Why Federal Student Loans Payments Have To Be Taken Seriously

Some of the pressing points for people who make the most of loans from the federal government to finance their college career is federal student loans payment. Particularly with the unsure economy these days, where even those with advanced degrees are having difficulties getting a job, students are having second thoughts about getting a loan with the worry that they may not be capable to repay it on time and will commit a federal offense.

The first thing that students need to know with regard to federal student loans payment is that anyone taking advantage of it is given a sufficient grace period to start paying for the loan. Whether a student drops out of college, takes a leave or graduates, there is a period of time before he or she is obliged to start repaying for the federal loan. The grace period for federal student loans payment is dependent of what type of loan the student has decided to get.

For borrowers in the Federal Stafford Loan (either in the Direct Loan Program or Federal Family Education Loan (FFELSM) Program), the allotted grace period is six months from the date of official leave, dropping out, or graduation. For Federal Perkins Loans, the federal student loans payment schedule starts nine months after graduation, leave, or dropping out.

A different payment schedule is provided for borrowers of the Direct PLUS loan. This loan starts as soon as the original PLUS loan is fully paid out, and the due date for the first payment is 60 days after the last payment.

But no matter what loan the borrower takes advantage of, he or she will be given information regarding federal student loans payment schedules and other details by the loan servicer. It is imperative that the borrower makes a full and timely loan payment either monthly or according to the schedule arranged and provided by the loan servicer. Not making payments on time will result in default, which in turn brings grave consequences.

Defaulted payments, which mean loans that remain unpaid on time, may resort to different actions of the different parties involved in the loan. This includes the borrower's school, the making or owning financial institution of the loan, the guarantor of the loan, and the federal government.

Payments that were not made on time will result to national credit bureaus being notified of the student's default, which will adversely affect his or her credit rating. This can make it difficult for the defaulting student to make major purchases like a car or a house. For students who left school and defaulted on their payments, they will not be eligible to take advantage of additional federal aid. Moreover, payments can be deducted from the paycheck of borrowers in default. In addition to what is owed, late fees may also be charged to delinquent borrowers. Lastly, the borrower can be sued.

Thus, it is very important for payments to be made by the borrower on time, according to schedule. Borrowers can actually choose from various repayment plans that should cater to their individual needs. If the borrower chooses the correct repayment plan, federal student loans payments can be made without any problems.

Don't let your odds for schooling go bye. If you don't have enough funds to finance your profession now at the beginning, think about how you're going to have enough funds once you get a greater job with a better diploma level, and to have the ability to repay your federal student loans. Additionally, learn more concerning direct federal student loans.


Original article

Student Loans Available Directly From The Federal Government

Federal Direct Student Loans are available to assist those vocational, undergraduate, and graduate postsecondary students (or their parents) and allows them to borrow money directly from the Federal government. It's done this way so that these students or their parents do not have to take out loans through private or other commercial lenders that oftentimes have much higher mortgage rates or simply will never provide a loan.

There are different variations of a Federal Direct Student Loan available; they are determined by whether or not the student is eligible for government assistance. Need based programs include the Stafford Loan and the Direct Subsidized Loan; while non-need based programs will be the Direct PLUS program, and the Direct Unsubsidized Loan.

Federal Direct Student Loans are overseen by the Department of Education. In order to be qualified to receive Federal Direct Student Loans the student needs to be a United States citizen or an eligible non-citizen (therefore those with Alien Registration Cards or those with Arrival Departure Records with specific designations). To qualify for Federal Direct Student Loans the student must be accepted or currently already enrolled in a degree or certificate program. The student must be at least a half-time basis undergraduate, graduate, or professional student at a postsecondary that participates with Federal Direct Student Loans. Students usually are not allowed to owe a refund on another a Title IV grant, and cannot currently have a Title IV loan that is defaulted. The student may also have to get a certification of eligibility from their school.

For students that are already signed up for college to remain eligible for Federal Direct Student Loans they have to maintain satisfactory academic progress in their course of study. Whenever they neglect to do so, it is grounds to start the repayment plan. If this were to occur though the student would be notified before the loan simply went into repayment.

Before acceptance, the school that the student is attending/enrolled in must certify that the borrower is eligible to be given the funds from the Federal Direct Student Loan. Schools can grant the students the money by issuing a cash or check, transferring the money electronically, or applying the sum directly to the student account at the school.

Repayment on Federal Stafford loans begin around six months after the student stops being enrolled in at least one-half the normal full-time academic course load. This can be either graduation or termination of the program by the student or school. For the other loans that are available under the Federal Direct Student Loans, repayment starts within 60 days after the student is no longer enrolled.

The overall loans were $13,022,000,000 in 2007; approximately $14,103,000,000 in 2008; and approximately $14,867,000,000 in 2009. There were over 2.9 loans in 2007 alone.

For additional info on Federal Direct Student Loans, the student can contact the Department of Education or the school that they attend/are enrolled in. Applications for the Direct Subsidized and Unsubsidized loans are extracted from the school. Direct consolidation loan applications are obtained from the Department of Education.

Michael Saunders is an editor of TopGovernmentGrants. He maintains Websites providing resources on small business grants and children grants.


Original article

Collection Agencies May Be Cleared for Robo-Calling Cell Phones

The collection agency may be getting a break that they've been waiting for. President Obama is putting forth legislation, it was announced today, to allow collection agencies to robo-call cell phones in order to collect past due student and other government loans. As expected, there has been an outcry from consumer advocate groups, and some senators have refused to comment because they have always assumed consumer friendly roles.

To be clear, as of now the ruling will be only for those that owe student loans, and other "undefined' government obligations. The move is an effort for the government to collect more money but industry experts doubt that it would have any measurable effectiveness on the overall ballooning debt. The other concern of course is that it won't take much to extend this ruling to all types of consumer debt.

The collections industry has been lobbying for years for this type of prohibition to be lifted. Their principle argument being that millions of consumers have given up their landlines completely since the rates of cell carriers have become so competitive.

Most cell phone users have responded to this as an invasion of privacy and recent comments on some news sites have a common theme about the ease with which cell phone calls can be ignored and dismissed. In addition, many apps are available to block numbers entirely. It's safe to assume that many more of these types of apps will be available soon as well.

Many times people overlook the danger inherit in ignoring calls from collection agencies, regardless of the source or destination. Collection agencies can be relentless when searching for a debtor. When the money is owed to the government, that effort can be amplified many fold. Ignoring the collector will not make the debt go away and in some cases, it could make the debt amount increase.

When a collection agency is unable to contact a debtor, there are a limited number actions which are then open to them. The debt might be sold to another agency or debt buyer and the process may start all over again. The debt may be assigned to a skip tracer, or legal action may take place.

Taking a debtor to court is not a difficult procedure for collection agencies and they often win the case simply because the debtor chooses to ignore the summons.

This new ruling will not change a lot of what already goes on between collection agencies and debtors. But it will make things just a bit more difficult when it comes to avoiding robo-calls.

David Miller is a freelance writer and marketing consultant. He has written extensively about bankruptcy, debt settlement, debt consolidation, credit and credit cards, collection agency abuse, consumer law, credit card defense, FDCPA guidelines and complaints, loan modification scams, and foreclosure.

He contributes regularly to financial and real estate blogs.

He currently edits several websites and is a contributing author to many of them including http://lawfirmslongisland.com/

His articles about foreclosure, debt discharge, student loan debt and many other topics in the area of bankruptcy, credit and can be found at http://lawfirmslongisland.com/ along with links to other resources which he has been a contributing author.


Original article

College Money With No Cosigner - Student Loans Are Available

Trying to afford a college education in the 21st century is not easy. We are in a depressed economic time which simultaneously makes college a necessity for getting a secure job while making affording that education nearly impossible. The worst part about this is that the tuition costs for every school from community colleges up to Harvard just keep rising.

Potential college students who lack personal savings or a family with the means to help finance an education traditionally need to turn to student loans. However, these loans are hard to obtain for some people who have bad credit and no cosigner. Student loans are available, however, if you know where to look.

Government Option

The most popular way to finance a college education with no cosigner on your student loan is through government-sponsored programs. Many people have heard of Stafford Loans and Perkins Loans, which are those offered by the federal government to help pay for college. You apply for federal money through your college's Financial Aid Office. These student loans offer some distinct advantages:

1) No Cosigner Required - many private lenders will ask you to find a cosigner on your student loan, especially if you have bad credit. Government loans do not require this.

2) Credit Is Less Important - the government's standards for issuing student loans are much more relaxed than most private lenders. They may not even require a credit check and if they do, they are generally much less strict as to what qualifies as acceptable credit.

