tag:blogger.com,1999:blog-41967470617363596812024-02-19T16:45:23.643-08:00Reconsolidation Loans: Exclusive Facts and Hintsreconsolidation loans is my primary focus - I collect first-hand experience on reconsolidation loans and share it with you.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comBlogger44125tag:blogger.com,1999:blog-4196747061736359681.post-40602963927536188662008-08-20T10:56:00.000-07:002008-08-20T11:30:12.253-07:00How come the average student loan debt is believed to be about $19,000?Being in debt is depressing. Recently I discuessed this matter at a forum, and I think it might be useful for my readers, so here is a quick otline of the discussion.<br /><br />How come the <a href="http://encarta.msn.com/encnet/departments/financialaid/?article=averagestudentloans">average student loan debt is believed to be about $19,000</a>?<br />I got to know that the average debt of a college graduate is about $19,000. <br />How come? _MY_ student loans - and that's from this year alone! - is about $18,000 (yep, eighteen grands), and that's excluding expenses like books and whatever.<br /><br />Indeed this makes me pretty sad: <br />- I slaved over about 40 scholarships (ending up with mere $1500 in total in my pocket).<br />- and I graduated at the TOP (right, top!) of my class<br />- I worked hard in high school <br />- I filled out the FAFSA truthfully<br /><br />How you guys/gals deal with it?<br /><br />Some comments/advices/thoughts on the subject:<br /><br />1) <blockquote>Mine is nearly $50,000! It's not easy. I make monthy payments to the loan company. They work with you on the amount you can afford. <br /><br />I try not to think about it, because I can't default. And filing bankruptsy doesn't touch it. I just try to carry on knowing that an educated nation is better than an uneducated nation.<br /><br />My opinion is that college should be free to everyone as long as they keep up their grades and give something back to the nation. </blockquote><br /><br />2) <blockquote>I took out maiximum loans and grants and graduated with $22,000 in debt. But I went to a "cheap" state school.<br />My brother went to a private school (DePaul) and graduated with $34,000 in debt.<br />Personally, I think paying a huge amount for a college degree from a school with so-called name recognition is kind of wasting your money. <br /><br />But on the other hand, you might be able to get a higher paying job out of it so in a sense it all balances off. Hang in there, and just stay away from credit caards!!!</blockquote><br /><br />3)<blockquote>I'm with you on this one. I am in the same boat, with maybe double of that, and I'm not quite done yet. I think it's more just an average, including people who get associates, which is only 2 years of schooling, vs 4 years for a bachelor's. I try not to think about my debt, but it's good to know alot of loans for education have low interest rates, and you have about 10 years or more to pay it off.<br /></blockquote><br /> <br /><br />4) <blockquote>the average is low because people save money to go to college and family help is usually a big part of it. It takes money to go to college unless you are super smart and you are willing to go to a school beneath your goal.<br /></blockquote><br />5)<blockquote> <br />I moved back in with my parents after college to pay off my loans :( <br /><br />Try to find a job that will contribute to your education - mine pays 50% as long as I get a B.</blockquote><br /> <br />6)<blockquote> I graduated with a debt of 22,000 and this was for my undergrad AND my graduate degree. It took me about 11 years to pay off.<br /><br />I worked my rear off, working two jobs and going for YEARS without ever having a day off. From work to school to work to school...<br /><br />Borrowing via private student loans has become something of a "norm" recently that scares the crap out of me and I think it should be federally regulated. Most kids don't realize what this kind of debt will have on the rest of thier lives and negate the whole reason they went to college in the first place. <br /><br />With the dropout rate being like it is for undergrads I personally don't think any freshman should be allowed to borrow... but who am i? Federal loans have limits on them for a reason. To protect you!! The sharks of private lenders have no such regulations... they'll loan you 40K a year.. A YEAR!<br /><br />YOU just need to make sure you can live with your decision to borrow this much. THIS will be your life if you continue down this path.<br />18K times four years = 76K total equals payments of around 800 dollars a month for the next 10 to 30 years. That is a house payment where I live and borrowing this much is NOT NORMAL!<br /><br />If you (or your cosigners) are even the TEENY bit squeemish about having this much debt you need to get out of that school now, before you get all the way to your junior or senior year and it's too late to tranfer and the bank says you or your cosigners debt to income ratio is too high and they cut you off!!!! Kinda stinks uh?<br /><br />Go to a state school, don't do any loans except federal ones and work 30 hours a week.<br /></blockquote><br />Origin:<a href=http://loanfacts.blogspot.com/2008/08/how-come-average-student-loan-debt-is.html>Reconsolidation Loans: Facts and Hints</a>loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com0tag:blogger.com,1999:blog-4196747061736359681.post-55485232459306464642008-08-19T00:26:00.000-07:002008-08-19T00:32:02.058-07:00Reconsolidating Student Loan BenefitsOLR Research report has quite nicely summarized <span style="font-weight:bold;">benefits</span> (as well as cons) <span style="font-weight:bold;">of student loan consolidation</span>.<br /><br /><span style="font-weight:bold;">In short:</span><br /><br />- Student loans and their consolidation are governed by the Higher Education Act of 1965 (HEA), governs student loans and their consolidation.<br />- It clearly states what people who have borrowed money under various federal loan programs or from multiple sources CAN consolidate their loans after they leave school. <br />- several loans with varying repayment terms and interest rates CAN be merged into a single loan; repayment CAN be extended up to thirty years - AND at a fixed monthly payment.<br /><br /><span style="font-weight:bold;">FIXED</span> is the key word here. It may vary, but in general weighted average of the loans being consolidated affacts it.<br />Rates are capped at 8. 25%. <br /><span style="font-weight:bold;">PLEASE NOTE</span> that a borrower whose loans are all held by one lender can ask only that lender for consolidation (it's the “single holder” rule). Soem exceptions may apply.<br /><br /><span style="font-weight:bold;">IMPORTANT</span>: a borrower can consolidate loans just ONCE. <br /><br />In detail:<br /><br /><span style="font-weight:bold;">Reconsolidation</span><br /><br />The law permits a borrower to obtain a new consolidation loan if: <br />- he has at least one outstanding eligible loan that was not included in the initial consolidation OR <br />- consolidated loans then borrowed again under an eligible loan program. <br /><br /><span style="font-weight:bold;">Benefits of Consolidating student loans</span><br /><br /><span style="font-weight:bold;">1)</span> consolidation lowers a borrower’s monthly payment - naturally, by extending the payment period. <br /><span style="font-weight:bold;">2)</span> consolidation yields a single billing statement and removes the risk inherent if variable rates rise. <br /><br /><br /><span style="font-weight:bold;">Drawbacks of Consolidating student loans</span><br /><br /><span style="font-weight:bold;">1)</span> borrowers pay more in interest because of the longer repayment period and cannot benefit if rates drop after they consolidate.<br /><br /><span style="font-weight:bold;">Consolidation Loan Terms</span><br /><br />The above eligible loans have 10-year terms. A consolidation loan repayment term can be up to 30 years. The term is determined by the total consolidation loan balance plus the balances of other education loans as follows:<br /><br />• less than $ 7,500—10 years;<br /><br />• between $ 7,500 and $ 10,000—up to 12 years;<br /><br />• between $ 10,000 and $ 20,000—up to 15 years;<br /><br />• between $ 20,000 and $ 40,000—up to 20 years;<br /><br />• between $ 40,000 and $ 60,000—up to 25 years;<br /><br />• $ 60,000 or more-30 years<br /><br />Consolidation loan interest is fixed. The rate is determined by weighted average of the loans being consolidated, rounded up to the nearest one-eighth (1/8) percent. Rates are capped at 8. 25%.<br /><br />Consolidation lenders can offer four repayment plans:<br /><br />• Standard: the monthly payment amount is fixed over the life of the loan<br /><br />• Income Sensitive: monthly payments are based on, and change with, the borrower’s income<br /><br />• Graduated: monthly payments start low and gradually increase over the life of the loan<br /><br />• Extended: for loans over $ 30,000, borrowers can extend payments over 25 years under a level or graduated repayment schedule<br /><br />A borrower whose loans are all held by a single lender must request consolidation from that lender. This is called the “single holder” rule. But a borrower with a single lender can seek a consolidation loan from another lender, but he must certify that (1) he sought and was unable to obtain a consolidation loan through the institution that holds his Stafford or PLUS loan or (2) the holder would not provide a consolidation loan with an income-sensitive repayment schedule. People who have borrowed from multiple sources can seek a consolidation loan from any eligible lender.<br /><br /><span style="font-weight:bold;">Eligible Loans</span><br /><br />The loans eligible for consolidation are: subsidized (based on financial need) and unsubsidized Stafford Loans; Parent Loans for Undergraduate Students (PLUS); Supplemental Loans for Students (SLS); Perkins Loans; and Nursing Student, Health Professions Student, and Health Education Assistance loans. A borrower must be in the grace period (the six months after leaving school) or have begun repayment on each loan he wants to consolidate. Loans in default can be consolidated only after the borrower makes satisfactory repayment arrangements with the loan holder or agrees to repay the consolidating lender under an income-sensitive repayment schedule.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com0tag:blogger.com,1999:blog-4196747061736359681.post-64405189008848437412008-05-20T12:25:00.000-07:002008-07-31T04:55:51.028-07:00How Reverse Mortgage Helps My Old Parents To Get CashAs you know, I've been collecting in this blog my own findings on a subject of reconsolidations loans - and it often comes handy, just like when my buddies need info on sallie mae reconsolidation, how to refinance reconsolidating student loan 2008, and of course about lowest reconsolidation rates...but last week I took some time to research the matter of reverse mortgages for seniors - cause my old parents need cash badly.<br /><br />So I thought what some of my findings would be of interest to seniors and their kids (err, not kids by now, but loving children anyways?) - I'll provide here a short guide to reverse mortgage programs which contains links and explanations.<br /><br /><strong>1) First things first: What are the Advantages of a Reverse Mortgage?</strong><br /><br />Homeowners can pull needed cash from the equity of the home, without incurring monthly expenses.<br /><br />Lenders cannot force homeowners to sell the property to pay back the loan.<br /><br />Reverse mortgages guarantee that the homeowner can stay on the property for as long as he or she lives, even if the outstanding loan and interest grow to exceed the value propertyЃs value.<br /><br />Links:<br /><br /><li><a href=http://dir.ak47-guide.com/reverse-mortgage/cheapest-reverse-mortgages/>cheapest reverse mortgages</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/mortgages-reverse/>mortgages reverse</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/second-mortgage/>second mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/mortgage-refinance/>mortgage refinance</a></li> <br /><br /><strong>2) OK - but what are the Disadvantages of a Reverse Mortgage?</strong><br />Reverse mortgage fees can be high, although the fees are often rolled into the loan and not paid upfront. A reverse mortgage can cost thousands more than a conventional mortgage. One lower cost option is the FHA reverse mortgage program from the U.S. Department of Housing & Urban Development (HUD). <br /><br />ItЃs important to calculate the cost of a reverse mortgage against what you would gain, because once you enter a reverse mortgage agreement, the mortgage company essentially owns your home.<br /><br />Get sound advice. Discuss your reverse mortgage plans with legal and financial advisors, and family members, before making a decision. Because home ownership is often a person's most valuable asset, getting a reverse mortgage is essentially the same as spending the money you'd expect to leave to your heirs. <br /><br />Be sure that the older homeowner is thinking clearly when making this decsion (no dementia or symptoms of Alzheimer's), because having a sudden influx of cash can be a heady experience and it would be a shame to waste it or become the victim of a scam.<br /><br />Reverse mortgages are often seen as a last resort if the homeowner needs cash and there are no other options. <br /><br />Links:<br /><li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortage/>reverse mortage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/commercial-mortgage/>commercial mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/a-reverse-mortgage/>a reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/california-reverse-mortgage/>california reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-lending/>reverse mortgage lending</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage/>reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-lenders/>reverse mortgage lenders</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/nj-reverse-mortgage/>nj reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-information/>reverse mortgage information</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-quote/>reverse mortgage quote</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/fl-reverse-mortgage/>fl reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/jumbo-reverse-mortgage/>jumbo reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-calculator/>reverse mortgage calculator</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/senior-reverse-mortgage/>senior reverse mortgage</a></li><br /><br /><strong>3) Anyways, what a Reverse Mortgage is?</strong><br /><br />In a reverse mortgage, also known as a conversion mortgage, the home is used a collateral to get cash. This is similar to a standard mortgage, but with a reverse mortgage the homeowner doesn't need an income to qualify and there are no monthly loan payments. <br /><br />With a reverse mortgage, the loan and the interest on the loan are paid off when the property is sold. <br /><br />Links:<br /> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-providers/>reverse mortgage providers</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-for-seniors/>reverse mortgage for seniors</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-programs/>reverse mortgage programs</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-costs/>reverse mortgage costs</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-program/>reverse mortgage program</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-guide/>reverse mortgage guide</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/seattle-reverse-mortgage/>seattle reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/florida-reverse-mortgage/>florida reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-calculation/>reverse mortgage calculation</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/chip-reverse-mortgage/>chip reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-aarp/>reverse mortgage aarp</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/hud-reverse-mortgage/>hud reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/best-reverse-mortgage/>best reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-faq/>reverse mortgage faq</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/what-is-reverse-mortgage/>what is reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/texas-reverse-mortgage/>texas reverse mortgage</a></li> <br /><br /><strong>4) What's the mechanics - how does Reverse Mortgage Work?</strong><br /><br />Once the property is sold|and this can be during the homeownerБs lifetime or after his or her death|the sale price of the property pays back the loan. This rule is in place even if the sale price is less than the combination of the loan and interest. <br /><br />Lenders must accept only the sale price and cannot|by law|go after the homeownerБs other assets. <br /><br />Links:<br /><li><a href=http://dir.ak47-guide.com/reverse-mortgage/about-reverse-mortgage/>about reverse mortgage</a></li> <li><a href=http://dir.ak47-guide.com/reverse-mortgage/reverse-mortgage-fees/>reverse mortgage fees</a></li><br /><br />5) Is there any Rules of Reverse Mortgages?<br /><br />To reduce their risk, lenders generally limit reverse mortgage loans to amounts that are below their estimate of the propertyЃs full value. <br /><br />Age is an advantage when applying for a reverse mortgage. Borrowers must be at least age 62, and the older the homeowner is, the more money he or she would qualify for. For example, a 78-year-old borrower would qualify for a larger loan than a 62-year-old.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com1tag:blogger.com,1999:blog-4196747061736359681.post-85731301073766823432008-01-08T23:56:00.000-08:002008-01-09T00:00:01.326-08:00Young Person's Guide to Private Loans Consolidation - grown-ups, take a look, too.I just can't stand an urge to share with you a *very* detailed, simple and explicit article on reconsolidation private loans matters.<br />I'd call it a Young Person's Guide to Private Loans Consolidation - so thoughtfully and friendly this little FAQ on private loans consolidation is written.<br /><br />Discussed are private loans of all kinds - mostly student loans, information should be very heplful for students indeed.<br /><br />Highlights:<br />* Real Life Example "Paying Ahead" <br />* Managing Student Loan Repayment<br />* Avoid Delinquency, Default & Bankruptcy<br />...and virtually everything else - it's a condensed wisdom, if you ask me...Kudos to Patti Corjay for putting it up. <br /><br />In particular, part about paying more than the required payment will save money was an eyeopener for me - paying just extra $25/mo would save me 5 (five) grands in interest - how's that?!