Article by Matt Greene
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The Similarities And Differences In Graduate and Undergraduate Financial Aid
Article by Donald Saunders
In less than forty years the cost of a college education has risen dramatically and today a college education will cost about ten times as much as it did when I myself attended college. Fortunately however there are now a variety of programs available to help you to fund your education and the path that you follow will depend upon whether you are an undergraduate or a graduate student.
As an undergraduate you will rely on an often complicated mixture of scholarships, grants and loans and, in the case of loans, these will either be taken out alone, by your parents, or as a combination loan in which for example you take out the loan in your own name with your parents as co-borrowers or co-signers to the loan.
By far the most popular student loan program today, which accounts for more than ninety percent of government backed funding, is subsidized and unsubsidized Stafford loans. The most desirable are of course subsidized loans on which the government picks up the bill for interest payments while you are in college and for a grace period of up to six months after you graduate. These loans are however needs based and so there are a couple of hoops which you have to jump through to qualify. Unsubsidized loans in contrast are not needs based and so are available to almost all students.
For a graduate student however the picture is somewhat different and, while there are graduate scholarships and grants available, these tend to be few and far apart. It is however often possible to get a teaching or research assistantship, which is essentially a low paying, long hours job which many graduates avail themselves of to help them through their course or while carrying out research.
Another recently introduced option for graduates is a PLUS loan. PLUS stands for Parent Loans for Undergraduate Students and, as the name suggests, was originally designed to allow parents to take out a preferential loan in order to help a son or daughter through college. Now however this program has been extended to also allow graduate students to take a PLUS loan in their own right.
PLUS loans are readily available and are credit, rather than need, based. For some graduates this may cause a problem but the majority of graduates have not had time to get themselves into the credit problems which are suffered by so many adults today. Consequently, although you may have a sparse credit history, you probably will not have enough bad marks on your credit report to rule you ineligible for a PLUS loan.
The downside of PLUS loans is that, in historical terms at least, current interest rates which are generally either 7.9% or 8.5% are not low. This means that interest charges on even a relatively small loan can be high and repayment will need to start within 60 days of the grant of the loan, with no grace period.
As with all student loans, whether for undergraduates or graduates, there are a variety of different loans available from both government and private sources and, government loans in particular, have different caps for both single loans and lifetime loans from individual programs. As a result this is one area which you will need to research carefully, rather than simply rushing in and applying for the first loan which springs to mind.
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STUDENT LOAN FINANCIAL GROUP LAUNCHES BLOG FOR STUDENTS AND PARENTS
Article by John Wrinn
Baltimore, MD (March 30, 2007) – Student Loan Financial Group, the premier financial center specializing in consolidating student, college, private and federal loans, today announced the launch of its online blog, a platform for students and parents to discuss, debate and offer solutions for those obtaining and consolidating student loans.Student Loan Financial Group’s Blog provides an encyclopedic database of information, with exclusive tips and anecdotes from both the Company’s clients, and general visitors to the Web site. In addition to providing blog capabilities, the site also features a feed of student loan news that is updated daily from sources around the world. This site was developed to provide students and parents with information from a broad community of experienced individuals. John Wrinn, President of Student Loan Financial Group said, “We developed the blog because it offers an unmatched capability to educate. Our blog is an open forum that enables students and parents to share their knowledge and experiences within a platform that isn’t subsidized by any college or company, which is exactly what makes it such a vital and constructive source of information.”For further information about the Student Financial Loan Blog or to learn more about Student Loan Financial Group, please visit their Web site at http://www.studentloanfinancialgroup.com/.About Student Loan Financial GroupStudent Loan Financial Group (SLFG) is a premier loan service that guides clients through the options and choices of student loan financing with ease and simplicity. Headquartered in Baltimore, Maryland, SLFG specializes in student loan consolidation and has helped thousandths of students fulfill their ambitions of high education. Through an extensive network of highly specialized products, SLFG offers low rates, great borrower benefits and the best options available to solve a wide-range of consumer-financing needs. SLFG was incorporated as a privately held company in 2006; all of its shares are currently held by officers and employees.Contact:John Wrinn, Student Loan Financial Groupjohn@slfg.net
Improve Your Financial Standing With Fast Credit Repair
Article by Victor Taylor
You have to identify a reputable company that has a lot of experience in this field and can guide you in the best possible way.
Do you have a low or bad credit score that you would like to fix?
If so, then follow these 5 credit repair tips to fix your FICO score quickly.