3) Delayed Repayment - the number one benefit of most government-sponsored student loans is that you do not need to make immediate repayment on them. Instead, you begin to pay for them only after graduation. Some loans, such as Subsidized Stafford Loans, do not even accumulate interest as long as you are in school full time.

The best way to figure out which government-sponsored student loans are right for you is through contacting your school of choice. There are several educational lending professionals there that will help you determine what you need and what you can get.

Going to Private Lenders

Once you have exhausted your options in terms of government loans, there are still other ways to get the money you need to pay for school. Several online alternative lenders specialize in granting educational loans and other bad credit lending solutions that you can use to meet your school payment requirements. However, there are some key differences between private lenders and the government:

1) Immediate Repayment - since the private loan that you take does not have government subsidization, it is likely that you will begin to make payments on your tuition money immediately. However, even a part time job can suffice in terms of the monthly payment needed. Some lenders may even work out that you only need to pay interest charges as long as you are still in school.

2) Credit Is More Important - when working with private lenders, your credit history will be more important than with the government. Though many lenders do offer bad credit college loans, you will need to be prepared to pay slightly higher interest rates due to your poor credit in the past.

3) Cosigner May Be Required - in the event that you cannot qualify for a college loan on your own, many private lenders will ask you to find a qualified cosigner. Often a parent or older relative with a stable job is a good candidate.

You Can Go to College

Even though the prospect of finding several thousand dollars to finance a college degree can seem impossible to you now, it is by no means that way. There are options for funding your college education, even with no cosigner. Student loans are available in many shapes and forms. You just need to know where to look.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com


Original article

You Can Get a Bad Credit Student Loan Without a Cosigner

Attending a college or university will probably be the most expensive proposition of your life. Fees and tuition for a higher education are stretching financial resources rather thin, making them harder to access. And the proposition becomes more burdensome when parents or family cannot help with the expense. In such a situation, many students will be faced with finding a loan, hopefully one without a cosigner.

Cosigner Facts

Having a cosigner has a lot of pluses and minuses. Cosigners must be someone you trust and with whom you can share all your financial aspects. They are usually family members or other individuals with a great interest in the students future. They should have a steady income with a decent salary. Their credit rating should be good. The cosigner must realize that should you default for any reason, the loan becomes their obligation. Should the payments on the loan be on time and in the amount agreed, the cosigner can sometimes be relieved of his or her obligation since the lender has a record of solid payments.

Federal Venues

Landing a no cosigner bad credit student loan is not so easy. They are not impossible to obtain, you just have to look in the right places. The government is the logical first choice. It has access to many resources to help students get funding for an education. Among them are bad credit student loans that do not require a cosigner.

No Credit Check

For these government loans, there is no rewarding the loan based on credit histories. They are not considered. These loans, since they are they are guaranteed by the government, are able to offer low interest loans to student -- loans without a cosigner. Since they know the government will buy the loan should you default, their requirements are somewhat relaxed.

National Interest

The federal government is well aware of the benefits of a people who are adequately educated. In the interest of the nation they need to help as many students as possible through the education system. Some of these offerings do not come due until studies have been completed. You start making payments once you have become employed after finishing your course of study.

Private Lenders

The going is not so easy with private lenders. Their interest rates will certainly be higher since they have no one nor any collateral to cover the loan should you default. Payments will be due directly after the loan has been made; there is no putting it off until after school. You may want to do a little shopping in this market in case you do not get approved for a government loan.

Your Best Source

Your school will have a qualified staff at your disposal so that you can figure out the best way for you to get the financial assistance you need. They will give you information on all forms of financing. You may not be able to get a loan to cover all your costs, you should be able to find one that will give you enough breathing room to study and carry a part-time job to cover day-to-day expenses.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com


Original article

Federal Student Loan Limits - Why Student Loans May Not Be Enough

While it may be true that taking up a federal student loans may be your best choice when it comes to using a loaning option to pay for your university dues, there are certain instances when simply using this option will not be enough. It is true that federal loans have more favorable policies than private ones, but the amount of money that you stand to get from this type of loan may be lower as well. As tuition fees increase over the years, the values that are prescribed for federal student loans limits have remained in the same level. This means that taking up one federal student loan may not give you all the money that you need to cover your whole tuition fee. You might have to take up a couple of loans in order to come up with the over-all amount that you need for the whole semester.

An example: for Stafford loans, students are allowed to borrow the following amounts for every year that they spend in the university: $2,625 their first year, $3,500 their second year and $5,500 for the rest of the years that they would spend in finishing their degrees. While these federal student loans limits may seem like they are enough to cover all the expenses for a certain year, one would find that the amount would fall short eventually. In addition to the tuition fee and the other miscellaneous charges that you would have to spend upon enrollment, you also have to use this amount to cover food, lodging, and other expenses for the rest of the semester. Of course, students who are completely independent from their parents may request for additional subsidy but the additional amount usually falls short as well.

If you have set aside a certain amount of money for your degree, then you could simply use a loan to supplement your nest money. However, if the money that you have is nowhere near to being able to cover all the expenses that you would have to fend for, then there is a possibility that you would have to take up more than one loan. Taking up a handful of federal loans can be pretty hard for you to deal with in the future, but doing so is much better than taking up a high interest loan from a private institution.

There are a lot of institutions that may be able to give you the amount of money that you need, but they would surely conform to certain federal student loans limits that would prevent you from getting the full amount that you need. For this reason, you need to make sure that you peruse through every single option that you have before you commit yourself to a single loaning option. Make sure that the limit that will be placed on your account is one that will give you the most benefit. See to it that you also consult the right federal groups and agencies, in order for you to find the best options that you may use.

Do not let your chances for university education go bye. If you do not have sufficient income to finance your career now at the beginning, take into consideration how you are going to have enough funds when you get a greater job with a higher degree level, and to be able to repay your federal student loans. Also, be taught more about federal student loans payment.


Original article

The Different Routes To Federal Student Loans Forgiveness

Federal student loans forgiveness is the name used when the federal government decides to cancel a complete educational loan or part of it under a variety of circumstances. If a former student who took advantage of a federal educational loan to fund his or her college or post-college education decides to undergo federal student loans forgiveness, he or she should pass a number of qualifications.

These conditions or qualifications include:

- Having to perform volunteer tasks;
- Having to perform service in the military;
- Agreeing to practice medicine or teach in assigned areas;
- Meeting other criteria particularly stated by the loans forgiveness program.

Read on to know the particulars of each criterion to take advantage of loan forgiveness.

Volunteer Work

There are a number of organizations that offer federal loans forgiveness should a student loan recipient serve under them. These organizations include:

- The Peace Corps: Volunteers who serve in this organization may file to have their payment of their consolidation and Stafford Loans deferred. There is also an option for those who have gotten Perkins Loans for either payment deferment or partial cancellation of 15 percent of the loan for every year served up to 70 percent. The Peace Corps, headquartered in Washington DC, offers volunteers the chance to travel to other countries and do volunteer tasks that affect entire communities. Volunteers are usually given an initial service term of two years.

- Volunteers in Service to America, or VISTA, is another organization that offers student loans forgiveness. Volunteers are assigned to private NGOs that aid in the areas of poverty, illiteracy and other social concerns. Volunteers who have amassed a total of 1,700 hours of service will be given $4,725 for federal loan payments.

- AmeriCorps gives its volunteers $4,725 for use in loan payments, aside from stipends that can reach up to more than $7,000. Volunteers are usually asked to serve a full year to take advantage of federal loans forgiveness.

Military Service
Students who have enlisted in the Army National Guard may qualify for the Student Loan Repayment Program. Qualified individuals are offered up to $10,000 for loan repayment. Military and veterans' associations also have programs that provide tuition and scholarship assistance.

Teaching Opportunities
If a student who has an outstanding federal student loan becomes a full-time teacher in a school that has a majority of the student population in the low-income bracket, he or she can have part of his or her Perkins Loan condoned under The National Defense Education Act. Under this forgiveness exercise, 15% of the loan is forgiven for the first two years of teaching, 20% for the next two years and 30% for the fifth year. The student should contact his or her local education department office to check which elementary and secondary schools qualify as facilities that provide government loans forgiveness.

Other methods that lead to loans forgiveness include the following:

- Forgiveness for law enforcement students who work as State Troopers in the state of Alaska. 1/5 of the Michael Murphy Loan to study law-related fields is forgiven for every year of service.

- State and government employees of the state of Maryland who earn not more than $40,000 are eligible for either loan assistance or repayment for studies in the fields of social work, law, nursing, education, and physical and occupational therapy.

