PLUS Loan - Why Choose a PLUS Loan?

A PLUS Loan can be your ticket into college, but it really has more to do with your parents than it has to do with you. What exactly are PLUS Loans? Well, basically, a PLUS Loan is a loan that must be obtained by your parents in order to pay off your educational tuition. If you are a dependent of your parents and a future undergraduate student at any college or university within the country, a Federal PLUS Loan might be the right choice for your family. Additionally, your parent's credit history must be in good standing in order to receive a PLUS Loan for you.

Why A PLUS Loan Works

Why should you choose a PLUS Loan when going into college though? Aren't there better options for you? Often times, college students have little to no credit history, and they themselves cannot afford to put a loan onto their credit history. Scholarships can only take most students so far, and parents/students usually cannot bring in enough income to pay off a college tuition, especially at most private universities. When this becomes the case, a PLUS Loan offers the best alternative to the student taking out a loan, as parents can use their established credit to help students through college without a hitch.

Supplementing Your Aid

The best part about a Federal PLUS Loan though is the fact that it helps you to cover any expenses at school that are not already being covered, For instance, if your yearly tuition at school is $10,000, and you receive $5000 a year through some other source of financial aid, a PLUS Loan enables you to pay the other $5000 without worry. Additionally, applying for a PLUS Loan is as simple as filling out your FAFSA form, which can be obtained at your school's financial aid office, and sending it in. PLUS Loans are dispensed directly to your school and leave you with no worries during the school year. If you are thinking of options for paying your way through college, think about applying for a PLUS Loan.

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No-Cost Student Loan Consolidation

A no-cost student loan consolidation - doesn't that just sound too good to be true? Think about it. You have just accrued thousands of dollars in debt through student loans after 4 years of college, or possibly even more. Then, a company offers to take all of your loans off of your hands, put them into one central loan, and do it all for free! Well, while it might not be too good to be true, it all depends around your particular situation, which could make this a "free" process, or could still work out to the benefit of the consolidation company that you are working with throughout the process.

How A Student Loan Consolidation Works

Here is how the student loan consolidation works. You have used up thousands of dollars in student loans to pay your way through college, obtain housing throughout college, and pay for other odds-and-ends while attending college. A student loan consolidation then takes all these different loans, pays for each of them, at which time you then pay the student loan consolidation company for the total amount of loans taken out during college.

Example of Student Loan Consolidation

If you were to have outstanding loans of $5000 to one company, $6000 to another, and $9000 to a third, the student loan consolidation allows you to owe $20000 to one company, rather than to three. This can save you money in the long run, as these companies also may be able to offer you a competitive interest rate, which means you will be paying less overall for your student loans in a shorter amount of time and to only one company.

Potential Student Loan Consolidation Problems

Problems can occur with student loan consolidations if you catch a deal that does not work out favorably to your situation. For instance, if you choose a no-cost student loan consolidation that does not offer you a low interest rate, you could actually end up paying them more than you originally would have! It is important that you choose a company not for their "no-cost" approach, but for their willingness to get your student loans paid off with a consolidation that promotes a quick pay-off with minimal interest rates.

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Private Loan Consolidation

College life teaches you how to stretch a dollar, how to make a pizza cover breakfast, lunch, and dinner, and how to get the most out of your money. That said, when your college education is over and achieved, the student loans following it should not last a lifetime and follow you throughout your career!

Consider Consolidating Your Loans and Save

Rather than lug around student loans for years to come, why not consolidate all your different student loans into one private loan consolidation that makes it easy for you to pay off your student loans with just one low monthly payment every month. Six months after you graduate, you can be sure that creditors will be banging down your door, looking for your first payment towards your student loans. Whether you borrowed from a bank, the government, or through some other private means, student loans add up quickly. A private loan consolidation allows you to take all of your student loans and throw them into one general debt - this way, you can make payments towards that debt and only have to deal with one private company, instead of 2, 3, 4, or 5 loan firms and/or creditors.

Where To Find A Consolidation Loan

Best of all, there are a plethora of companies out there willing to give you a private loan consolidation. They will analyze your student loans, see where the loans came from and what interest percentages the loans carry, and then they will get on the project immediately, possibly saving you hundreds, even thousands of dollars over the next few years! Stop paying money out to creditors who are holding you hostage with their high-interest fees. Obtain a private loan consolidation today from a company that can help you to save money and eliminate your loans quickly as well. Research on the internet or speak with a financial advisor today and find the private loan consolidation that will put all your debt into one small easy and convenient package - which can disappear before you hit mid-life!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to get Private Loan Consolidation at NextStudent.com.

