Student Loans Should be Last Resort
Student loans are both a blessing and a curse to college students all across the country. On one hand, student loans allow you to have the money you need in many cases to attend college at all. On the other hand, most college students, particularly those entering college for the first time have inflated opinions of their starting salaries upon graduation and the bills they will face while living in the real world. In fact, most freshmen college students have no real concept of the limits of money in which to base their decisions as to whether or not they can realistically expect to repay those funds once they’ve graduated college.
The sad truth is that many college graduates find that for the first 10-15 years after they have graduated college, they are essentially indentured servants to their student loan debts. There are many reasons for this and different college graduates will find different things about their student loans when the appropriate time comes. First of all, those taking out student loans need to understand that a college degree does not guarantee a high starting salary. Beyond that, a college degree is no guarantee that there will be employers lining up to take your name and number upon graduation. The truth is that most college grads take anywhere from 6 months to a year to find a job in their fields and even then the starting salaries are often far less than anticipated.
Part of the blame for over-inflated expectations is the fault of universities attempting to validate their high tuition rates by displaying average starting salaries of only those that have successful offers in the field of study immediately upon graduation (which usually indicates a history of working with the company or another company as an intern prior to being hired) and not those students who have no prior work experience in their chosen fields. Part of the expectations is students reading job advertisements for experienced workers in a field and assuming that an education will provide the experience that employers require. Regardless of the reason, most starting salary expectations are not realistic in light of the current market.
The problem is that for many students a student loan is the difference in receiving a college education or not receiving one. For these students, there is no option. The price they will pay (with interest) for having student loans in order to get through the educational process will repay itself over the course of a lifetime if they are wise about making the necessary payments and stay on top of things such as consolidation loans and making payments on time.
Student loans are a great tool for those who have no other options when it comes to attending and affording to attend a university. On the other hand, for those who do not have an absolute need for the funds a student loan can provide they can prove to be problematic when trying to establish your career and your lifestyle upon graduation. This is a tool for education that should be used sparingly at best.
Whether or not you choose to take out student loans in order to fund your college education it is a good idea if you exhaust all other available resources first. Check out your options for grants, scholarships, and work-study programs before leaping into student loans to pay for your education.
Are Student Loans Becoming Necessary Evils?
When it comes to getting a college education most people can agree that the costs can be staggering at best. Even the least expensive colleges in the nation can add up over a four or five year period of time creating crippling debt for those who do not qualify for some of the better grant programs of substantial scholarships.
The problem lies in the fact that the parents of most traditional college students make too much money to qualify for the free financial aid that is needs based and very few qualify for the limited number of scholarships that are available to students based on merit. Even among those that qualify competition and fierce and there are no guarantees. Enter the student loan. There are all kinds of student loans and unfortunately with rising costs associated with college attendence and the growing necessity of a college degree for success in this country it is becoming more and more difficult to pay the price that is associated with higher education.
There are three types of loans that are commonly found for college students. They include federal student loans, federal plus loans, and private student loans. Each type of loan has advantages and disadvantages that are unique to that particular loan. Below I will give a little information about each of the loan types and whom they may benefit.
Student loans. There are three different types of student loans: subsidized, unsubsidized, and Perkins loans.
Perkins loans are only available to students who display exceptional financial need. These loans are available at a 5% interest rate and are available to both graduate and undergraduate students. Perkins loans are extended through the university you attend and will be repaid to the university unlike the other types of student loans, which are repaid to the lending agency.
Subsidized student loans are loans in which the interest is deferred until graduation or you cease to be a qualifying student. What this means is that while you are responsible for repaying the loan upon graduation the interest on these loans does not begin to accrue until your begin repayment 6 months after graduation or your cease to be at least a half time student of the university. You must qualify based on your income in order to receive a subsidized student loan. While the needs requirements for these loans isn’t as grave as those required in order to receive a Perkins loan you must still qualify.
Unsubsidized student loans do not require qualification on a needs basis. You must be a student and enrolled at least half time in order to receive an unsubsidized student loan. The good news however for those who do not qualify based on needs for other student loan options is that this type of loan is available to all qualifying students regardless of need. The interest on these loans however begins to accrue immediately, which means they can really add up over time.
PLUS loans are loans that are taken out by the parents of students who need the funds in order to cover educational expenses. The maximum amount that can be borrowed is the cost of attendence minus any financial aid awards the student has already received. The repayment on these loans begins 60 days after the loan is dispersed and the repayment period can be up to 10 years.
In order to cover the costs involved in education that go above and beyond what the government recognizes as acceptable college related expenses you can opt to go the route of private student loans rather then relying solely upon federal financial aid for your student loan source. These loans require that you qualify in order to receive them based on your credit rather than your need and must be used for educational purposes only. With these particular loans you really need to make sure you read all the fine print as different companies offer different conditions and different perks. You should really take the time and compare prices and options before taking out a private student loan and this should be done only as a last resort.
