Affordable Student Loans – The Guide

Affordable student loans, is there such a thing? The answer is yes, of course there is, there are many methods available today that make it extremely easy to be able to afford a student loan, even a larger loan.

This article will give you a bit more information on the methods that are available to make your student loans more affordable, or, in other words, you will be able make a molehill out of the mountain.

Let’s take a look at some ways to make this happen:

Deferment

The good thing about deferment is that it will allow you to complete your education and only start paying back your loan when you either graduate or quit school. This will take a lot of pressure off the 4 years or so you are studying.

One of the things to consider is that you must keep in mind that there will be an accumulated interest component and this will increase your overall costs. In other words, your original loan of say $15,000 might turn into a debt of $25,000 by the time you start to pay it off. (something about ‘no free lunch’ comes to mind.

Difference – Deferred or Normal

Although getting a deferred loan has its advantages the bottom line is what we need to think about. If we were to take out a normal student loan on say about $20k then depending on the term and the interest rates our payment might be about $300 each month,

If we look at the same loan and applied the deferred method of payment, when our first payment is due, it could be about $400 per month or about 25-30% higher.

It is a great idea to use a loan calculator and look at all the options that are available to you. Pen and paper, a calculator and a few cups of coffee is what you will need.

Consider

Another thing that is worth taking a look at is the fact that you can use your spare time over your study years to help you to build a passive income.

There are many types of methods to raise additional funds, here are a few of the methods that I have personally used with great success:

Online Business – You can startup your own online business website, there are many methods that are actually free to set up and you can also promote these sites using free methods available.

E-books – Did you know that you can publish a book on the Kindle platform for free? It cost nothing to use this massive money making platform, you don’t need a website, don’t have to pay for traffic in fact the only things you need to publish your book on the kindle platform is a word document of your book and a jpeg image of the cover.

Crowdfunding – Set up your own crowdfunding website, you can actually get a simple piece of software that will transform your website into your very own crowdfunding site. The advantage of this is that you will get to keep all the funds you raise without the fees.

I hope you have found some useful ideas and wish you good luck with your studies.

Paying Back Student Loans – An Easy Guide

When paying back student loans, as a borrower, you have certain responsibilities. It is essential to keep your loan record squeaky clean. If you default with even one payment, then it will not look good. Always make your loan repayments one of your highest priorities.

It is much easier to keep your record clean than to fix a tarnished credit record and the problem is that our records will follow us for years to come. So a bad mistake made right now will have longer term disadvantages.

Always talk to your financial institution if you feel you are having trouble coping with your loan repayments. Believe it or not, most institutions are only too happy to help and the big thing some students seem to overlook is that…

… these financial institutions already have the answers to solve your problems, it’s just that you may be unaware of the easy solutions that already exist…

That is why it is most important to discuss your situation with these professionals, they are also human, they would have gone through the same struggles that you may be facing right now and will easy be able to guide you out of the financial jungle.

There are many different methods to help with loan repayments some of which are:

Graduated. You might pay lower repayments at the start of your loan and they can gradually increase over time.

Standard. The standard type of payment with interest and principal paid as per the normal conditions of the loan

Income Sensitive. This is where you can actually pay a percentage of your monthly income, this method is tailor made for each individual.

Extended. This is usually where you will pay much lower repayments but they will be carried over for a longer term e.g 20-25 year.

Consolidation. This is where you can put all of your loans into one bigger loan plan, this can also help lower your monthly repayments.

Prepayment. You can also opt to pre-pay your loan payments, in other words you can pay your loan payment in advance and this will have the added advantage of greatly improving your credit rating.

Other Things To Consider:

I hope you have gained a few more ideas about paying back student loans and wish you good luck in your endeavors.

  1. Check with your state and find out if they offer additional services and study programs that may apply to your study.
  2. There are also many various civic and religious organizations that may also offer help and additional support and solutions and may help with your repayments.
  3. Keep a close track of all your personal expenditure. Make a spreadsheet to show you the results of your efforts, a simple income and expenditure guide.
  4. There may be other types of payment relief programs that are available, you just need to do a simple search to find them. Just start asking the right questions.
  5. Alternate Income Sources. You might like to think about starting up an online business that will create a passive income or my favorite is setting up your own crowdsourcing program which will help alleviate your cashflow problems.