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College Loan Consolidation

Why NOW is the Best Time ?

If you are thinking about using loan consolidation to possibly lower your monthly student loan payments, then now is the time to start consolidating and lowering those payments. Never in recent history have the interest rates on student loan consolidations been quite as low as they are these days. What does that mean for you? Quite simply, you will be receiving the best available deals for debt consolidation when you choose to consolidate your student loans now and here. Whether you have just a small amount of student loan debt or a very large amount, consolidation can start helping you to lower your monthly payments NOW if you get started on it right away.

Start on the 'Net

Where is the best place to turn when looking to receive consolidation on your student loans quickly and easily? A good place to start might be the Internet. Research exactly what student loan consolidations can do for your financial status. Secondly, visit a web site like NextStudent.com, where you can learn about the latest trends in debt consolidation for student loans. Additionally, you can contact their financial advisors, who will walk you through the debt consolidation process and make sure that you save as much money as possible paying back your student loans.

Now in the Time

Once you have started the process, you can sit back and know that student loan consolidation is saving you hundreds of dollars a year on repaying your student loans. While the process is not complex, it is important for you to work with a trusted name when using debt consolidation. Some companies will simply rip you off and end up costing you more money than they save. You may be at a disadvantage with your debt hanging over your head, but that does not mean that you cannot receive a great deal through consolidation! Consolidate NOW and start saving with the ultra-low consolidation interest rates out there these days. You will thank yourself in a few years.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible.

Student loan Tips

Student loans are better than credit cards

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -


-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.

-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.

-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-

-Pay your balance each month to avoid interest charges

-Pay your bill on time to avoid late charges

-Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.

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Parent Loans or Student Loans

what is going to be best for my child?

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.

Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.

Federal parent loans

PLUS Loans ( Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to the total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after the loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.

Private loans

Both students and parents can take out private loans to cover funding gaps. Terms are basically the same for these loans, although students may be able to have their repayment deferred until after graduation. Another consideration is that students may wish to take out small loans to begin to establish a credit history. You may need to cosign for private student loans.

Other options

Parents do have some additional options for college funding, such as home equity loans. These often have rates as good as private loans.

So which type of loan should I get?

This really comes down to a personal decision. Ask yourself these questions as you are trying to decide:

-What level of debt do you feel is manageable for your child to graduate with?
-How important is it to you that your child takes responsibility for paying student loans?
-Will you and your child work out a repayment plan to repay PLUS Loans and other parent loans?

Student loan Tips

Private Student Loans - dispelling the myths

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.

Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.

Federal parent loans

PLUS Loans ( Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to the total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after the loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.

Private loans

Both students and parents can take out private loans to cover funding gaps. Terms are basically the same for these loans, although students may be able to have their repayment deferred until after graduation. Another consideration is that students may wish to take out small loans to begin to establish a credit history. You may need to cosign for private student loans.

Other options

Parents do have some additional options for college funding, such as home equity loans. These often have rates as good as private loans.

So which type of loan should I get?

This really comes down to a personal decision. Ask yourself these questions as you are trying to decide:

-What level of debt do you feel is manageable for your child to graduate with?
-How important is it to you that your child takes responsibility for paying student loans?
-Will you and your child work out a repayment plan to repay PLUS Loans and other parent loans?

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Consolidating Federal Student Loans Keeps Graduates on Course

Although many people have achieved the dream of completing their college education, many of them face an unfortunate downside following graduation: paying back the inevitable student loan.

Too often it is not just one loan looming over students, many of whom have yet to settle into the sometimes overwhelming realities of the workforce and daily life.

NextStudent, one of the nation's premier education funding companies, can be the proverbial light at the end of the tunnel by helping students consolidate their multiple federal loans. From Stafford Loans and Perkins Loans to PLUS Loans and HPSL Loans, NextStudent's Federal Student Loan Consolidation Program equals convenience.

