Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment.
Federal law sets the maximum interest rates and fees that lenders may charge for federally-guaranteed loans. Nothing prevents a lender from charging lower fees. Many lenders offer a variety of student loan discounts to attract borrowers.
Few students can afford to pay for college without some form of education financing. Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt, and the average student loan debt among graduating seniors is $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans), according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS). (The median is $17,120. One quarter of undergraduate students borrow $24,936 or more, and one tenth borrow $35,213 or more.) For federal student loan debt (excluding PLUS Loans), the figures are 62.2% and $17,036. Average cumulative debt increases by about 3% or approximately $550 a year. When one includes PLUS loans in the total, the average cumulative debt incurred is $21,899. (Approximately one in ten (10.8%) parents borrow PLUS loans for their children’s college education, with a cumulative PLUS loan debt of $16,317.)
The following table shows the percentage of students borrowing and average cumulative debt per borrower (excluding PLUS Loans) according to type of educational institution.
| Undergraduate Education Debt | ||
|---|---|---|
| Institution Level & Control | Percent Borrowing | Cumulative Debt |
| Overall Total (4, 2 and < 2 year) | 55.5% | $15,766 |
| 4-year Total | 65.6% | $19,202 |
| 4-year Public | 61.7% | $17,277 |
| 4-year Private Non-Profit | 72.8% | $21,957 |
| 4-year Private For-Profit | 87.3% | $28,138 |
| 2-year Total | 37.4% | $9,897 |
| 2-year Public | 33.2% | $9,387 |
| 2-year Private Non-Profit | 69.1% | $12,326 |
| 2-year Private For-Profit | 90.0% | $12,107 |
| < 2-year Total | 67.1% | $7,271 |
| < 2-year Public | 34.0% | $7,243 |
| < 2-year Private Non-Profit | 26.5% | $4,854 |
| < 2-year Private For-Profit | 77.3% | $7,311 |
Graduate and professional students borrow even more, with the additional debt for a graduate degree ranging from $27,000 to $114,000. The following table shows the percentage borrowing and average amount of cumulative debt per borrower among graduating students according to degree program. It provides the amounts borrowed for just the graduate education and also the combined totals for undergraduate and graduate education.
| Graduate Education Debt | All Education Debt (Grad & Undergrad) |
|||
|---|---|---|---|---|
| Graduate & Professional Degree Programs | Percent Borrowing | Cumulative Debt | Percent Borrowing | Cumulative Debt |
| Total | 60.1% | $37,067 | 70.1% | $42,406 |
| Master’s Degree | 58.4% | $26,895 | 69.3% | $32,858 |
| Doctoral Degree | 51.0% | $49,007 | 58.3% | $53,405 |
| Professional Degree | 86.5% | $82,688 | 88.4% | $93,134 |
| MBA | 53.0% | $35,525 | 63.6% | $41,687 |
| MSW | 76.5% | $27,136 | 81.0% | $37,029 |
| PhD | 40.0% | $36,917 | 46.8% | $41,540 |
| EdD | 53.4% | $49,050 | 65.7% | $47,725 |
| Law (LLB or JD) | 87.7% | $70,933 | 89.7% | $80,754 |
| Medicine | 95.0% | $113,661 | 95.0% | $125,819 |
Grants, scholarships, work-study and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loans. The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education. You can also deduct up to $2,500 in student loan interest even if you don’t itemize deductions on your income tax return.
The interest rate on the Stafford Loan for new loans first disbursed after July 1, 2006 is a fixed rate of 6.8%. The same rate applies to the in-school, grace and repayment periods. The interest rate on new PLUS Loans first disbursed after July 1, 2006 is a fixed rate of 8.5%.
The interest rates on existing variable rate Stafford and PLUS loans will continue to change annually on July 1, based on the last 91-day T-bill auction in May. The current interest rates on the Stafford Loan are 6.62% during the in-school and grace periods and 7.22% during the repayment period. The current interest rate on the PLUS Loan is 8.02%. These rates are expected to decrease significantly on July 1, 2008. FinAid recommends that students who have not yet consolidated their variable rate loans wait until after July 1, 2008 to do so. Interest rates are likely to drop enough by then to make it worthwhile to wait to consolidate.
Borrowers may be concerned by the possible impact of the subprime credit crisis on the cost and availability of federal and private student loans. Federal loans will remain available, although loan discounts will likely be reduced significantly. A higher minimum balance may be required to consolidate. Private student loans will likely have stricter eligibility restrictions, requiring a higher credit score or a cosigner. There may be increases in the interest rates and fees on private student loans. Lenders will encourage borrowers to make payments of interest while they are in school.