- Law schools also forgive student loans for those who serve in non-profit organizations and the government. Interested parties should contact Equal Justice Works and the American Bar Association.

The US Department of Health and Human Services, the US National Institutes of Health and the US Department of Agriculture also have different repayment programs for federal student loans forgiveness.

Don't allow your chances for schooling go bye. If you don't have sufficient money to finance your career now in the beginning, think about how you're going to have enough funds when you get a greater job with a better degree level, and to be able to repay your federal student loans. Also, learn extra regarding non federal student loans.


Original article

The Federal Work-Study Program May Be An Appealing Way To Work Part-Time And Pay Debts

Are you hoping to graduate from college with as little debt as possible? If so, you may be planning to work during college to cover some of your tuition expenses. While there are many part-time jobs out there that are suited to college students, the Federal Work-Study Program is often the best deal for students who qualify. While you'll still have to work for your money, you'll know you are receiving fair, dependable compensation that won't count against you in your application for financial aid.

What are the financial benefits of participating in the Work-Study program? The biggest benefit is that your earnings won't count when your financial aid eligibility is being calculated. If you earn over $3,000 in a year from a job that is not part of the program, your earnings will decrease the amount of your federal financial aid package. The earnings from your job, however, will not be used in calculating your Expected Family Contribution for college.

There are many additional benefits to a Work-Study job, as well. For one, though it is mandated that Work-Study salaries meet the minimum wage, many of these jobs pay more than this. You will likely earn more from your Work-Study job than you would earn working in retail or doing a similar student-friendly job. In addition, you'll probably be given the option to have your wages applied directly to your college tuition, so you won't have the temptation to spend your money on other things.

In most cases, your employer will be your college itself. Colleges have a certain amount of funding each year to hire Work-Study employees. The jobs you could do are varied and will depend on the openings at your college. You may do clerical work for your department or another office within the college. You could serve as a tutor, librarian's assistant, or even a cafeteria worker.

You may be interested to know that a minimum percentage of an institution's work-study funding must be used to support community service jobs. This means that you may be able to find a Work-Study position doing something you love that helps the community. Serving as a literacy tutor for young students in the community or working on an emergency response team are some examples.

You can even get a Work-Study job with a private for-profit organization, a non-profit organization, or a federal, state, or local public organization. Even though in most cases, your school will be your employer, there are many related employment opportunities out there if you know where to look.

But how do you know if you are eligible for this type of program? Not every student meets federal requirements. Basically, you must have unmet financial need as determined by your FAFSA report. Your Expected Family Contribution must be under seven thousand dollars for you to officially qualify.

Work-Study is a great opportunity for college students to take a more proactive role in reducing their college debts and limiting financial aid. Qualified students will be glad that they worked hard to pay off some of their tuition while they were still attending online school.


Original article

Even With Bad Credit, Student Loans Are Available

Many Americans are increasingly finding that it is essential for them to earn a college degree in order to advance in the workplace in the 21st century. Whether you are a recent high school graduate or simply an adult looking to expand your working skills and resume, getting a Bachelor's degree or continuing on to graduate study, will make a huge difference in your earning power over the course of your life. In fact, just earning a two year Associate's degree is said to increase your yearly earnings, on average by $10,000 per year. Over your lifetime that $10,000, which increases exponentially with higher degrees, can make the difference between a comfortable middle class lifestyle and living paycheck to paycheck.

Bad Credit Barriers

The problem that many Americans simultaneously face when it comes to college, however, is a struggle affording tuition payments. Many young students have no credit history and therefore fear they cannot obtain a student loan. Older students may have made credit mistakes in the past and ended up with a bad credit score. Either way, financing your college education through student loans can seem challenging.

However, there are many options available to college students that provide specialized help. These loan programs recognize the importance of an education and will allow you to borrow money to be able to afford college regardless of your credit score.

Federal Student Aid

The federal government is one entity with a vested interest in helping students to get the money they need for college. Through several popular loan programs, the government provides low, fixed interest student loans that will not take credit into consideration. The most popular among these loans is the Stafford loan program which is easy to qualify for and does not require a credit check. Almost anyone can qualify for a Stafford loan, but there are two issues that may cause a barrier to getting the money you need.

1. Default on previous student loan payments - if you took a student loan in the past and failed to repay it, the government will not lend to you again until you settle that debt and/or become current in your repayment.

2. Criminal history - if you have a felony on your criminal record, there are also barriers to being able to obtain federal dollars for student loans. However, the government does offer counseling services for those with a criminal background that will help you to qualify for their student loan money.

Other than these two issues, all college students, regardless of their level of education, will receive Stafford loan money without hassle.

Private Lenders Also Provide Options

Once you look into the possibility of getting money through the federal government's programs, your next option is to look towards private lending options. Though bad credit will have an impact on the interest rates that you pay, private lenders are willing to work with you to fund your college education. There are many online lenders who specialize in bad credit student loans who will help design a repayment plan that takes your student status into consideration.

The benefits of college over your lifetime are too great to count. Earning a college degree has a huge impact on your job prospects as well as your ability to earn money. Making the choice to go to school is one of the best ones you can make for your future and, as a result, there are several ways to finance those dreams, even with bad credit. Student loans are available for anyone who has the desire to learn.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com


Original article

Student Loans for Bad Credit Borrowers Are Available for Those Who Know Where

With the economic difficulties that abound, there seems to be no shortage of people with bad credit ratings. Financial troubles tend to create payment problems, which in turn reduces credit scores and places honest people in the bad credit bracket. So, when it comes to getting financing for college, student loans for poor credit borrowers are often seen as the only realistic option available.

But the truth is that there are other options, and other loan forms, available to students who have such a negative financial overview. Thanks to the full range of student loans with bad credit, available from traditional and governmental lenders, the right financing aid is there for the right applicant to access.

Still, getting the money to pay for tuition fees can be complicated if the options are not fully known. So, for students with poor credit seeking loans, it is important to take a look at what is on offer.

The Colleges Option

A visit to the Financial Aid Offices on any college campus can reveal a great many more loan and financing options to a student, not just student loans for bad credit borrowers. Many of these options are provided by the colleges themselves, through scholarships, grants and even fee payment schedules.

Colleges want their students to stay and live in good conditions, even if it means making tailor made student loans with poor credit available. If an educational institution were not to look after their students, then word would spread quickly and enrollment each new year would begin to fall. Looking after their own makes good sense in every respect.

Students with bad credit seeking loans, and other forms of funding, may find they can avail of special schemes to lessen the pressures on paying fees, or may qualify for a part scholarship or student grant from the college itself. However, the Financial Aid Offices can also advise on loan options outside the college too.

The Federal Option

Turning to the government or federal financial help is another viable option, and one that is considered the most affordable amongst student loans for bad credit borrowers. This is because of the fact that loans are guaranteed by the government, and therefore come with lower interest rates. What is more, some are subsidized, which means that the government pays the interest on the loan while the borrower is at college.

There are two principal student loans available, the Stafford and the Perkins loans, with the only real difference being that the Perkins loan is available to those students in particular financial need. The Stafford loan can be subsidized and unsubsidized, but payments on the principal can be deferred until after graduation. Most students with poor credit seeking loans are pleased with that aspect, certainly.

The Private Option

Of course, the traditional or private loan option is also a viable choice, though the problem is that the terms of student loans for bad credit borrowers are generally quite poor. However, there are lenders that specialize in student loans, and who offer better terms that general banks and credit unions.

Unfortunately, then student loans with bad credit require credit checks, but given the purpose of the funds is college fees, they are easier to get than for a personal loan, for example.

Finally, online lenders are another option for students with poor credit seeking loans, and provided sufficient searching is done, and the lender is checked out with the Better Business Bureau, the option can be a good one.

Online lenders generally have lower rates of interest than traditional lenders, making it preferable as a student loan for bad credit borrowers. Still, who would not prefer an all-inclusive scholarship?

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


Original article

Student Loans: Bad Credit Is Not a Barrier to College

Choosing to go to college, whether you are trying to train for a new career or simply move up in your current position is one of the best decisions that you can make. It is a fact that those with more education make more money over their lifetime. Therefore, financing a college education, no matter how expensive it may seem at first, is always a worthwhile investment. Even if you have bad credit, student loans can help you achieve this dream of obtaining a college degree and a secure job and paycheck in the future.

Getting a Cosigner Is Wise

Many people with bad credit struggle to acquire loans since their history of repayment on previous loans was not too good. Lenders consider them a risk and therefore refuse to believe them when they claim to have reformed. However, if you can convince a family member or close friend of your sincere desire to return to school and responsibly repay any loan money that you take out, you may be able to convince a lender as well.