"Although the 2.77 percent interest rate on federal loans was at an all-time low between July 1, 2004 and July 1, 2005, the lowest the rates ever had hit in history, now is still a good time to consolidate," said Andrew Ernstrom, education finance adviser at Phoenix-based NextStudent.

Currently the interest rate is in the 5 percent range and is expected to again increase in July 2006. The cap on the program is 8.25 percent, but projections for the next increase are between one or two points.
"Everyone knew the rates were going up about 2 percent this past July 1," Ernstrom said. "So there was a mad dash nationwide to get everyone's loans consolidated," which allowed borrowers to take their variable rate loans and then lock them into a fixed rate.

Historically during the past 40 years interest rates averaged closer to 7 percent.

An important aspect of consolidation includes the six-month grace period. "Make sure to consolidate while you're in the six-month grace period because you get a cheaper interest rate," he said. The rate increases .6 percent when the grace period ends.

Students have been gung-ho about federal loan consolidation. "The only reason people wouldn't consolidate is because they don't think the rates will go up, but all the trends out there say they will, so it makes sense to do it now," Ernstrom said. The interest rates for student loans are set up off of the 91-day Treasury bill. Since May 30 when the rate was reset, the rate increased about .92 percent. "If the rates were reset today, everyone's rates would be .92 percent higher. And by next July who knows how high it could go," he said.

NextStudent's Federal Student Loan Consolidation Program extends loan payments up to 30 years, depending on a borrower's balance. As many people originally take out loans on a 10-year repayment plan, consolidation offers the same interest rate on the same amount of money but at a longer term, making the payment much more affordable. There are no prepayment penalties for the program, so borrowers can pay off loans at their own pace and have the benefit of a longer term if needed. Consolidation can decrease some payments up to 60 percent.

Even if students already have consolidated, NextStudent can help further lower their interest rate with reconsolidation, which allows borrowers to reset their forbearance and deferment rights, take advantage of new industry discounts and also can lower their payment.

"In the past students who had consolidated did not have the opportunity to consolidate again unless they took out new student loans," said Katie Carpenter, education finance manager at NextStudent. "In the past few months the Department of Education has allowed all previously consolidated loans to be reconsolidated," she added.

In turn, consolidation is the answer not only for students paying back their loans but for lenders. According to the Oct. 23, 2005 article titled "College loan plan raises questions" at NCTimes.com (North County Times) by J. Stryker Meyer, "A General Accounting Office report noted that people who consolidate their loans are three times less likely to default on their student loans."

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loan Consolidation at http://www.NextStudent.com.

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Student Loan Consolidation Rates

Credit Check Before You Get Student Loan Consolidation Rates And Payment Plans

The most obvious way to get the best student loan consolidation rates and payments, is by having great credit. It’s easy to get great student loan consolidation plans with a credit score, also known as FICO, over 660. But, there are several ways to get the best student loan consolidation rates and payment plans.

You can do a simple online search on FICO and credit scores to find the information you need to check out your credit score. Knowing your credit information should be your first step to getting the best student loan consolidation rates. With knowledge, you will get the best student loan consolidation rates for your financial and credit situation.

Student loan consolidation rates and plans can vary from person to person. The loan rates offered will be based on your financial situation and credit. With a FICO credit score under 600, it can be a challenge to get a good student loan consolidation rate and plan in most cases.

7 Aspects To Consider With Student Loan Consolidation Plans

1. Lower Monthly Payments. Depending on your student loan situation and the type of lender you choose, you may be able to lower your monthly payments by up to 50%

2. Having Simple Loan Payments. By consolidating your student loans, you only have one loan payment per month and one check to write. This is very beneficial if you are writing several checks every month to multiple lenders.

3. Having Fixed Interest Rates. With some federal consolidation loans you can have a fixed rate for the life of your student loan. It’s best to do research to see what the best interest rates and term you are eligible for. You can check online to calculate the interest rate on a new student consolidation loan based on the rates of your current student loans. You can then round up to the nearest 1/8th of a percent of the weighted average of the interest rates on your eligible student loans.

4. Extending Your Payment Period. You may have a lot of student loan debt. With federal consolidation loans you may be able to extend the payment term up to 30 years. It’s a good idea to realize you will end up paying more interest over the life of your student loan consolidation. The idea is to get some leverage until your career takes off. You can focus on making money instead of several monthly loan payments.