Many student loan providers offer low cost government and private loans with consistently high quality servicing and flexible repayment terms. Citibank Student Loans is one of these lenders. FinAid maintains a list of education lenders, guarantee agencies, servicers and secondary markets who offer federal and private student loans, as well as advice on preferred lender lists and choosing a lender and tips on identifying the lenders that currently hold or service your loans.
Loan forgiveness programs (in which the borrower’s loans are paid off in exchange for volunteer work or military service) offer an option for easy repayment. If you are having difficulty repaying your education loans, see Defaulting on Student Loans before you decide to skip a payment. It offers you some alternatives. Loan Cancellation and Discharge Forms can be found on the US Department of Education web site.
Also, FinAid provides numerous calculators that can help you better understand your borrowing options. The loan calculators offer estimates of monthly loan payments, estimates of the amount of debt you can afford to repay, an analysis of the cost of capitalizing the interest and tools for comparing loan costs.
Some students, because they do not have prior experience with debt and loan amortization, do not appreciate how much their loans will cost them. FinAid provides some tips concerning calculating the cost of interest.
A website could provide you a plethora of choices in used and new cars, and if you like cars to begin with, the site gives you a listing of Dealers, Manufacturers, Auto Clubs, Leasing companies and much information including Consumer Alerts to assist you in making your decision! How about that?!
We’ve gone over how to obtain Auto Loans even if you have bad credit. Loan companies are willing to give you that second chance at rebuilding your credit. And now that you know that, it’s time to look over new cars. Yes! It’s time to get excited about it.
Financial freedom is not out of reach. Specially with the help of loan companies and promotions provided by http://www.theautofinder.com/. You can save money not just on your auto loan but also on cheap auto insurance as well.
While you’re visiting the site, you can pick out the car that you want, or the dream car that you’ve always wanted. It provides step by step instructions and it’s fun to obtain the knowledge about loans and insurance from the site as well.
Obtain a U.S. car loan 1 minute! You can choose whether you are looking for an SUV, Sedan or whatever suits your need. The site provides buying tips, so you don’t jump into purchasing a car blindly, and even consumer alerts to let you know what you should be aware of before you buy a car. It’s time to get going - - you have all the tools you need under one site. One site for all of these. It’s a consumer’s dream come true.
This is a sponsored post.
There are times where you know that you always have every bill covered every month but then, one particular month - you just turn out to fall short? Having an emergency situation, or anything that you are unprepared for could definitely put a dent in your finances. The rule of thumb they say, is to have at least six months worth your monthly salary in the bank to cover you in cases such as these. But what if you didn’t and you know that you will have the money when you receive your next paycheck but would default a loan or an emergency expense missed if you didn’t have the money to use before then?
They call it Payday Loan and Cash Advance It is a means to bridge the gap between the borrower’s cashflow between paydays. You can take the money now to take care of what it is that would cause you more grief, and pay it back when you receive your next pay. This can be very tricky and you also need to make sure that you are responsible enough to pay it when your actual income is received, otherwise you will be putting yourself in more trouble instead of getting the temporary help that you need.
I remember a friend of mine, when she was younger and raising three children. When her husband was laid off and her income became the sole source of their living, she would take out a cash advance to help buy formula, diapers, and all the baby needs until her next paycheck. She would immediately pay it off when she gets paid and I am telling you, they survived. Now, when the husband finally became a financial analyst for a large firm in New York - taking out cash advances became a thing of the past.
Those types of loans are really meant to aid the people in need as long as you know that you MUST BE RESPONSIBLE and not forego paying the loan immediately. Some companies could charge an arm and a leg in interests for these types of loans. As long as you know that and you can vow you will never default - this could get you through whatever it is that you needed the cash for. Visit http://www.paydayloansabc.com/.
This is a sponsored post.
You’ve written out the business plan, you’ve gotten the loan approved, the products are being manufactured and marketing has started. Where and how will your customers place their order? Sure they can call you over the phone but small business usually don’t have the manpower to handle an influx of calls. What’s the next best solution?
Add an online shopping cart to your website using an ecommerce software that would handle the orders for you. Yes, it is possible. You can reduce the amount of manpower needed to process an order because you have the customers entering their information for you. All you need to do is process the order and ship the product out. Now, isn’t that easy?
If you are in the business of selling something online, an ecommerce software is a must specially if you are a small business with not enough manpower to handle phone calls for orders. It is a great way to save your dollars for other needs other than labor. Look into it. You will be glad you did.
With all the online casino offers online, how is one to know if the one they chose is the best among all online casinos? You see, it is virtual and it’s not like going to Las Vegas or Atlantic City in New Jersey where they advertise who has won the ‘loosest slots’ every year. When playing, you have to know whether your odds at winning is positive or negative.