<br /><br />************************************<br /><br />Borrower rights and responsibilities <br /><br />What are loan terms and conditions?<br />What is the cost of my loan?<br /><br />Managing your loans in repayment<br /><br />Private Loan Consolidation<br />Post-MBA Strategies <br /> <br />Overview<br />Borrower Rights <br /><br /> o Written information on loan obligations<br /> o An explanation of default and its consequences<br /> o A copy of your promissory note and return of the original note when the loan is paid in full<br /> o Prior to repayment, balance information, interest rates and fees and a repayment schedule<br /> o Notification if your loan is sold<br /> o Prepay your loan early without penalty<br /><br /> <br />Borrower Responsibilities <br /><br /> o Repay the loan according to the schedule you select, even if you do not complete your academic program, are dissatisfied with the education you received, or you are unable to find employment after you graduate<br /> o Notify your loan servicer of anything that affects your ability to repay the loan<br /> o Notify your loan servicer of any changes in your status, including when you graduate<br /> o Notify your loan servicer and school of any changes to name, address, and phone numbers<br /> o Notify your loan servicer if you fail to enroll for the period covered by your student loan<br /><br /><br /> Terms are the specifications identified in the promissory note that define the loan amount, interest rate, length of time in which to repay the loan (repayment term), and any other enforceable agreements entered into by the borrower and the lender before the loan will be made. <br /><br /> The loan terms stated in the promissory note will also include information on how interest is calculated and all conditions of repayment.<br /><br /> o Interest is generally calculated using the daily simple interest method<br /><br />What are terms and conditions?<br /><br /> Conditions are the circumstances and “rules” the borrower agrees to abide by in exchange for the lender advancing the loaned funds applied for. Lenders in general will not release any funding until all conditions have been met by the borrower and cosigner, if there is one involved. <br /><br />Examples of loan conditions are<br /><br /> o Borrower must agree to sign the promissory note before funds will be released<br /> o In exchange for the cash provided by the loan, the borrower promises to repay in accordance with the terms set out in the promissory note<br /> o Borrower agrees to use the loan for the purposes stated<br /> o If the loan is not repaid according to terms, borrower agrees to pay various fees and court costs if incurred for the lender to get repaid <br /><br /><br />What are terms and conditions?<br /><br />A price which is charged and paid for the use of money over time. <br />An interest rate is most often expressed as an annual percentage of the loan principal. <br />May be fixed or variable over time<br /><br /> o Fixed interest is a constant rate charged over the term of a loan<br /> o Variable interest changes according to various schedules over the term of a loan.<br /><br /><br />Most private loan lenders have variable interest rates <br /><br />Interest rate<br /><br />Variable interest rates are generally used by lenders to help them maintain net interest income margins over the expected life of a loan. <br />A private loan borrower should be aware of the type of interest used by a lender and how the interest rate is determined. <br />Most variable rates are tied or indexed to a major commercial rate such as Prime or Libor.<br /><br /> o The prime rate is the interest rate that most commercial banks use to lend to their most creditworthy borrowers .<br /><br />Private loan interest rates are generally stated as<br /><br /> o PRIME (Or Other Rate) Plus/ Minus an interest rate factor<br /> o Example 8.25% +/- 2.0%.<br /><br /><br />Interest rates - Variable<br /><br />The addition of accrued and unpaid interest to the principal balance of your loan.<br /> o The less frequent the better.<br /> o Read your promissory note to determine when interest on your private loan will be capitalized.<br /> o Preference should be only once at repayment.<br /><br /><br />Capitalization<br /><br />Grace period: <br /> o Time interval between leaving school and the date that repayment begins. Six months is the grace period on most private loans.<br /> o The grace period on your loan was created to give you a reasonable amount of time to transition from the academic world into the job market.<br /> o Assess your financial situation and prospects<br /> o If you think you have a financial problem at the beginning of repayment, anytime during repayment or your circumstances change, contact your loan servicer. Many times they can help.<br /><br /><br /><br />Repayment terms<br /><br />Repayment terms and options:<br /><br /> Variations of the loan repayment terms that may be chosen under certain conditions to assist the borrower in making their monthly payments<br /><br /> Typically repayment options will involve alternatives for:<br /><br /> # Length of time to repay the private loan<br /> # Application of the monthly payment to interest and principal<br /><br />Typical repayment term options<br /><br /> o 10, 15, 20 or 25 year repayment term<br /> o Interest only followed by a standard payment schedule<br /> o Most common option offered by a private loan lender is a 10 or 15 year repayment term<br /><br />It is very important that you read your promissory note to understand the repayment options available to you <br /><br />Repayment terms<br /><br />Monthly payment:<br /> Minimum amount that a borrower is required to pay each month.<br /><br /> When the payment is received by the loan servicer, the payment will be applied first to the interest that has accrued since the last payment and the remainder of the payment will be applied to reduce the loan principal amount. <br /><br />Payment due date:<br /><br /> o This is the date each month by which a private loan borrower is required to make the monthly payment.<br /> o Failure to make payments on time can result in late fees, collection calls and if not made over a period of several months, legal action.<br /><br />Repayment terms<br /><br />Repaying your student loans responsibly is one of the most important behaviors you can develop as you enter and grow in your career. <br /><br />Failure to live by the terms of your promissory note and make your payments on time will carry serious consequences that will be difficult and costly to overcome. Contact your loan servicer immediately to work on possible solutions if you are having problems making your loan payments. <br /><br />Nobody wins if you default on your loans. <br /><br />Managing your loans in repayment<br /> <br /><br /> <br />Managing Student Loan Repayment <br /> <br /><br />Help your loan servicer keep track of you. <br /><br />Your loan promissory note - a promise to repay on time and in full. <br /><br />Failing to repay will put you in financial default. <br /><br />If you’re having problems repaying, call your servicer - right away. <br /><br />Alternate repayment plans can significantly reduce the amount of your monthly payment. <br /><br />For Sallie Mae borrowers, go to www.SallieMae.com<br /><br />Borrower benefits are options that lenders may offer as an incentive to borrowers<br /><br /> o to obtain their private loans through that lender<br /> o use select services offered by the lender<br /><br />Borrower benefits save you money! <br /><br />Benefits could include:<br /><br /> o Borrower friendly capitalization policy<br /> o Combined billing for multiple loans when in a repayment status<br /> o Opportunity to release the co-signer from further obligation after a period of on-time payments<br /> o No pre-payment penalties<br /><br />Borrower benefits<br /> <br /><br />Trouble Making Payments? <br /> <br /><br /> Call your loan servicer or lender right away <br /><br /> Explore your options <br /> <br /><br /> o Lower your monthly payment<br /> + Graduated repayment<br /> + Income-sensitive repayment<br /> o Temporarily postpone your payments<br /><br /> <br /><br />Forbearance is an authorized interruption to your repayment schedule which allows you to suspend payment of principal, interest or both for a period of time <br /><br /> o Forbearance must be requested by the borrower and approved by the lender<br /> o Interest accrues during periods of forbearance and is capitalized at the end of the forbearance period<br /> o Must reapply with lender at the end of the period of forbearance if you wish to continue to remain in a forbearance status.<br /><br /> <br /><br />Forbearance<br /><br />What If You Become Delinquent? <br /> * Call your lender or loan servicer immediately and ask for help!<br /> * Your servicer will contact you. <br /> * Your late payments will be reported to a credit bureau. <br /> * Delinquency will become part of your financial history.<br /><br />What If You Become Disabled Or Die? <br /> Private loans seek settlement from the borrower’s estate or co-borrower<br /> <br /><br />What If You Default? <br /> You could incur collection costs and legal expenses <br /> Your credit history will be tarnished for a long time<br /> <br /><br />Avoid Delinquency, Default & Bankruptcy <br /> o Stay in control of your credit from the start.<br /> o When trouble arises, take action - immediately!<br /> o Seek professional assistance from your local Consumer Credit Counseling Service (CCCS) - 1-800- 388-2227 - It’s a free service!<br /> o A financial planner can help develop a money management strategy for a fee.<br /><br />What is private loan consolidation? <br /><br />Paying off one or more private loans with one new private loan. <br /><br />Relatively new financial planning and debt management tool for borrowers with private education debt. <br /><br />Some similarities with federal consolidation but many important differences. <br /><br />Private loan consolidation<br /> <br /><br />Why private loan consolidation? <br /><br />For convenience<br /><br /> o One payment<br /> o May be combined billing with payments on federal loans if all loans with the same servicer (check with servicer)<br /><br />To lower monthly payments<br /> o May be able to extend repayment length, depending on amount borrowed<br /><br />In some cases, to get a lower interest rate<br /><br /> o Depends on credit score of borrower and cosigner, if applicable<br /> o Reminder that private loan consolidation does not offer a fixed rate<br /><br /> <br /><br />Private loan consolidation<br /><br />Who is eligible? <br /><br />Creditworthy borrowers with at least one private loan <br /><br />Requirements may vary by lender <br /><br />Other requirements may include:<br /><br /> o U.S. citizen or eligible permanent resident with SS number<br /> o Private loans in repayment status<br /> o Minimum loan amount<br /> o Completion of program or degree<br /><br />Private loan consolidation<br /><br />When to consolidate <br />Check with lender, but likely during repayment, after grace period has ended. <br />Borrowers will forfeit grace period on underlying loans if they consolidate too early. <br /> <br /><br />Private loan consolidation<br /><br />Should you reconsolidate? <br /><br />Borrowers can reconsolidate private loans <br /><br />May not be in borrower’s best interest, if fees are involved<br /><br /> o May have already paid fees<br /><br />Private loan consolidation<br /> <br />Questions to Ask: <br /><br /> * Which loans are eligible?<br /> * What is my new interest rate and are there any fees?<br /> * What are my grace and forbearance options?<br /> * What are my repayment options?<br /> * What are my monthly payment and total repayment amounts?<br /> * Is there a penalty for early repayment?<br /> * Who will service my consolidation loan?<br /> * How long will this take?<br /> * What about spousal consolidation?<br /><br />Private loan consolidation<br /><br /> Post-MBA <br />Money & Debt Management Strategies<br /> <br /><br />Develop A Budget <br /><br />List all sources of income <br /><br />Adjust for taxes, FICA and other withholding <br /><br />Divide by 12 for monthly income <br /><br />Deduct housing costs <br /><br />Deduct food and clothing (laundry, too) <br /><br />Deduct utilities (gas, phone, electric, etc.) <br /><br />Deduct credit card payments, if applicable<br /> <br /><br />Develop A Budget <br /><br />Deduct transportation expenses, including car expenses (also gas and insurance), if applicable <br /><br />Deduct entertainment expenses <br /><br />DEDUCT YOUR STUDENT LOAN PAYMENTS!! <br /><br />Remember to pay yourself (IRA, savings) <br /><br />The remainder should be greater than zero (some left over for emergencies) <br /> <br /><br />Paying more than the required payment will save money. <br /><br />For a $50,000 student loan*, with a 15 year repayment term: <br /><br /> o The monthly payment will be $545<br /> o Total interest will be $48,096<br /><br />However...<br /><br /> o an extra $25/month will save $5,387 in interest<br /> o an extra $50/month will save $9,595 in interest<br /> o an extra $100/month will save $15,805 in interest<br /> o a double payment/month will save $34,366 in interest<br /><br /> * * Based on an interest rate of 10.25%<br /><br />Real Life Example– Paying Ahead<br /> <br />Which Option Is Best For You? <br /><br /> Do your education loan payments exceed 8-10 percent of your gross monthly income (and you’re having trouble making payments)? <br /><br /> o 8-10 percent rule should allow borrowers to have enough income to cover rent/mortgage payment, pay for basic living expenses, and meet other debt service needs<br /><br />Annual Monthly Maximum Student Loan Payment at<br /><br />Income Income 8% 10% 15%<br /><br />$ 50,000 $4,167 $333 $417 $ 625<br /><br />$ 75,000 $6,250 $500 $625 $ 938<br /><br />$100,000 $8,333 $667 $833 $1,250 <br /> <br /><br />What About Deducting The Interest? <br /><br />Tax rules are a bit complex, so contact a tax preparer to determine if you can deduct interest for private education loans <br /><br />Patti Corjay<br />Director, South Sales<br />Graduate and Professional Programs<br />April 2007loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com2tag:blogger.com,1999:blog-4196747061736359681.post-84035284773302739942008-01-08T22:41:00.000-08:002008-01-08T22:44:38.760-08:00(Video) Student Loans - The Joy of Consolidation<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9CQfYnD2MbTPKbLAt4XNAOTlkmzusBNDTriGMlFjRwAn8NqqaDKtEGRWgdk46N6SHcGCtzTnGFI_SXkhbKFSoJ-DG2fWrq61HAVrtSGIMv7uZxrekHCmxKWzaR5mhIwqM1T-NN1G-S1ek/s1600-h/reconsolidation-video.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9CQfYnD2MbTPKbLAt4XNAOTlkmzusBNDTriGMlFjRwAn8NqqaDKtEGRWgdk46N6SHcGCtzTnGFI_SXkhbKFSoJ-DG2fWrq61HAVrtSGIMv7uZxrekHCmxKWzaR5mhIwqM1T-NN1G-S1ek/s400/reconsolidation-video.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5153363978611404466" /></a><br />I spotted quite funny - yet helpful - video on youtube on a matter of student debt consolidation/reconsolidation. In short, 3 friends band together to find the best student loan lender that can alleviate their pain from student loan debt. This is actually Episode II - it concludes their journey to freedom.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com0tag:blogger.com,1999:blog-4196747061736359681.post-57041864185949427342008-01-08T22:17:00.000-08:002008-01-08T22:20:23.114-08:00Summary of Student Borrower Bill of Rights Act of 2008Here is a summary of recently presented Student Borrower Bill of Rights Act of 2008.<br /><br />Goal: To provide student borrowers with basic rights, including the right to timely information about their loans and the right to make fair and reasonable loan payments, and for other purposes.<br /><br />SEC. 2. FINDINGS.<br /><br />I skip this part.<br /><br />SEC. 4. A RIGHT TO SHOP IN A FREE MARKETPLACE.<br /><br />There are interesting snippets here:<br /><br />...<br />(iii) by adding at the end the following:<br />`(D) any on time payments made for such loan; and<br />`(E) such loan as a student loan.'.<br /><br />© A Right To Reconsolidate Loans-<br />`(B)(i) Except as provided in clause (ii), an individual who has received a consolidation loan under this section, or the consolidation lender, shall pay a fee of 1 percent of the balance owed on the sum of such loans to be consolidated to the Department to obtain a subsequent consolidation loan under this section.<br /><br />`(ii) An individual who has received a consolidation loan under this section may obtain a subsequent consolidation loan under this section for no fee if such individual was eligible to obtain a subsequent consolidation loan pursuant to this subparagraph on the day before the date of enactment of the Student Borrower Bill of Rights Act of 2007.'.<br /><br />`(1) FEDERAL STUDENT LOAN- The term `Federal student loan' means a loan made, insured, or guaranteed under this title (except loans made to parents under section 428B or under the Federal Direct PLUS Loan program).<br /><br />`SEC. 499A. A RIGHT TO TIMELY INFORMATION ABOUT LOANS.<br />...<br />`(7) a description of each fee the borrower has been charged for the current payment period;<br />`(8) the applicable monthly payment amount set by the Secretary under section 499B for such borrower and the amount such borrower would owe each month according to the borrower's repayment plan absent the provisions of section 499B, or, in the case of a loan payable less frequently than monthly, the amount that corresponds to the payment installment time period taking into consideration the applicable monthly payment amount set by the Secretary under section 499B for such borrower and the amount such borrower would owe that corresponds to the payment installment time period according to the borrower's repayment plan absent the provisions of section 499B;<br />`(9) the date by which the borrower needs to make the payment described in paragraph (8) to avoid additional fees;<br />`(10) the amount of such payment that will be put towards interest, the balance, and any fees;<br /><br />`(b) Information Provided Five Months After Ceasing To Be at Least a Half-Time Student- A lender of a Federal student loan shall provide to the borrower of such loan, on the date that is 5 months after the borrower has ceased to be at least a half-time student at the institution of higher education for which the loan was made, who requests it, and make readily available on the Internet, a clear and conspicuous notice of not less than the following information:<br /><br />`(1) The conditions under which a borrower could be charged any fee, and the amount of such fee.