5. In School Consolidation Programs. While still in school, eligible students can lock in a low rate. This would put you into repayment status, but since you are still in school, you are automatically put into deferment. The drawback of consolidating your loans while in school, is that you lose your 6 month grace period. The solution to this would be to request forbearance for up to 1 year on your student loan consolidation. Here again you can do some research and get more information online.

6. Lower Interest Rate. Student loan consolidation can save you thousands of dollars. You may be using credit cards with 10% to 28% interest trying to keep up with your bills. This can cost you thousands of dollars when you pay the minimum monthly payments on high interest credit card debt. Having a student loan consolidation may be your best option if you can get lower interest rates when consolidating your student loans.

7. New Interest Rates. With a new student loan consolidation, you may be able to get a much better interest rate. Interest rates are now at an all time low. You may have been paying on debt you built up from several years ago, at high interest rates. Things change over time in the financial industry.

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Student Loan Consolidation

How To Get The Best Rates And Plans?

Student loan consolidation can have many benefits for the career minded student. With the prices of things going through the roof, going to college can be very costly. Many students don’t have thousands of dollars to pay their way through college.

This is why many college students use student loans to get themselves through college. When it comes time to pay back their student loans, it can be a real burden and a distraction from their career.

Before you sign up on the dotted line, you should know how to get the best student loan consolidation rate and plan for your financial needs. If you are tired of too many bills and monthly due dates, it just might be time to find the best student loan consolidation rate and plan that you can qualify for.


What Is The Idea Behind Student Loan Consolidation?

When a student first applied for several student loans from several different agencies and student loan providers, they each gave a different interest rate and term for paying back the loans. The idea of student loan consolidation, is to take all the different student loans and put them into one easy convenient loan.

You then only have to make one monthly loan payment every month, instead of several loan payments every month over time. This saves the student both time and money. Having a lower interest rate and less checks to write every month are a couple of advantages of doing a student loan consolidation.

Student Loan Consolidation Tips
By Dean Shainin

Student Loan Consolidation

After graduation, many students do not realize the total amount of student loan payments they will be responsible for every month. Several smaller loan payments can add up to a substantial amount of money each month. While the interest rates for student loans are great, and the education received as a result of the loans is worth the inconvenience of loan payments, many students will still need to research ways to make their student loan payments more manageable.

Fortunately, there are several worthwhile options for borrowers who find that they need some help in adjusting their student loan payments to fit their income. One such option is student loan consolidation, which is simply combining all of your student loans into one lender, and therefore making one monthly payment.

Should You Consolidate?

If you find that you are having trouble meeting all of your payment obligations every month, you may want to consider consolidating all of your student loans into one monthly payment. The payment is usually smaller under consolidation, which is beneficial if you want to reduce the percentage of your income that is used to pay your student loans.

Another reason to consolidate, especially if you have an adjustable interest rate loan, is that you can often lock in an interest rate under consolidation. You will want to be very careful, however, not to mix private and federal student loans together when you decide to consolidate; because when you do so, you will lose all of the tax benefits available to you with your federal loans (such as the tax deduction for interest paid).

Another factor to consider with student loan consolidation is that by reducing your payments and lengthening the term of your loan repayment, you will be adding to the total amount of money you will be repaying; so be sure to pay any extra amount on your payment that you can, if possible.

Beginning the Consolidation Process

Once you have decided to begin the consolidation process, the most logical option is to contact one of your current lenders.

Most of the lenders for federal student loans will be happy to buy out the loans from your other lenders and consolidate them for you. Be sure that you ask about the difference between private and federal student loans; because many lenders treat them very differently during consolidation.

You may also need to specify that you are interested in locking in the lowest interest rate possible for the life of the loan. If you are a married borrower and your spouse also has student loans, the lender may suggest that the two of you consolidate all of your loans together, for one lower monthly payment.

Be extremely wary of this option: by combining all of your loans into one, you are taking joint responsibility for the debt. This means if one of you dies, the other spouse continues to be responsible for the loan; it also means that, in cases of divorce, you must go through the process of attempting to divide the debt.

There are many companies that will help walk you through the process of student loan consolidation; however, make sure that you are well-informed of the actual process before you sign on with any one lender. Student loan debt does not have to severely affect your finances, and consolidation is a great method of managing this type of debt.