Student loans are often offered in the same manner as personal loans. That is, they are given to those with bad credit as long as they employ a cosigner. A friend or family member with a good credit score who is willing to vouch for you and put their name on your loan can be the key to obtaining the student loan that you need. However, it is very important to note that your contract with this lender can affect the credit of your loved one as well. This is why knowing your intentions and having a solid plan for repaying your loan is essential. Otherwise, you risk saddling the other person with your debt and likely ruining your relationship.

Look for Special Programs

Another great option when it comes to student loans is the many special programs offered by the federal government, individual schools and private lenders. Student loans are specifically designed to help pay for tuition, room & board, and books fees for college students. Basically, they finance the essentials so that you can concentrate on your education. Because of the benefits of that education, the government and other entities are willing to overlook your bad credit history and offer you loans at low interest rates that will stay fixed for the term of the loan.

There are several programs to choose from. They include: subsidized Stafford loans, unsubsidized Stafford loans, Perkins loans, PLUS loans, and Pell Grants. There are also many colleges that will help you finance your education through grants, scholarships and work-study programs. Private lenders who specialize in helping students afford their degrees can design a lending package that is specific to the needs of a student who cannot work full-time. One other option is to look to your current employer for reimbursement options if the education that you obtain relates to the job that you currently have.

You Can Afford the Education You Want

Bad credit happens for a number of reasons. Many times the circumstances are out of your control. This does not make the effects of bad credit any less hard to take. However, bad credit should not be a barrier to getting money for college. Student loans are a specialized form of lending that will allow you to get money without a credit check or with special compensations for your bad credit score.

By looking at all the options available to you, the likelihood of affording college is far greater. Over time, the education that you receive will positively impact the salary you earn and help you to achieve the life that you always dreamed of having.

Sarah Dinkins is a financial advisor who has been associated with Unsecured Personal Loans since long ago. She also holds a master degree in economics from Harvard University. To find home loans with bad credit and other financial products please visit http://www.badcreditfinancialexperts.com/


Original article

How to Pay Off Student Loans Quickly

If you are wondering if there are ways to pay off student loans quickly, know that you are not alone. For what they offer at the time, student loans can be a great help in paying for the cost of your education. However, many individuals become frustrated when these loans become due.

If your loan turned out to be too burdensome for you to pay off quickly, there are quite a few ways you can try to get this done. Here are some of the ways for your consideration that are available to you.

One of the best ways to pay off student loans quickly is to only accept loans with shorter repayment terms. Obviously, you should never agree to a monthly payment that you cannot afford. However, if you can cut back in some areas, and make the maximum payment each month, the terms of the loan will be satisfied much faster than had you accepted a long-term loan.

So long as your loans are not privately funded, you may be able to get the government to help. The Federal Student Loan Repayment Program is in place ( http://www.opm.gov/oca/pay/StudentLoan/ ) to help people just like you repay these loans.

There is currently a limit of $10,000 per year, but the total that you may qualify for is $60,000. Should you be approved, you may be able to indeed pay off student loans quickly. You can even look into the fact that employees in certain areas of public service may even have their debt cancel.

If you are employed, you may be able to get your employer to help. There are indeed many companies that are willing to help pay off student loans for employees that are valuable to them. Of course you will be required to remain in the employ of the company for the duration of the loan payment. Check to see if your employer has any such repayment perk in place. If not, you may be able to negotiate this when you receive your next raise or promotion.

Most people do not realize that it is possible to attempt to negotiate the interest rates on student loans. This could be possible with both private and federally funded loans. If you wish to pay off student loans quickly, you should take the time to ask if this is a possibility. Even if your request is denied, it will cost you nothing more than a bit of your time to find out if the rates may be reduced.

Cosmus Lewis is an Internet Marketer since 2007 and discloses strategies in several areas in online marketing. His passion is to become better and better at what he does, so he can offer the best to those he serves. You will find some of his work here http://wwwdebtreductionguide.blogspot.com/ A great option for debt reduction.


Original article

The Severe Consequences Of Defaulting On Student Loans

Taking out student loans is a necessary step for many students who need to finance their education by means other than personal income and forms of financial aid. Taking out these loans is a big responsibility on the part of the student. Unfortunately, college debt can be overwhelming, and many students find themselves unable to make payments when their loans eventually come due. As a current or prospective loan holder, you should know that defaulting on your student loans is not an option you should ever consider. Learning how defaulting on your loans can harm you in the future may help you to make the right decision when it comes to your student loans.

You've heard of people declaring bankruptcy and losing their homes. Similarly, people who default on car loans have their vehicles repossessed. While these situations are hardly desirable, a person who loses his or her house or car is no longer responsible for payments on the loans. As a student who is overwhelmed by student loan debt, you may think that defaulting is also an option for you. Unfortunately, this is far from the truth.

What happens when you default on your loans? For one, you can never really get out of paying back your loans. If you default, your guarantor will garnish your wages, meaning that they will force your employer to take money out of your paycheck until your debt is paid. Your annual tax refund will also be garnished to be put towards your debt. Lottery winnings may even be taken. In other words, you have no choice but to eventually repay what you owe.

In addition, defaulting on your student loan will actually increase the total that you owe. Why? Because by turning over your debt to a collection agency, your guarantor incurs a fee that will be passed along to you, the defaulter. Your debt could increase by as much as 25 percent, simply because a collection agency has been brought into the picture.

You'll also harm your credit by defaulting on a student loan. If you are a young student, you may not think having good credit is important to you, but just wait until you want to buy a house or a car! You won't be able to, since no lender will trust you or accept you as a borrower due to your history of defaulting on your student loans.

Of course, economic hardship is a reality for many recent college graduates. If you have not found a job by the time your loans come due, or if you are experiencing financial difficulties, you have options. Talk to your lender about deferment, forbearance, and other options that you have to put off or reduce the amount of your loan payments until you get back on your feet.

Undergoing financial counseling both before and after taking out student loans is always a good idea. This way, you'll be aware of all your options as well as the consequences of your actions if you default on a student loan.

For many students, incurring debt to pay for college is unavoidable. Student loans can creep up on you. What can be avoided are the results of irresponsible loan management. Consider all the options to help lower a college tuition, such as online classes, before committing to a school and taking out any loans.


Original article

Student Loans Help College Goers to a Better Future - Even With Bad Credit

Even for those of us badly affected by the economic crisis of recent years, there is a safe knowledge that the situation will improve. It is not just wishful thinking, but a proven aspect of economies and already signs of recovery can be seen. Such faith is part and parcel of student loans, where the lender often delays repayments so that the borrower can concentrate on their future.

Of course, students now are the hard-working professionals of the future, those money makers on which lenders will rely on continuing their business. And this fact helps to explain why it is possible to get loans approved for students with bad credit.

It can come as a surprise just how straight forward a process there is to getting loans for students with bad credit, as well as the range of loans available to them. However, with such faith in the future prospects of the well-educated, lenders are willing to overlook some factors that would otherwise ensure rejection for the rest of us.

How Can Students Have Bad Credit?

But since students typically emerge directly from high school, how is it that lenders can consider them as having a bad credit rating. Well, the fact is that student loans are available to more than just the recent high school graduates. Those that have just graduated have probably never had a loan before, and in the absence of any evidence of good credit habits, the only option to start the borrower from the bottom rung.

Other students seeking such loans are those who have returned to college having worked for a number of years. They generally look to improve their career and employment prospects, but have already developed a poor credit history. Logically then, loans approved for students with bad credit are perfect for them.

A third type of loan applicant, however, is the student who is in a third of fourth year in college and is experiencing real financial difficulties. With no real income to speak of, and outstanding debts, their best option is to seek loans for students with bad credit and benefit from the delayed repayment agreements to help them get by.

Typical Loans and Their Terms

In reality, student loans are available to practically any student. But there is a variety to choose from, and the right one is often dependent on the situation of the applicant. The first choice to consider is whether to seek a loan from a private or a public lender.

Private lenders are fine for everyone that can afford them. But loans approved for students with bad credit usually come with high interest rates, for three reasons - firstly, the student has been given a bad credit rating; secondly, repayments are usually delayed, thereby forcing the lender to wait for their money back; and thirdly, there is a certain degree of uncertainty that a good job with the required income will be secured.

But student loans with bad credit are also available from pubic sources, like government sponsored loans. These loans are available at much lower interest rates, usually include a repayment delay until after graduation, but crucially are guaranteed by the government. So, the financial pressure on the students from these student loans is significantly less.

How to Secure a Student Loan

The first step is to approach the Financial Aid Offices on campus. Advisors at this office can recommend whether loans approved for students with bad credit is best from the private or public sector. After all, public loans are provided to those most in need of financial aid, and not just anyone.

