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How To Go To College and Pay Off Student Loans, Debt-Free College Should be Your Goal Part 3

Pay Off Student Loans by Keeping a Reasonable Balance When You Graduate in Four Years

How to go to college and pay off student loans, debt-free college should be your goal

Keeping a reasonable student loan balance requires an immense amount of planning, organization, and discipline, but you can do it. Some kids can’t pay off student loans because they are spending way too much time in college, going five or six years for a four-year degree. Some have to work more than expected, some drop classes, some feel they can’t get all of their classes, and some don’t force themselves to decide on a major course of study when it is time.

You can motivate yourself to become motivated, pay off student loans

Organize yourself, and graduate in four years no matter what. If you want to do something else later, pay for it with cash after you start working, or use your employer tuition reimbursement plan some employers offer.

Some students drop classes, some feel they can’t get all of their classes, and some don’t force themselves to decide on a major course of study when it is time. Organize yourself, and graduate in four years no matter what. If you want to do something else later, pay for it with cash after you start working, or use your employer tuition reimbursement plan some employers offer.
The Nightmare Scenario of Getting Student Loans and No College Degree

Budget For School Loan And College Here

It seems hard to believe that students are taking out thousands of dollars of student loans, and not getting the college degree that comes with it. But, that is happening all the time. I recently listened to a radio show where the host asked listeners to call in with their student loan balances and tell if they got their dream job. He got the surprise of his life when several people, calling in from all over the region said they had $50,000, $70,000 and even $100,000 in student loans, but left college with no degree.

They gave various reasons; some fell behind in grades and were asked to leave, some became ill and had to leave, some did not qualify for the last semester or year of student loans to finish their degree because  they reached their maximum eligibility, some had to quit and work awhile and did not return.

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There were many reasons. Here is the sad part, once the loans payments start if payments are not made you are sent to collections, when you are in collections you have to jump through hoops to qualify for financial aid again, so you can return to school. If you don’t pay your way out of collections and start making payments’, your student loan balance will increase exponentially every single year, due to added penalties’, including collection company fees and interest rates. Avoiding collections is the most encouraging reason you should pay off your student loans as soon as possible.

Get More Student Loan Facts Here

Pay Off School Loans as Early as Possible to Avoid Possible Catastrophic Events

If you can’t pay off student loans after your grace period is over because you don’t have a job in your field, you can apply for government help. You can get an Income Based Repayment Plan or IBR Plan set up by the federal government, created under the Obama Administration. When you are adequately employed your payments will return to normal. In addition to paying your school loans no matter what to protect your lifelong credit, think about paying them off early. Parent loans are not eligible. The bad part of the Income based repayment plan is that, your payments are so low they usually don’t cover most interest or principle. This causes your balance to balloon. I have had students tell me a balance went from $30,000 to $70,000 in a few years or even worse. This is one reason you should do everything in your powers to pay your full payment immediately, and extra to the principle will pay off your student loan early. 

When you pay extra money to principle, you can pay off your loans early. Do your research with your school loan providers, and make sure you pay them off correctly and monitor your statements.  Another way to bring down your loan balance is with the governments [service oriented repayment plan] if you work for a non-profit.

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Get Debt-Free College by Knowing Your Options, Go Here

A Problem Many Students Don’t Discover Until After They Are Enrolled

Most financial aid packages at four-year colleges cover only 80% of costs for the poorest students as well as everyone else, an exception is a full scholarship that covers all income levels. Many poor and middle-income students don’t discover this fact until the end of their freshmen year.

Here is an actual example a college student gave me: a young man was told his college would cost $13,000.00 for the year, all but $2500.00 was covered by his financial aid package, he wasn’t told about this gap in financial aid until the end of his first year. His single mom had no money to help him.

He was asked not to come back until he could pay the $2500.00 balance. They told him the computer would not allow him to register. Another case, that was taken up by a local senator, is that of a young girl who took out $55,000.00 in school loans, she was told that was her maximum, and needed to find another way to pay for her last year and get a degree. She informed them that she had no other way. You can find out how difficult it can be to repay student loans by reading about it at the Student Loan Justice site.

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Read more about colleges and cost in the free downloadable eBook, Budget Planner for College and Avoiding Student Loans

Lois Center-Shabazz | Course Delta Agency

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How to Go to College Without School Loans, Debt-Free College Should Be Your Goal Part 2

Debt-Free College Can Happen When You Understand The Various Options You Have

Going to college without student loans should be your goal, stay debt-free

Getting a debt-free college education begins with a deep understanding of the different types of colleges and universities. There are many different types of colleges you can attend, and it is important that you know the difference between them. Not all colleges and universities are good for all people.

You must know which is best for you, both financially and academically. I will start with a brief explanation of junior colleges, (also called community colleges), and end with for-profit colleges.

Junior Colleges Your Best Value for Debt-Free College:

If you want to get a certificate or a 2-year AA (Associates of Arts) degree in something that has high job value, the community college is a best value. If you are poor, low income or a struggling single parent you may be able to attend with a Pell Grant, avoiding loans. If you do have to get loans they may be minimal.