As long as you have researched all of the options of consolidation, and you have also well-researched your lender options, you can go through the process of student loan consolidation assured that you are making a very wise financial decision.

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Saving Students from Debt

Saving Students from Debt

Recent developments at America's top colleges and universities indicate that there's a new school of thought when it comes to helping students pay for higher education. Today, funds are being rewarded less on academic merit and more on financial need.

High school students (and their parents) have always dreamed of getting a merit-based scholarship to finance a college education. The alternative was to either scrape together enough money to pay for college, or get need-based financial aid and student loans. The end result was usually extensive debt on graduation day. The textbooks on this traditional system are being rewritten, however, much to the delight of lower-income students.

Grants and work-study over loans
One bold initiative has been taken by Davidson University, an independent college near Charlotte, North Carolina. To prevent students from graduating college saddled with debt, the school has announced that it will be offering grants and work-study dollars instead of need-based loans. The move is designed to allow students to pursue post-college opportunities without having to make decisions based on debt.

Merit-based scholarships losing favor
Another trend underway is the elimination of merit-based scholarships. George Washington University (Washington, D.C.) and Hamilton College (Clinton, NY), both mindful of the growing number of lower-income college bound students, are working to limit or eliminate the grants given to students already capable of affording the tuition. The schools want to retain a reward system for outstanding academic achievement, however, and will most likely retain some merit-based rewards.

No contribution required
Joining the bandwagon are some of the nation's most prestigious-and costly-schools, such as Harvard and Yale. They have simply stopped requiring lower-income families to contribute to the cost of attending. The University of North Carolina at Chapel Hill has taken similar actions, despite the fact that it's a state institution.

The actions of the top learning institutions indicate the recognition of the changing demographic of America. With growing numbers of lower-income students and ever-increasing tuition costs, the need to make higher education affordable has never been so critical. These bold new approaches by universities and colleges are terrific developments for college students. It could foster a whole new generation of graduates who are ready to focus their energies on improving the world instead of paying off their student loans.

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Student Loan Consolidation

Student Loan Consolidation: Take The Pressure Off

Finding money for college can be as challenging as pursuing a degree. Student loans can provide the needed cash; but once students graduate, they have amassed a huge debt. Thanks to the student loan consolidation program, though, graduates can remove the pressure.

By consolidating student loans, you can merge all outstanding loans into a single indebtedness with one lender and one repayment plan. The individual loans are paid off in full, and the total amount is rolled over into the new loan. Student loan consolidation is available to either students or their parents.

Combining loans lets you lock in a fixed interest rate that's typically lower than the original loan rates. You also lower your monthly payment. These loans have flexible repayment options and no fees, charges, or prepayment penalties. What's more, there are no required credit checks or co-signers.

Eligibility requirements
To be eligible, you must either be in the post-graduation six-month grace period, or have started to repay your loans. The total amount of your indebtedness must be a minimum of $7,500, with more than one lender, and you should not have already consolidated. However, if you've returned to school and have additional loans, consolidation is an option once again.

The following types of loans can be merged:

-Direct Subsidized and Unsubsidized Loans
-Subsidized and Unsubsidized Federal Stafford Loans
-Direct and Federal PLUS Loans
-Direct and Federal Consolidation Loans
-Guaranteed Student Loans
-Federal Insured Student Loans
-Federal Supplemental Loans for Students
-Auxiliary Loans to Assist Students
-Federal Perkins Loans
-National Direct Student Loans
-National Defense Student Loans
-Health Education Assistance Loans
-Health Professions Student Loans
-Loans for Disadvantaged Students
-Nursing Student Loans

Finding a lender
To apply for a debt consolidation loan, visit any bank or credit union that participates in the Federal Family Education Loan Program, or apply to the U.S. Department of Education. If all your loans are with one lender, you must consolidate with that lender. The loan terms and conditions are generally the same, no matter where you do business.

The time immediately following college is a fresh start in life; don't be burdened by the debt of the past. Get your college finances under control with a student loan consolidation, and take the pressure off.

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Get a Scholarship

Reap Some Rewards: Get a Scholarship

Most high school graduates think that scholarships are reserved for superstar football quarterbacks or academic wunderkinds. Fortunately, for the 99.9 percent of high school graduates who don't fall into those two categories, there are hundreds of different scholarships available. Even if you don't finish first in the race for grants, there are student loan options that can help overcome tuition hurdles.