Of course, while student loans with poor credit are typically high interest loans, online lenders tend to offer better deals. It is always worth looking checking out the internet student loan options.

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


Original article

Student Loans With Bad Credit: A Review of the Facts

The economy and the worldwide job market have taken a serious hit lately. There are many people out of work or working for much less than they need to sustain a middle class quality of life. For most of the unemployed or underemployed, the only ticket out of their current state is through further training and education. With the right degree, even a down job market can be navigated through with ease. The problem with this scenario for many adults, however, is that their bad credit scores make the acquisition of student loans seem nearly impossible.

Getting Funding for School

The truth of the matter is that bad credit is always a barrier when looking for personal loans, but student loans are a different type of financial package. Instead of requiring a credit check, student loans are given based upon need and often do not take credit into account whatsoever. The reason that this can happen is simple: since the loans are only meant to finance school expenses, such as tuition and books, lenders feel that the investment is worthwhile. Once you finish school, the new job you get will more than help you pay back the money that you owe.

Another reason that student loans are given to those with bad credit stems from the special circumstances surrounding their repayment. Many loans are not repaid until after you are no longer enrolled in school, meaning that you are not required to maintain a job to repay your loans as long as you engage in full-time study. Also, student loans are the only loans that cannot be discharged in bankruptcy. This means that no matter what, you will need to pay this money back.

Finding a Source for Student Loans

There are several institutions and entities that offer educational funding and who are willing to work with those who have bad credit or no credit history (such as students just out of high school). The federal government is the most popular place to start. By filling out the Free Application for Federal Student Aid (aka FAFSA) at the same time that you apply to schools, you will automatically be told how much money you are qualified to borrow each year. This amount will vary depending on your financial need, level of education (graduate students are offered more money than undergraduates) and the credit load that you carry each semester. You can fill out the FAFSA online through the U.S. Department of Education website.

Once you have determined how much money is offered by the federal government, your next stop is to talk to the Financial Aid department at your particular institution. The people there can inform you of any college-specific loans and scholarships that may be available to you. Sometimes, depending on your major, individual departments can offer grant and work-study money as well. You can find out about these opportunities through your Financial Aid office or from the department secretary at your school.

There Is Private Help Available, Too

The final option for those needing extra money for school - perhaps to fund living expenses, for example - is to look into private lenders. Even with bad credit, student loan packages can be arranged through private lenders that will take your status as a student into account and help you to fund your education. Since you have bad credit, there may be a higher interest rate than those offered by federal loans, however.

Finding the money that you need to fund your college education is easier than you thought. Even with bad credit, student loans can be found with ease. With a few simple steps, you can be on your way to getting the degree and job you have always wanted.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com


Original article

Student Loans With Bad Credit - There Are Alternative Options Out There

There is no doubt that finding the necessary funds to allow a son, daughter or even yourself to attend college is not easy. Colleges, even those that are not Ivy League, are expensive, and it can be difficult to save the required college fees. This is especially true when a student has a bad credit rating, and is why there is such a need student loans with bad credit.

However, when it comes to getting approval on student loans, there are alternatives open to those who find themselves rejected by traditional lenders. These can include government aid and even scholarships available from the educational institutions themselves.

Getting loans approved for students with bad credit is never a guarantee, and the availability of these alternative options is often a lifesaver for many students seeking help financing their education.

College Scholarships

This is the funding option that most students would love to benefit from, whether sports scholarships or academic scholarships. For those who might otherwise depend on student loans with bad credit, either are perfect as they require no repayments at all.

Not all scholarships are for complete costs, which means that student loans may still be needed. But even if this is the case, the fact is that the overall debt is effectively halved, so the benefit is still significant. It is important, however, that the financial aid office is consulted in plenty of time to apply for scholarships, as there is always a limited amount available.

With loans approved for students with bad credit, the repayments may be delayed until after graduation, but remember that the overall debt is lowered thanks to the part-scholarship.

Financial Aid

On every campus, a financial aid office exists that is invaluable to anyone seeking student loans with bad credit. The office network was set up in 1965 to provide government assistance to students, and is responsible for making a college education something within reach of practically everyone.

The office provides a lot of advice and information to students about loan options outside their own range. This is because not everyone qualifies for government loans, with a preference shown to those in financial difficulties. For example, a student whose father earns $100,000 per year will not qualify for federal aid and will, at worst, need to seek a student loan.

Unlike loans approved for students with bad credit from traditional lenders, the terms of these loans are extremely flexible, making them highly desirable.

Government Loans

There are several types of government loans perfectly designed as an alternative to the student loans with bad credit that the banks and traditional lending institutions tend to offer. However, the government loan options are open to those in need, rather than those simply looking for extra funds.

The two most common types of student loans are the Stafford and the Perkins loans, with the only difference being that Perkins loans are reserved for those in extreme financial need. That effectively means the criteria is set on the fact that the applicant is expected to truly struggle.

As a loan approved for students with bad credit, the Stafford loan is the most common. It can be subsidized or unsubsidized, which effectively means that either the government pays the interest while at college, or the borrower pays the interest. However, in both cases, the principal is not repaid until after graduation.

Private Lenders

While these are usually the first options people turn to, they do not always offer the best terms for student loans with bad credit. In fact, their interest rates can be very high, though they generally offer repayment deferrals. Of course, online lenders are also an option, boasting much more competitive rates.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com


Original article

Pointers to Do With Refinancing Student Loans

Refinancing student loans can be simple enough; in fact, they can be so easy to get done that people often neglect to look at a few things that could save them quite a bit of money. When you're aware of every money-saving strategy there is to refinancing student loans, you find you can work your percentage down far enough that you'll end up saving thousands over the 15 or 20 years it takes you to pay your loan back.

For instance, were you aware that there is a grace period that banks, credit unions and online lenders offer you right after you graduate? If you go in for your refinancing deal within six months of having graduated, they knock something like a half percentage point off your interest rate. A half percentage point knocked off over 15 years can mean a substantial sum of money saved.

There are other saving strategies out there too. Basically, the standard interest rate they charge you is a function of their unfamiliarity with you. In other words, they charge you a higher interest rate because they're afraid that one day, you'll to stop paying and they'll be left with nothing. They charge you a higher interest rate to make up for the risk they take on doing business with you. You can change all that by being there regular with the way you pay. Set up an auto debit at your bank for the payments to go out automatically every month, and they give you a half percentage point off for it. Pay regularly without ever defaulting for three straight years, and they get so happy they knock another full percentage point off. That can be spectacular saving.

The interest rate they charge you on these students loan isn't a fixed deal. Every year, the federal government revises its interest rates; and usually, financial institutions that hold student loans will revise their rates in step. But not everyone does this. Loans like the Federal Perkins Loan are fixed rate affairs. If you had the forethought to get a fixed rate loan, you may find that when you refinance your student loans, you end up getting a rate that's far higher than what your original student loan charged. In this case, you'll need to do a considerable amount of shopping around to get the most favorable price.

If a couple of your student loans are from a private lender and you have loans from a government student loan program too in addition, you can't ever consolidate these in one plan. Federal and private loans don't mix. Usually, they'll advice you to consolidate your federal loans first and then to arrive at your private loans. Once you know how refinancing student loans works, you'll find that it really turns your financial life around.


Original article

Being Responsible About Scary College Student Loans

How bad is the student loan situation in America? Here are two little statistics that should throw a little light on the matter: two out of three college student loans are in default; and then, the trillion dollars owed in college student loans in more than what is owed in credit card debt.

On average, a graduating student in America comes out with about $25,000 and student loans. That's about the average. Students going in into college, when they sign on the forms, think that this doesn't sound like a huge sum. They don't have much choice either there's less financial aid available now than ever before, now that governments across the country are bankrupt. And then, the job prospects that young graduates can look forward to, happen to not be that great. When fresh graduates can find paying jobs at all, they don't find that they pay very well. How exactly is this nation to help its students minimize student loan debt?

A lot of this trouble, experts in the matter say, comes about because people choose private college student loans over federal loans. Federal programs offer far better repayment options. There is a lot that can be said for consolidated loans. When you borrow $10,000 from one place, your minimum payment will be perhaps $150. When you borrow $5000 from two places, you could end up with two minimum payments, each being $100.

Long repayment terms can be a good thing. Young graduates don't typically earn much starting out these days. If they chose a short repayment period, they would probably not be able to afford those payments at the start their career. Typically, when fresh graduates find that they are unable to afford those payments, they just ignore them. And then those unpaid installments begin to pile up and they lose some of their options and rights. Being delinquent should not be an option. It can quickly overwhelm anyone.