Do your research, and work out your best solution. You must keep yourself motivated if you attend a community college. Some find it difficult to focus since you are no longer in high school, but also you don’t have the attention of a four-year college.

You can also later transfer to a four-year college to complete a bachelors’ degree if you decide to get it sometime in the future. Transfers are allowed at most four-year colleges.

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State Colleges and Universities:

Your absolute best value for colleges and universities, under junior colleges, are your state colleges and universities. These colleges and universities have the lowest cost of tuition and fees for a four-year degree for most colleges. The books and room and board, as with all colleges and universities are extra.

If you live at home or with a relative a state college or university can be a real value and leave you with little or no loans. Most employers in local towns gives preference to their local state college and university students for employment, since they usually know the quality of those schools.

For poor and lower middle class students many can go to their local four-year college with a Pell Grant and part-time job, leaving them with no school loans if they live at home. This is huge. Most HBCUs are priced similar to state colleges, a few are priced as expensive private colleges or universities, so remember to do your research.

Studends don't get that masters degree too soon, go to college without student loans

Private Colleges and Universities:

This includes famous and not-so-famous colleges and universities. Some of the colleges that fall into this category are expensive Christian schools, some are ivy league schools and some are small little known colleges and universities. They all have one thing in common, and that is enormous costs.

Enormous costs that will leave you with school loans of $40,000 to $200,000. This is a near tragedy for poor or middle income students, these loans could take 30 years to repay. No college graduate should be braced with that much of a load on their backs for so long.

These schools have enormous hidden costs, so it is imperative that you research costs at the schools’ website, otherwise you could be left with severe sticker shock after you start. You can get a good job if you go to an inexpensive school, as well as an expensive school, so why not protect yourself, your finances, and your future, with a low-cost college or university.

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For- Profit Schools, Colleges, and Universities:

In for-profit colleges, the learning is usually quick, the courses are short, and the costs are high. How do you know if a school is for-profit? They do a lot of advertising on TV, they are usually located in a strip mall, business park,  office building or online only – they don’t normally use college campuses. When you research for-profit schools the graduation rates are usually very low and the student loan pay-back is also very low.

They offer short, quick programs and degrees. You may have to do a lot of research to find them listed as for-profit online. Some of them claim to be non-profit, but they are not. Many of them give college degrees in a little as 1-2 years, or certificate programs in as short as 6-8 months. Some employers don’t recognize degrees from for-profit colleges. Since for-profit colleges have been accused of and found guilty of numerous problems against students, some are now calling themselves non-profit. But, they are still for-profit with another name. Most are located in office type buildings, or store fronts, they offer quick classes and very poor financial aid packages, with education that is not always recognized by employers.

Get Debt-Free College by Knowing Your Options, Go Here

The biggest problem with these schools are that most of them include loans for even the poorest students, the courses are often times quick, they offer a lot of certificate programs that require the passage of an exam to get your certificate.

Many kids don’t pass the exam because the courses are so quick, so they don’t get their certificate, and now they have loans with no ability to get work. This is usually the most difficult way to get debt-free college.

The government has recently cracked down on for-profit schools since the default rate on exams, including board exams is high. One for-profit nursing school had a pass rate on board exams of zero. None of the students passed the nursing board exam, but they all had loans they could not repay.

One type of for-profit school that was closely scrutinized was found to brace students with near $80,000 in school loans, this was the Corinthian Colleges.

After petitions and media attention, the government forgave all their student loans with forgiveness, this is rare. The problem was that students could not get jobs after attending. The employers told them they did not recognize the school as adequate for job placement.

The students were told they would have no problem getting jobs when they enrolled. Itt technical Institution was recently shut down due to its predatory methods against its students.

It is a part of the government crackdown on predatory for-profit schools. You can search google for a list of for-profit schools that have been closed by the government. Understand the current student loan debt crises to keep your student loans at 0 or very low.

Financial aid packages in for-profit colleges almost always includes loans, and for many who can’t get jobs, it is not possible to pay the loans back. These loans can leave students with a lifetime of poor credit.

Your best bet for debt-free college:

The best way to get debt-free college is 1. Go to a junior (community) college on a Pell grant, work part-time, and live at home. 2. Go to a state college or university with Pell grant, work part-time, get a relative to help, and live at home. 3. Go to a state college or university with the help of a relative or on a full scholarship. 4. If you decide to go to an expensive private college or university, go with the help of a relative or a guaranteed full scholarship or fellowship for graduate school.

Understand that cost is the most important factor when it comes to choosing an education with debt-free college. It is absolutely essential that you know all cost and academic programs of your chosen school, by reading their online catalog. A last reminder, that if you do not pay off student loans you have signed for,  and you get behind, the government will catch up with you, and garnish your check.

Lois Center-Shabazz | Course Delta Agency
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How To Go To College Without Student Loans, Get Debt-Free College Part 1

 You Can’t File Bankruptcy on Student Loans, Understand College Without Student Loans, and Subsidized vs. Unsubsidized Loans.