More scholarships than you can shake a syllabus at
The volume of scholarship opportunities has boomed in recent years. There are new scholarships based on a variety of categories, including:

-Academics. (Generally given to students with high Grade Point Averages and excellent standardized test scores.)

-Athletics. (Not only traditional sports like football and basketball, but less popular endeavors like golf, crew, and track can score you some aid.)

-Financial need. (Based on a student's finances. Can help low-income grads to attend prestigious universities.)

-Demographics. (Local organizations award hometown heroes grants on a yearly basis.)

Other options include scholarships based on military service, the arts, and various occupations. Do some surfing on the Internet. You'll be surprised at how many different types are available, including scholarships for left-handed students and the Klingon Language Institute scholarships. Don't be afraid to boldly research where no man (or woman) has gone before.

Create a fallback plan
If none of these scholarship programs work out, there are plenty of student loan packages available to you. A student can choose government programs, such as the Stafford Loans (given to students) and the PLUS Loans (for parents). There are also private student loans, which compete with government loans in terms of rate, but generally involve less paper work.

The early bird catches the worm when it comes to scholarships; so if college looms, it's best for a student to start a scholarship search early. Check with local lenders regarding the best time to apply for a student loan. Consider both options, and you'll have passed this crash course in financing a college education. Besides, it never hurts to have a bird's eye view of your financial options.

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Saving for College

Saving for College

Even at today's tuition rates, saving for a child's education may seem like an impossible mountain to climb. For the sake of your child's future, though, now is the time to strap on those boots and grab that ice axe.

When saving money, time and discipline are your most powerful tools. If you set aside a little each week when your little one is young, you can build a substantial sum by the time junior becomes a college freshman. In reality, many parents aren't able to save consistently until their children are older. For these moms and dads, the availability of specialized college savings programs helps maximize savings quickly.

College Savings Plans: The Options
The following programs offer advantages over traditional savings accounts.

-Section 529 Plans. There are two types of Section 529 Plans: the college savings plan and the prepaid tuition plan. The first is a tax-advantaged investment account. The latter allows for purchasing tuition credits that essentially lock-in current tuition rates.

-Coverdell ESA. The Coverdell ESA, also known as the educational IRA, offers advantages including tax-free earnings and certain qualified tax-free distributions.

-Rebate Programs. Some institutions offer loyalty rebates that help maximize your college savings over time. Two examples are BabyMint and Fidelity Investments' 529 Plan credit card. Both allow you to earn rebates through purchases of everyday products and services; these rebates are automatically transferred into your designated college savings account.

College student loans
There will be times when saving enough in the time available isn't realistic. Don't panic-you have contingency options. There are many college student loan programs available that can help fund that tuition shortfall. Talk to your child's counselor about federal student loans, and to your bank about private student loans and student loan refinancing. Depending on your situation, some government student loans may be almost automatic. Later, you can consolidate student loan debt as appropriate to your financial situation.

Now that you're in your boots, you're ready for the college-financing climb. It may be late in the season, but you won't regret starting up that mountain now.

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Student Debt Consolidation

Student Debt Consolidation

You paid for college the way most people do-you borrowed. Back then, financial aid was a necessary investment in your future. But now that the future's here, those payments might be more of a burden than you had expected. If you have more than one college loan to repay, a student loan consolidation may make your life a lot easier.

The basics of student loan consolidation
Consolidating is similar to refinancing your mortgage: You obtain one large loan and pay off all of your smaller loans. Student debt consolidations are subject to federal regulations and can be done directly by the federal government or by any FFEL (Federal Family Education Loan) lender. Here are some key facts:

-Interest rates are calculated based on the rates of the loans that are being consolidated.

-Regulations outline the maximum interest rate a lender may charge. Since there's no stated minimum interest rate, shopping around with different lenders may turn up a slightly lower rate.

-The length of the repayment term, typically 10 to 30 years, is based on the amount of education-related debt outstanding.

-Student loans can't be consolidated until they're in repayment mode.

-There are no upfront fees for student loan consolidations.

-Only direct and FFEL student loans can be consolidated; private loans are left out of the deal.