<br />`(2) The conditions under which a loan would default and the consequences of default.<br />`(3) The borrower's rights and options, including repayment options, deferments, forbearances, and discharge rights to which the borrower may be entitled.<br />`(4) Legitimate resources, including nonprofit organizations, advocates, and counselors (including the Office of the Ombudsman at the Department), where borrowers can receive advice and assistance, if such resources exist.<br /><br />`(5) Information about how a borrower can appeal to the Department a decision made by a lender about their loan.<br /><br />`© Information Provided During Delinquency-<br /><br />`(2) ADDITIONAL INFORMATION- In addition to any other information required under law, a lender of a Federal student loan shall provide a borrower in delinquency with a clear and conspicuous notice of the date on which the loan will default if no payment is made, the minimum payment that must be made to avoid default, discharge rights to which the borrower may be entitled, legitimate resources, including nonprofit organizations, advocates, and counselors (including the Office of the Ombudsman at the Department), where borrowers can receive advice and assistance, if such resources exist, and information about how a borrower can appeal to the Department a decision made by a lender about their loan.<br /><br />© Information Provided During Consolidation- Section 428C(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1078-3(b)(1)) is amended--<br /><br />(d) Information Provided During Consolidation or Reconsolidation of a Federal Student Loan With a Private Loan- A lender shall, upon application for a consolidation or reconsolidation loan of one or more loans made, insured, or guaranteed under part B, part D, or part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071, 1087a, 1087aa) with one or more private loans, provide the borrower with a clear and conspicuous notice of not less than the following information:<br /><br />(1) That the consolidation or reconsolidation loan would be a private loan, not a Federal loan.<br /><br />(2) A description of the benefits and protections for the loan made, insured, or guaranteed under part B, part D, or part E that the borrower would lose by consolidating such loan with a private loan.<br /><br />(3) That the lender may be eligible to consolidate two or more loans made, insured, or guaranteed under part B, part D, or part E within the Federal loan program.<br /><br />SEC. 6. A RIGHT TO MAKE AFFORDABLE LOAN PAYMENTS.<br /><br />(a) Affordable Loan Payments- Part I of title IV of the Higher Education Act of 1965, as added by section 5, is amended by adding at the end the following:<br /><br />`SEC. 499B. A RIGHT TO MAKE AFFORDABLE LOAN PAYMENTS.<br /><br />`(a) Limit on Monthly Payment Amounts to an Affordable Level-<br /><br />`(1) IN GENERAL-<br /><br />`(A) LIMITATION-<br /><br />`(i) IN GENERAL- With respect to Federal student loans that are made, insured, or guaranteed after the date of enactment of this section, the Secretary shall limit the total monthly payment amount for all of such loans of a student borrower to not more than the amount determined pursuant to subparagraph (B), except as provided in subsection (b)(3).<br /><br />`(ii) COMMENCEMENT- The limit on the monthly payment amount described in clause (i) shall begin the day after 1 year after the date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution).<br /><br />`(B) FORMULA AMOUNT-<br /><br />`(i) IN GENERAL- The amount referred to in subparagraph (A) shall be the same amount for each month of a year. Such amount shall be an amount that is the quotient of the sum of 10 percent of the borrower's annual adjusted gross income between 100 percent and 200 percent of the poverty line for the previous year and 20 percent of the borrower's annual adjusted gross income above 200 percent of the poverty line for the previous year divided by 12.<br /><br />`(ii) POVERTY LINE- In this subparagraph, the term `poverty line' means the poverty line described in section 673 of the Community Services Block Grant Act (42 U.S.C. 9902), applicable to a family of the size involved.<br /><br />`(2) PROVISION OF INFORMATION TO THE SECRETARY-<br /><br />`(A) IN GENERAL- The limit on the monthly payment amount set by the Secretary under paragraph (1) shall apply only if a borrower provides the Secretary, in such form and at such time--<br /><br />`(i) such information as the Secretary shall require to determine the monthly payment amount that is applicable for such borrower; and<br /><br />`(ii) certification that the borrower is employed full time or is actively seeking full-time employment.<br /><br />`(B) UPDATE TO INFORMATION- The Secretary shall require a borrower to--<br /><br />`(i) provide the information required under subparagraph (A)(i) annually for the term of the loan of such borrower; or<br /><br />`(ii) during each year for the term of the loan of such borrower, authorize the Secretary to obtain the information required under subparagraph (A)(i) from the Internal Revenue Service for such year.<br /><br />`(3) CONTINUOUS UPDATE- Upon receiving information under paragraph (2)(B), the Secretary shall revise the limit on the monthly payment amount for such borrower under paragraph (1), as necessary.<br /><br />`(4) APPLICABILITY TO ALL REPAYMENT PLANS- Regardless of which repayment plan a borrower of a loan selects under this title, the limit on the monthly payment amount set by the Secretary under paragraph (1) shall apply to the monthly repayment amount applicable for such repayment plan.<br /><br />`(5) NO FEES OR CHARGES- Notwithstanding any other term or condition of Federal student loans of a borrower that are made, insured, or guaranteed after the date of enactment of this section, if the borrower pays the maximum monthly payment amount that is applicable for the borrower for such loans, as determined under this section, on time according to the terms and conditions of such loans, such borrower may not be charged any late fee, underpayment fee, or finance charge for such loans for such month.<br /><br />`(6) SUBSIDIZED LOANS- In the case of a Federal student loan made, insured, or guaranteed after the date of enactment of this section for which an interest subsidy is paid under section 428(a), if the amount owed each month in interest payments for such loan exceeds the applicable amount for such borrower as determined under this section, and, at the discretion of the Secretary, if the borrower pays such applicable amount, the Federal Government shall pay the difference between such amount owed in interest payments and such amount that has been determined is applicable.<br /><br />`(b) Study-<br /><br />`(A) consider the payments required of student borrowers in other countries, including the United Kingdom, Australia, and New Zealand, and compare such payments to the payments required of student borrowers in the United States; and<br /><br />`(B) be completed and submitted to the appropriate committees of Congress not later than 12 months after the date of enactment of this section.<br /><br />`(3) ADDITIONAL LIMITS ON MONTHLY REPAYMENTS- If the Secretary determines in the study under paragraph (1) that additional protections are necessary to ensure that monthly payment amounts of student borrowers of Federal student loans made, insured, or guaranteed after the date of enactment of this section are affordable, the Secretary may establish rules based on such study that limits the monthly payment amount for a student borrower to a level that is affordable for such borrower.<br /><br /><br />(1) DISCHARGE AND CANCELLATION RIGHTS IN CASES OF DISABILITY-<br /><br />(B) SENSE OF THE CONGRESS- It is the Sense of the Congress that the Department of Education should continue to administer the discharge and cancellation right provisions of the Higher Education Act of 1965 amended in subparagraph (A) in such a way as to prevent fraud and abuse.<br /><br />(A) SENSE OF THE CONGRESS- It is the Sense of the Congress that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Public Law 109-8) affords sufficient protections to prevent fraud and abuse in the carefully regulated discharge of student loans in bankruptcy.<br /><br />SEC. 7. A RIGHT FOR INTEREST RATES AND FEES TO BE REASONABLE.<br /><br />(a) In General- Part I of title IV of the Higher Education Act of 1965, as added by section 5 and amended by section 6, is further amended by adding at the end the following:<br /><br />`SEC. 499C. A RIGHT FOR INTEREST RATES AND FEES TO BE REASONABLE.<br /><br />`(a) In General- The Secretary shall conduct a study of the interest rates and fees that are charged of borrowers of private student loans, including--<br /><br />`(1) the conditions under which the interest rate charged of such a borrower is raised or lowered, including the conditions under which the interest rate is raised on delinquent payments, and the amount and frequency of such interest rate changes;<br /><br />`(2) the conditions under which fees are charged of such a borrower and frequency of such fees, including fees that are charged as a condition of taking a deferment or forbearance, and the amount and frequency of such fees;<br /><br />`(3) identifying such practices as described in paragraphs (1) and (2) that are exploitative or unreasonable; and<br /><br />`(4) determining what remedies exist for such practices identified in paragraph (3).<br /><br /><br />`© Cap on Total Charges-<br /><br />`(1) IN GENERAL- The Department shall set a cap on the maximum total amount that can be charged of a borrower on a Federal student loan, including all interest and fees, as a percentage of the original loan balance, over a period of 10 years, 15 years, and 20 years.<br /><br />`(2) LEVEL OF CAP- The cap set under paragraph (1) shall be set--<br /><br />`(A) at the minimum level beyond which additional amount charged on a loan is unreasonable or exploitative; and<br /><br />`(B) for each time period, at a level that is higher than the amount the borrower, who makes regularly scheduled payments in accordance with a standard repayment plan, currently pays over such time period.'.<br /><br />(b) Conforming Amendments-<br /><br />(1) LOANS PAID OFF THROUGH CONSOLIDATION- Section 428©(6)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078©(6)(B)) is amended--<br /><br />(A) by striking clause (i) and inserting the following:<br /><br />`(i) on or after October 1, 2007, not charge the borrower collection costs in excess of the amount provided in section 499C(b)(1)(A); and'; and<br /><br />(B) in clause (ii), by striking `clause (i)(I)' and inserting `clause (i)'.<br /><br />(2) REHABILITATED LOANS- Section 428F(a)(1)© of the Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(1)©) is amended by striking `not to exceed' and all that follows through the period and inserting `not to exceed the amount provided in section 499C(b)(1)(B).'.<br /><br />`SEC. 499D. A RIGHT TO NOT BE EXPLOITED.<br /><br />`(b) Sense of the Congress- It is the sense of the Congress that the Secretary should enforce the rights of borrowers of private student loans and Federal student loans to raise claims and defenses related to the actions of for-profit institutions of higher education against lenders from which the borrowers borrowed money to attend such institutions, including the Federal Trade Commission Rule.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com2tag:blogger.com,1999:blog-4196747061736359681.post-68177689832740799182007-12-05T00:37:00.000-08:002007-12-05T00:40:54.491-08:00New laws for refinancing - can you reconsolidate loans?Can you reconsolidate student loans? That's the question...In other words, is reconsolidation of loans allowed?<br /><br />According to Student Debt Relief Act of 2007, yes - it does allow reconsolidation of loans. <br />More to this:<br />- it also increases annual maximum Pell Grant program to $5,100 this year (2007) to $6,300 in 2011; <br />- it establishes the Fair Payment Assurance Program which caps loan repayment at 15 percent of a borrower's income for low income borrowers; <br />- it reduces FDLP origination fee to zero; <br />- it extends tuition tax credit.<br /><br />A brief summary of Student Debt Relief Act of 2007:<br />Jan 22, 2007, Edward Kennedy (D-MA - Senate Health, Education, Labor and Pensions Chairman ) introduced S. 359, the Student Debt Relief Act of 2007. <br />Core moments:<br />1) The bill proposes to provide incentives for schools to switch to the Federal Direct Loan Program; <br />2) halve student loan interest rates; <br />3) increase the federal Pell Grant limit; <br />4) cap federal student loan repayment at 15 percent of a borrower’s discretionary income.<br /><br /><br />Speaking of other legal stuff on regard of student loans - there is a Sunshine Act, too.<br />Edward Kennedy and Senator Dick Durbin (D-IL) introduced S. 486 on Feb. 1, 2007 - the Student Loan Sunshine Act. <br />The bill would require schools and lenders to report certain activities if the school and the lender have an “educational loan arrangement,” defined as an arrangement or agreement under which the lender provides education loans to students (or parents of students) at the school. <br />The bill is noteworthy in that its scope encompasses private education loan activities as well as FFELP loans.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-38948267207852923332007-09-02T21:16:00.000-07:002007-09-02T21:18:15.112-07:00Two easy ways for students to reconsolidate their loans1) Question: I read that you can reconsolidate student loans. Is that true? In fact, I was under impression that student could not do this.<br />Sam Prentow, via e-mail<br /><br />A: Keep in mind that you can reconsolidate under two circumstances. 1st is if you go back to school and take out a new loan. Once you've borrowed anew, you can then consolidate the fresh loan with the original consolidated loan.<br /><br />2nd, is if you have a loan that has been left out of a consolidation package. Here again, you can blend that left-out loan with the consolidated loans to make a new loan.<br /><br />The interest rate is determined by the weighted average of the underlying loans (in this case one consolidation loan and the other single loan), then adjusted upward to the nearest one-eighth of a percent. But, hey, it never hurts to ask. Quiz your original lender first.<br /><br />2) Question: Say, I want to refinance my home loan to pay off our debts, but have not found a lender that will refinance at 100 percent. I filed for bankruptcy four years ago and have tried to keep my credit good. I'm now disputing items on my credit report. I have one late payment on a credit card, which was not my fault. My credit score is 568. A few months ago, it was 622. Can anyone help us?<br /><br /><br />A: You may continue to find it difficult to secure 100 percent refinancing of your home.<br />We suggest that you focus on repairing your credit score.<br /><br />The 1st step would be to call your creditors to negotiate lower interest rates. If you've been a loyal customer, creditors will sometimes trim rates by 1 to 3 percent.<br /><br />If that doesn't work, seek aid from a credit-counseling agency. Look for one that offers genuine educational assistance and budget planning to help you return to financial stability.<br /><br />In the meantime, Viale suggests that you look a little more closely at your credit report. The fact that your credit score fell 54 points in a span of a few months is a matter of concern. There may be additional mistakes that would warrant a second look.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-76044300243744703132007-08-21T23:04:00.000-07:002007-08-21T23:07:07.316-07:00Credit reconsolidation 2007Question: Can I reconsolidate my student loan that went into collections, along with a credit card that is about to be maxed at the same time? And will it improve my credit? Help me with reconsolidation of student loans! <br /><br />Answer:<br />First of all, you are not alone. With $13 Trillion out there of debt, we're just about all depressed with bills. The challenge is to take charge of the situation and come up with a solid game-plan.<br /><br />The first goal will be to budget. Start out with the attached Personal Finance and Budget Guide (which I have attached for you for free). It has some excellent tips on how to manage your money and how to get out of the cycle of debt and into a virtuous cycle of wealth. <br /><br />If you want to handle your debts on your own, and have the available cash flow to meet your payments, you may consider student loan consolidation. Unfortunately, with delinquencies and student loans in collections, you will most likely not be a viable candidate for traditional student loan consolidation, which is a federally backed program to lower rates and payments.<br /><br />It is imperative, however, to understand your personal needs and then tailor a solution to what best fits your financial game-plan. There are many forms of traditional debt relief, including: i) debt consolidation loans, ii) credit counseling, iii) debt negotiation, and iv) bankruptcy. <br /><br />Be aware that forms of debt consolidation are not the same. You need to consider your specific situation, including if you own or rent your home, your monthly debt to income ratio, and your credit rating. A program like a debt consolidation loan may lower your monthly payment, get you a lower rate than most credit cards, and the interest is tax deductible.<br /><br />Alternatively, a program like negotiated debt settlement may lower your monthly payment, get you debt free fast, save half of what you owe, but it could negatively impact your credit rating. <br /><br />Since your credit rating has already been negatively impacted, you may want to explore the lowest cost, shortest program, to get debt free without bankruptcy... which is debt settlement. <br /><br /><a href="http://www.bills.com/reconsolidation_of_student_loans_askbill/">Source</a> <br /><br />OK, just for a change, I'm off to <a href="http://www.milliondollarwiki.com/Singles">Singles dating service</a>loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-30795937323183283172007-08-18T12:17:00.000-07:002007-08-18T12:23:19.374-07:00Student loan reconsolidation 2007Next issue: <a href="http://be-bratz.blogspot.com/">Be-bratz games</a> | <a href="http://be-bratz.blogspot.com/">Be-bratz dolls</a><br /><br />New Law Changes Student-Loan Terms<br /><br />A new federal law makes several changes in federal student-loan programs. If you already have student loans or plan to take out federal student loans for the 2006-2007 academic year, you should review the following items that may affect the terms of your loans. Many of the changes took effect July 1, 2006.