How To Go To College Without Student Loans, Get Debt-Free College Part 1

There are many reasons you should strive to go to college without student loans, one is the crushing pain of debt, another is that you are not allowed to file bankruptcy on student loans due to hardship.

If you start a business with any amount of money and your business fails, you can file a business bankruptcy on your loan balance due and later start over with replenished credit. If you buy a home and fail, you can short sell your home or let it go into foreclosure and you can later buy another home, once your credit clears.

This is not the case with student loans, politicians have rigged the system, so no matter what, you have to pay. You only have a short grace period after you graduate, but your grace period, if you don’t have a job, you still have to pay. If you don’t have a relative who is willing to step up and make the payments until you get a job, your life can be ruined forever with bad credit.

subsidized vs. unsubsidized student loans

The unpaid school loan balance grows exponentially due to collection agency cost and interest on interest overdue charges. The balance can double every 3-4 years until one day you open a letter and find you owe $100,000 on an original $5000.00 student loan. It has happened to many and it does not have to happen to you or anyone else.

Recent New Programs to Save College Students Credit

The new programs the Obama Administration created for college students with student loans has made payback easier, but you must apply for them, and even though your payments are decreased to an affordable rate until you find a decent job, you must still make your payments. There is no hardship benefit for most.

The program is called the income-based repayment program. There are others as well. This program is mostly for government subsidized loans, but there are programs for private or unsubsidized loans, but they are more difficult to get them to help you. If you delay regular student loan payments with an income based repayment plan, the delay in paying interest can raise your balance two to three times the original loan balance. So, it is recommended that you do EVERYTHING in your powers to make your reglalar payments.  The situation is direr for unsubsidized loans; these lenders can be brutal.

It is better to find an actual loan forgiveness program. There are different types of programs listed at Consumer  


They charge interest while in school,
and you don’t get the benefits that come with government subsidized loans. Subsidized loans don’t charge interest while you are in school and therefore cost much less than unsubsidized loans, sometimes as much as half.

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I Went to College with Almost no School Loans

I went to graduate school with a horrible amount of school loans so I know the difference. I had unsubsidized and subsidized, it seemed to take forever to pay off my unsubsidized loans. In college, I had one very small subsidized loan that took only a couple of years to pay off. I figured out why my unsubsidized loans took so long to pay off, but by then it was too late, I just suffered and eventually, they were paid. It took me a total of 12 years to
pay off my loans, it would have been sooner if I figured out the game they were playing with interest and time.

When it comes to graduate school, most of the financial aid is student loans, and some the predatory unsubsidized loans. Focus on scholarships or fellowships if you plan to go to graduate school.

 I Was Lied to About the Cost of my Private University Graduate School Up Front

It is extremely important to research each and every school you consider attending before you apply. I attended a state university for undergraduate school and had no problems with loans. I only had to take out a tiny loan, which I paid back quickly after graduation. I researched every school I considered attending graduate school.

The one problem I had with the graduate school I actually attended was that I did not include current students in my research. I was given an estimate of the cost of attendance for four years by the student affairs office. It turned out the actual cost was double what I was told, and that was after I lived like a pauper in graduate school.

At one point I planned to leave because the costs were getting out of control, but after a lot of introspection, I decided I was half way there so I should finish.  I don’t recommend you go to a private school unless you have a full scholarship, full fellowship, rich parents or family members who can pay for your college.

If you are poor or middle class your financial aid package will be lop-sided with huge loans, and in some cases bad unsubsidized loans. You have to ask yourself; Do I want to spend the rest of my life paying on school loans? It could very well happen if you attend a school too expensive for your budget.

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Do Your Research Before You Apply to Colleges That Interest You

Every college and university catalog is currently, online. If you have a computer at home, you are all set. If you do not you can go to your local library and use the computer there. Here is what you do. First of all, look at the cost, many of the more expensive colleges have their cost hidden, so don’t give up, it’s there. Search total cost to attend college X (substitute the name of each in the X field).

You should find a grid. In that grid, it will explain all of the costs for four years, down to the paperclip. I have looked, and it is the norm, I did not find a single college or university without the four-year cost of college grid. The private schools will display outrageously expensive costs, some of them I looked at a cost between 200.000-300,000 for four years.

Those costs are definitely for rich kids or the lucky few who get guaranteed scholarships. It makes no sense at all to go to a school like that with a financial aid package that includes school loans.

Your loan bill at that school could definitely scar you for life.  You will have either a lifetime of loan payments or have a good chance of a lifetime of loan default if you become ill, disabled, or can’t find a job that pays enough to make the payments – there are no guarantees. Coming Soon, Part 2 of this article.

As of 2017 we now have a new administration. They have not said what they will do with student loan fulfillment problem, but have hinted toward doing nothing, and taking down the Consumer Protection Financial Bureau website. Because of this, the student loan crises could hit epic proportions if students continue to have more debt than they can pay with low job opportunities including, no job or low paying jobs.

Lois Center-Shabazz | Course Delta Agency

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Big Thing Budgeting in 7 Ways

How to Budget for the big things, use what I call Big Thing Budgeting.