Private Student Loans – An Easy Guide

Private student loans can give you a real advantage because they can be used to help you cover those other costs that may not be covered under the normal type of student loans.

A rule of thumb is to firstly apply for the government loans that are available and then use these private loans as a top up solution.

The reason that many of these private loans are available was because it was found that there is need to fill those gaps that the normal government type loans missed out.

Private Student Loans – Benefits

Very low interest rates

Flexibility of payments

Ability to arrange for automatic deductions of loan payments.

Chance of getting substantial discounted loan rates

Deferred payment options can be available.

No upfront fees and charges

Cosigner

Cosigner s are people who can strengthen the approval rating of loans that you apply for.

Having a cosigner can also help to reduce your interest rate.

Eligibility

Under normal conditions you must be a f U.S. citizen a permanent resident

You have to be enrolled at an eligible educational institution.

You must be of legal age.

If you don’t have a cosigner then it is advisable to have at least 24 months of established credit history.

Certain conditions may also apply to your place of residence, check each institution for these conditions.

Cosigners may belong to any state and there is no restriction based on state.

Application

The first thing you need to do is to submit the application, make sure that all the required paperwork is in order. Make a checklist of things that you are required to submit, this will make it easier and also act as a method to double check if you have all the right documents.

Normally you will have an instant ‘yes or no’ decision, the approval process can sometimes be earlier. You can expect a result within 10 to 14 days.

It is advisable that your cosigner is of high standing and has a good credit score. This will help in getting your application through quicker.

When you then submit your documentation.

The fees that are normally charged are industry standard fees and do not vary much between institutions. Your fee structure will be determined during the application process. These fees will also change slightly depending on your own credit score.

Your repayment schedule can vary from fifteen to twenty years.

I hope this private student loans guide has been of help, good luck with your studies.

8 Easy Ways to Pay Back Student Loans

They are many ways that you can pay back student loans and we will cover a few of those methods in this article.

In a recent study is was revealed that about 50% of college graduates all have student loans and that the average debt was over $10,000. What appears to be happening is that loans are rising at more than twice the inflation rate.

With these continual costs rising it is no wonder that students are needing more financial assistance.

Here are 8 Easy ways to pat back student debt:

1. Have a Plan. Work out a strategy that will allow you to pay off your debt well before you graduate.

2. Have a Savings Plan. It might be an advantage for you to either get a part time job to help you or look at other methods of raising passive income. Some methods to raise extra needed cash include setting up a crowdfunding campaign, start an online business or even write some eBooks about something you are passionate about

3. Double Think about Consolidation. This is the method of pulling all of your existing loans into just one loan. The advantage of this is that you will only have one payment to worry about and you will also probably get a discount from the finance company

4. Debt Reduction Through Work. There are several things that you could do to help reduce your level of debt, you might like to try your hand at self-publishing on the Kindle platform, you might like to set up some sort of internet venture or one of the quickest ways to make money online these days is to set up a crowdfunding campaign. This is my favorite because it means that you can get money quickly, you can either use one of the more popular crowdfunding sites or even use your own software (there are low cost plug ins that can get you set up within minutes).

5. Earn as you Learn. Enquire at your campus office to find out more details about their work to study programs. There are many different programs available, you just have to ask the right questions.

6. Scholarships. Another method to help with your tuition is to apply for scholarship programs, there are many different types of these available and although it may seem like getting one is like finding a needle in a haystack, the fact is that the odds are in your favor. If you apply for,say 40 different scholarships, the odds that you will actually win 3 or four of these is highly likely.

Search online to find the latest and most popular websites that can help you in your quest.

7. Grants. Apply for grants, same deal here, apply for as many as you can and the law of averages will be in your favor.

8. Credit. Always make sure that your student loans are made in a timely manner, this will help improve your credit rating and may make it easier for you to get more credit in the future when you may need it the most.

I hope you have enjoyed reading about these ways to pay back student loans, just go out there and try them.

Student Loans – Discharging Your Loan

There may be a requirement at some stage where students may want to discharge their student loans, under certain circumstances, and although the qualifications can be strict, this may be able to be achieved.

These strict guidelines must be adhered to both when applying for a discharge and also when receiving one. Some of these criteria are listed below.