Student loans for many can be the difference in attending college and getting the education you are hoping for and not being able to pay the high costs that go along with higher education. For this reason you should treat them with respect and not take them lightly.
Federal Student Loans
Some young adults truly feel that life begins once you finish high school. Finally you can achieve that feeling of being out on your own. Suddenly you’re residing in a dorm room or apartment with a roommate, as opposed to living at home with the folks. You know what this means; no more curfews, punishments and daily chores to grapple with. However, you may want to get used to a few undesirable changes as well. Think along the lines of bills, bills, and more bills. At this point you may have to pay rent, tuition, and even for all of your food. Oh, and did I mention how pricey those college textbooks are? These can always break your bank account. Well, there is an upside to this newfound way of living. You’ll want to think long and hard about federal student loans and the financial options at your fingertips while in school.
It’s no big shocker that school costs oodles of money. And it’s not just for the tuition itself or the textbooks; the process of living on your own can make bills a major burden. While you likely didn’t have any bills in the past, other than maybe a car payment or car insurance, suddenly you have a real-life dose of them. Whatever you do, don’t get down in the dumps about college life expenses. Negative thinking solves nothing! It’s time to get acquainted with federal student loans and college grant options. If you haven’t already checked into it, there may just be a grant or two at your disposal. Many university students acquire federal and state grants for their outstanding grades and GPA. Others attain financial aid and scholarships for athletics. What you need to find out is what you in particular are eligible for.
An excellent place to begin your search for federal student loans and state grants is online. There are numerous websites designed to assist you with this financial aid process now days. It’s as easy as sitting at home and punching away at your keyboard. One crucial website to visit is FAFSFA. This is where you’ll need to apply for federal student loans and financial assistance. There is a process involved with acquiring funds for college and the earlier in the year you get started, the better.
Student Loan Information
I know that it is important to keep your social security number private. It has always bothered me that many student loan companies use your number as your account number. I always make sure I shred any paperwork with my number on it, but it would seem in some cases that this is out of my hands. My husband and I combined our loans, and we keep getting letters from companies offering us a better deal on our interest rate. It bothers me that they can so easily get our student loan information, and that our social security numbers are appearing on what we consider to be junk mail.
Some companies have gotten smarter, and they now send bills with the last four digits of my social security number hidden. It’s not perfect, but it’s a start. These other companies are still getting their hands on my private student loan information in order to send me offers, and I don’t like that just anyone can access my information. I have never authorized these people to go poking through my business, and I don’t know why it is legal for them to do so.
Whatever is going on, I know that I have to shred every single things that contains my student loan information. I don’t want anyone to get my number, and I certainly know that this is one of the things that someone needs to steal my identity. I try to tell my husband how important it is to protect our student loan information, but he is not as interested as I would like him to be. He’s one of these people who you see on television saying, “I never thought it would happen to me.”
If you are getting statements from your lenders, and they are printing out all of your student loan information on everything they send you, it might be a good idea to call them if there is any way they could do things differently. Ask if you can change your account number to something that is not your social security number, or ask if them if they can X some of it out when they print out your bills and statements. Though these companies are becoming more aware of how important it is to protect your student loan information, many of them are far from perfect. Let them know how you feel.
Student Loan Company
Working for a student loan company is quite a racket. Think about it. The students come to you when they are just out of high school. They are fresh-faced, idealistic, and quite naïve. They get student loans without any thought of how they will repay them. They go off to school, spend four years partying and occasionally studying, and get out into the business world. It is then when the student loans Company strikes.
Don’t get me wrong - often, it turns out okay. When the economy is good, students tend to have very little difficulty paying the student loan company back. Right now, however, things are pretty bleak. That means bad things for this crop of students, but very good things for the people running the student loan company.
If you are seeking out the services of a student loan consolidation company, you had better beware. I speak from experience. You see, I work in a student loan company. A lot of people don’t realize it, but some of the same people who own the student loan companies also are involved with the student loan consolidation companies. In other words, when you fall behind on your student loans payments, you pay more money to the same company under a different name to consolidate your loans and decrease your payments. Of course, there is very little proof of this as it goes on behind the scenes, but nevertheless it does sometimes happen.
If there is one thing that working for a student loan company has taught me, it is that it is always better to borrow from the government then from a private lender. If you can get a student loan grant from the government, you have all kinds of options available to you. You can defer payments until you are done with school, you can renegotiate your student loan debts - the possibilities are almost unlimited if you really get into trouble. If you work with a student loan company, however, once you get into financial hardships it is pretty much over. Your student loan payments will get higher and higher, and you will be unable to climb out of debt.