<br /><br />Consolidation Loans<br />Loan consolidation permits federal student-loan borrowers to bundle multiple student loans into a single loan, and depending on the borrower’s total education debt, extend the period for paying back the loan.<br /><br /> * In-school consolidation. You no longer will be able to consolidate your student loans while you still are attending school at least half time. The new law eliminates a provision that had permitted you to request that your loans enter repayment early. You now will have to wait until you are in the grace period after you leave school (or drop below half-time enrollment) or in repayment on your loans before you may consolidate them.<br /> * Spousal consolidation. Spouses no longer will be able to include their loans in a single consolidation loan.<br /> * Reconsolidation. With a few exceptions, if you already have consolidated your loans, you may not obtain a subsequent consolidation loan. The exceptions are that you subsequently take out a loan eligible to include in a consolidation loan, that you decide to include additional eligible loans within 180 days after receiving your consolidation loan, or that you decide to add eligible loans that you did not include in the original consolidation loan. The new law adds another exception that permits borrowers with Federal Consolidation loans to obtain a Direct Consolidation loan for the purpose of obtaining income-contingent repayment, but only if the lender has requested assistance from the loans' guarantor to help the borrower avoid default.<br /><br /><br /><br />Deferment – Military Service<br />Deferments permit borrowers who meet certain criteria — for example, unemployment, economic hardship or attending school — to temporarily postpone their student-loan payments. The new law adds a new category of borrowers who qualify for deferment. Effective July 1, 2006, if you’re serving in the military on active duty during a war or other military operation, or national emergency, or performing qualifying National Guard duty during a war or other military operation or national emergency, you may qualify to defer payments on loans that were disbursed on or after July 1, 2001.<br /><br /><br /><br />Disbursement<br />Waivers from delayed and multiple disbursements. Typically, your loan dollars are paid out to your school in more than one installment. In addition, if you are a first-time borrower and a first-year student, federal regulations require that your first loan disbursement be delayed for 30 days after your classes begin. If your school has a low student-loan-default rate, however, the new law provides waivers from these disbursement requirements. This change was effective as of Feb. 8, 2006.<br /><br />To study-abroad or foreign-school students. If you are studying abroad through a program of a U.S. postsecondary institution or studying at a foreign school, the lender or guarantor of your loan first must verify your enrollment (and the foreign school that you’re attending must specifically request disbursement directly to you) before your loan can be disbursed directly to you. In addition, foreign schools must comply with the multiple- and delayed-disbursements noted in the preceding paragraph, although they also are eligible for the waivers noted above.<br /><br /><br /><br />Fees<br />Prior to July 1, 2006, Stafford- and PLUS-loan borrowers could be assessed upfront loan fees of up to 4 percent of the loan amount. The new law makes the following changes in those fees.<br /><br /> * Federal default fee. The law requires the collection of a 1-percent fee to defray the costs of loan defaults. Lenders and guarantors, however, may pay this fee on your behalf.<br /> * Origination fees . Origination fees for Federal Stafford loans are being phased out. The maximum origination fee is reduced to 2 percent from 3 percent for Federal Stafford loans whose first disbursement is on or after July 1, 2006. The origination fee will be reduced in annual increments of 0.5-percentage points until it is eliminated by July 1, 2010. PLUS-loan origination fees are unchanged.<br /><br /><br /><br />Interest Rates<br />Stafford loans. The new law made no change in a federal law that was enacted in 2002 and calls for a change from variable interest rates to a fixed rate of 6.8 percent for Stafford loans whose first disbursement is on or after July 1, 2006. Loans disbursed prior to that date will continue to carry variable interest rates that adjust annually on July 1, based on the rate of the 91-day Treasury bill.<br /><br />PLUS loans. The new law increased the fixed interest rate on Federal PLUS loans whose first disbursement is on or after July 1, 2006, to 8.5 percent from 7.9 percent. PLUS loans disbursed prior to that date will continue to carry variable interest rates that adjust annually on July 1.<br /><br /><br /><br />Loan Limits<br />Beginning next year, July 1, 2007, certain undergraduate and graduate students will be able to borrower more under the Federal Stafford-loan program. <br /><br /> * Undergraduate students. The maximum annual loan limit for a first-year undergraduate student will increase to $3,500 from $2,625; the annual loan limit for second-year undergraduates will increase to $4,500 from $3,500. <br /> * Graduate and professional students. The unsubsidized loan limit will increase to $12,000 from $10,000.<br /><br /><br /><br />PLUS Loans for Graduate and Professional Students<br />Previously available only to parents of dependent undergraduate students, PLUS loans also are available, beginning July 1, 2006, to graduate and professional students to help defray their costs of attendance. PLUS loans are federally sponsored loans that may permit you to borrow on more favorable terms than private, nonfederally sponsored loan programs offer.<br /><br />The chief benefit of a PLUS loan is that you can borrow up to your total cost of attendance, less any other financial aid you receive. So, unlike Federal Stafford loans, there is no set loan limit. You must pass a credit check to take out a PLUS loan. PLUS loans are unsubsidized, so you are responsible for all of the interest that accumulates on the loan. Unlike Stafford loans, PLUS loans offer no grace period: PLUS loans enter repayment within 60 days after the loan is fully disbursed. PLUS-loan interest rates also are higher than rates for Stafford loans, but PLUS loans offer the same flexible repayment options and the ability to defer loan payments or request forbearance, if you qualify.<br /><br /><br /><br />Rehabilitation of Defaulted Loans<br />If you’re in default on a federal student loan, you may qualify to rehabilitate your loan. Rehabilitation can be beneficial by removing the reporting of your default to national credit bureaus and restoring your account to repayment status. The new law makes it easier for you to qualify for a rehabilitation loan by permitting you to make nine voluntary, on-time payments within a 10-month period, rather than the previous requirement of 12 consecutive, voluntary, on-time monthly payments.<br /><br /><br /><br />Teacher Loan Forgiveness<br />The new law extended provisions for expanded loan forgiveness available to certain teachers. Read more information about teacher loan forgiveness.<br /><br /><br /><br />Wage Garnishment<br />If you are in default on federal student loans, your loans’ guarantor may order your employer to withhold a percentage of your pay to apply to your unpaid loan balance. The new law increased the percentage that may be withheld to 15 percent from the previous level of 10 percent.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-89850574070398632332007-05-24T03:31:00.000-07:002007-05-24T03:39:51.022-07:00questions about relationship with loan-consolidation company<table style="width: 674px;"><tbody><tr><td class="headline">OU alum group answers AG's questions about relationship with loan-consolidation company </td></tr> <br /><tr><td class="bodytext">--<br />Advertising: <a href="http://travelmovies.blogspot.com/">Travel videos</a> | <a href="http://halo3videos.blogspot.com/">Halo 3 videos</a> | <a href="http://wowingame.blogspot.com/">WoW videos</a> | <a href="http://lotrovideo.blogspot.com/">LOTRO videos</a><br />--<br /><br /><span>O</span>hio University's alumni organization is cooperating fully with a probe by Ohio Attorney General Marc Dann into the relationships of college alumni groups with companies that offer loan consolidation.<br /><br />"We're glad to cooperate and give him the information," said Ralph Amos, executive director of the OU Alumni Association.<br /><br />On May 8, Dann sent letters to alumni associations at Ohio's public and private colleges, including OU. The letters demanded information detailing any arrangements the groups have with lenders.<br /><br />Amos readily acknowledged that the OU Alumni Association has a three-year contract with the National Education Loan Network (Nelnet), based in Lincoln, Neb. Under the contract, he said, the lender pays around $39,000 a year to have the Alumni Association promote its debt-consolidation services to Bobcat alums, many of whom have student debt to pay off.<br /><br />"Our contracts with Nelnet are as straightforward as they can be," Amos said, with payments from the lender used to help fund the group's member services, and no individual group officers getting payoffs of any kind.<br /><br />"There's no personal gain for any individual" from the contract, Amos said.<br /><br />Dann's office seems to be suggesting, however, that any payoff by lenders to alumni associations to promote the lender's product should be scrutinized for possible impropriety.<br /><br />"Marketing arrangements between lenders and alumni associations threaten to undermine the integrity of the alumni groups and the trust of incoming students and graduates," Dann said May 9, when he announced the latest expansion of his probe. "If alumni associations are leveraging the brand and reputation of their respective universities in exchange for compensation or financial gain, then that is a cause for very serious concern."<br /><br />A pitch for Nelnet is included on the OU alumni group's Web site, which can be linked to directly from OU's front page. When a viewer clicks a link under "alumni services" titled "loan consolidation," he or she is taken to a brief, low-key promotion for Nelnet, which states that "As an industry leader, Nelnet has the experience and resources to help you better manage your student-loan debt." It also urges alums to research their loan consolidation options before making any commitments, and provides a link to an informational page offered by Nelnet, titled "Factors to Consider About your Student Loan Consolidation."<br /><br />After Dann began showing interest in the issue, according to the Columbus Dispatch, Ohio State University's alumni association recently posted an explanation on its Web site of the relationship it has with another loan-consolidation company, Student Trust. The statement acknowledges, among other points, that the OSU alumni group gets at least $35,000 a year from the lender for steering business its way.<br /><br />The OU Alumni Association has not to date posted anything similar on its Web site regarding its contract with Nelnet.<br /><br />A spokesman for the Ohio Attorney General's office said the agency would not comment on the ongoing investigation of alumni associations' connections with lenders.<br /><br />The letter Dann sent to the universities demands a long list of documents, including an organizational chart of the university financial aid office; a list of lenders included in the school's financial aid awards; copies of loan applications; marketing materials given to prospective students; criteria for a lender getting on or off the school's "preferred lender" list; records of any gift or compensation offers made by lenders to the school or individual employees; and records relating to any service by the school's financial aid employees as board members or consultants to affiliated lenders.<br /><br />Nelnet, the company that contracts with the OU Alumni Association, has been at the center of a probe by New York Attorney General Andrew Cuomo into alumni association ties to lenders. Earlier this month Cuomo sent 90 subpoenas to alumni groups of various colleges who have relationships with Nelnet, though according to Amos, OU was not one of them.<br /><br />As with the Ohio investigation, Cuomo wants to know whether the alumni associations got paid for pushing the lender's services, and if so, whether they let their alumni members know this.<br /><br />In a statement issued May 3, Nelnet promised to cooperate with Cuomo's investigation, but insisted all its relationships with alumni groups are squeaky clean, and similar to those that alumni organizations have with other kinds of businesses that provide services to their members.<br /><br />"We have been and remain proud of our affinity relationships with alumni associations," the statement declared. "These relationships provide valuable information and opportunities to alumni regarding student-loan consolidation, as well as generating income that helps alumni associations carry out their mission... We believe our agreements are appropriate and completely in accordance with the law."<br /><br />Amos said his group chose Nelnet as a loan-consolidation company to promote to its members because it seemed to be a solid company, big enough to provide services to a group the size of the OU Alumni Association.<br /><br />"Our main requirement is that they be strong enough to serve our alumni population. And Nelnet is large enough to handle the volume of our alumni population," he explained. "The customer service piece is essential."<br /><br />He added that while the loan-consolidation package Nelnet offers OU alums is "competitive," the alums don't get any kind of special deal for signing up through the alumni group.<br /><br />In its fourth year contracting with Nelnet, Amos said, about 1,500 alums have signed up for the company's loan-consolidation services, and most seem happy with the service provided.<br /><br />"Alumni feedback we get from the program has been solid," he said.<br /></td></tr></tbody></table>loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-38178360835640700502007-04-18T10:08:00.000-07:002007-04-18T10:11:20.407-07:00How To Choose a Federal Student Loan Consolidation Lender<p>In the past few years, many students and graduates took advantage of record-low interest rates and consolidated their federal student loans to lock in the historic low rates. If you missed out — don’t fret, here is a simple guide on how better narrow down your decision for a future consolidation.</p> <blockquote><p>Besides locking in lower rates, there are some other reasons why you may want to consolidate your loans. Check out FinAid’s list of <a href="http://www.finaid.org/loans/whyconsolidate.phtml">pros & cons to consolidating student loans</a>.</p></blockquote> <p>So when rate changes comes around and locking in lower interest rate becomes a no-brainer, who should you choose to consolidate your loans?</p> <p>The easy answer: your current lender. You’ve chosen your current lender for a reason, there’s no reason to complicate things further by going with a different lender. However, the problem with the easy answer is, you may have chosen the wrong lender in the first place, or, get this—there may be better lenders out there.</p> <blockquote><p><strong>FACT:</strong> The only differences between federal student loan consolidation lenders are: <strong>Lender Repayment Incentives</strong> and <strong>Lender Service</strong>. Don’t underestimate their importance!</p></blockquote> <p>If you currently have a federal student loan for yourself or your child, you’ve no doubt received many solicitation from different lenders to get you to consolidate your loans to them. Many of these will tout some type incentive programs. Common repayment incentives are along the lines of reduction off in interest rate, after a certain amount of timely repayment.</p> <p>Example: After 36 months of consecutive [timely] payment on your 10 year loan, you receive a 1% discount from your loan.</p> <p>This typical type of lender incentive sounds great enough, but the problem is, many borrowers fail to qualify for the incentive program. Many of these incentive offers require timely monthly payment, so if you miss a payment deadline before reaching the required payment term, you won’t receive the rate deduction bonus. The same applies if you miss a payment deadline <em>after </em>earning your bonus.</p> <p>In comes a different type of incentive program: immediate interest rate deduction if you sign up for auto debit, with additional deduction after consecutive payment.</p> <p>Example: You receive a 0.5% interest rate deduction if you sign up to have your monthly loan payments automatically withdrawn from your checking account. Plus, after 24 months of consecutive on-time payment, you receive an additional 1.25% deduction in your interest rate.</p> <p>A much nicer incentive, right? The above example is from <a href="http://www.educationalloancompany.com/h.php?SID=3cdfcf2987ae7486210aea905d78a3a8">ELC</a>, which unfortunately has a minimum of $20,000 for their 1.25% deduction. If you only have a $10,000 loan, you’re out of luck on the additional interest deduction. Thus, it’s important to compare the offers and figure out which programs you can actually qualify.</p> <p>As mentioned above, the second difference amidst the sea of lenders are lender services. Even if the incentive program is the best in the world, if the lender has a spotty track record for customer service, you may be doing yourself a disservice by signing up. What happens if you wish to defer your payment? If you call to ask about that, or a general inquiry on your loan, will they respond in a timely matter? For those of us with a low loan amount, lender service may not be a big deal—but for those of us that are in it for the long haul, you’ll want approachable service.</p> <p>Remember, you can only consolidate once. So if you choose the wrong lender to go with, you’ll be stuck with them until you pay off your student loan for that expensive private university.</p> <p><strong>Important questions to ask when you’re choosing your lender:</strong></p> <ul><li>What is the repayment incentive?</li><li>Is there a waiting period for the incentive? Do I have to earn it?</li><li>What happens if I miss a payment?</li><li>What happens if I request a deferment?