The Obvious:

· If the student dies (death certificate required).

· If the student becomes permanently disabled.

Disability.

In the case of a loan discharge, the student involved must be permanently and completely disabled. This is also defined as being not able to work and earn an income due to an illness/injury that will most likely end in death.

It will pay you to check the laws in your state as these rules are continually being updated.

In some cases, only a conditional cancellation may be issued, this may last up to three years from when the student became disabled.

Another thing to consider is that if the conditions of the loan are not met, then the loan will revert back to its original state.

In either case, a doctor’s certification will also be required that will state the nature and details of the students illness/injury.

Closure

It may be possible to receive a discharge if the educational institution actually closes.

Other

It may be possible to also obtain a discharge if the loan was approved in spite of the fact that the student did not meet the requirements of the loan conditions.

Also, f the school does not meet the necessary requirements to provide adequate training or lessons to meet the student’s educational requirements.

Discharges can also be given for teachers working in low income educational facilities or who work in public schools.

Doctors working in low income areas may also be able to receive a discharge.

Another situation would be if the Student becomes bankrupt, then they may be eligible for a discharge, this would be dependent on a court ruling that would state that the student will be subjected to unfair hardship.

Bottom Line

It is always up to the student to make sure that he does the necessary research to see what rules, regulations and conditions actually apply to him (or her).

A quick and easy web search should bring us a host of information about the latest changes to any legislation that may also be applicable.

I trust that you have found some more useful tip in this short report about student loans and discharging your loan.

Student Loans – Choosing the Right One

There are many different types of student loans to choose from but the secret is to make sure that you pick the best loan that is a ‘perfect fit’ for your situation and circumstances. You also have to consider the future implications that may affect you well after you have completed your studies.

This is because when you borrow money you have to start thinking ‘long term’, it is and investment in your future that will pay big dividends. You must choose your loan wisely so that you can minimize your exposure to long term debt.

Largest

The most popular loans are of course Federal ones and although they certainly have borrowing limits the term of these loans is usually a lot longer and another good point is that they have the lowest interest rates compared to all others. They also offer the ability to defer your payment and have much more relaxed borrowing criteria.

Incentives

There are many other loan organizations that offer all sorts of incentives. Normally these are in the form of interest rate reductions, some offer to pay some of your borrowing fees or even no fees at all depending on you fulfilling certain criteria. Some companies can also offer you reductions on your loan balance if you make all your payments in a timely manner.

Private

Private loans are another option that you should carefully consider although you should at first look at the savings to be had from the federal loan programs as a first resort.

The reason is that private loans should really just be considered as a way to help you subsidize your federal loan.

Terms of all these type of loans will always vary because everyone is an individual who has a unique history and also will be determined by your credit score and also the credit score of the co-borrower (if there is one).

Check First

One of the things to consider first of all is that you should enquire at your school or university and get their recommendations, they always have ‘their finger on the pulse’ so to speak and their information will be current.

As a rule of thumb, talk to your campus first, then do a web search and compare their notes with your notes and then make more notes to point out the advantages of each available loan.

“Students and parents should first check with the financial aid office on campus for recommendations on student loan providers,” says Martha Holler, spokesperson for Sallie Mae, the nation’s No. 1 paying-for-college company. “Be sure to borrow wisely. Every dollar that you do not borrow is one that does not have to be repaid.”

Other Means

Something more to take into consideration is to prepare yourself to receive future income. Always look around and search the net for other income opportunities. Not get-rich programs, but tried and true ways you can use to supplement your income with a passive online income.

I hope that this article about student loans has been of help and wish you every success with your study.

Student Loans – Financial Myths Debunked by the Myth-Buster

There are billions of dollars that are given out to those most in need to help with their education, most of these funds are in the form of student loans.

However there seems to be a wealth of mis-information about just exactly what sort of aid is available and who can claim it.

We will show some myths that must be dispelled, find out more below. Just call me the Myth-Buster!

Financial Myths

  1. Education is Too Costly

It is true there has been a lot of noise in the media about the rising costs of education, but in spite of this, the fact remains that getting your education through a college is still one of the most easily affordable forms of education you can obtain.

Statistics have shown that students who graduate through a college are more likely to earn over $1 million more (in their careers) than their counterparts from high-school.