Consolidation advantages
The consolidation will streamline your repayment by replacing several payments with one.
The new repayment period will normally be longer, which means lower monthly payments.

The disadvantages
-If the repayment period is longer than the original loan term, the amount of interest you pay over time will be higher.

-You may lose benefits or incentives offered by your current lender.

Student loan consolidations help maximize the investment you made in your education by providing more manageable repayment terms. Check with lenders to find out specifically how your loans can be streamlined. In college, you learned how to do homework; now go and do a different kind of homework and apply your education to the real world!

Student loan tips

Overview of Student Loans

Overview of Student Loans

When you're trying to pay for college, it's nice to turn to a wealthy uncle for a little financial assistance. No one is happier to help you pay for your higher education than Uncle Sam and the federal government.

You can tell a lot about a society by how much it values education. With its vast network of public and private universities, America is a world-leader in education.

Our emphasis on higher learning could be attributed to the correlation between education and economic growth. If the U.S. is going to keep its economy running at full speed, it needs an intelligent workforce. Higher education doesn't come cheap, however, so the federal government has created a number of student loan programs.

Perkins loans

Available to undergraduate and graduate students alike, Perkins loans offer the lowest interest rate-currently fixed at 5 percent-and can take up to 10 years to repay. Your school acts as the lender, and the loans are given on a first-come, first-served basis.

It's a particularly attractive loan for people in the military, law enforcement, certain teaching positions, and non-profit jobs. If you pursue a career in these public service fields, the government may discharge your loan.

Stafford loans

Stafford Loans are provided to undergraduates and graduate students who are enrolled in school at least half-time. Unlike Perkins loans, the government will partially subsidize the money based on a student's level of financial need. Uncle Sam will pay the interest during school years, but the student must begin repaying the loan six months after graduation. In the unsubsidized loan, a student loses his six-month grace period.

Loans are made available directly from the government to colleges or financial institutions. Current rates for Stafford loans are capped at 6.8 percent. Terms of repayment range from 10 to 25 years on both the subsidized and unsubsidized loans.

PLUS loans

Like the Stafford Loans, PLUS loans are granted to undergraduates and graduates who are enrolled at least half-time. With PLUS Loans, the interest rates are variable, but they do have a cap. Loans distributed directly by the government are capped at 7.9 percent, and those distributed through a school or a lender are capped at 8.5 percent. There's also a fee associated with the PLUS loans. Repayment terms are 10 years, and you must begin within 60 days after the final loan is disbursed.

To obtain any of these loans, a student first needs to apply for the Free Application for Federal Student Aid, or FAFSA.

Even though the government values education, it can't give a free ride to everyone. The loan programs are based on a student's financial need, which may be the cause for the wide number of programs. If you're confused, consult with a financial aid counselor or a loan officer from a lending institution, and you'll find out where you fall in the student loan spectrum.

Student loan tips

Five Financial Aid Tips

Five Financial Aid Tips For Student Loan

A rite of passage for any college student involves learning how to manage finances. Not only does this apply credit cards, but also to a huge source of concern: financial aid.

1. Consult your school's financial aid office for adviceThere's been no shortage of bad press for financial aid offices in the wake of recent scandals. The campuses of major educational institutions were receiving "gifts" from lenders, thereby tainting the objective advice that they were giving to students. Nevertheless, the bulk of the guidance handed down by a financial aid officer has merit. Always keep in mind, however, that a college is a business. Most of the advice it provides is designed to benefit the school in the long run. Always be sure to get a second opinion.

2. Look everywhere for adviceWhere should you go for a second opinion? The Internet is a vast resource of information, although you'll need to be sure that the information you're reading is accurate. You can also crosscheck data with friends and family, especially people who have received financial aid in the past.

3. Go public before you go privateBefore you take out a private loan, look to Uncle Sam and his repertoire of federally subsidized loans. This includes Stafford and Perkins loans, both of which have lower interest rates than private ones. Explore all your options.

4. Scholarships and state assistanceHave you checked out all the potential scholarship and grant funding options available? There are an amazing number of programs out there, many of which dole out money for some pretty obscure reasons. The time that you spend doing research could really pay off.

5. Track your paperwork and detailsMost of the loan documents that you sign are heavily regulated and won't include any sleight of hand. However, you need to know what you're signing. Be sure that you're not paying any fees that weren't discussed at the beginning of negotiations. Making yourself familiar with the specifics of the contract will help you immensely in the long run.