There are so many college graduates out there who think that the standard repayment plan, involving paying everything back in 10 years, is the only option that's open to them. Everyone needs to know that reworking your loan is always possible. There are all kinds of plan options that you can pick, down the road. You can, for instance pick an income-based repayment plan.

The federal government needs to do a much better job educating young people in what happens when you let a loan slide. There are people today who took out $2000 student loans in the 70s and let it slide. Today, they are in retirement and they owe $25,000. They're having their Social Security checks garnished. The government needs to really do a better job educating young people about what happens when they don't repay their student loans properly.


Original article

Student Loans In A Rough Economy

In today's harsh economy, student loans are a burden that most middle class Americans must bear in addition to other obligations. They are a nagging, consistent hole in which most of us have to sink a few hundred dollars per month for years on end. Recently, the costs have become so burdensome that some are riding the coattails of recent Wall Street protests and calling for a complete subsidization or removal of all student loan debt to help spur on the economy. Of course, this is an absurd request for most logical minds. We all voluntarily read and happily signed documents knowing full-well what the terms were when we began college. It does, however, exemplify the pains being felt by many Americans in this turbulent economy.

In Texas, a November 8, 2011 ballot initiative will ask voters if they are willing to let the state of Texas to issue bonds to finance student loan programs. Of course, this isn't a new tax, as officials are quick to point out, but simply the offering of bonds that citizens can purchase that will feed money into an aching academic loan program. With grant money increasingly tightening, the state has shown a need for money to keep these programs alive. Other states will likely follow.

A recent look into student loan defaults in Ohio showed dismal results. More and more students are defaulting on their loans, which is another reflection of the tepid economy. Ohio went from being ranked only 33 in student loan defaults in 2008, to ranking 28 in 2009 and 18 in 2010. The national student loan default rate is 8.8 percent. One tech school in Ohio had a 22 percent default rate. These are alarming numbers indeed. A representative of Franklin University stated that those who are most likely to default on their loans are those who quit school early. So making sure one is at a school that fits well and in a program that can be reasonably completed is critical.

Some people turn to bad credit loans to try to educate themselves and get a better paying job. These loans can occasionally render the individual even further in debt, particularly if the student quits before graduation. Of course, if the student can finish school and actually acquire a new, better-paying job, then a loan can actually help rebuild credit. Typically most subsidized lenders are very willing to work with people, and if a borrower has issues repaying the loan they can get into a deferment or forbearance plan that will protect the borrower's credit.

In conclusion, new students should carefully read and seriously consider all terms when signing a loan contract. Students should also be sure that the school that they are attending is right for them, and they should ensure that they have a realistic chance of completing their course of study. Finishing college, whether two-year or four-year college or otherwise, is critical. Finishing school and landing that dream job can greatly ease the pain of nagging student loan payments.

Christine is a mother and former student who still bears the burden of student loan payments. She contributes to a student loan forbearance information site. Check out the site for more information on student loan deferment.


Original article

Consolidating Private Student Loans: 5 FAQs

Getting private student loans is a good way to finance your educational tuition when federal student loans cannot cover it. Prior to paying the debts back, consolidating private student loans is a common thing to do to manage the payment. Is it beneficial to get your private student loans refinanced? Get better information about private student loans consolidation from these FAQs below:

FAQ #1: Why should I consolidate my private loans?

As you might apply several loans from private institutions to finance your education, it will be easier for you to manage the monthly repayment of these loans after you graduate. Refinancing your private student loans will result a uniformed interest rate of all the loans. Besides, you will also get more advantage since you will have longer payment time and lesser monthly payments.

FAQ #2: Is it possible to consolidate my private loans with my federal loans?

Commonly, it is not possible to consolidate both types of loans. The reason behind this is that the difference in interest rates. When you borrow from federal institution, you will get lower interest rates when compared to borrowing from private providers. The low interest rates of the federal loans cannot be applicable for private loans.

FAQ #3: Do I need a co-signer for the application?

It is common for the loans providers to require a co-signer for undergraduate or recently graduated borrowers. These lenders may need you to have a co-signer for internal requirements or merely for looking at credit. For the latter reason, if you have a healthy background of credit, even if you are an undergraduate, it is possible that you won't need any co-signer. Supposed if you need one, it is suggested that you choose a co-signer with strong credit background; he or she will help you increasing the chance of consolidation approval as well as getting lower interest rate.

FAQ #4: Which information should I provide to get my private loans consolidated?

Usually, you and your co-signer will have to provide: - Your name, address, and social security number - Names, addresses, and contact numbers of 2 of your personal references - Records on your monthly incomes and expenses - Information on the loans to be consolidated which include Loan Account Number, contact info of the loan providers, and outstanding loan balance.

FAQ #5: How long will my consolidation process be completed?

Maximum time of consolidation process takes 45 days. You will expect to have active consolidated private loans around the time. How long will the process take also depends on your side. If you are able to provide all the documentation (i.e. expenses, incomes, and underlying private student loans) quickly and completely, the consolidation provider will finish the work faster.

Consolidating private student loans helps you managing your student loans payment. Get more info about other financial tips from our website.


Original article

Student Loans Hit New Records - Threatening Economic Growth

With the combination of a weak job market and institutions of higher education raising tuition, more young people are finding little choice but to attend college with funds borrowed from student lenders. As a result of rising cost and demand, the amount of money owed by the average graduate and the total amount owed in student loans has soared to record high levels. Not only will this force many graduates to seek jobs they may not like, it also leaves recent grads with little disposable income with which to stimulate economic activity. Without significant and fundamental reform in to educational financing, these factors will continue to drain employment and consumer spending.

Federal backing of student loans was designed to open universities up to middle and working class families. For too long, a college degree was limited to those with relatively well-off parents, but an increasingly technical work environment demanded more well-educated employees. As the number of students who could afford higher education increases, the schools had to respond by expanding their own facilities and course offerings. Many times, these construction booms were funded by the school's own debt - and as the bills have come due, tuition has skyrocketed in response.

An increase in enrollment isn't the only cause of rising tuition, however. Some of the problem is price discrimination - a form of economic analysis that seeks to set the price of a good or product at the maximum level buyers can afford and are willing to pay. With loans readily available, students can afford quite a bit more than they used to, and tuition levels have certainly kept up with the maximum limits of student lending power. Public universities, long the last refuge of affordable higher education, are now faced with their own crisis as many state legislators seek to cut education funding in response to low tax revenues in a slow economy. Likewise, many of the foundations and charitable organizations involved with providing scholarships and grants have seen significant losses in their own investments, so the number of aid opportunities for students is slowly shrinking.

When a student graduates with a hefty loan burden, they don't have a lot of time to find themselves or experiment with dream-jobs that might not pay off immediately. Missing a few payments can lead to massive penalty fees and increased interest rates - so there is a huge incentive for the students to take any job they can get, as soon as they can get it. So as fewer recent grads are able to join start-ups or take a risk on their own business, this strengthens the feedback loop of declining jobs: fewer businesses have the stability and cash liquidity to make a salary offer that will satisfy both the lender's demands and the costs of living.

Unfortunately, the jobs that are available aren't particularly competitive when it comes to salary. Poor employment numbers have been a drag on wages for years now, so even though today's graduates have twice the debt of students a decade ago, they're struggling harder and facing more competition to get jobs that pay the same wage. As a result, recent college grads don't have a lot of spending power to support the consumer economy. Once again, this situation reinforces the feedback loop of economic deflation through declining demand and fewer jobs.

Toward a New Model of College Financing

With current funding models dragging down economic activity, the role of financing higher education is a great candidate for reform. The current system leaves the majority of responsibility with the student, and most of the actual financial assistance goes to the banks who own student loans in default. Models of reform that seem to be working elsewhere in the world include a more merit-based entitlement approach, where students who earn sufficiently impressive grades and test scores are guaranteed a basic college-level education. At the very least, this could be applied to critical-need majors like engineering and medicine. Society automatically gets paid back as college graduates earn more and pay more taxes over a lifetime, so there is a constant incentive to maximize the level of education in a population.

It will be difficult to reform educational financing, and it is unlikely that tuition prices will come back down now that schools have already invested heavily in expansion, but the benefits could be extensive in many areas of the economy. If instead, the price continues to rise and is fully funded by student lending, we may reach a point where many students are once again priced out of the opportunity of pursuing a college degree.

John is a writer and web publisher with five years experience in helping students find money for college through financial aid, scholarships, and grants. While these methods were once sufficient to fund a higher education, he sees student loan reform as increasingly essential for all parties involved - from students and their parents to employers and tax-payers alike.