  1. USE BIG THING BUDGETING TO GET OUT OF A MOUNTAIN DEBT: CREDIT CARDS, MEDICAL BILLS, PREDATORY LENDING

For Individuals, Couples and Small Businesses, you can get out of a mountain of debt if you focus like a laser beam on getting debt-free. It is not easy, but it is possible.

It will first require that you stop buying anything you don’t need. Get rid of the “I Got to Have it Syndrome”.

Start by keeping a log and inventory of your buying habits. Then slowly start to purge spending you don’t need to do. When you take an inventory of your buying habits, you will be surprised at the amount of unnecessary buying you do.
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Second, you must start paying off one thing at a time in a big way but pay on other bills at the same time. Start with the smaller bills, pay extra to those bills with the most you can afford, then pay a small amount extra to principle to your other bills — at the same time.

Big Thing Budgeting Shaves Thousands Off Your Budget       -Lois

You will see bills drop off one by one. Now, for the larger bills, you may have to start selling things you don’t need. From cars to yard sells, is where you can sell things you don’t need.

  1. BUDGET TO BUY A CAR

Save money for your next car while your current car is in good shape. Then, research the cost of the car you are interested in. Set a budget, then go through the internet and your local newspaper to see prices and figure out monthly payments, if you plan to finance. If you don’t plan to finance, you will see how much you need to save and for how long, to pay cash.

Consider buying a certified used car at a new car dealer or a one-year-old car from a new car rental agency. Make sure you know the new car prices and options on a new car so you can compare it to a new-used car with options.

Use Kelly blue book or kbb.com, to check for cars that are good for buying as used cars. You can also check for general pricing of new and used cars.

Ladies, don't get cheated buying a car.

  1. BUDGET TO BUY A HOME

Home buying requires doing a lot of research to discover 1. how much you can afford to pay for a home, 2. how to find a good mortgage company, bank, or credit union. The best place to start is your local credit union or bank due to the savings in fees, cost and time. 3. How to buy a quality home, and 4. How to get it properly inspected – some inspectors work for the realtors, so many won’t tell you when you the home you are interested in has major problems.

Therefore, it is best to contact tradesmen directly, like electricians, plumbers, roofers, and carpenters to get a fair assessment of possible home repairs.  Most of them will do an inspection in their specific area for a small fee.

Use at least 2 of each kind, so you can get a consensus as to what is wrong.  You can then budget for the down payment and escrow cost to purchase your next home.

Therefore, it is best to contact tradesmen directly, like electricians, plumbers, roofers, and carpenters to get a fair assessment of possible home repairs.

There is a Right Way and a Wrong Way to Buy Cars, Homes, and Education       -Lois

Most of them will do an inspection in their specific area for a small fee. Use at least 2 of each kind, so you can get a consensus as to what is wrong.  You can then budget for the down payment and escrow cost to purchase your next home.

Make sure you know exactly what your payment will be in regards to your loan. What will your payment be with Principle+Interest+Insurance+Taxes? You can also do mockups of an imaginary home to calculate what you should pay.

Ask friends or family what they pay for insurance and taxes for a home you are interested in. Taxes vary from state to state, you can also search your state websites. In some states, taxes go up as home values increase, but in others, the taxes stay the same.

Dream your best home - secrets to successful car buying tips for women

  1. BUDGET FOR VACATION

Don’t put your vacation on a credit card when you can save a little all year and pay cash for your vacation. It is as simple as that. Budget in transportation, food, lodging, tours, and shopping.

If you want to go on the cheap, vacation where you have family members or friends who live in or nearby vacation spot. Pay your family member to stay with them, or cover their restaurant costs and meals. Do the math, and see what works out.

  1. BUDGET FOR COLLEGE

Some people are obsessed with the “best college syndrome” due to the college propaganda machine.

If you have unlimited money, you can go where you want. But, if you must depend on financial aid, which usually includes substantial student loans, that is not an option. If there is one thing you want to keep as low as possible, is student loans.

Since there is 1. never a guarantee you will get a job in your field or keep it, 2. There is not a guarantee you will get a job that pays in accordance with your student loan 3. you can’t file bankruptcy on student loans.

Because of these items 1-3, you should keep student loans as low as humanly possible. That means avoiding high priced schools and high-priced areas to live in for college. The least expensive schools are community colleges, and state colleges and universities.

There are some colleges that are priced like state colleges and universities, but you must do your homework and compare all cost. Private colleges and universities are unreasonably high cost and they have a lot of hidden costs, which makes the total difficult to calculate.

The for-profit schools offer quick learning and high prices. Today, some of them are now calling themselves non-profit due to the unpopularity of the for-profit model.

Private colleges and universities are unreasonably high cost and they have a lot of hidden costs, which makes the total difficult to calculate.  The for-profit schools offer quick learning and high prices. Today, some of them are now calling themselves non-profit due to the unpopularity of the for-profit model.

The for-profit schools do massive advertising on television and the internet, this is your main clue. All colleges and universities have their cost listed on their websites. Make sure you find these costs and know exactly what you are getting into before you consider any college.