That is why, when working with student loan companies, it is important to know your rights. Many students avoid talking to a financial expert because it costs extra money, but in my opinion it is well worth it. After all, in this country you really need an expert to tell you your rights. The laws are too complicated for anyone to understand without formal training.
Consolidation of Student Loans
You finally did it. You’ve completed your education and now you have lots and lots of student loan repayment notices filling up your mailbox. They may or may not be from the same lender, and in many cases, are for more than one degree from different universities. You should be thinking about consolidation of student loans. Student loans and financial aid are a necessary evil for students who simply can’t afford to pay for their education expenses as they go in cash. It is definitely a better alternative to charging it on a credit card with outrageous interest rates. However, when those interest statements and payment notices start coming, it can be a little scary. Remember the semester (or two) that you couldn’t work as much, so you had to borrow a little extra to live on? Food is one of those necessities that you simply cannot live without, and the money has to come from somewhere. Unfortunately, not all that money was spent on necessities, which is why you’re now looking at your student loan statements in total denial; it was sure fun while it lasted.
Undoubtedly, you have also been receiving solicitations from lenders that specialize in consolidation of student loans. If you haven’t yet considered this, you should, to avoid paying any more interest than you absolutely have to. But before you consolidate student loans, do your research and choose the best option. According to various online sources, federal law mandates that a borrower must consolidate with the lender that holds the loans if all the loans are with that lender. If they are held by more than a single lender, the borrower is then free to consolidate with any lenders that participate in the federal student loan consolidation program. Borrowers can only consolidate once, and there may be additional fees involved depending the lender. Be wary of companies that advertise ridiculously low interest rates or reduction of payment, fast approval, or other cheesy incentives. Read the fine print on all offers for consolidation of student loans.
Consolidation of student loans doesn’t have to be an arduous process but it can be. If your loans are all in the same place, then it shouldn’t be that difficult. Student financial aid that came from the Department of Education or Sallie Mae Loans are fairly easy to consolidate, and the process can be started online for your convenience. There are also some great incentives offered, including reduction of interest rate up to 2% after twenty-four consecutive automatic withdrawal payments. Consolidation of student loans is an important financial decision, just as it was when you selected a college major and applied for student financial aid.
Student Loan Consolidation Rates
I can definitely still recall the college years. Ah, it almost seems like they were yesterday. Although I graduated Spring of 2005, those memories are as strong as ever. Okay, so that’s only last year. So what! The point is I went, and that’s what’s important. Now that’s not to say that there aren’t any bad aspects to college. In all honesty, there are a few. First of all, you get a ton of homework. Or at least I did. The work you do for an English major is no joke these days. Then there was the commute. I had to drive one hour four days each week to class, and of course an hour back home. And finally there was the cost. College is no cheap venture, my friend. That’s why I’m paying for it right now. The student loan companies give you six months after graduation, and then they want their dough back. This is your cue to start researching student loan consolidation rates.
Yes sir, you’re a fool if you pay back horrific loans all at once. I had three different lenders. Therefore I could never make three different monthly payments. This would have broken my bank in half. The trick is to find the best student loan consolidation rates currently available. Now, I do realize that you may be wondering how to go about this. It’s simple really. Have a computer handy? Get online and get started now. Take advantage of Google.com and its amazing ability to find things. Lots of things! Punch the words “student loan consolidation rates” into the search engine and see what pops up. This is exactly how I went about it. Within the hour I had it narrowed down to a couple consolidation companies. I chose the two with the lowest rates. After all, I want to lose as little as possible on interest each month. Wouldn’t you concur? I was able to consolidate with a low interest rate of 4.7. That’s not too shabby. However, I almost acquired one for 3.9, but it turned out to be bogus. Shame on that website for advertising it that low and then failing to comply.
Are you through with college yet? If you’ve got a ways to go, then I wouldn’t worry so much about student loan consolidation rates. However, if you just finished, I would start researching on the web right away. The sooner the better.
Consolidation of Student Loans
Alright, school time is here and all well. I for one know that each and every freshman is loving the newly found college scene. Well, you know, new to them anyway. All you underclassmen are stoked about moving out of the house and into a cramped dorm or 8-roomate apartment. Okay, 8 is a little extreme, but it certainly has happened. The point is you’re broke, and loving every minute of it. Am I right, or what? It’s funny how college works that way. I went into it with no cash and it was still a blast. I applied for student loans and a Pell grant. It was all good. I was able to make ends meet regarding tuition, books and cost of living. Of course there was no room for material things, but it doesn’t matter that much. Furthermore, you don’t really care that you’re living in a dumpy little dorm or apartment at the time. It’s all in good fun at that point in your life. Now, try to keep in mind the aftermath that goes along with college. I’m referring to the debt you accrue over the next four years. Before you know it, it will be time for the consolidation of student loans.