Original article

Student Loans With Bad Credit: A Guide to Paying for College

The job market has been bad for a while now and many people are deciding to go back to college to get a new job or to increase their skills in their current career. However, the mistakes that they have made in their past may haunt them on this new journey. Is it possible to get student loans with bad credit? In a world where college tuition is rising exponentially each year, getting the needed money for college is a huge concern for most students. Student loans for bad credit borrowers are available, however, and readily so.

Scholarships and Grant First

If you are looking to fund your college career, loans are an obvious choice since they are plentiful and easy to obtain. However, the first thing you should to in assessing your college choices is look into scholarships and grant money. Your individual college may offer scholarships for academic performance, athletic ability, a history of volunteerism or based on need alone. In addition, grant money, which is given based on need and qualification, is offered by the federal government (Pell Grants) as well as private colleges and other entities.

Low-Cost Federal Loans

The next choice for most potential college students is to look towards the federal government for loans. By filling out a Free Application for Federal Student Aid (also called a FAFSA) at the same time as your general college applications, you will automatically receive notification of which programs you qualify for and how much money they are willing to give you each year.

The Stafford Loan program offers students low, fixed-rate interest on loans that you need not repay until six months after you graduate or leave college. This gives you a cushion of time in which to find a job and begin your loan repayment. In addition, subsidized Stafford loans do not even accumulate interest until you finish school.

Stafford loans are offered to all students, the only hitch is how much of the loan money offered will be subsidized. Other federal loans such as Perkins Loans and PLUS Loans also provide students with low, fixed interest rates and are given based on economic need.

Bad Credit and Federal Loans

The best part about all federally sponsored student loans is that bad credit is no longer an issue. You can get a student loan with bad credit from the government because they do not care. That's right, lenders do not even check your credit score when issuing you federal student loans. This is because the federal government insures the loans and minimizes the loss lenders incur. Also, student loan debt never goes away. Even if you file for bankruptcy you will still be obligated to repay federal student loans.

Private Options Are There, Too

Even though everyone can qualify for a federal student loan, that is not always enough money to get through college with its rising costs, not to mention paying for other expenses such as a home and food while there. Student loans for bad credit borrowers are also available from private lenders without government backing. The interest rates on these loans will be a bit higher, however, so it is important to shop around for the best package possible.

College students in need of financing for their education have many options, even with bad credit. Student loans for borrowers with bad credit are given every day and with little hassle.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com


Original article

Young Adults Can Get a Student Loan Even With Bad Credit

Hopes of seeking a higher education should never be extinguished due to no credit or bad credit. While finding a student loan with decent interest rates is made simpler by having a good credit history, getting a student loan for those with bad credit is certainly plausible for most seeking a higher education. Of course, having no credit history, in the eyes of some lenders, is pretty much the same as having a poor credit history.

Stafford and Perkins Student Loans for Those with Bad Credit

Many young adults have simply not had time to make a credit history. Guessing that most students will graduate from high school and then go right on to university or college, the Stafford Loan is the most used. It assumes that a student, following that usual course, will have no credit rating at all. A credit check is not even considered in the approval process for a student loan for those with bad credit. Set aside for students in dire financial need, the Perkins Loan makes the same givens about credit in its approval process. Both these loans could be called student loans for those with bad credit. Having defaulted on a previous government loan is about the only reasons a student could be denied either of these loans.

Parents with Good Credit Can Help Students with Bad Credit

Despite your age, you may have already finagled to invoke a poor credit rating, however short the time. Your parents can lend assistance in landing a student loan for those with bad credit, if their credit scores are reasonably good. Financial instruments called PLUS loans aim to help in this situation to finance a college education. Department of Education PLUS loans assume that parents are willing to foot at least a part of the bill for educating their children. PLUS loans are engineered to give parents the wherewithal to do so.

Other Routes Beside Federal Student Loans for Those With Bad Credit

Federally funded programs are the best choice as qualifications are not as tight as the student loans for those with poor credit offered by credit unions or banks. They are constructed that way to ensure that the majority of those who apply for them, get them. The are made to get otherwise insolvent students into the circles of higher education. But, if a student somehow is rejected for those sorts of funding, some private lenders may be willing to step up and foot part of the bill. Perhaps a student is seeking a higher education in the fields of law, medicine, or other disciplines with potential for high earnings. These students stand a good chance of getting a student loan for those with bad credit, regardless of credit standing, from private lenders.

Combining Resources Is Often the Only Way

The opportunities for funding a higher education are many. Not only are loans available, but there are also scholarships, grants, work-study programs among these opportunities. If part of the funding comes from a high-interest student loan for those with bad credit from a private lender, be optimistic. Most loans can be deferred until studies are completed and then a way could be found to consolidate that loan with a few others at a lower interest rate and reduced monthly payments.

Student Loans for Those with Bad Credit Can Pay Off

According to the Department of Education, with a higher education a students potential earnings over a life time are far better than for those with just a high school diploma. Any high financial cost for a student loan for those with bad credit may be covered by those earnings. And as credit scores are built or rebuilt, there is always the opportunity for refinancing to escape egregious expense. At any rate, never should a lack of funds stand in the way of pursuing a higher education.

Mary Wise is a personal loan consultant who has been associated with Guaranteed Bad Credit Personal Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Bad Credit Home Equity Loan, and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at BadCreditLoanServices.com


Original article

Perkins Loan Facts: Get Money With Bad Credit, No Credit or a Low Income

Many people these days are interested in returning to school, but are concerned that low income and bad credit or no credit score will prevent them from finding the financing they need to afford this endeavor. However, as many also know, completing the Free Application for Federal Student Aid (also called a FAFSA) can help you to find sources of funding through the federal government which offer low, fixed interest rates and flexible repayment plans. One such option that you get through the FAFSA is Perkins loans.

For bad credit, no credit or low income situations, Perkins loans offer the perfect option for funding. This is because these loans are given based on need, not on credit score. The article will review some basic facts about Perkins loans.

Filing Your FAFSA: The Basic Process

Generally, you are asked to complete a FAFSA at the same time that you apply to college. When you complete your FAFSA form, there are several different factors that will go into determining your eligibility for federally-sponsored student loans such as Perkins loans. With bad credit, no credit and a low income, you are actually more likely to receive funding for school. This is because the factors taken into consideration on the FAFSA and the Student Aid Report (SAR) that it produces are based on need only. The FAFSA formula will look at income, assets, dependents and schooling costs to determine how much aid you qualify to receive.

Qualifying for Perkins Loans

Bad credit, no credit, and a low income are clearly not at all issues when it comes to assessing a student's ability to receive a Perkins loan. In fact, the lower your income from other sources - which includes your expected family contribution (EFC) or money from parents - the more likely you are to receive Perkins loan funding.

Perkins loans are capped, which means that you can only receive a fixed amount each year and that amount varies from person to person. In 2010, the maximum Perkins loan contribution allowed for undergraduates was $5,500. However, the average amount of money given to each student through the Perkins student loan program was only $2,125 that year. This means that there will still be a need for you to find additional funding through other lending sources. You can do this either through other federal lending programs, such as Stafford Loans, or you may alternately look for private lenders who offer low interest student loans.

Bad Credit, No Credit or a Low Income Is Still Okay

No matter which path you choose for finding the educational funding you need, having bad credit, no credit and a low income is still okay. This is because the assessment given for borrowers looking for money to fund higher education is far different than the assessment given for borrowers looking for personal loans. Seeking a higher education is an important step in gaining more wealth over time. Therefore, lenders feel that the risk of helping you achieve a better education and job is worth the investment. Programs sponsored by the federal government were designed to help people like you.

Perkins loans for bad credit, no credit and low income borrowers are the norm, rather than the other way around. This makes using this particular form of funding not only an option, but one of the best choices available to students today.

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


Original article

The Student Loan Deception - The Most Oppressive Debt in US History and How We Can Fight Back

It is widely believed that student loans exist to help the youth get a good quality education to secure better professions and careers in the future. According to the book written by Alan Michael Collinge titled "The Student Loan Scam... The Most Oppressive Debt in US History and How We Can Fight Back" students are not offered loans with the borrower's best interest in mind. It is instead a highly organized and oppressive way to ensure gross profits for the lenders and collection agencies.

Background

Educational loans have been around for decades. It wasn't until 1998 when almost all educational loans were disqualified from being discharged due to bankruptcy. This included all personal and family loans that can be used for educational purposes which started the massive difficulty to payoff student loan debt.

