private student loan, you may want to look into a debt settlement, although it’s personally not a favorite with me. Debt settlement is a process in which an organization will go to your lenders and negotiate with them regarding your debt. The purpose of the whole exercise is to reduce your debt burden. If a settlement company is good it can get your debt reduced by as much as 50%. This is what a creditor needs and this is the most visible benefit of debt settlement. The amount of the debt is reduced, the repayment plan is made easy and often the monthly installments are spread over a long period. This makes life a lot more easier for the borrower.

However, debt settlement is not without its drawbacks. There are two things to worry about. First, is the cost of debt settlement. Debt settlement companies will charge huge amounts for their services. The usual range is between 10-15% of the debt amount. Paying this much amount upfront can turn your financial situation from bad to worse.

The other thing is that many of these companies just take your money and do nothing. This is the biggest reason I’m not a fan of debt settlement companies.

So Kiro, I hope you can now see that your question about putting your student loans on your credit cards and then file bankruptcy only sounded good in the thinking state. In reality, it just won’t work!

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Why can’t students get a break on paying back student loans?

Jan B. from NJ asked: Seeing how all the big companies are getting bailed out and getting tax breaks, why can’t they give us students a break on repaying student loans? I’m having a hard time trying to buy a home or car because of my Student Loans. It doesn’t seem fair to me.

Student Loan Guru: Wait Jan, listen. Can you hear it? It’s a thousand little violins playing “Poor, Poor, Pitiful Me” for you. How about some Cheese with that Whine? Seriously Jan, cry me a river!

The truth is, you do get a break on repaying your student loans.

Normally, if you buy a car or home, you have anywhere from 30 to 45 days before your first payment is due.

With a student loan, you have 6 months after you get out of school to find a job and start repaying your student loan. So please, don’t talk about ‘getting a break repaying your student loan”! It’s built in.

I recently read a story about Warren Buffets Granddaughter being cut out of his fortune. He had paid for all his Grandchildren’s education. Her education bill run into 6 figures. What kind of education did she get for six figures? She went to school to be an artist!

Then she had the nerve to do an interview with some media outlet and dissed Warren. So he cut her out of the fortune. Good for him!

Now she’s whining about having to be a hair dresser and making only $40,000 per year and not having any health insurance. What about her art you ask? Oh, she sells a few pieces here and there, but not enough to live on. I’m betting that her education was the worse investment Warren ever made.

Jan, I would have liked to known how much your Student Loans total and what you went to college for. It sounds like you one of the people who spent 10 times more on College than what the actual job you want pays. Can you say … STUPID

For the life of me, I’ve never understood why someone will take out student loans totaling more than 100k for a job that only pays 25k per year. STUPID, STUPID, STUPID!

Listen, there’s no job out there that pays 25k or even 30k that should require 100k worth of college!

Sure, we all make stupid mistakes when we’re young. That’s why the call it youth. But you should have some common sense when planning your career. If you want to be a biologist making 30k a year studying the mating habits of Striped Meadow Frogs, that’s cool. Get the degree at a low cost state University or community college, not Harvard! DUH!

Here’s another news flash for you Jan. There have been many before you who have had Student Loans and paid them off, bought homes and cars and still had money to spend.

I’m betting that you financial skills are pretty sloppy. Take a second job or get a better paying job to pay off your Student Loans. Cut your lifestyle back until you have those loans paid off. If you have to move across the country for a better job, then do it! Otherwise, stop your whining and take responsibility for your actions.

A big part of this financial mess we’re in now is because of people like you who had no business of having credit running out and getting their hands on every credit card or loan they could get. They wouldn’t save up the 20% down payment for a home. Hell no. They wanted it yesterday and signed off on a 100% loan with an adjustable rate. Now they’re paying for their impatience! No, we Americans are paying for it!

So there you go Jan. It’s not you that needs a break, it’s the rest of us who have been carrying your sorry Butt and those like you who need a break, from people like you! Now get off your lazy butt, take responsibility for your actions and do what it takes to repay your student loans. Then save up 20% to put down on a new home. No, it won’t happen overnight. It will take a few years. But it was your actions that got you in the mess you’re in.

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Tagged With bad economy, Bad Judgment, Banks, Break, economy, fatherly advice, money, poor economy, repaying student loans, student loan advice, student loan repayment advice, Student Loans, Tax Breaks

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