Your total student loan balance should not surpass your first years’ salary.  Example: If you plan to be a teacher and your first year’s income is $25,000, your student loan should be capped at $20,000. Understand the details of student loans with the eBook on student loans.

Don't stop thinking about your finances

  1. BUDGET TO PAY OFF STUDENT LOANS

There ae people all over Pinterest bragging that they paid off $60,000 of student loans in 5 years. This is possible due to re-amortization. When a loan is amortized to 20 years by your loan servicer, you can amortize it to 10 years by paying extra to principle every month.

If you have a 10-year loan, you can knock it down to 5 years. You can live tight, give up the finer things in life, and knock down those years with extra payment to principle.

You have to check your statements to make sure the extra payment is added to principle and you have to state that on your check, they will always try to put the extra to interest, even though it makes no sense. Big Thing Budgeting is essential when it comes to student loans, if not done correctly, these loans can follow you to your grave.

You have to check your statements to make sure the extra payment is added to principle and you have to state that on your check, they will always try to put the extra to interest, even though it makes no sense. Big Thing Budgeting is essential when it comes to student loans, if not done correctly, these loans can follow you to your grave. Learn more on my instagram.

  1. PREDATORY LENDING

Understand the way predatory lending works such as car title loans and payday loans. Why are many cars confiscated with a car title loan? Why do payday loan balances go from $500 To $3500?

I would have to write another article for an explanation, but a car title loan can easily double or triple if the money isn’t paid on the date due repeatedly, and a payday loan gets a rollover when the employee does not have the money to repay the loan on time.

Both problems push the balance way up over the top.  The most effective way to pay off these loans is to stay away from predatory loans. Using predatory lending is probably the direct opposite of using Big Thing Budgeting, don’t get caught in the predatory lending trap. Predatory lending also includes car title loans, unsubsidized student loans and high interest car loans.

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Home buying the right way take skill

Lois Center-Shabazz | Course Delta Agency

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Big thing budgeting in 7 ways, budgeting for a home and other things

Student Loans Can Be Scary, Do Your Homework

Student Loans Scary

Student loans can be scary because student loans ruin your life.

The Cost of a College Education Can Be Outrageously High if You Are Not Careful

During the past 20 years the cost of a college education has skyrockted way past the rate of inflation. Educational cost are far above the reasonable loan repayment with an entry level job. The average entry level pay of most college graduates is not sufficient to repay student loans and cover living expenses. Because of this sad saga, you must be diligent in understanding college cost and the process of college financial aide, especially college loans.

There are different types of loans, with a wide variety of repayment options. Some of the loans are very reasonable, while some can become very expensive if you do not understand the repayment terms. Some loans do not charge interest during school attendance, during deferment, or the grace period, while others charge interest during all there of the latter periods.

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education (the Department), though the entity you deal with, your loan servicer, can be a private business.

With Direct Loans, you:

Borrow directly from the federal government and have a single contact- your loan servicer- may be a private institution for everything related to repayment, even if you receive Direct Loans at different schools.

Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.

The Direct Loan Program offers the following types of student loans:

Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.

This is by far the best type of student loan, if you can qualify. The deferral of interest payments makes this an affordable loan, if paid in a timely manner after graduation. The current interest rate for this loan is 3.4%.

Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The interest could almost double your payback at graduation, unless you make interest payments during college.

Because interest is charged during all periods, it is possible that this loan could spiral out of control if small payments are not made during the entire loan period, including while enrolled in school. The current interest rate for the unsubsidized loan is 6.8% (this may be different by the time you read this article).

PLUS: unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. This loan requires a credit check.

If you cannot survive a credit check 1. — You can get a co-signer (this person is responsible for repaying the loan in the event that a) you do not get a job, b) you loose your job, c) you cannot pay due to disability or long term illness. d) you do not make enough money to repay your loan. 2. — You can plead your case and write a letter of explanation of bad credit, this may give you an exemption.

The current interest rate for plus loans is 7.9%. This alone makes it imperative for graduate and profession students to make a payment during the school attendance, grace, and deferral period. A young girl was profiled on dateline who finished medical school, did a residency and saw her total school loan balance balloon from $250,000 to over $500,000 during residency.

She stated that she did not understand the interest charges during her residency deferral period. She could have kept this balance at $250,000 had she understood that making an interest payment during her residency would have solved this issue.

College loans are awarded after a student submits a FAFSA (Free Application For Federal Student Aide). This application can be started and finished online directly at the FAFSA government website, by creating a PIN. This procedure is more efficient than applying at one individual college of your choice, since you can verify that all of the requested information is completed in a timely manner.

Every single college you think you are interested in should be placed on the online application, and the completed application will be forwarded to the school of your choice when you decide where to attend.

Denial: Students have the right to deny any portion of the student aide as loans or ask to decrease the amount of loans that may not be needed. The fewer loans a student has the better off they will be later, due to low debt.

Consolidation: Eligible federal student loans can be combined into one Direct Consolidation Loan. The government gives you a deadline for consolidation of school loan debt. This may ease your payment burden if your loan payments are too high or come from too many sources.

