Student Loans: The Life Preserver Of Our Education System

Student Loans

A loan is the reason many students are able to go to college and not have to worry about money until after they've graduated. There is a lot of paperwork involved in the application process of a loan, but once you've completed it and been accepted, it will have been worth it. Loans can help with the cost of books, tuition and even living expenses or they can cover them completely. It all depends on your eligibility, which is determined in the application
process of the loan.

Applying for a loan is free and you can even complete it online. You can get a copy of the application at your college's financial aid office, post office or library. It takes some patience and time to fill it out and various paperwork is needed before you can turn it in, but you will be happy once the loan comes in. Your grades are taken into consideration when applying for a loan as well. Although you
don't have to have a 3.0 average to get a loan, you do need to be making satisfactory grades to receive any assistance. Your college will determine whether you're eligible to apply for a student loan or not.

There are some criteria that you have to meet before you can even be considered for a loan although. You must be a U.S. citizen or an eligible non-citizen. You must be making satisfactory grades and be attending a college that participates in the federal student loan program. You also need to be a half time student, at the least and truly be in need of assistance. The amount of assistance you will receive
depends on whether you're an independent (you report only your income and that of your spouse if applicable) or a dependent (you report the income of both your parents). The grade level you're in is also taken into account when the
loan assistance is being determined as well.

You don't have to pay back your loan as long as you are enrolled in classes at least half time. 6 months after you graduate is when you can expect to start having to pay back the loan and you can set up a payment plan. Not all schools offer loan programs, so you'll have to do a bit of homework to see if yours offers such assistance. It's best to check this important fact out before deciding on which college to attend if money is an issue for you. Make sure to get your application in early also, to ensure that your assistance will get to you in time for the tuition due date. 60-90 days before the beginning of the semester is recommended.

There are a couple different types of student loan awards you can try to receive. A subsidized student loan means that you do have great financial need for assistance while an unsubsidized student loan means you do not have need for assistance. The student that has a subsidized student loan is not responsible for interest until they graduate and the student with an unsubsidized loan is responsible at all times for interest. Get more information about Student Loans at Loan-Review.net.

So, what are you waiting for? Apply for a student loan today and you'll be on your way to that college education you've always wanted for yourself!

Get Loan information- Consumer Mortgage, Credit, and Loan Reviews, with in-depth information about all kinds of Student Loans.

About the Author

Tucker R. VanZandt is founder of All About Loans an excellent resource site dedicated to information on loans

How to Become Debt Free

In today's consumer society it is all too easy to get into debt. If you have a few credit cards, car loan, mortgage and possibly student loans it can easily add up. If your income is reduced for any reason you could find yourself in serious financial difficulty.

Your goal should be to become debt free. It is possible but will require a major change on how you think about money. You will also have to change your spending habits and spend less money than you make each month no matter what. If you have a tendency to over spend, limit your spending by relying on cash instead of credit cards or store cards. Set a monthly spending budget.

Next you need to pay off your high interest unsecured loans, credit cards and store cards. You can use a debt consolidation loan or if you own your own home, a home mortgage refinance may help. A debt consolidation loan enables you to replace all your current high interest loans and credit card debt with one low interest loan which can cut your monthly repayments by up to 50% and put money in your pocket.

Debt consolidation is a very useful tool if you know what you are doing and understand how you got into debt in the first place. It is all pointless if you continue with your old spending habits as chances are you will end up in even more debt in just a few years.

For more information about debt consolidation loans, Consumer Mortgages, home mortgage refinance loans, and other credit help and credit repair information go to Loan-Review.net, the Consumer Mortgage, Credit, and Student Loan Review Resource.

Managing Future Credit

After Rebuilding Your Credit, You Still have Work to Do

It is important to use your new credit appropriately to avoid any more problems. Successful credit management includes learning to be a better shopper and keeping records of credit use and finance charges. Follow these suggestions:



* Plan how to pay for an item before purchasing it rather than buying it now and worrying about it later.

* Track credit expenses by keeping a written record so you know how much you charge each month. Rubber-band a piece of paper to your credit card and promptly write the date, amount, and merchant. This helps you to not overcharge and provides an easy reference when reviewing your statement for accuracy.

* Keep an eye on your creditors by always reading your statement and all inserts. Make sure you know your due date, credit limit, APR, annual fee, minimum monthly payment, APR for balance transfers or cash advances, etc. Creditors can change your terms of agreement with as little as 15 days notice. If you don’t agree with the new terms, consider canceling the account. Before canceling, find out if the company will expect the balance to paid in full when the account is closed or if you can continue to make monthly payments until the balance is paid in full. Also, ask if the interest rate changes (increases) on the balance if you close the account. If so, wait until you pay off the balance before closing the account.
* Develop a system for paying bills on time to avoid late fees and protect your credit history. Know when bills are due to arrive, and when received, put them in a safe place. If your bill does not arrive when expected, call the company to inquire. Use a monthly calendar to write the amount on the due date, and mail your payment at least one week before the due date. Save credit receipts and payment stubs for future reference.

* Don’t charge disposable items (gas, food, or other debts) unless you intend to pay the balance off every month. Who wants to finance a gallon of milk for 7 months?

* Transfer high interest card to card with lower rate. Watch interest rates and always shop for the lowest rate, while paying close attention to any fees. If you transfer a balance, always cancel the higher rate card by notifying the company in writing and be sure to send it to the appropriate address. Make sure there is not a transaction charge to transfer the balance. Ask the issuer of the new card what is the method to transfer balances. For example, do they have payment checks they can send you? Make sure the lower interest rate on the new card includes balance transfers.