In 1996, the Department of Education partnered with private collection agencies. These collection agencies will get 25% of the defaulted amount of Federal loans. This enabled collectors to create payment schemes and collection options for the borrowers that will essentially contribute to eventual defaulting.

Moreover, the Department of Education can collect Federally issued education loans in default through either the borrower's tax refund, offsets from Social Security and other benefits or up to 15% of garnishment from wages.

How it Affects You

In today's bleak economic situation, more graduates face the difficult reality of being underemployed or unemployed, making it virtually impossible to eliminate student loan debt because of little to no financial resources. To avoid the loans from defaulting, collection agencies offer "loan rehabilitation" options disguised as help for students that have educational loans. These collection schemes often require borrowers to take out a new loan which in reality is up to three times larger than the original amount. The logic then becomes: to get rid of your debt you'll need to incur more debt that will likely default again.

What You Can Do

First of all, educate yourself and understand that in order to effectively payoff your loans, you will need to know what you're up against. Take action and let your voice be heard, go public with your situation and how the system has made it impossible for you to eliminate student loan debt. Get help from your local State Chapter and organize a coordinated action. It is difficult to get rid of your student loan debt but with the right course of action, it is possible.

Genevieve LeBlanc has helped many students Legally Eliminate their student loan debt. If you need a step-by-step guide on how to actually Eliminate your student loan debt, Please visit http://www.studentloanpro.org/. Here, you will discover a comprehensive and easy-to-follow tutorial on how to Eliminate Your Student Loan Debt Forever.


Original article

How to Afford a Child Prodigy's Education

When parents have a child that is very talented at a young age, it may be difficult to know how to provide a quality education. Some parents feel that a basic public school education is not sophisticated enough for a child who is exceptionally bright. Children that have high levels of artistic talent and athletic ability may also need higher levels of learning to fully develop their skills. Private schools and private instruction are more likely to give the child the special attention needed to foster these academic, athletic or artistic abilities. For children that come from a financially comfortable family background, this may be an easy task. Simply enrolling the child in the best schools with the best tutors and coaches to foster a child's talents is a rewarding and easy task for parents without financial concerns. Parents who must spend carefully and already live on a tight budget may have justified concerns about affordability. There are a number of ways to work around this.

Scholarships

For children who have had some instruction, they may be able to enroll in a specialized learning environment. Private schools and boarding schools often admit very bright or prodigy-type students to their institutions based on their excellence. Partial scholarships are sometimes offered to allow more children the opportunity to attend.

Governor's School

Some states have a governor's school program for junior high and high school students gifted in the arts. The tuition is typically paid for by government funding and treated as a part of the public school system. Students must audition for these programs and competition is fierce. Transportation may be provided by the state. Some programs provide a voucher for students to take public transportation to and from school.

Student Loans

When public schools do not offer enough challenge and instructions for gifted children and child prodigies, it is possible to send them to schools that will help them to further develop their gifts. There are private educational loans available that can be used for nearly anything school-related. This includes private schooling, music lessons, football camp and art classes. They also cover tuition, room and board, transportation, musical instruments, athletic equipment and uniforms. These low-interest loans offer long-term payments that can be deferred up to three years.

Extracurricular Lessons

When local professionals work as tutors and coaches for children with athletic, musical or academic talents, they often enjoy training very talented students. Sometimes they are willing to take on a financially disadvantaged student in exchange for the opportunity to train and observe the natural gift. This is especially true for tutors and coaches involved in artistic or musical occupations. As they get older, students can attend schools that will also foster their talents if they have been developed end encouraged.

Author writes about a variety of topics about paying for school and helps students learn more about scholarships and student loans.


Original article

Student Loans for Those With Bad Credit - No Secrets to Getting One

No, it will not be a breeze. And yes, your search to find someone or some entity to offer you a student loan for those with bad credit will take some determination. But, eventually you will find a way to help fund your tuition and other educational expenses for another year or so. You can make it work.

Be Aware If You Already Have Bad Credit

If you have no credit, which is the same to lenders as having bad credit, or if you have somehow managed to accumulate a poor credit history, you need to be aware of a few things. You are likely going to have to put up with the prospect of only finding student loans for those with poor credit, with pretty high interest rates attached. One good thing is that most student loans are deferred until you are finished with your education, so you can start looking ahead now on repayment plans.

One Point, Two Point, Good Point, Bad Point

Do not make the mistake of shrugging at a point or two in interest rates. Each of those points will come back to haunt you later when you start repayment. Those points will have accumulated to hundreds, or even thousands of dollars on down the road. The interest was silently piling up while you were in the library working on your foreign relations thesis. A lot of students do not even realize this fact about their student loans for those with bad credit, until their first billing duns come in, sometimes not until weeks, or even months after the credentials of graduation are in hand.

Student with Bad Credit? Start Planning Now

If you already have managed to ruin your credit, or if you are a worker returning to school with a poor credit history, you should start, difficult as it may seem, to start stashing some cash during the course of your studies to apply to those student loans for those with poor credit later on. Showing your savings accounts statements to a future potential lender that you already have a repayment strategy in place and that impresses them.

Do You Have Some Collateral?

Getting a student loans for those with bad credit could also require that you offer some collateral. Something of value that would cover the cost of the loan should you default. Without that, your only option will be an unsecured student loan for those with bad credit, and that instantly comes with almost usurious interest rates. Again, shrugging at a point or two in interest rate differences will mean thousands of dollars when the time comes to start making those payments.

Shop Wisely and Skeptically for a Student Loan for Those with Bad Credit

You must shop around when hunting for a student loan for those with bad credit. Scout carefully and cautiously. Do not rush and never sign anything without wisely thinking it over for at least a day. Never sign on any dotted line until you have read the fine print. Never let someone bamboozle you into signing then or there or the offer will be withdrawn. Do not do business with such a lender at all. Many lenders prey on the vulnerability of those with bad credit.

Rates Will Be High

Look for the best interest rates. You need to be resigned to the fact that you will be paying 18-24% interest on most any student loan for those with bad credit you contract. Of course, this means thousands of dollars to pay back down the line. Sure they are a godsend at the moment, but keep in mind that every dollar must be eventually paid somehow, anyhow, sooner or later. Your best hopes will be to do a loan consolidation once you are in the real-job world.

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


Original article

5 Student Loan Forgiveness Programs

Federal student loans always have to be paid back. The loan program requires repayment after graduation or six months after the borrower is no longer attending college.

These loans have varying repayment options, including deferring payments if the borrower is unemployed or underemployed.

Student loan forgiveness offers a few options to the borrower to give them the opportunity to have part or all of their loans forgiven under certain circumstances.

Volunteer Work:

The federal government allows a borrower to volunteer with three different organizations for a partial and up to total loan forgiveness. Volunteer with Americorps for 12 months and receive up to $4725.00 for loan repayment.

Peace Corp volunteers will be granted loan repayment in differing amounts depending on length of service. Fifteen percent of the loan total is forgiven for each year of volunteer status with a maximum amount forgiven of 70 percent.

VISTA offers the borrower a chance to volunteer and receive a partial student loan forgiveness. Volunteer 1700 hours through VISTA and receive $4725.00 for loan repayment.

Military Service:

Student borrowers have the opportunity to join the Army National Guard and receive up to $10,000 for educational loan payments depending on length of military service.

Teachers:

Borrowers that become teachers in schools that have a certain population of low income students may be eligible to receive forgiveness of their Perkins loans. The National Defense Education Act allows teachers to have loans forgiven at a rate of 15 percent of the loan for each of the first two years of teaching and twenty percent in years three and four. Thirty percent of the loan is forgiven in the fifth year.

Teacher's in Mississippi that hold an alternate route teaching license and are employed in schools with a teacher shortage may be qualified to utilize the teacher loan repayment plan.

Legal and Medical Studies:

Law school loan borrowers who work in non profit or public interest law positions may be eligible for student loan forgiveness. The US Department of Health and Human Services has a program for doctors and nurses who practice medicine in areas that do not have access to proper medical care. Federal loan borrowers should contact the American Association of Medical Colleges (AAMC) for a listing of all medical student loan forgiveness options.

Law Enforcement:

Alaska offers educational loan repayment to those who were granted a Michael Murphy Loan. Student borrowers whose field of study was probation, law, parole, penology, or another related field of study have the eligibility to receive loan forgiveness, at the rate of 20 percent a year, if they are employed as an Alaska State Trooper.

All of these programs are a fantastic way to serve your state or country and have the ability of receiving a forgiven loan. People who are interested in public sector work should definitely take advantage of one of these options.

Jenny Miles writes about financial problems such as debt management and wage garnishment. Learn more about dealing with a defaulting student loan on her blog.


Original article

Blog Archive