</li><li>How many of the borrowers actually receive the incentive?</li><li>Is the lender knowledgeable and experienced?</li><li>What is the credibility? Does your school support or recommend the lender?</li><li>How is the accessibility?</li><dd>Are there online account access? A 24/7 customer service number? If you call them, will they give you information tailor to you, or will they give you some generic scripted response?</dd><li>How is their long-term commitment? Does the lender have a history of selling consolidated loan?</li><dd>The worse part in owing money, is when your lender disappears and some other company buys out your loan; suddenly you owe money to someone else. </dd></ul> <p>If you can’t figure out some of these answers with the information provided to you, ask the lenders. This is a great way to gauge their service. If a customer service rep is having a hard time, or trying very little to help you understand their program, it may be a good cue to stay away. If they’re being such a hassle when you’re trying to give them money, imagine when you already owe them the money!</p> <p><strong>More Resources to Check Out:<br /></strong></p> <ul><li><a href="http://www.collegejournal.com/aidadmissions/financialissues/20050725-chaker.html?refresh=on">Bank Sweeten Student-Loan Terms</a> from the WSJ</li><li><a href="http://finaid.org/loans/consolidation.phtml">Student Loan Consolidation Info</a> from FinAid.org</li><li><a href="http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=596894">Best Student Loan Consolidation Deals</a> from Fatwallet Finance Forum. Great thread with a list of various different lenders, their incentive programs and some first-hand customer service experiences.</li></ul>loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-30858185683023656762007-04-12T03:53:00.000-07:002007-04-12T03:57:31.464-07:00More re selling loans - losing borrower benefits inevitable?If you consider student loan consolidation, you better be aware of these tricks.<br /><br />I bet you've been getting tons of email junk about student loan consolidation. <br />Tell me, did they promise "reduced interest rates"? Yes? OK, but look for the fine print - I guess you’ll find terms that allow the lenders to change - or even take away! - these benefits. <br /><br />I compiled a list of common tricks loan lenders use to make sure you don’t earn their benefits.<br /><br /><span style="font-weight:bold;">1)</span> “On-time payments” - Many lenders offer discounts for making on-time payments. What they don’t tell you is that to keep the discount you have to continue making on-time payments until the loan is paid off – which could equal up to 30 years of on-time payments!<br /><br />Most lenders give borrowers a “grace period” before they will consider a payment late (typically around 14 days). However, some lenders require payments to be made “by the due date as initially scheduled” in order to qualify for their benefits. This means if your payment is not received by them on your payment due date, you lose your benefits.<br /><br /><span style="font-weight:bold;">2)</span> Managing Your Loans Online - Some lenders may require you to apply online in order to even be eligible to receive their benefits.<br /><br />Some lenders also require you to receive all correspondence from them electronically to be eligible for their benefits. If they send you an application confirmation via email, and your email address is deemed undeliverable twice in 48 hours, then you may not get the loan benefits. Also, if you ever change you email address without notifying them and their correspondence bounces back to them you could lose your benefits.<br /><br /><br /><span style="font-weight:bold;">3)</span> Automatic Debit - Most lenders offer borrowers an additional interest rate reduction (typically 0.25%) for using auto-debit (ACH) to make their monthly payments. However, some lenders tie the ACH benefits and the other benefits together. You have to use ACH to get the benefits. If you lose ACH then you lose the benefits too.<br /><br />Sometimes the opportunity to sign up for ACH is limited to 30 days from the signing of the application. If the borrower does not follow up with the lender to get ACH WHILE the application is processing, then they can be outside of the sign up window. ALL benefits lost before they get their first bill!<br /><br />They are required to sign up to receive their bill via email. In addition every month they must reply to the email acknowledging receipt. If they don’t they lose ACH which causes them to lose their benefits.<br /><br />Returned emails, NSF in their checking account and failure to notify of a change of address are additional ways to lose ACH, which causes loss of other benefits.<br /><br /><span style="font-weight:bold;">4)</span> Repayment Plans - There are four “repayment plans” that lenders can offer: Standard, Graduated, Extended and Income-sensitive. With a Standard repayment plan borrowers will pay a fixed monthly amount (principal + interest) for the life of the loan. With the other three options, borrowers can start with lower monthly payments by paying interest only for the first two years (Graduated), three years (Extended) etc.<br /><br />Some lenders require borrowers to be on a Standard repayment plan to qualify for their benefits.<br /><br /><span style="font-weight:bold;">5)</span> Minimum Balances - Some lenders require minimum balances to qualify for benefits (usually $20,000 or more is required).<br /><br /><span style="font-weight:bold;">6)</span> Forbearance/Deferment – These are ways for borrowers to stop making payments for periods of time, such as times of unemployment or if they go back to school.<br /><br />With some lenders, borrowers can lose their benefits if the apply for deferment or forbearance.<br /><br /><span style="font-weight:bold;">7)</span> Proof of Graduation - Some lenders require borrowers to provide proof of graduation in order to keep benefits.<br /><span style="font-weight:bold;"><br />8)</span> Early Pay Off - Borrowers can sometimes lose their benefits if they pay their loans off early.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-31134843386044583652007-04-12T01:45:00.000-07:002007-04-12T01:48:00.132-07:00Selling loans = loosing borrower benefits?Do you wonder if selling loans will lead to losing borrower benefits?<br />Choosing a lender can be one of the most important decisions you’ll make when borrowing money to pay for school. Be sure to take into account the savings offered by each lender such as origination fee discounts, interest rate reductions, or rebates. To help you make the best possible choice, consider the following information.<br /><br />Under federal guidelines, lenders are allowed by law to charge an origination fee of up to 3% of your gross loan amount. Some lenders offer you discounts on this fee, while others may offer special discounts or rebates for making a number of consecutive on-time payments. For more information, see the Loan Cost Comparisons of KHEAA’s Major Lenders. Loan costs change periodically, so you should contact the lender for the most current information.<br /><br /> *<br /><br /> Loan Cost Comparisons of KHEAA’s Major Kentucky Lenders<br /> o Federal Stafford Loans<br /> o Parent PLUS Loans<br /> o Graduate/Professional PLUS Loans<br /><br /> *<br /><br /> Loan Cost Comparisons of KHEAA’s Major Alabama Lenders<br /> o Federal Stafford Loans<br /> o Parent PLUS Loans<br /> o Graduate/Professional PLUS Loans<br /><br /> *<br /><br /> Loan Cost Comparison for Alternative Loans<br /><br />The Kentucky loan cost comparison chart is provided in the popular Adobe Acrobat™ format. If you need the free Adobe Acrobat Reader™ software, you can download it by clicking on the Get Acrobat Reader™ button below.<br /><br /><br />Following are important questions to ask about lenders you are considering for your student loan.<br /><br />Does the lender provide origination fee discounts, interest rate reductions, forgiveness of principal, or other incentives?<br /><br /> The bottom line is that discounts and other incentives can save you money! Lenders are not allowed to provide an origination fee discount prior to disbursement for PLUS loans.<br /><br />Does the lender sell its student loans?<br /><br /> Many lenders sell their loans to other holders or secondary markets after the loans have been disbursed. When your loan changes ownership, the servicer may also change multiple times during the life of your loan. It is important that you stay in touch with your loan holder and/or servicer to ensure you fulfill your repayment obligations.<br /><br />Does the lender use a servicer?<br /><br /> Many lenders use loan servicing agencies, or servicers, to handle the day-to-day work on their student loans. Servicers handle not only borrowers’ questions about their loans, but also repayment and deferment issues. Since the borrower/servicer relationship is often long-term, it is important for you, the borrower, to know who you are dealing with. Some lenders service their loans locally and some use out-of-state or national servicers.<br /><br />Does the lender require a credit check?<br /><br /> Federal regulations require that credit checks be performed for all Federal PLUS Loan borrowers. However, some lenders may require credit checks for Stafford Loan borrowers as well.<br /><br />Does the lender require a "customer relationship"?<br /><br /> Some lending institutions, such as credit unions, require that you are a member of their institution before they will accept your application.<br /><br />Does the lender offer Federal Consolidation Loans?<br /><br /> You are required to make payments to each lender that makes a student loan for you. If, throughout the course of your education, you borrow from more than one lender, you may be eligible to consolidate those various loans into one loan. By doing so, you will only have one payment to make to one lender each month. You may also reduce the amount of your monthly payments once your Consolidation Loan is approved. However, you may lose certain other benefits, such as deferment options, so consider these carefully before consolidating your loans.<br /><br /> As an alternative to a Consolidation Loan, some lenders are willing to buy or sell your loans from/to other lenders. This allows you to retain the same benefits on your loans and make one monthly payment. You should contact your lenders to determine if this is an option for you.<br /><br />What is a preferred lender list?<br /><br /> Many colleges provide student borrowers a list of lenders to consider. These lists are developed by the colleges under a wide variety of objectives which may include some of the following: (1) prior service provided to borrowers at that school, (2) discounts or other borrower savings provided at loan origination time, (3) savings provided to borrowers during repayment of the loan, (4) proximity of banks/lenders in the area where the college is located, (5) electronic processes offered to student borrowers and the college financial aid office necessary for efficient and timely delivery of funds, and (6) cancellation provisions for borrowers who enter certain professions after graduation. These lists are suggestions and are provided as a convenience to the borrower for consideration. As a borrower, the ultimate decision on which lender to use rests with you--compare the origination fees, discounts, and other savings each lender offers and choose the one that is best for you.<br /><br />Once I’ve compared lenders and the benefits they offer, how can I make sure I get the benefits I’m looking for?<br /><br /> Different lenders may have several different Lender ID Codes, and each code may have different benefits associated with it. Be sure to use the correct Lender ID Code when you fill out your loan application.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-46564117103268965392007-04-09T05:41:00.000-07:002007-04-09T05:44:13.845-07:00Life After CollegeHow many times have you said to your friends, “I can’t wait to be able to afford all those things we can’t afford now”? The prospect of earning a “real” salary, buying a new car, and getting a new wardrobe is really exciting, but don’t forget that this new lifestyle is also going to include having to pay bills at the end of each month.<br /><br />Once again, having a plan in place will help you deal with the new financial challenges you’re about to face. This time the plan is called a budget. It’s not easy to anticipate all the expenses your salary will have to cover, so putting the data on paper will help you see where your money goes. Here are some things to consider.<br /><br /><span style="font-weight:bold;">Credit Card Debt</span><br />Banks make getting credit cards easy. Credit cards make spending easy. But sometimes easy is not so good. Credit card companies market extensively to recent graduates because there is a great deal of money to be made in that market: Interest rates vary from card to card and may range anywhere from 10 to 20 percent yearly. It’s very easy for a new graduate to get caught in the credit card trap.<br /><br />Before you accept or use your new credit card, make sure you carefully read and understand the fine print and can pay at least the monthly minimum balance. If at all possible, pay off your credit card debt as soon as possible. If you have a savings account or have received money as a graduation gift, you should consider paying off your credit card bills before you take that expensive trip you’ve been dreaming about. “Pay now, buy later” is a good rule of thumb at a time when your income is limited.<br /><br /><span style="font-weight:bold;">Repaying Student Loans</span><br />Most students are troubled by the prospect of repaying their student loans. They’re not sure of the who, what, when, and where of the system. Here are a few things to remember:<br /><br /> * All students who took out loans and signed promissory notes during their undergraduate study now have a legal obligation to repay that amount and any interest associated with that loan.<br /> * Know the addresses and phone numbers of all your lending agencies.<br /> * Know all of the loan repayment options that are available to you, such as loan consolidation, standard repayment, and graduated repayment. Choose the option that will best fall within the limits of your budget.<br /> * A deferment is postponing the repayment of a student loan. As a borrower, you have a legal right to exercise this option if circumstances merit.<br /> * Forbearance options are also available, where the lender agrees to extend your payment schedule to avoid a default situation. Contact your lender immediately if you are having problems with your repayment schedule. On certain occasions, lenders may be willing to temporarily change your repayment schedule. <br /><br />A word of caution is needed here about credit ratings. Anytime you are late with a payment, whether it be a credit card payment, car loan payment, telephone bill, or rent, it most likely will be reported to a credit bureau. This bureau will be contacted when you try to get a mortgage or want to borrow money to make any kind of sizeable purchase. It’s very important to remember that your buying and spending habits now may have major repercussions in the future.<br /><br /><span style="font-weight:bold;">Buying a Car</span><br />Making any major purchase requires lots of research before the transaction is completed. The process of buying a car is time consuming and takes lots of patience.<br /><br />The first step is to decide whether you want a new or used car. More and more people are buying used cars, since the initial cost of buying a used car is usually a good deal lower than the purchase of a new car.<br /><br />Then, you should spend time prioritizing the extras you want. Can you really afford a sunroof or that stereo system that has spectacular sound? It’s true that such items will increase the resale value of your car, but they will also increase the purchase price.<br /><br />Know the cost of insurance for the car before you buy a new car. Investigate several insurance companies and learn what services they provide, how much deductible you will have to pay, etcetera.<br /><br />When it’s time to pick up your car, you will have to sign all loan agreements, have a certified check for your down payment, and have a check to cover the costs for the registration of your car. You will need some sort of verification from your insurance company to indicate that the car is insured.<br /><br />Ultimately, you should consider all options before committing to costly payments each month, and remember, if you’ve made the wrong choice, you can always go to Plan B or even Plan C if necessary.<br /><br /><span style="font-weight:bold;">Building a Professional Wardrobe</span><br />Now that you’ve got that job, what kind of clothes will you need and, just as important, what impact will buying these clothes have on your budget?<br /><br />Dress codes vary greatly, depending on the industry and management team at the helm of a business. If you’re not sure you’re dressing right on the job, look around you and notice the attire of the managers and others who are the decision makers. Meanwhile, wear your more conservative clothes until you get a sense of what’s appropriate.<br /><br />But how do you manage to buy a wardrobe for your new work situation, while you’re living on a very tight budget? Once again, you’ll need to devise a plan.<br /><br />You really don’t need to buy a great many clothes. Start with the basics and add new components and accessories from there. The mix and match rule will help you recycle the same outfits until you can afford to augment your wardrobe.<br /><br />Also, check out discount stores and resale shops for apparel, at a fraction of the retail price. Think of buying clothes that are “classic” and not in a style that will be out of fashion next year. An expensive suit that you can wear for five or six years is a better investment than a poorly made bargain that looks shabby after you’ve worn it for a year or two.<br /><br />If you put some time and effort into planning your wardrobe, you can look like a successful, big-time career person, by only using a small-time budget.<br /><br />From: <span style="font-weight:bold;">Reality 101: The Ultimate Guide to Life After College</span>, by Fran Katzanek<br /><br />i really enjoyed this book. this is an excerpt from this great novel. i recommend anyone reading this who is stepping out of college and fresh into the working world. considering i am one of those people, i had to pick this up at Barnes & Noble. Glad I did! This book is great. Besides, its nice to have a "smart read" once and awhile.