  1. There is not enough Financial Aid Available

The fact is that, these days, there are more students that are receiving financial aid that ever before. There are more low-interest loans available from government and private companies alike. In fact, the climate it so competitive that is only too easy to obtain financial assistance.

  1. I won’t qualify for a loan because of my parent’s high income.

This is one of the biggest myths of all time, I think it even rivals that of ‘Jimmy Hoffa is Buried in a Gravel pit somewhere in Michigan’

Financial aid is given to families that have all types of high income levels. Education has been made affordable even for those who think they can’t afford it. The only thing that may change is that the rate of interest may change with different situations.

  1. My Parents Have Too Much Savings, So We Will Never Qualify

Although having a savings plan for a college fund is a great idea, the eligibility criteria to receive a student loan is more based on current income levels than those of saving levels.

  1. Once I Apply for a Loan, I Have to Take It

No one is obliged to take a low interest loan if they are offered it. It may apply you to re-think about it though because you may not have another opportunity like this one for a long time to come.

  1. There is no way I can get into a Private School

In fact, you may have a much greater chance of getting aid from a private educational institution than some others. Private institutions often have more financial aid and support to offer to prospective students that you may be aware of.

I hope that you have gained some insights into student loans and some of the myths that are floating around today.

Student Loans – Pick Me!

Student loans, so many organizations are screaming out at you, Pick Me, Pick Me! Which one, if any should we choose? Unless you win the lottery or have a rich uncle somewhere that can give you financial assistance, then a student loan is probably a necessary evil.

I must admit that the cost of an education these days can be staggering and can be very unsettling to many to say the least.

Problems to Solve

One of the problems these days is that even the parents of students that apply for loans are, in fact, considered too wealthy for them to receive any type of financial assistance in the form of free financial aid.

There are, of course many scholarships available in a wide variety of educational institutions but some of these require quite high previous academic results to obtain them.

Another alternative is to apply for as many scholarships as you can, at least 50 – 100, you might find that you will be successful in about 2-4% of those applications.

Types of Loans

There are normally three kinds of student loans and each have their pros and cons:

Federal Student Loans:

Federal Plus Loans

Private Student Loans

Also, the types of these loans will vary also between one of the following, subsidized, unsubsidized and Perkins type loans

Subsidized

These are loans where the interest is often deferred until after the student’s graduation or unless the student ceases to qualify as a student. You still have to repay the loan through the course of your studies, the interest that is due does not have to be paid until six months after you graduate.

Unsubsidized

These loans mean that you do not have to be qualified on a needs basis. The main prerequisite is that you are an enrolled student and also studying at least 50% of the time.

Perkins

These loans are normally only available for those students that have an exceptional need. Perkins loans are normally funded through the school.

Plus Loans

These types of loans are normally obtained by parents of the students. Usually the amount of the loan will only cover the cost of tuition less and other financial aid that the student has received. The payments normally start after 2 months and the term can run as long as 10 years.

Bottom Line

The bottom line here is that you must conduct your ‘due diligence’. In other words, you need to do a reasonable amount of research to work out what sort of loan will best suit your own personal situation.

Another thing to consider with student loans is that you may consider is to find some forms of passive income that will allow you to pay the loan of even quicker than the normal term of the loan.

Student Loans – No Security Needed

When applying for student loans when you have no security to offer then one of the first things you need to consider is the type of loan you will require. That way you will be able to easily work out, if, in fact, you actually qualify to receive one.

One of the other things to take into consideration is that if you actually do have some collateral to offer then you should definitely consider using it.

Types of Loans

Federal: Federal student loans are subsidized by the government. They always have a much lower interest rate applied to the loan because their purpose is to promote education. This interest rate is even much lower than those of housing loans.

Normally though, the term of these loans is always a lot longer. Also, the actual loan amount that you will get may not be enough to cover all of your college expenses.

These types of loans are also issued on a needs basis and so not all applicants will be successful in securing them.

The best way to see if you qualify is to contact your nearest government agency to ask them.

Private

You can also apply for private unsecured loans that don’t need any collateral. The good thing here is that even if you don’t own a home or apartment you can still apply.

Normally with these types of loans the interest rates are always a bit higher and therefore the monthly repayments will be higher also.