You also have a choice of private school loans. Private school loans are more expensive than government loans, they have more fines and fees if not paid due to illness or disability, and they have less forbearance. With private student loans you have no safety net. Private loans are easy to get, but have no deferment or forbearance on the loans.

They have no sympathy for those who get into trouble. Because of this it is important to get the maximum from government loans  before you think about private loans. Most students have no business at all with a private loan, considering the risk involved. You can understand more of the nuances of student loans by going here.

Related Link: Student Loans eBook

Fantastic Finances Poll For a Personal Finance Bounce

Help Us Create a Great Fantastic Finances Course for You.

We’re VERY close to finishing our long-awaited Fantastic Finances Course For a Personal Finance Bounce.

I have been working on this online course for more than four years, but I am finally going to wrap it up. I will be releasing it in September. This very short fantastic finances poll will help us help you get the right course.

fantastic finances pollThis course will be entirely focused on “Support and Positive Financial Change”. It will include eight weeks of printed pdf’s, 8 complete personal finance books by Lois Center-Shabazz — in the form of downloadable eBooks, video tutorials on 8 crucial personal finance topics, a guide to create your Most Valuable Finances (MVF) profile, a complete course outline to guide you through the Most Valuable Finances Course, a Facebook support group, and a weekly live question and answer session with Money Pro and course founder,  Lois Center-Shabazz.

It is going to be a complete brain dump of everything we know about “Support and Positive Financial Change”.

We are going to cover all the ways that we use to generate our support and positive change zones, and we are going to show you exactly how we change those zones to increase your net worth and financial IQ for life.

HOWEVER, we need your help. Before we finalize everything and send it off to the web course portal, we need to make sure we have covered everything. So please help us create the right online course with this Fantastic Finances Poll For a Personal Finance Bounce

This is where YOU come in. Please take a few minutes to answer this super-short survey — there is only one thing we want to ask you.

YOUR POLL QUESTION: What are YOUR top two questions about Support and Positive Financial Change that we absolutely NEED to answer in our Fantastic Finances Training Course? —->
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fantastic finances poll

A Lesson On College Financial Aid And Student Loan Profits

 

Why are banks getting rich and richer off college financial aid and student loan profits? Unfortunately, students are not having the same experience. I keep reading articles stating that student – loan debt average is $26,000.

This appears very low, because whenever I hear a forum on television or radio they suggest most graduates have much higher school loan debt.  According to most media projections, the national school loan debt is edging toward a trillion dollars, and may crash soon.

Also, when I speak, I always have several attendees tell me they have a much larger debt than $26,000. The real average seems to be more like $50,000.

If you use a realistic breakdown, including private versus public school, and public schools in the south versus public schools in New York and California; you can reach better averages.

There are 12 major factors I have come up with that will determine how much you will owe after college. If you understand each of these factors before you choose a college, you can keep your school loans to a minimum.

THE 12 FACTORS TO STUDENT LOAN PROFITS:

  1. The total college costs for the following college items — tuition (in-state & out-of-state), fees, room, board, books, transportation & incidentals.
  2. The total available for a Pell grant is only $5730. for 2014-2015 school term.
  3. The total available for a work study grant is limited, but determined by many factors, including
    part-time work hours and total financial package.
  4. For an expensive school, most of your financial aid award will be in loans.
  5. If you are of low income or moderate income, you may get federal subsidized loans.
  6. If you are of middle income or high middle income, you may get expensive unsubsidized loans.
  7. If you go to college in the South versus the North, West or East, prices differ.
  8. If you go to a public in-state college versus a private college, prices differ.
  9.  If you live at home or on campus.
  10.  Whether you plan to stop at a 4 – year degree or go on to graduate degree.
  11. Financial aid is limited, no matter what your income — It works best for low or moderate incomes.
  12.  This can leave you with a financial gap in your ability to pay total college costs each year.

You may not be hired for a college level job

Because school loan costs can skyrocket with the misunderstanding or lack of knowledge of the 12 factors above, it is important to understand college costs and the severe limitations of financial aid.

You should research and ask questions about these 12 factors before you decide on a college or university. The research can be found on  the colleges websites and by calling the school financial aid office and registrar’s office.

UNDERSTANDING ALL 12 FACTORS ABOVE WILL ASSURE TWO THINGS:

  1. That you finish college,
  2. That you finish with a minimum of student loan debt.
  3. That you will contribute minimally to student loan profits for banks

Below I listed the actual cost of several colleges; this will give you an idea of the differences of cost, and your ability to NOT pay, even if you have financial aid – all of these values are in the ballpark of cost, but only a rough estimate:

A PUBLIC UNIVERSITY IN THE WEST~ $125,000 (IN STATE RESIDENT):

Example; The University of California in 2014:

In State Student — Tuition, fees, room & board, miscellaneous: – 4 years $125,000

Out of State Resident — Tuition, fees, room and board, miscellaneous – 4 years $160,000

Because Pell grants max out at $5730., and work – study grants are limited; a realistic loan balance after graduation could easily be $80,000, bear in mind, this is for in the in-state student.