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-67743039465566575352007-04-04T04:38:00.000-07:002007-04-04T04:40:28.577-07:00Reconsolidation Loans<a href="http://www.john-carlton.com/2007/04/03/why-clueless-marketers-are-terrified-of-the-web/trackback/">John Carlton writes today in his blog</a>:<br /><br />...Here’s what I’m talking about: The Web has “officially” become the Number One source for advertising for many of the culture’s biggest advertisers — a year earlier than predicted. Gazillions of bucks that used to be channeled through “traditional” media (newspapers, magazines, direct mail, television, radio, etc) have now been measurably diverted online.<br /><br />For the people who keep track of this sort of info, this news is astonishing and troubling (if not unexpected).<br /><br />The entire foundation of our capitalistic economy is shifting, and most of the former movers and shakers simply are not prepared for the change.<br /><br />The obvious signs of upheaval are the disappearance of entire market segments. Like most of the music-selling stores (Tower, Wherehouse, your favorite former local hipster CD haunt)...<br /><br />Read more at his <a href="http://www.john-carlton.com">blog</a>.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-21464535561167812532007-04-04T03:03:00.000-07:002007-04-04T03:06:14.589-07:00Comprehensive Overview of Student Loan issuesThese days, getting angry seems to be part and parcel of earning a degree. And I'm not talking about student protests. I'm talking about student loans.<br /><br />Higher education has always been expensive and applying for financial aid was never easy. The difference now is that student loan debtors, like other consumers, are more vocal when they think they're being treated unfairly. And student loan companies don't like what they're hearing.<br /><br />The latest controversy revolves around Loan to Learn, whose parent company EduCap Inc., based in Herndon, pioneered the private student loan business.<br /><br />A quick and dirty primer: Students have several pools of money to tap into to pay for school: their family, grants and scholarships, federal loans and private loans.<br /><br />Student borrowers are limited as to the amount of federal loans they can take out. And family and grant money are, for most people, a finite resource. That's where private loans come in.<br /><br /><a name='more'></a><br /><br />Private loans have become lucrative as the cost of higher education has risen. Loan to Learn, in fact, has seen its share of the market grow to 18 percent of all student loans and to about 10 percent of all student aid awarded -- a total of $13.8 billion in 2004-2005. Alan Collinge of Student Loan Justice says business is likely to get even better for private lenders in the education industry because Congress took bankruptcy off the table for private loans in the most recent bankruptcy legislation.<br /><br />Last month, the U.S. Student Association filed a complaint against EduCap with the Federal Trade Commission, saying it misleads students and families about their loan options.<br /><br />The complaint focuses on "Demystifying Financial Aid", a pamphlet Loan to Learn offers on its Web site. The gist of the complaint is that Loan to Learn makes private loans seem like an appealing alternative to federal loans and misleads borrowers about benefits that only federal loans offer.<br /><br />Contacted yesterday, Loan to Learn spokesman Tom Calcagni said he is working on a response. As soon as we hear from him, we will post his comments here. The company told the New York Times yesterday that the allegations are "false and contrary to EduCap's philosophy and business practices of 20 years."<br /><br />Loan to Learn is also facing claims they use gifts and paid trips to conferences to get on the good side of financial aid administrators, who put together lists of "preferred lenders" for student borrowers.<br /><br />Applying for financial aid is so complicated and independent information so hard to come by, that student borrowers and their families have come to rely on the preferred lender lists and lenders know this, said Luke Swarthout of Student Debt Alert and currently a guest blogger for Generation Debt.<br /><br />The payola allegations resurfaced yesterday in the New York Times, which reported that EduCap is sponsoring a February 2007 "Education Summit" at a Four Seasons in the Caribbean and has offered all-expenses-paid "special invitations" to university officials and their spouses. School administrators at universities that have accepted money from lenders or who have taken home items such as iPods from lenders, said the money and items they received were of too small a value to influence them.<br /><br />As a private education lender that does not offer federally-guaranteed loans, Loan to Learn is not subject to the illegal inducements rules, said Mark Kantrowitz of finaid.org.<br /><br />Kantrowitz says, however, he doubts any school is going to choose to promote a particular lender just because they throw a nice party or give away free iPods. "Most of the financial aid administrators I know are very dedicated, focusing on providing their students with the selection of lenders that best fit their needs," he said.<br /><br />I suspect many student borrowers might be a tad less angry with lenders if executives at the student loan companies weren't making so much money. Sallie Mae Chairman Al Lord, you might recall, was part of a group that was in the running to buy the Nationals. EduCap chairwoman and co-founder Catherine B. Reynolds tried to donate $38 million to the Smithsonian in 2001, then withdrew it after curators balked at some of the requirements. Her foundation ended up giving $100 million to the Kennedy Center.<br /><br />If you're shopping for a student loan, you might want to go beyond the preferred lender list. Sites such as simpletuition.com, finaid.org and the federal student office are good places to start.<br /><br />According to Kantrowitz, low cost is one factor, but there are also dozens of other criteria, such as customer service and problem resolution.<br /><br />Are you better off for having taken on student loan debt? Or is the cost of higher ed and the terms and conditions of student loans creating a new type of indentured servitude?<br /><br />By Annys Shin | October 25, 2006; 10:15 AM ET | Category: Consumer News<br />Previous: What Your Cell Says About You | Next: Compassionate But Confusing Labels<br />Blogs That Reference This Entry<br /><br />TrackBack URL for this entry:<br />http://blog.washingtonpost.com/cgi-bin/mt/mtb.cgi/12585<br />Comments<br /><br />Please email us to report offensive comments.<br /><br /><br />I took out $55,000 in federal loans and $90,000 in private loans for law school. So. Not. Worth. It.<br /><br />Consolidating my loans ended up being an enormous problem because my consolidation lender underpaid the original lender, and so I went into default as a result of this mistake. Even though the consolidation company admitted blame, the default goes on my record because I am the one responsible. It took about 5-6 months to clear up. I was also charged a $900 loan origination fee as a result of my debt to credit ratio based on the fact that capital one credit cards do not submit my credit limit so the lender put my limit at 0, thus seriously decreasing my available credit, and increasing my debt to credit ratio.<br /><br />My private loans are so high compared to the modest income I make. I spend 42% of my net income paying off my private and federal loans each month.<br /><br />And my law school held a seminar to allow a company to tout it's service of finding the appropriate consolidation lender for each student. Using this non-profit organization (which has since become for-profit), I consolidated with their recommended company. After all the problems I encountered with my conslidation lender, I came to find out that the company my law school had speak at it is based in the same PA town that my consolidation lender is from. Additionally, this company suggested the same consolidation lender to each student, rather than finding a specific consolidation lender for each student's specific needs.<br /><br />Posted by: law school debtor | October 25, 2006 09:58 AM<br /><br />I am in the same basic boat as "law school debtor." My husband and I have a combined debt of $140,000 in school loans. I have two masters degrees and he has a doctorate from a prestigious university...but the market collapsed when I was finishing my masters and now there are no jobs. Now we have "day jobs" in other fields.<br /><br />We pay 1/3 of our income to taxes and 1/3 to student loans every month...leaving us 1/3 of our income to live on. Though we pay around $20,000 a year in student loan payments, the government says we can only claim $2,000 of it on our taxes each year. We will be paying our loans until we are 60 and then we can expect to be taxed on any amount left remaining. We cannot afford to have children because of our student loan debt. We also cannot live near our families because the cost of living in those areas is so high. We cannot get government help because we technically make too much (even if 2/3 of it never gets to our pockets).<br /><br />We went into debt to get an education so that we could get good jobs and we find that we have mortgaged away the rest of our lives by taking out student loans.<br /><br />Posted by: collegedebt4life | October 25, 2006 10:27 AM<br /><br />More than a few university administrators need to re-read their ethics standards. The doctors who accept gifts, free samples, and catered lunches from pharmaceutical salespeople say the same thing, "Oh, those are too small in value to affect my professional judgement."<br /><br />The lesson in all this: students and famillies need to do their own homework, research the lowest cost of funds, and not rely on the biased views of lenders or school personnel.<br /><br />Posted by: Ken L | October 25, 2006 10:56 AM<br /><br />Like the previous two posters above, my husband and I have incurred a susbtantial amount of student loan debt. His (about $15,000) has been consolidated and will be paid off in about 20 years. Mine (still accumulating) will total about $75,000 when I am done with my graduate degree, and I will strive to pay off in the original 10 year period -- because the state of Michigan offers a 0% interest rate after three years of consecutive payments. A huge incentive not to consolidate!<br /><br />I figure our monthly payment (mine are currently deferred as I am still in school) will be approximately $1000 a month, or about a quarter of our income -- if we still have the decent jobs we have.<br /><br />Hopefully my studies will allow me to get an even better job, though with Michigan's economy being the way it is - I've really gone back for my MBA simply to be able to continue at the level I am.<br /><br />Like others, it is likely we will delay/not have children, due to the loan burden we carry.<br /><br />Welcome to the future -- where those who are educated can't afford to reproduce and pass their knowledge on to the next generation!<br /><br />Posted by: Michigan | October 25, 2006 10:58 AM<br /><br />The 'San Francisco Chronicle' has an article on the same topic today called 'Staggered by Debt'.<br />It prompted me to write about the issue of cooks and culinary schools on my blog 'Serge the Concierge'.<br />In that field (culinary), I believe that what makes it hard for students to repay their loans is the relatively low pay a cook gets in comparison to the loans she/he incurred.<br /><br />Have a good day<br /><br />Serge<br />Blog:<br />http://www.sergetheconcierge.com<br />Biz:<br />http://www.njconcierges.com<br /><br />Posted by: Serge Lescouarnec | October 25, 2006 10:58 AM<br /><br />I worked two jobs (one full time M-F, one part-time weekends) to pay for night school 25 years ago. I only got a 2-year degree after 6 years of night school. I didn't have the energy to work another 6 years to finish a full degree. I attended a private college in DC, and tuition was astronomically high then. It turns my stomach to see what the tuition is now. Not only did I have to pay school expenses, I lived on my own and had to pay all living expenses as well -- rent, food, clothing, books, car expenses so I could get to class. Not a dime from mommy and daddy, and the little bit I borrowed in student loans has been paid back.<br /><br />However, those of you with law school loans can look forward to a filthy rich future judging from lawyers' salaries. Some make nearly $1 million a year and those piddly student loans will be paid off quicker than you think. If you marry another lawyer your wealth will double. Wow! Just imagine the house in McLean, summers in Europe, vacation house on Marthas Vineyard, au pairs and private school for your kids, Beamers and a Mercedes in the garage, or maybe a Lexus or two.<br /><br />When I retire in 2 years, I plan to go back to community college, where I can go for free after age 60. I'd like to go into the health-care field and have an entirely new career.<br /><br />Posted by: Southern Maryland | October 25, 2006 11:07 AM<br /><br />It's so expensive just to attend school now days. Unfortunately it's almost a necessity if you want to get a decent job. For me I didn't want to get a student loan or anything or the sort. I paid my own tuition and worked the night shift to pay for everything. I know that option isn't the best for everyone but if you want to remain debt free from school, you have very little choices.<br /><br />Posted by: ironhyde | October 25, 2006 11:18 AM<br /><br />Southern Maryland fails to realize that most lawyers absolutely do not make that kind of money. Many, especially those going into public service, or working for the district attorney or public defender, earn less than $35,000 per year. For those people their law school loans will in no way be paid off in a couple of years. If you have any other ill-conceived lawyer stereotypes to discuss, I'd be happy to respond.<br /><br />Posted by: poorlawstudent | October 25, 2006 11:19 AM<br /><br />I borrowed $50,000 to get my MBA. Was totally worth it - I got my current job based on my MBA experience. Consolidated the Federal loans at 2.5%, have a private loan for about $10k that around 6%. After 24 months it'll go down to 5.5%.<br /><br />I didn't think figuring out financial aid was that hard - my school's financial aid office had great materials on which private lenders they used, then I went online and did some research to find out who had the best repayment terms.<br /><br />Will I be paying this off for the next 20 years? Yes. (Unless I win the lottery...) But I knew that going in, and I waited to find a job that paid enough that I could afford to pay them back and still live on what was left over.<br /><br />Posted by: Howard County | October 25, 2006 11:22 AM<br /><br />My husband and his hometown friends who went to college all incurred large amounts of debt in order to do so. However, all of them are much better off now then the ones who are stuck in the small PA town working dead end blue collar jobs in factories that are closing.<br /><br />Posted by: skm | October 25, 2006 11:25 AM<br /><br />Thanks for the links and information. I went to college some 30+ years ago, and grad school 20+ years ago. My debts are long paid off, but I do have a 9th grader who is just starting to think about college. I truly appreciate the heads-up.<br /><br />Posted by: cotopaxi | October 25, 2006 11:26 AM<br /><br />As with credit card debt, the student loan situation argues for better education of consumers as to the effects of interest rates, compound interest, etc. on the borrowing that they do. I'm lucky in that I've educated myself and worked to consolidate my debts in ways that have minimized the interest now due on them, but what a difference it would have made if at some point there had been some practical education in the public schools I attended to teach us how debt and interest works before dumping us out into a marketplace that's fairly unforgiving of mistakes.<br /><br />Posted by: Moose | October 25, 2006 11:29 AM<br /><br />Uh...who said that you need to spend $150K for a degree? Just because lenders are willing to shell out that kind of money, maybe you should really consider whether you can repay this type of debt when you graduate. I especially amazed at the number of parents who see no problem taking on this this type of debt load for the undergraduate education of their precious children so that they can attend schools like Duke, NYU, Fordham, Johns Hopkins, Boston College and Miami. Sure, these are prestigious schools and my wife and I both graduated from one of them in the mid-80s. However, when do you say "honey, I love you, but we need to look at schools that are a bit more within our means." Does this mean that you trade NYU for NVCC? No, but Virginia offers awesome schools, public and private (e.g., Lynchburg) at a fraction of the cost. Read Jay Matthews' book Harvard Schmarvard for a list of 100 that are great schools and a good value. Our daughter got into Ithaca, UNH and several Virginia state schools and chose to go in state. Could we have afforded the others? Sure, but would her education have been 2-3 times better? Unlikely! With the amount of information available today it is hard to understand how people can mess this up so badly.<br /><br />Posted by: Lester Burnham | October 25, 2006 11:36 AM<br /><br />Uh, Southern Maryland - my dad is an estate attorney in a small town in Pennsylvania and while he's not living paycheck to paycheck I can assure you he does not live in a mansion, does not summer in Europe, has never had an au pair, and has one car, which is none of the brands you list. Poorlawstudent is absolutely right that the stereotype that all lawyers are rich is way off base. How much a lawyer can make often depends on the type of law they practice, and the economy of the area. A public defender in East Liverpool Ohio is probably not going to make as much as a public defender in Beverly Hills.<br /><br />Posted by: Arlington | October 25, 2006 11:56 AM<br /><br />What everyone is totally missing is that these easy to get loans are fueling the price inflation at universities. The price of education has gone up many times the rate of inflation since these loans were established. Yet the education bought with this price increase has remained the same. In fact, looking at my university. They have the exact same profesors they had ten years ago, but the price has almost doubled. The difference is that universities are all using this loan money to build golden student centers, ours was just completed at $140 million. Universities waste this money and it ends up costing students for years. The public universities have turned into huge centers of corruption for state governments with kickbacks for construction contracts. All these Masters and Phds, yet no one is looking at the economics of the situation. Perhaps evryone is blinded by their loyalty to the university to hold them up to accountable standards. A national epidemic it seems.