This means that you will have to show the means which you have at your disposal to actually pay for the repayments.

Non Profit

It may also be possible to obtain an unsecured loan from a non-profit organization. These companies normally have lower interest charges.

They can, however, have similar restrictions to those of government type loans because they can be awarded on a ‘needs’ basis.

Normally these loans are given to those individuals who have shown extremely high performance abilities towards their studies.

Different Strokes for Different Folks

It will always be in your best interest to always conduct due diligence and search out all of your available options. Look for those companies that offer a selection of different services and also that have good customer service.

It is a good idea to outweigh each of the good and bad points from each institution, this will make your decision-making process much easier. As long as you can afford the repayment plans then you should be OK.

You can always look at different methods to make more money in other areas, such as a part time job, some sort of passive internet income or even consider your own crowdfunding gig.

I hope that you have found as much information about student loans as you require.

Student Loans – Alternative Financing – Should We Be Worried?

Student loans and alternative financing methods – what are your options?

Part 1 – The Set-up

One of the interesting things to think about is the fact that, due to the higher costs of education, many students are starting to wonder and also worry about the financial implications of getting a higher education.

This is affecting many people in such a way as to make themselves start to question just how far they should go with their studies, i.e. some are thinking they may be better off looking at a career that perhaps pays a lot less just so they are able to afford the cost of education. This way of thinking is, of course, a mistake.

It shouldn’t matter about what you want to study and make your lifetime career, the ONLY thing you need to consider before you decide to embark on your studies is this:

Are You Passionate About What You Want To Do

Forget about costs, forget about the future problems that may or may not arise, just make sure that what you want to study is more than an interest, make sure it is your passion. If you think of your career in this way, then you will be assured you can meet any challenges and problems that come your way.

In the words of Alfred E. Newman ‘What… Me Worry?’

In fact, I DO know of about 20,000 people who live not far from you, who do not have a worry in the world. This is because they all live in the cemetery!

Problems, worry, hardships are all a part of living and they are there to help us learn. We just have to understand this fact and move on to our problem-solving stage.

Part 2 – The Solution

Alternative financing can come in many different forms, both traditional and non-traditional, we will look at some of those solutions below.

Traditional:

There are always the traditional methods of financing and income production that include:

· Normal job

· Part time job

· Family support

Bearing in mind that most traditional forms of producing an income still require that you sacrifice your hours in the day for an hourly wage, no matter how big or small.

Non Traditional:

These are the more modern methods of producing an income that have surfaced over the last few years and they are where most people now are looking to

· Online News-Letter or Blog.

· Micro-publishing

· Crowd Funding

Let’s elaborate on these non -traditional methods a little more.

Online News Letter or Blog

This can be a great way to generate more money and help ease the financial burden. What many people have done have set up a blog about a newsworthy or interesting topic.

When people read the newsworthy article, about a topic they are interested in, they are asked to subscribe to a weekly or monthly newsletter that keeps them up to date on their topic.

You can charge about $5 per month, the good thing about this is that the amounts are not big enough so that people will cancel, they usual keep paying every month because the information they are getting is well worth it.

If you have 100 people subscribe to your newsletter, then that is $500 per month.

Micro Publishing

This is where you publish small books online on Amazon. People are hungry for knowledge, they keep buying the latest books to get the information they are hungry for.

Points to Consider with micro-publishing:

  1. It costs you nothing to register an Author account with Kindle
  2. You can publish any size book – 10pages-30 pages etc.
  3. The average size micro book is about 35 pages
  4. You can easily outsource your books
  5. You can have as many author names as you like (one for each niche is a good idea)
  6. You don’t have to promote your books
  7. You have the advantage and power of the multi million Amazon audience
  8. People only go to amazon when they want to buy something
  9. Small – short, problem solving books are ideal. They solve a problem in a timely manner.

Cowdfunding

This is the platform that allows you to receive donations from friends, family and total strangers.

Take a look at some of the online crowdfunding sites online. It only takes a few minutes to set up your own crowdfunding proposal.

There is also some software you can get which will allow you to set up your own crowdfunding website in only a few minutes. Certainly, crowdfunding an amazing new tools and many people are now making great money for their own sites.

I hope you have had a few ahaaaa moments with student loans – alternative financing and I wish you success with your studies.