* Only charge what you can afford to pay off each month. Use credit to your convenience. Think of credit cards as an interest-free loan that you pay in full every month. Limit credit use to 15-20% of your monthly net income.

Refer to budgeting section.



* If you can’t pay off the balance, always pay more than the minimum payment. Do not fall prey to the minimum payment syndrome where you squeak by each month by only making the minimum payments. Consider this example: A consumer has a credit card with a $5100 balance at 27.99% APR. The minimum payment is $104 and the interest charge is $109. Making minimum payments, will this ever be paid off? NO, you will never pay off this balance.



* Concentrate on highest interest credit card. If you have more than one credit card balance, pay as much extra money each month as you can on the highest rate account while still making payment to the others. Once the card with the highest interest rate is paid off, use that payment and apply it to the card with the second highest interest rate. Repeat as necessary.



You can find information about Mortgages, Student Loan Consolidation, Credit Repair, Automobile Loans, Refinance Loans, Debt Consolidation, and more at Loan-Review.net.

Secured Credit Cards

Specifics of Secured Credit Cards

A secured credit card is a credit card that requires you to make a deposit that is used as collateral to secure a line of credit. This can be an ideal way for consumers with no credit history or previous credit problems to build good credit. You build credit by demonstrating responsible use and making payments on time.

If you have had credit problems and are getting back on track, you should be considered for a secured credit card as long as your credit problems are in the past and are now under control. Even if you have filed bankruptcy, many companies will still consider you as long as your credit report does not show earlier unpaid debts not settled in the bankruptcy proceedings. In general, make sure your bills are current and there has been no negative information reported on you in the six months prior to applying.

There is no physical difference between a secured card and an unsecured credit card. They look and work the same. The difference is that you make a deposit (for a secured card) that is used as collateral in exchange for a line of credit. An unsecured card does not require a deposit. Your deposit is not accessed unless you seriously default on the credit card account, and if you close the account, most issuers wait two billing cycles before releasing your deposit. Many companies pay interest on your deposit. Think of it as a savings account that may even earn interest, while building a good credit history.

Minimum deposit requirements can vary among companies. Some issuers will accept applicants with a deposit as low as $100 while many require $500. You can deposit more than the minimum required. Generally, the amount of your deposit equals your credit limit. A good general rule of thumb is to try to deposit at least 5% of your annual income. Keep in mind that even though you’re making a security deposit, that does not’t guarantee you’ll be approved. If you’ve ever been convicted of credit card fraud, bankruptcy fraud, or have unsettled tax liens, you’ll rarely be approved.

Most charge higher annual fees and interest rates than unsecured cards. Once you have a secured credit card, use the card once or twice a month for something you were going to buy anyway and pay off the balance every month. Think of it as a stepping-stone or temporary (one-two years). When you are re-established, you can shop for a credit card with better terms.

Policies vary with secured credit card companies for converting a secured card to an unsecured card (one without a deposit). Some (not all) secured card issuers will review your payment record at the end of the first year and, if favorable, return your deposit and convert your account to unsecured. Others may raise your credit limit, and others may require you to request an account review to convert your card to an unsecured card or raise your limit.

Finding a Secured Credit Card

If you are considering using a secured credit card to build good credit, take your time, ask questions, and do your research because policies vary. Start with the bank or credit union with which you already belong and ask if they offer secured credit cards. If you don’t belong to a credit union, consider joining one at your place of work, through a family member or through organizations with which you belong. Learn more about credit unions at www.cuna.org. You may also search the Internet for secured credit cards at www.SuperPayCard.com. Since consumers with past credit problems can be targets for scams Refer to our section on Credit Card Scams.

The following is a list of questions to ask when shopping for a secured credit card. Remember to ask your questions before applying, so that an inquiry does not show on your credit report. If you are not interested, don’t like the terms or if the company will not consider you, find another company.

* Do you accept people with previous credit problems or those who have filed bankruptcy?
* Do you report my payment history to the credit bureaus?
* What are the terms and fees associated with this card (make sure you understand them)?

Terms

* What is the minimum security deposit required to open an account?
* Will my credit limit be equal to my deposit?
* Is interest paid on my deposit, and if so, how much and when does it begin earning interest?
* What is the annual percentage rate (APR)? Is it fixed or variable?
* Are there transaction limits? For example, if you are limited to five transactions per day, this might pose a problem if you are out of town or on vacation and need to use your card frequently.
* Is there a grace period? How long is it?

Fees

* What are ALL of the fees involved with this credit card including annual, monthly, over-the-limit, late, and cash advance. In addition, ask about any one-time set up fees, such as a processing or application fee.
* Does the issuer charge a special fee to access or review information on your account? For example, will they charge you every time you check your balance even from an automated system? Will they charge you to review your account to increase your limit?

* How long will it take me to be considered for an unsecured card? Is this automatic or must I request it?
* For what reason(s) would my account be revoked and what is the fee to reinstate the account?
* Is there a 24-hour customer service number?
* Lastly, READ THE AGREEMENT including all fine print!


For more information about Credit Repair, and Rebuilding Credit take a look at Loan-Review.net's Credit Help Section, and for tips to help you after rebuilding your credit see - Managing Future Credit - Protect Your Rebuilt Credit. For information about Consumer Credit Counseling take a look at Advantage Credit Counseling Service, a nonprofit source of help for people in debt.

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.

More information can be found at Loan-Review.net. The Private and Federal Student Loan Consolidation Review page includes breakdowns of the differences between Private and Federal Consolidated Student Loans with sources and advice. The Student Loan Review Page has information about Government Student Loans, and Private Student Loans. The Stafford and Perkins Loans are covered.