<br /><br />Posted by: morganja | October 25, 2006 12:37 PM<br /><br />I was being sarcastic -- sorry it didn't come across that way. I work for a large law firm where the partners pull down close to $1 million a year. The only drawback is you have to sell your soul to be a lawyer. Give up your life. They enter 60-80 hours a week on client work. Our office is staffed 24/7. If you call here at 3:00 am on Saturday morning, somebody will answer the phone. Many are married to other lawyers because nobody else can stand them, therefore doubling their wealth. I'm merely a low-life support staff and make more than most Government lawyers. It's not a field I'd want to go into myself. I only work here because I have a mortgage and have to support myself so I guess I'm no better than they are.<br /><br />Posted by: Southern Maryland | October 25, 2006 12:48 PM<br /><br />Morganja...you may have a point...I recall seeing an article recently which stated that college tuition has increased 35% over the past five years. These are the types of price increases that existed in healthcare until the early 80s when the government, as the largest insurer, stepped in. While this is a different, unregulated market, I wonder if we will see a consumer backlash against these schools to keep their costs in line? It should be interesting to see what happens in about five years when supply and demand (graduation HS seniors and college freshman slots) become more balanced. Some schools (e.g., the Ivies) won't notice, but other schools should see some pain.<br /><br />Posted by: Lester Burnham | October 25, 2006 01:03 PM<br /><br />I think people need to start weighing their options in a more realistic light. I graduated from a prestigious college several years ago, and I'm currently pursuing my Master's degree while working full time. I had a number of choices, two of which were: 1. an expensive, prestigious private university where I'd be a full-time student with a $65,000 loan hovering over my head; or 2. a moderately-priced local university of moderate reputation, where I could enroll as an evening student while working full time. Guess which I chose? The latter. Sure, the prestigious name lured me, but it just didn't merit the $65,000 tag that came with it because I'm not even going into law, medicine, business, engineering, or some other lucrative field that would help me recoup what I spent. I gave up the prestige in exchange for financial freedom- I bought a house while going to school, paid my tuition while working, and will soon graduate with a Master's degree that's all paid for!<br /><br />Posted by: a grad student | October 25, 2006 02:04 PM<br /><br />I also join the ranks of those who invested in a post-graduate degree only to realize lackluster salaries and mounting student loan payments. By entering the Federal sector, my post-MBA salary is not a whole lot more than it was before I went back to school, except now the loan payments are mounting. I've refinanced the Federal loans at a low interest rate, but they hardly covered the price of tuition, let alone books and living expenses during those 2 years. Private "MBA Loans" funded the rest, and those are locked in at 7-8%. There's precious little information on the tax implications and refinancability of these private loans.<br /><br />I'm glad I got my BA at a state school. But MBA programs at state schools are not really less expensive than those in private universities, so there's really no way to win.<br /><br />Posted by: MBA in D-E-B-T | October 25, 2006 02:15 PM<br /><br />I've been out of undergrad for almost 14 years, and it sounds like things have changed drastically. I took out the maximum in one kind of federal loan each year of school, and more of another type of federal loan in order to pay for my education. It was inconceivable that I would have to go to a private lender (then again, we were pretty poor, so we qualified for the second type of loan, and I decided to go to a Big 10 state school whose out-of-state tuition was half the tuition at the private school I got into).<br />I think I am definitely better off for having been able to take out the loans. It was challenging the first few years, but doable.<br />I am definitely glad that I did not finance a graduate degree with loans. I don't think that on top of undergrad would have been worth it. Instead, I got a job with tuition benefits that covered my masters, then took a position at a university to get free tuition for the PhD. While I'm still working on the last degree, and it's taken me longer, I got some really valuable experience from working and going to school.<br /><br />Posted by: things have changed | October 25, 2006 02:34 PM<br /><br />The spiraling cost of higher education has already resulted in a migration to community (aka "junior") colleges at least for the first two years. Provided you can attend a school that provides transferrable credits, you can complete your education at a four-year school and save a LOT of money. The universities won't change their practices until they notice that their freshman classes are shrinking.<br /><br />Posted by: CT | October 25, 2006 03:17 PM<br /><br />If you're borrowing to earn/buy a degree in business, law, science, or medicine, you may be OK. But there's a superabundance of unemployed and underemployed bachelors, masters, and doctorates in the humanities out there. An MBA who can figure out how to make a profit using this cheap/free labor source should do very well--at least under the current administration.<br /><br />Definitely don't believe the college catalogs; analyze labor/employment data in your field, state, and locale. Know that the "new" employment is "underemployment," sub-forty-hour jobs that prevent labor from unionizing or collecting unemployment! Since they can't qualify for unemployment, the underemployed are not counted as such in Federal employment figures.<br /><br />Of note: there's a "dirty little secret" about WHO will teach those college courses you are about to pay top dollar for! Contingent academics are most of who's teaching in colleges and universities, working for 1/3 the wage of FT academics without benefits or offices, and often employed by several colleges at once-- allowing colleges to fill the seats and to make the lenders happy.<br /><br />In a "pyramid scheme," degree holders who fail to find work in their field enlarge the pool of contingent labor, further driving the wages down.<br /><br />Cultural institutions have mastered the art of using unpain/low paid internships to get work done for less, and businesses are eager to catch up.<br /><br />Get a degree if there's real opportunity behind it, but don't put your life in hock to stand in the bread line!<br /><br />Posted by: Borrowing? What's the degree worth? | October 25, 2006 03:19 PM<br /><br />Has the cost of knowledge now exceeded the cost of ignorance?<br /><br />Probably not. I could be a close thing, however, depending on what other debt the student accumulates. Credit card companies love to hook students, many of whom come out of high school with no real knowledge of the concept of money. Also, the potential income, and work experience, that could be gained by going straight into the job market from high school, is something to consider.<br /><br />Posted by: Matt M | October 25, 2006 03:35 PM<br /><br />Because I went to a private college and law school, I had over $100K in debt upon graduation even though I had partial scholarships. I would have done things much differently (like working and going to school part time) if I had fully appreciated the fact that so much debt means that Sallie Mae, in a sense, owns your first-born. And, no, I'm not in the poor house, but my salary is a modest government one, as I do not work for a large firm. But, I'm tempted...<br /><br />Posted by: Another poor lawyer | October 25, 2006 04:19 PM<br /><br />Give me a break. Financial aid is not that complicated.<br /><br />Furthermore, Welcome to the real world! (which means you need to learn how to read the fine print)<br /><br />You're adults now, so start acting like it.<br /><br />Yes, I have student loans myself. Yes, I understand the processes involved. Most of the stuff here sounds like a bunch of whining to me.<br /><br />Seems like everyone these days thinks the world owes thems something. Be glad you were not born to a poor mother in Africa who is HIV positive, or in India in one of the lowests castes, or in the Gaza strip, or in ... (you get the point).<br /><br />Stop wasting your time whining. Get to work to pay off your debt and contribute something positive to the world.<br /><br />Posted by: Grow Up! | October 25, 2006 05:04 PM<br /><br />Is it whining to ask why bankruptcy for private student loans has been outlawed by Congress?<br /><br />Is it whining to ask why Student Loan Company CEO's are buying baseball teams, and making $100 million donations?<br /><br />Is it whining to ask why the two chairmen of the Congressional Education Committees are paying their family members hundreds of thousands of dollars from campaign contributions from student loan companies?<br /><br />I suggest that growup goto<br /><br />studentloanjustice.org/victims.htm<br /><br />to see what this legislation has done to people.<br /><br />Posted by: studentloanjustice.org | October 25, 2006 11:30 PMloanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-80580921317271017812007-04-04T01:21:00.000-07:002007-04-04T02:06:38.578-07:00Reconsolidation loan gimmicks you shall be aware ofIf you are thinking about reconsolidating your loan, getting a student loan consolidation or whatver else kind of loan (like, wedding etc.) there are things to watch out for, and often y<span style="font-weight:bold;">ou have to read the fine print</span> to find them. Here are some marketing gimmicks some consolidators will use to get you to do a consolidation loan:<br /><span style="font-weight:bold;"><br />• "Apply by this deadline!"</span><br />Well, the fact is <span style="font-weight:bold;">THERE AREN’T APPLICATION DEADLINES</span> in student loan consolidation. Just keep in mind that interest rates may change every July 1st, so it’s a good idea to check if rates are going to change that year and determine if you should apply before the loan interest rates change.<br /><br /><span style="font-weight:bold;">• "Apply online and get great interest rate benefits!"</span><br />Some loan consolidators may require you to apply for a loan online in order to receive interest rate discounts. Plus, if they send you an application confirmation via email, and if your email address is deemed undeliverable twice in 48 hours, then you may not get the discounts!<br /><br /><span style="font-weight:bold;">• "Get an 0.25% interest rate reduction by doing business electronically."</span><br />That’s great but <span style="font-weight:bold;">you might LOSE</span> that 0.25% reduction if you simply change your email address and they get a bounce back when they try to send your notice or statement. Be sure you understand your obligation to the consolidator in order to keep your reduction.<br /><br /><span style="font-weight:bold;">• "Avoid late fees...pay with auto-debit."</span><br />With auto-debit, <span style="font-weight:bold;">watch your bank account balance</span>! When the lender tries to auto debit your bank account and there are insufficient funds you may get a late fee from both the consolidator and your bank. Be sure to read the fine print to get specific details on their auto-debit program.<br /><br /><span style="font-weight:bold;">• "No fees to apply for our consolidation loan!"</span><br />Not charging fees is a requirement with federal loans. No one charges a fee for a federal consolidation loan.<br /><br /><span style="font-weight:bold;">• "Important information about YOUR student loan interest rates!"</span><br />Some loan consolidators attempt to mislead you into thinking that you’re being contacted by the lender of your education loans and that there are changes to your loans. Their hope is that you will contact them so that they can offer you their loan instead. Check out these lenders carefully before applying for a loan.<br /><br /><span style="font-weight:bold;">• Mailings that use seals or logos to imitate the government, a college or university.</span><br />Some loan consolidators do this to entice you to open their mailings. B<span style="font-weight:bold;">e sure to really check out their logo</span> and fine print to ensure you know who you are dealing with before applying for a loan.<br /><span style="font-weight:bold;"><br />• "Get Deferment or Forbearance Insurance."</span><br />Be on the lookout when some loan consolidators may play-up their services. If a loan consolidator offers you Deferment or Forbearance Insurance, they are basically "offering" you deferment or forbearance, which is a standard feature of consolidation loans and is offered by all lenders. <span style="font-weight:bold;">Be sure to</span> compare apples-to-apples and <span style="font-weight:bold;">understand the actual benefits</span> that your may receive with a loan product.<br /><br /><span style="font-weight:bold;">Remember: If it sounds too good to be true it probably is… read the fine print, ask questions and get it in writing!</span>loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-63227146873714337902007-03-30T04:21:00.000-07:002007-03-30T04:30:46.688-07:00Jonh Chow's calculus classYou guys ever tried <a href="http://www.johnchow.com">"make money online"</a> query on Google? OK - I was in a mood for googling what "make momey online" can bring me and here you are - take a look at this <a href="http://www.johnchow.com">make money online</a>.jpg:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVqXcyVq4KdPLYS_5_eJHYoN3nB9NEglZ698hWulZArRIA5PWRGPv9m4P36du2Y3Xq434WjAqO1lLYh4UdRgGR3LMw7TwpgUczxmdeCO_KhNIJerXj2Doi_ChRsGlmyZ1gyXFGobmflXcB/s1600-h/makemoneyonline.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVqXcyVq4KdPLYS_5_eJHYoN3nB9NEglZ698hWulZArRIA5PWRGPv9m4P36du2Y3Xq434WjAqO1lLYh4UdRgGR3LMw7TwpgUczxmdeCO_KhNIJerXj2Doi_ChRsGlmyZ1gyXFGobmflXcB/s320/makemoneyonline.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5047677117589249634" /></a><br /><br />Now you see what? Title of the captured page reads <a href="http://www.johnchow.com">"make money online"</a> - that's one.<br />Address field of the captured page reads <a href="http://www.johnchow.com">"make money online"</a> - that's two.<br />My beloved Web 2.0 panel search field (at the captured page) reads <a href="http://www.johnchow.com">"make money online"</a> - that's three.<br />Google search field of the captured page reads <a href="http://www.johnchow.com">"make money online"</a> - that's four.<br />Web results bar of the captured page reads <a href="http://www.johnchow.com">"make money online"</a> - that's five.<br />Bolded phrase of the 1st search result block reads <a href="http://www.johnchow.com">"make money online"</a> - that's six.<br />And - ta-dam! - 2nd result (out of OMG 140 Mln!!! for the term <a href="http://www.johnchow.com">"make money online"</a>) sports three (3) more hits for the phrase you've already seen somewhere today - right, that's <a href="http://www.johnchow.com">"make money online"</a>.<br /><br />And that <a href="http://www.johnchow.com">"make money online"</a> belongs to John Chow, it's his blog. You wanna know who the guy is? Come check the blog - it's pretty intriguing how he managed to achieve 2nd out of 140 Mln position ranking on the phrase which - I bet - you've seen in my post 10 (or was in 11? Darn it...) times by now - <a href="http://www.johnchow.com">"make money online"</a>.<br /><br />Cheers John - keep up the good work.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-54516203359583168132007-03-29T22:50:00.000-07:002007-03-29T22:53:50.803-07:00Reconsolidation loans were the last thing on my mind when I got into UniA student graduates from Georgetown University with about $63,000 in debt.<br /><br />Student recalls: <span style="font-weight:bold;">"Reconsolidation loans were the last thing on my mind when I got here. Just imagine - a new place and I'm on my own for the first time! It was very exciting. Yes, it seemed like college would last forever."</span><br /> <br />For seniors, Georgetown Uni is offering a series of <a href="http://www.cpaclicks.com/redirect.asp?a=3049&b=6059&d=142755&l=0&o=&p=0">financial literacy</a> workshops, covering such topics as loan repayment and debt consolidation, reconsolidation loans basics, credit cards, spending, benefits and taxes.<br /><br />"If only I'd known this when I was your age" - thats' what the professors and other financial experts leading the classes say.<br /><br />You better learn these lessons while young, for you'll have a lot of time on the line.<br /><br /><a href="http://www.cpaclicks.com/redirect.asp?a=3049&b=6059&d=142755&l=0&o=&p=0">Students are leaving college with more debt than ever</a>, now that more of them have to rely on loans, tuition keeps rising and credit cards are being pushed on many campuses. <br /><br />For full-time students at four-year colleges, the median education loan debt is nearly $20,000. <br />And you should factor in credit cards - more than half of students surveyed in winter 2007 had piled on more than $5,000 in debt in school. There is even more - one-third added more than $10,000 in credit-card debt.<br /><br />Some students treat credit cards and student loans like found money, for spring break trips or betting on NCAA brackets. But many are struggling to afford college; nearly a quarter charge part of their tuition. And most need to get used to managing expenses, learning -- often the hard way -- as they go along.<br /><br />"We get the sense that students don't really understand how money works," said Greg Pasqua. "People do things that aren't very intelligent with their money. Overdraw accounts six times on $2 purchases, and get hit with six fees for buying bubble gum. Or get reported to Equifax because you didn't pay your loan on time, and you're like, 'I'll get it next time.' "<br /><br />"30 to 40 percent of students' proceeds will be taxed away - how come what some students don't know that?<br />Students shall know basic things - what 401(k)s is, or whether they should put money into the pretax retirement savings accounts.