A PRIVATE UNIVERSITY IN THE WEST~$280,000:

Example; Stanford University:

Tuition, Room & Board, Books, Fees, miscellaneous: ~70,000 per year; 4 years $280,000 total

School loans here could easily total $150,000. – 250,000

A PUBLIC UNIVERSITY IN THE SOUTH~ $94,000 (IN-STATE RESIDENT):

Example; The University of Virginia (In-state student):

In State Tuition, fees, room & board, and miscellaneous –4 years ~ $94,000

Out of State Tuition, fees, room & board, and miscellaneous –4 years ~$200,000

For the in-state student school loans could total $50,000.

A PRIVATE UNIVERSITY IN THE EAST~ $270,000 – $300,000

Example; Harvard University:

Tuition, fees, room & board, and miscellaneous –$68,000–4 years ~ $270,000-$300,000

Harvard claims that if your parents make under $65,000 parents are not required to meet costs or what I call the “gap”. All costs can be satisfied with some form of financial aid. The problem is, if you don’t have a full scholarship — what will your total school loan balance be after graduation? Perhaps $150,000 – not good.

If was hard for me to find the total estimated cost for Stanford and Harvard, it is not something on the front of their websites, the administration does not seem to want to give this information freely, since you may not go further into the sites.

The question is, how far can you get on an average of $26,000 in school loans with these schools? Not far, you would not have nearly enough money to finish. Unfortunately, there are many students who start college and find this out after a year or two; that they can’t get enough financial aid, and are forced to drop out with no degree but they have school loans to pay.

They are told if they can’t come up with the “gap”, or the difference between total financial aid awarded and total cost for the past year, they cannot register for the next year.

THERE IS A WAY TO KEEP YOUR student LOAN profits for banks LOW, AND ATTEND A MAJOR UNIVERSITY:

If you choose to live at home and attend the University of California as an in-state resident, you could keep your school loans within reason, maybe $25,000 if you also qualify for a Pell Grant and Work study. Your parents’ income would have to be very low to qualify.

The other state college in that same area is San Diego State University; it is a bit more affordable, especially if you consider living at home. The academic requirements for incoming freshman for both colleges are very high.

If you made the mistake of choosing a college or university that will leave you strapped with unbearable debt, it is not too late to change to an affordable college after your first or second year.

FINANCIAL AID IS LIMITED

Because financial aid is limited, choosing a school according to cost may not matter how poor you are. Some schools have total cost financial aid packages, but many only give you about 80% of cost in financial aid. This is where you will experience a “gap” in your school account balance after you start.

Because financial aid is limited, if you are poor and dependent on a loan based financial aid package, you are better off going to your local state college or university, and staying at home. Another option is attending your first two years at a junior college, where costs tend to be much more reasonable.

In other words, you are better off going to a public school and leaving with a loan debt of $15,000, then going to a private school and leaving with a loan debt of $80,000. Targeting a low final loan balance is one reason that
cost consideration is crucial.

Poor and middle-income students have the best chance of affordable financial aid, since financial aid is need based. But, they must understand that there is a gap, which is between the maximum award given and the total cost.

Sometimes that gap is as much as $5000 per year in a private school or more and $2500 in a public school. That is a rough estimate, it could be much lower or much higher.

Do a thorough analysis of your college cost, and figure out your gap before you go. Upper middle-income students have a better chance of getting low quality financial aid, such as unsubsidized loans and parent loans — interest is charged to your loan while you are in school.

If you choose the option of not paying interest while in school, it will accumulate and could double your actual loan balance after you graduate.

Student LOANS ARE A BILL AND MAY BE DIFFICULT TO REPAY AFTER GRADUATION, KEEP THESE FACTS IN MIND:

  • It is important to plan your studies carefully, get out of college in an optimal amount of time and keep school loan debt as low as possible. There are no guarantees as to income or when you will get a job. The grace period for not paying back your school loans after graduation is very small, like 6 months in most cases.
  • It may take a while to find a job, and you want to finish paying your loans off in optimal time so you can buy a good car, buy a home, save for retirement and help your own kids go to college.  Protect your credit rating by paying off your school loans in a timely manner.
  • There are people who planned poorly, they went to an extremely expensive school or did not finish in due time or went part-time for too many semesters. As a result, they will have school loan balances at the time their kids are going to college.
  • Some states also provide financial aid to supplement federal financial aid, others may not, or may only supplement with a small amount.
  • Many schools do not cover financial needs 100%, even for the poorest students.
  • If you have a high quality guaranteed academic scholarship, (these are rare), it may cover 100% of your costs.
  • Students max out of financial aid and are asked to leave school, either after a few years or even after one year.
  • There are many student loan forgiveness programs with the federal government, be sure you contact legitimate government sources only.

2017 Update:
The current student loan profits have not been revealed for 2017 by the current Washington D.C. administration. But, hints are that the burden of financial aid and student loans will be shifted heavier to the student.