My mother always told me not to go crazy in college. At first I thought she was talking about a mental condition. However, I quickly found out that she was talking about finances. She meant not to go crazy with the cash and credit cards. Who am I kidding? I never had any cash. It was basically the credit cards. It was prudent to keep the spending on common fun and recreational activities very low. This way I wouldn’t end up with horrific credit card debt. I was already going to end up resorting to the consolidation of student loans process. This is pretty much inevitable. Not to get anyone down or anything. It just goes with the territory. If you take advantage of student loans, then you’ll need to consolidate. Feel fortunate that you can. I immediately researched the consolidation of student loans following college. I wanted that low monthly payment. There was no way I could deal with three different loan bills right after college. Once I consolidated, the monthly bill was reduced dramatically.
Your personal computer is a good place to begin. Check into the consolidation of student loans before you complete that senior year. Find out how fast you can consolidate after the college days are through. You’ll want to find the lowest interest rate around. Good luck!
Student Loans
Finally, it’s time to ditch the folks and head off on your own. Have you checked out the local apartments and dorms yet? This is always a fun routine. At last you get the reality check of living on your own. Will it be the pricey, barely affordable apartment, or the still sort of pricey dorm room? Ah, go with the dorm room simply to save money. Unless you want to room with four other strangers in the apartment just to make rent, the dorm is likely to work out better. Yes indeed, loads of fun comes with the four-year college career. Everything from full-time class loads, to part-time jobs, to not have enough money for groceries. Sound enticing yet? Okay, okay, so there are a few solutions at hand. You can acquire student loans for college. In fact, this is what most of us end up doing. Do you have your laptop handy? It’s time to hop online and see what’s available.
There’s a slight process when it comes to student loans for higher education. First of all you have to establish where you’re going to school. Oh, you already have that down and taken care of? Then you’re right on track. The key to attaining your student loans for college lies in the early aggressiveness. You want to be one of the first ones applying this year. The sooner the better. This way you will be sure to get your student loans for college on time. It always sucks when school starts and your money hasn’t been processed successfully yet. If this happens, you could end up acquiring your cash for school an entire month or two after the semester has begun. I hope you have a hefty credit card.
When it comes to student loans for school, the concept is often inevitable. The truth of the matter is that college is expensive, and not everyone has the luxury of mommy and daddy paying their way. Although this may be ideal, most of us must turn to student loans for college. Once you find out that total living and schooling costs equal around 20 grand a year, you realize that the part-time job isn’t going to cut it. This is reality at its best, and typically one of the first big doses we receive in life. So, if you are searching for college funds, it’s time to get online and check out student loans for folks like yourself. That bachelor’s degree is within your reach.
Student Loans
Are you headed off to college? Well, congrats on taking that next big step. Now it’s time for reality to kick in with a vengeance. If mom and dad aren’t footing the tuition bill, then it’s certainly time to start searching for student loans. When we finish high school, a great weight is lifted. It’s a good feeling to be done with that dry and awkward phase of life. Finally, it’s time to venture out on our own. Maybe gain some independence. Oh, and don’t forget, grapple with some hefty expenses. However, don’t fret; financial aid is just around the corner. Your need for student loans is inevitable, but at least it’s easy.
The cool thing about financial aid these days is the access. Now, I don’t necessarily mean that there are more funds at our beck and call, but it is certainly simpler to apply for them. With the keyboard at our fingertips, we can whip through FAFSA and apply for student loans with ease. The government has a large chunk of money available each year. If you’re a struggling student, then why not take advantage of this? One of your first priorities when finishing up high school should be to look for financial aid for college. This way when you get into that University, you won’t be pondering numerous ways to pay for it. The funds will be in place. When you apply for student loans, the key is to be the early bird. Yes, that whole early bird gets the worm spiel that your grandma laid on you actually has some merit to it. I recall when I was anxious to head off to a University. I was told by my high school math teacher to apply for student loans at the beginning of the year. Don’t wait till the fall when classes actually begin. All of the funds will be dispersed and you will be left broke. I’ve seen this happen far too many times. Students wait until the summer to apply for student loans and financial aid, but when the fall semester or quarter starts, the funds have not come through yet, or worse, there weren’t any left.
If you are in high school and getting ready to graduate, get a jump start on your search for student loans and grants. Just because you’ve found the college of your dreams doesn’t mean you can afford it. We have to take the initiative in this situation and apply for student loans, scholarships, and any other forms of financial aid we can find. Attending a four year University can cost some major bucks. Don’t wait until the last minute to deal with it. Jump online and begin your search for student loans today.