<br /><br />So professors and other experts explained the types of benefit choices students'll be expected to make, how to figure out what their monthly loan payments and take-home pay will be, how to invest in their 20s.<br /> <br />It's not difficult stuff. It's just -- who has time to think about credit scores and interest rates when there's so much else going on?<br /><br />Until a car loan or a lease is turned down because of a bad credit score, or late fees pile up.<br /><br />So she didn't pay too much attention to the details of the loans she was taking out. "When I was a freshman, I was like, 'Loans, great! I don't have to pay them back 'til I stop going to school -- cool.' "<br /><br />"It wasn't until senior year, when I had to pay my own rent and pay utilities, that I really understood what $60,000 was," she said, referring to her tuition debt.<br /><br />The classes have already changed her mind-set, she said. She learned about interest rates and credit scores. <br />"If you go three years [paying] on time, you could have a 3 percent decrease in the interest rate -- which is amazing."<br /><br />She doesn't regret taking out the loans; she had so many great classes at Uni that she kept switching majors, from pre-med to English and so on. <br /><br />She might have taken out smaller loans, with less money for expenses. "I might have had more of a realization that all of that was [racking up] interest and would take a long time to pay back."<br /><br />Now she has a better idea of how to manage loans and evaluate benefits and salary. The classes reminded her to budget carefully and put money away for retirement when she can.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-86380921677723369222007-03-29T04:16:00.000-07:002007-03-29T04:43:17.222-07:00Reconsolidation Loans - what's new in 2007Reconsolidation loans statutory limitations would be <a href="http://www.cpaclicks.com/redirect.asp?a=3049&b=6059&d=142756&l=0&o=&p=0">eliminated</a> - that's the core of The Student Debt Relief Act Of 2007 introduced by Senator Kennedy.<br /><br />On January 22, Sen. Edward Kennedy (D-MA) introduced the Student Debt Relief Act of 2007 (S. 359) along with Senators Durbin (D-IL), Lieberman (D-CT), Mikulski (D-MD), Obama (D-IL), and Schumer (D-NY) as cosponsors.<br /><br />"A new day has now dawned in Congress, and last week, our colleagues in the House showed they have their priorities right on college costs by cutting student loan interest rates in half," Kennedy stated in a prepared statement in the Congressional Record. "Now it�s our turn in the Senate, but we won�t stop there."<br /><br /><br />Kennedy, the Chairman of the Senate authorizing committee with jurisdiction over the Higher Education Act (HEA) of 1965, outlined many of the bill�s proposed changes to the HEA that would provide additional support to students. Some of the more prominent changes include the following.<br /><br />Increase in the Pell Grant<br /><br />The proposed legislation increases the Pell Grant to $5,100 for the 2007-08 academic year, and increases it in incremental steps thereafter to reach a maximum of $6,300 in the 2011-12 academic year. The Pell Grant would increase according to the following schedule:<br /><br /> * 2007-08 Academic Year: $5,100<br /> * 2008-09 Academic Year: $5,400<br /> * 2009-10 Academic Year: $5,700<br /> * 2010-11 Academic Year: $6,000<br /> * 2011-12 Academic Year: $6,300<br /><br />S. 359�s Pell Grant maximum award provisions are a striking departure from normal practice. In the past, it was customary for a bill increasing the Pell Grant maximum award to insert new and higher authorized amounts. But, a higher authorization is merely a fishing license to seek funds in the appropriations process to make the higher authorization a reality. Without the appropriated funds for such a higher maximum Pell Grant a higher authorization is merely a goal. In other words, you may have a valid fishing license, but that license does not guarantee you will catch a fish. Chairman Kennedy in this provision of the bill reverses field. He now wants the increases in the Pell Grant maximum award to be mandatory, entitlement funding.<br /><br />Student Aid Reward Program<br /><br />The bill contains the Student Aid Reward Program that offers financial incentives to schools to participate in the Direct Loan Program. Schools would receive payments from the government not to exceed 50% of the total savings to the government. Schools could use such payments to supplement the amount awarded to Pell Grant recipients or could use such payment for grants to low- or middle-income graduate students. Schools would be required to join the Direct Loan Program for five years from the date the first payment is made to qualify for the funds. Because payments will be contingent on available funding, schools switching from the FFEL Program to the Direct Loan Program would be paid first and, then, other DL schools, if funds remained, would be paid on a pro-rata basis.<br /><br />Interest Rate Reduction<br /><br />Interest rate reductions would mirror the House�s College Student Relief Act (H.R. 5), except that the final interest rate cut would extend through the 2011-12 academic year. The Student Debt Relief Act also differs from the House in that it does not offset these interest rate reductions through reduced payments to FFEL loan participants.<br /><br />Fair Payment Assurance<br /><br />Very similar to proposals made by the Project on Student Debt during the latest rounds of Negotiated Rulemaking, this provision would institute a partial financial hardship deferment, allowing Stafford or GradPLUS borrowers to limit their monthly student loan repayment amounts to 15 percent of borrower's income that exceeds 150 percent of the poverty line applicable to the borrower's family size.<br /><br />Additionally, the Secretary of Education is instructed to cancel any loan after 25 years of being in an economic hardship, partial economic hardship, standard repayment, or income contingent repayment status. Finally, the proposed statute does away with the three year limitation on economic hardship deferments.<br /><br />In a related provision and applicable to only borrowers with Direct Loans, borrowers employed in public service would receive loan forgiveness after 120 payments under the income contingent repayment plan.<br /><br />Additional Tax Breaks<br /><br />The proposed legislation would increase the current tuition deduction from $4,000 to $8,000 in tax year 2007 and then to $12,000 in tax year 2008. Maximum income limits to be eligible for the deduction also would be increased and indexed to the inflation rate.<br /><br />Current tax deductions on student loans interest for would be turned into a tax credit, but would be limited to the first five years of repayment. Like the income tax deductions, the maximum qualifying income limits would be increased and tied to the inflation rate.<br /><br />Consolidation Changes<br /><br />In-school loan consolidation would once again be allowed under this legislation and "reconsolidation" statutory limitations would be eliminated.<br /><br />Direct Loan Origination Fees<br /><br />The Direct Loan origination fees would no longer be mandatory, giving the Secretary the discretion to charge the fee or not. Additionally, DL fees, under the terms of the bill, would be reduced another 1 percent as they are phased out over the next several years. No additional reductions were proposed for FFEL Program loan fees which are also being phased out. The Higher Education Reconciliation Act of 2005. mandated origination fees be totally phased out over five years for both FFELP and DL loans, but left in place a mandatory charge of one percent on DL loans that parallels a one percent default fee that may be changed to FFELP borrowers by guaranty agencies.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-2363344336608666642007-03-27T02:26:00.000-07:002007-03-29T03:57:43.884-07:009 Tips On Taking Out a Loan For Consolidation and Wedding<span style="font-weight:bold;">I'm about to share with you some tips for taking out a loan.</span><br /><br />Debt consolidation loan can serve different purposes. You can clear your credit card bills, medical bills, and make other outstanding payments. Besides these, the money drawn from the loan can be used to invest in business, make home improvements, plan out a vacation or - <span style="font-weight:bold;">WEDDING</span>. How's that?!<br /><br /><span style="font-weight:bold;">Weddings</span> like most of the things <span style="font-weight:bold;">come with a price tag</span>. If the cost tends to eclipse your wedding plans, wedding loans can help you meet wedding expenses.<br /><br />The cost of average wedding, per year is $34,000 and is continuously rising since the last five years. Taking out wedding loans is easy as long as you know how much you need and how much you can afford. When planning on wedding loans concentrate on making expenses on things that are important. Wedding photography, wedding dress, rings, bridal gown videos hotel reception and honeymoon – wedding loans can finance for all these expenses.<br /><br />There is no better way to commence pre marital money talk than wedding loans. <span style="font-weight:bold;">Make wedding loans an opportunity to know about your partner’s spending habits</span>. Few people realize how important financial compatibility is for their wedding.<br /><br />The tradition of parents paying for the wedding is loosing its ground. Thus, more and more couples are paying for their own wedding. Usually people can’t single handedly pay for the cost of the entire wedding. Wedding loans undoubtedly helps the one to expand its wedding cost thereby helping you plan a memorable wedding. However, <span style="font-weight:bold;">parents who want to finance for the wedding of their children can also apply for wedding loans</span>. Wedding loans exist in two forms – <span style="font-weight:bold;">secured</span> and <span style="font-weight:bold;">unsecured</span> wedding loans.<br /><br />Wedding loans are a great way to borrow money by placing a security. The guarantee can be anything, you home, your car. Depending on loan amount you can also further alternative forms of security like stocks and bonds. Unsecured wedding loans require no security. Thus, tenants can apply for the unsecured wedding loans. With wedding loans you can borrow anywhere from $10,000-50,000. Employed, self employed, part time employed, unemployed – all have a choice with wedding loans.<br /><br />A one page online form and there you are applying for wedding loans. The decision for wedding loans is made fast, within 24 hrs. Wedding loans are also possible for those who suffer from bad credit. People with bad credit should first get their credit report and then apply for wedding loans. There are loan lenders who will comprehend your situation and will offer you wedding loans accordingly.<br /><br />Wedding loans according to your requirements and financial affordability are doable. In fact you first need to understand affordability with respect to your circumstances. Planning for repayment of wedding loans along with your wedding is a smart idea. Remember this as a rule – you should not borrow more than you can repay in three year.<br /><br />Interest rates for wedding loans are reasonable. Usually wedding loans do not have any fee or pre payment penalties. With research you will be able to find better terms and rates. Don’t forget to compare loans cost online. It is important to look beyond monthly repayments while settling on wedding loans. Look out for total loan cost, terms and be sure to read the fine print. Read the terms carefully and make sure you understand the wedding loans contract before you make the final decision.<br /><br /><span style="font-weight:bold;">I was promising to share with you tips for taking out a loan, right?<br /><br /></span>These <span style="font-weight:bold;">nine tips</span> will help your loan process be as hitch-free as possible:<br /><br /><span style="font-weight:bold;">1.</span> Compare options like refinancing and other loan options to determine if a wedding loan is the best choice.<br /><br /><span style="font-weight:bold;">2.</span> Make sure you can tell lender what the purpose of the loan is. Your answer will help determine whether or not you are approved.<br /><br /><span style="font-weight:bold;">3.</span> Check your credit report for errors and get your FICO scores because lenders will review your FICO score to determine your loan rates. Check "How to Improve Your Credit Score" for more information on cleaning up your credit.<br /><br /><span style="font-weight:bold;">4.</span> Compare several wedding loan options. Discuss the loan programs with your lender and find the best loan for your situation. Getting a good interest rates isn't a bad idea either.<br /><br /><span style="font-weight:bold;">5.</span> When applying for a loan, you will get a checklist from your lender containing the list of paperwork you need to close the loan, including:<br />• Copy of deed to property.<br />• Recent tax appraisal.<br />• Last two years' W-2's, tax returns and current pay stub, or two years' tax returns if self-employed. Be sure to include all schedules.<br />• Proof of income from alimony, child support, disability payments, lawsuit settlement, inheritance or other income source.<br />• Copies of your last 3-6 bank statements.<br />• List of all open credit accounts (account numbers, payment amounts, and balances).<br /><br /><span style="font-weight:bold;">6.</span> Faxing documentation from the checklist will expedite the loan process more than mailing it.<br /><br /><span style="font-weight:bold;">7.</span> Fill out your loan application thoroughly, or it may delay approval and loan closing.<br /><br /><span style="font-weight:bold;">8.</span> Beware of bad loans. The Federal Trade Commission (FTC) warns that you may be signing into trouble if the lender encourages you to falsify your application to get the loan, urges you to borrow more than you need, pushes you into unrealistic payment terms, shows up at closing with a different loan product than you agreed to, asks you to sign blank forms, or denies you copies of documents you signed.<br /><br /><span style="font-weight:bold;">9.</span> Has your wedding loan application been rejected by a lender? Ask why it was rejected to find out what you need to do to secure wedding loan approval in the future. Sometimes paying down some credit cards can increase your credit score just enough to qualify.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-86871234643152578702007-03-27T01:47:00.000-07:002007-03-27T01:56:35.713-07:00Standing up for the rights of those seriously indebted under the Federal Student Loan Program 2007PortFolio writes this week on regard of Federal Student Loan Program (2007):<br /><br />Jennifer O’Donnell seems to be one of the few journalists who has the courage to stand up for the rights of those seriously indebted under the Federal Student Loan Program. We're talking here her fine writing ("Student Debt Mayhem"). Yes, it's about the the time for American students and their families to wake up to the chaos created by the 109th Congress. <br /><br />Just imagine the uproar if homeowners were suddenly told that they can no longer refinance their homes. Then consider how American students and their parents feel - look, they are experiencing exactly the same problem with their federally insured student loan debt.<br /><br />Read the <a href="http://www.portfolioweekly.com/Pages/InfoPage.php/iID/2667">full article here</a>.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-38332245897592395812007-03-26T22:47:00.000-07:002007-03-26T22:59:48.128-07:00Clever Idea How To Consolidate My Credit Card Debit To Make One Payment With a Lower InterestElena writes:<br />"I earnestly wish to consolidate my credit card debit to make one payment with a lower interest, so I can pay this debit off more timely and not just be paying on interest and finance charges. This loan would also assist in paying medical bills from my pregnancy. I learned about Prosper from an evening news segment and it truly fascinated me – I wanted to journey this road if open to me. This is my second request and to those who bid on my first request, I am extremely grateful and wish I could thank you personally!"<br /><br />You still havent got a clue what this about? It's a quote from <a href="http://prosper.com/public/lend/listing.aspx?listingID=114220">description of Elena's inquiry for a loan </a>at <a href="http://prosper.com/">Prosper Marketplace</a>.<br /><br />She asked for $20,000.00 @ 11.00%, and by the time I stumbled upon this page she already got 73% funded - so my guestimate is what she'll get what she wants.<br /><br />Quite an interesting resource, check it out - as <strong>Time Magazine</strong> put it, "for those more used to the Internet age, think of it as eBay meets your neighborhood bank."loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.comtag:blogger.com,1999:blog-4196747061736359681.post-7325183839631497222007-03-12T06:43:00.000-07:002007-03-12T06:48:55.635-07:00Loan Consolidation For People Who Make Less Than 30000Uhm...should I get a credit union loan?<br /><br />I have less than $9,000 in credit card debt. I would like to have one bill but want to know what are the pros and cons to getting a credit union loan to pay them off this way. The cards are all in excellent standing but I do not use them anymore and I keep one for emergency purposes. Should I go for the credit union loan and pay them off or pay them individually like I am now? <br /><br />Hmm...Credit Unions are easier to get loans from, and their interest is usually a little lower then banks.<br /><br />But take this warning with you. Over the past several years, lots of people have been suckered into getting consolidation loans, home equity loans, or refinancing homes in order to pay off credit card debts. Then those people turn right around and charge up the now-empty cards all over again. They are now in twice the debt, with no hope of getting out. The end up filing bankruptcy.<br /><br />Last year many thousands of people did just that.<br /><br />If you plan to go this route, you MUST control your credit spending. Don't close your credit accounts, but rip up the cards so you can't use them for a while. Call and get the credit limits lowered to around $500, and don't let them jack them up again (they will, trust me).<br /><br />This is exactly what has happened to many of the people I am trying to help out. Credit card companies make it so easy for you to get credit these days.loanfactshttp://www.blogger.com/profile/00839412415067491966noreply@blogger.com