College is a great time to learn lessons beyond the textbook. Hopefully, you'll develop self-discipline, social skills, and a true sense of self. You should also develop your own resourcefulness, especially when it comes to financial aid. Get smart about how to save money, and you'll come out ahead when it comes to financial transactions down the road. Getting an "A" in finances in college can lead to rich rewards in your adult life.

Student loan tips

Student Loan Debt

When Not to Consolidate Student Loan Debt

To a college graduate, the call to "consolidate" is almost as familiar as her school fighting song. But consolidating student loans might not be as warranted as it was in years past-especially in light of recent rate changes.

Most college students spend a great deal of time with advisors. They receive guidance on class work and their various areas of study. The smart student should also seek out guidance on financial matters- especially if she has student loans.

For the last several years, students have been told to consolidate their loans before a July 2007 rate hike took place. Now that the deadline has passed, many factors need to be considered before initiating a loan consolidation.

Rate matters

The first thing that you want to do is compare the rates of your current loan with today's market. When you consolidate your student loans, a weighted average of all the interest rates of the loans is taken and rounded up to the nearest 0.125 percent.

To find out what your new monthly payment would look like after consolidation, meet with a lending official and/or do it yourself with an online loan calculator. You may discover that the new rates don't justify a refinance. You'll also want to see if the rates on your current loans are fixed. If they are, it may not make sense to refinance everything just so that you have the convenience of one loan payment. If you're uncertain about the terms on your loan, review your portfolio with a lender. Many will be happy to help you, free of charge.

Act quickly for student debt consolidation

Consolidation works most effectively if the transaction occurs within six months of graduation. That stretch of time is considered a grace period for students-they receive a price break if they start repaying their loans during that time. When the grace period ends, the interest rate on the loan increases by nearly 1 percent. Unfortunately, if you choose the rate discount, you'll have to start repaying the student loans almost immediately after graduation. However, there are lenders willing to hold the package until the end of the grace period. Check with your bank to see if they have the same policy.

Long-term costs vs. consolidation

Ultimately, you'll need to determine your top priority. If you need low monthly payments on your loans, you may want to consider refinancing and stretching out your loan terms. However, if you'd like to be rid of a monumental debt as quickly as possible, you can opt to keep your loans at their current rate and pay down your principal.

As any academic advisor will tell a student, there are many variables to consider when making a decision. When it comes to student loans, take a good look at your current financial situation and consider your short-term job prospects. Don't jump at the easy money that a consolidation can bring. The best advice dictates that you understand all the factors at play before you make your consolidation decision.

Student loan tips

Student Loans

It isn't always possible to finance a college education out-of-pocket or through scholarships. There are many student loan options beyond that, and a clear order of preference among them.

Federal Student Loans
Your first line of defense is the federal student loan program. A Perkins loan is hard to beat with its fixed 5 percent interest, no repayments until 9 months after graduation, and no extra fees. You need to qualify for this program through the Free Application for Federal Student Aid (FAFSA). Funds are limited, and generally go to students in serious need of low-cost financing.

The next step is the subsidized Stafford student loan. The interest rate is higher-6.8 percent-and the post-graduation grace period is only six months. You apply through the same FAFSA form, and can use both types of loan simultaneously. Another choice-the unsubsidized Stafford student loan-accumulates interest from the day of your first disbursement rather than from the end of the grace period. It's also easier to qualify for.

The last federal student loan is called PLUS. Under this program, no FAFSA form is necessary, and your parents can borrow as much as they need to finance your education. But the interest rate is higher-8.5 percent-and your parents will need to have a decent credit rating. Repayment terms are less generous, and 4 percent of the fees are deducted from every disbursement check. In other words, PLUS has a lot of minuses.

Other Student Loan Options
If you're going to any kind of medical school, there are special Health Professional Student Loans available with rates as low as 6.5 percent, a full year's grace period, and very long repayment periods. These studentt loans are quite affordable, but available only to future healthcare professionals.

Many banks and credit unions offer private education loans, though they are often expensive. Other students get their tuition money from home equity loans or HELOCs against their parents' homes. These can be preferable to PLUS for tax reasons, but are otherwise much the same thing.

Student loan Tips