If you play, it’s wise to know which sites are the best and you can go online to find out reviews and how players rate an online casino. They rate it by return, by bonus dollars given to them, whether US players are allowed or not. They have all the reviews done, all you have to do is decide which site you will choose to play.
I do play for fun once in a while. The good thing about me is that I only live 45 minutes away from Atlantic City, NJ. It’s a skip and a jump for me. But for those that are inaccessible to Las Vegas or Atlantic City, and would like to play casino online, you should have your review first. That’s an advice you won’t regret.
Here’s one for the books. I am not only a blogger - - this is just a hobby-turned-money-making-opportunity-part-time-job! 
I am employed full time as an I.T. Project Manager at a global logistics firm located here in the U.S. Prior to that, I was in operations for 10 years and managed different facets of our company from logistics, documentation, transportation and supply chain management. A big part of my job was definitely customer service. And although I wasn’t in sales, our goal was to be the best!
While I was in operations, I really wished we had implemented some kind of a Salesforce CRM software that would assist us in managing customer relationships. As they said, ‘it takes years to gain a customer, minutes to lose one.” Although without any intent to brag, I was a star during my operational days. It was something that I had a passion for but tools
like a Customer Relationship Management software would have helped me a great deal. Why? Let me tell you why.
You may be wondering why my posts are not of Loans and Stuff lately. I have been introduced to a viral program that would give way to my financial independence. I have written about the best ways to obtain a loan, when to obtain it and how. I have also blogged about ways to save money, take advantage of credit card rewards and all but I haven’t blogged about how to make money, so you can save it and then you can pay your loans off. Until now.
The program that I joined is called Smorty. It is a medium for advertisers to promote their products and services through bloggers like me. Blogging is a fun way of getting the advertisers’ word out. It increases the visibility of their products and services and in the process, provides income to bloggers like me. It’s really simple and easy to become one. Just create a blog and provide good content on your blog. Get your blog rated and once your blog has aged a bit, you may start applying to these programs.
It is not unusual for bloggers to write about products and services. Reviews of websites are very common and lots of companies advertise on blogs. If you are looking for extra income and blog anyway, why not take the advantage of blogging for money? If you blog, it’s something that you already do anyway. Just take time and opportunities will be presented to you along the way. It’s up to you to grab the opportunity if it meshes properly into your theme or blog subject and even if it doesn’t, you may want to review the product anyway.
Blog advertising is the new way to make companies’ products known. Just keep it simple and the income will come your way.
When my mom became ill, it was difficult for us her children, to decide whether to care for her at home or should we take her to a convalescent center where she can receive full 24/7 care. We had to work closely with the hospital’s social worker in order for us to make the right decision. Traditionally and culturally, a move to put your parents into a nursing home is frowned upon. However, when presented with the facts and the reasons why we should take her to a convalescent center, we obliged.
There are many baby boomers today that are aging and most of us who are the youth of today will have to face this question sometime between now and ten years from now. How do we decide what to do? Availability of nursing homes will probably be scarce when the baby boomers are in the age where they will need care similar to the scarcity of nurses expected in the coming years.
As a family, you must be able to look at facts and be presented with options unbiased to anyone’s opinion. If you are nearing this situation, online resources are available to you first hand. You should start you research early and be prepared to make that difficult decision. You can look at the care options that are available so that you can arrange the right kind of care, read daily care news and views, and receive tips on from care experts. There are also a community forums that allows users to discuss their own experiences within the care system. In our case, we had to do it with the advisement of our social worker because she made it clear to us that caring for my mom will be too stressful and we will be selfish not to allow my mom feel that she is still independent and free. The decision we made is something that we do not regret. In turned out that my mom accepted our decision to the fullest and was content with it.
Yes, the decision is difficult but if there are hard facts you cannot ignore, it will be best for you and for your loved one in the long run.
While refinancing your mortgage isn’t quite like winning a lottery, in many cases refinancing can actually save you money or provide a source of ready cash. However, the answer to whether you can actually save money (or get money) by refinancing your mortgage isn’t straightforward and you need to take a long hard look at refinancing before making a move.
How can I gain by refinancing?
Here’s some of the ways refinancing could improve your personal finances.
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How can I figure if refinancing is an option for me?
So there’s a downside, what kinds of costs go along with refinancing?
How do I tell if refinancing is right for me?
As you can see there are a lot of potential costs before you gain any benefits and everyone’s situation is unique. If you feel mortgage refinancing COULD be a viable option for you, your next step should be to contact a mortgage advisor who can help you assess your personal situation. Refinancing isn’t for everyone and with your family’s security at stake your best option is to have a qualified professional do an analysis and advise you.