Your first step is to request a copy of your credit report from each of the three main credit bureaus… TransUnion, Experian, and Equifax. You can easily contact all three by mail, telephone, or through the Internet.
Your individual FICO score is based on the information listed in your credit report, which contains a history of your past debts and repayments. Before you can begin fixing your credit score, you need to get a copy of your reports to see where you currently stand and what needs to be done.
Look At Your Credit Report
Once you have received your reports, you’ll be able to see the information your credit score is being based on and what your problem areas may be. If you have a low score, look at your credit report and try to figure out what accounts or information could be causing the problem.
Dispute Any Errors
You want to make sure that all of the information listed in your report is accurate.
Look for any type of mistakes, especially with your credit card accounts…as they are given more weight in calculating your FICO score.
If you should find any inaccuracies, you need to dispute them with the credit bureau that created the report you are looking at.
Credit Card Limits
One of the things that you want to confirm is that the credit limits on your cards are being accurately reported to all three credit bureaus.
If your credit report only shows your current balances and not your limits, it will give lenders the impression that you are maxed out on your accounts. And, as we know, being maxed out on any account does not send a good message to a new lender.
Keep Your Balances Low
A tip that goes a long way in fixing your score is to keep the balance that you carry on your credit cards at below 50% of their limits…preferably in the 30-35% range.
If your current balances are higher than this and you plan on applying for a large loan, you want to pay down your balances 2 – 3 months before you apply…to give your credit report enough time to show a “history” of being at the lower percentage.
Check For Missing Accounts
You always hear about the tips telling you to dispute and remove the negative items that are on your credit report, but what about the positive ones?
You want to make sure that all of your “good credit” is being reported to the credit bureaus. Since different creditors may not report to all three bureaus, a good account with a great payment history may not be showing on one of them.
This is important because, when your credit score is calculated, any missing accounts could cause your score to be lower than it should be.
When potential lenders pull your credit report and see that your score is low, they will view you as being more of a credit risk to them.
What Is Financial Aid When Talking About Student Loans?
Article by Donald Saunders
As is the case with everything else the cost of college education has gone up dramatically. Increases in tuition fees of more than 6% a year are commonplace nowadays. For instance, back in 1973 the cost of registration at The University of California (UCLA) was in the region of $ 200 a quarter and today it is more than $ 2,000 a quarter.
That tenfold increase in cost is not too unusual and many things now cost ten times more than they did 20 or 25 years ago. On the other hand, salaries have risen about threefold in the same period from in the region of $ 15,000 – $ 30,000 a year to approximately $ 39,000 – $ 42,000 a year. The figures vary according to age, gender and a great deal more although as a rough guide a three times increase is just about right.
Fortunately there is some good news. There are many more types of financial aid available nowadays to both parents and students than there has ever been. As its name suggests, financial assistance is money that parents and students receive from grants, scholarships and loans granted by both Federal and private lenders to assist students in paying for their college education.
Once upon a time, students could depend almost completely on Pell grants and Stafford loans to finance their education costs and college living expenses. These days Pell grants are still issued although they are needs based and represent a small percentage of college costs today. Stafford loans are similarly needs based but can range from 25% to 40% of the average cost of college these days. Another type of financial aid is Perkins loans which are similar to Stafford loans but which are issued only to particularly low income families.
Luckily, PLUS loans are also available now and these loans were not around 25 years ago. These are loans provided for parents and not students to help parents in paying for their child’s college education. Interest rates for PLUS loans are average and there are some restrictions and fees levied but they often form an important part of the student’s overall package of college funding.
A quick word to the wise on fees. A lot of loans are for a specified sum like $ 6,000 a year to be disbursed in several payments (normally once each semester). But it’s not uncommon for up to 4% in fees to be taken from that amount before any funds are distributed. This 4% fee on a $ 6,000 represents $ 240 which you never see but which you must repay. Whenever you are looking for a loan make sure that you do your homework and try to find a low-fee or no-fee loan.
Although Federal loan programs such as the subsidized Stafford loan program carry low fees and interest is paid by the government, they are not the only source of financial assistance nowadays and are not necessarily the best option.
Funding the cost of education nowadays is a complex undertaking and most students will have to put together a funding package which includes grants, scholarships, Federal loans and private borrowing.
Happily, there are now many more funding options available than we have seen for a long time and competition in the open market between private financial institutions in particular means that it is possible to get funds at a price which is not necessarily going to put you into lifelong debt.
You are also fortunate to be living at a time when finding the information which you need to make wise decisions about the choices open to you is also fairly easy.