2019 Update: 
Students are defaulting on student loans on an outrageously large rate. Currently in excess of 1 million students are defaulting on their loans. The reason they give is they are underemployed and not making nearly enough money to make loan payments, or have no job. 

Lois Center-Shabazz | Course Delta Agency

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SOURCES:
Consumerfinance.gov
Consumer Financial Protection Bureau > Student Loans

SchoolloanJustice.org
School Loan Justice

Go Here For Budget Planning For College and Everyday Life

lesson on college financial aid and student loan profits

5 Sure Ways to Avoid Financial Aid Mistakes Funding College

5 Sure Ways to Avoid Financial Aid Mistakes
Avoid financial aid mistakes

Your Scholarship Search

Understanding financial aid and all it should offer you can keep your student loans low. When you apply for financial aid and you are low or middle income, you may qualify for a financial aid package. That package usually includes loans, the more expensive the school, they larger your loans will be in your package.

The best defense against high debt is high grades in high school or college. Either can lead to college scholarships. Your scholarship search should be extreme and early in high school. Search and apply as if your life depended on it. Ask family members to help, show them your grades, discuss your plans.

Many scholarships go unfunded simply because there are no applicants. Study and understand everything about financial aid at the federal financial aid website, FAFSA, that is where you can avoid financial aid mistakes the most.

Get This Amazing Update on Student Loans

 

And mostly, apply early, and place every single college you remotely think you are interested in on your application.

When you apply online, which is best, the college you choose will be the college your award is forwarded to.

Study and understand everything about financial aid at the federal financial aid website, FAFSA, that is where it all starts. And mostly, apply early, and place every single college you remotely think you are interested in on your application.

When you apply online, which is best, the college you choose will be the college your award is forwarded to.

Download This Free Student Loans Book Excerpt

Don’t Go to College Blind

Avoid financial aid mistakes by reading your college catalog online, understand all your college offers, this you should find information about financial aid at your given institution. Your registrar’s and financial aid office will have more. Understand what courses you must take to graduate with that degree in four years.

If you are not sure what you want to do, you should have some ideas since you are going to college. Choose at least three fields you are interested in and have good job prospects, make sure you get the general education courses to major in each of those three fields. No matter what, major in one field by the beginning of your third year so you can graduate in four years, get a job, and start paying down debt right away.

Don’t linger with indecision, and don’t allow yourself to get loan defaults, and later a lifetime of bad credit. Your credit rating is one of the most important assets you have for getting low-interest rates later and your ability to rent an apartment, buy a car, or buy a home.

There are many ways you can go to college debt-free if you concentrate on affordable colleges, Pell Grants, scholarships, understanding financial aid packages, living at home, working, and relatives helping, should keep you with low or no debt.


Should You Refinance Student Loans to Make Payments Affordable?

Some students will not have an option except to refinance student loans because the payments are way too large for their income. If you can pay on student loans as soon as they are due, make your payments plus an additional to principle balance, so the loans are paid off quickly.

At the same time, of course, remember to place a monthly payment in your savings account for a rainy day. The best student loans, as I have said, are government subsidized loans since you don’t have to pay interest while you are in school.

The best refinancing options are also government refinancing programs. If you refinance with private companies, you could lose the loan benefits you get with government programs. One such benefit is loan deferral if you return to school, a hidden higher interest rate can be found in private loans or tax benefits of interest deductions in government loans.


If You Pay Off Your Student Loans Early

If you pay off your student loans early or on time you will have a peace of mind you never thought attainable. That is how I and many of my friends felt when our student loans were paid off. When I graduated from dental school and my student loans became due before I got a job, I felt I would be in this debt box forever.

Knowing I had a large student loan balance every month when I made my payments, it always gave me a sinking feeling. When I graduated there

When I graduated from graduate school there were no government loan repayment programs and my financial aid was only student loans. The Income Based Repayment Plans and the non-profit service plans, were recently put in place by the Obama Administration.

I knew if I did not make my loan payments, even when I had no job, the loans could balloon out of control if I got sick or experienced long-term unemployment. I spent a lot of time figuring out how to get out of this box of miserable student loan debt.

Avoiding Financial Aid Mistakes Requires Research

I finally came up with the solutions that I am sharing with you in this article on student loans and my previous two articles. The solutions start way before you start college, but it is never too late to figure out how to pay off student loans and maintain your credit rating. It begins with understanding financial aid for college and all options that surround it.

—Related Links—
College Without Student Loans

Debt-Free College For All

Pay Off Student Loans

Going to College With Student Loans Can Make You Poor; Avoid it

Going to College With Student Loans

Going to college with student loans

 

In the past 30 years as the priorities of states have shifted away from a public college education to for-profit government contract companies, the cost of college has skyrocketed and an increasingly huge number of students are being forced into student loans. College costs have soared far in excess of inflation. Thirty years ago a middle class family could easily send their child to a state funded college if they lived at home, and for some even living on campus was an affordable option. But, with today’s cost, the choice of which college to attend should be a well-researched and lengthy decision process, with cost your number one consideration. Because college cost are so high, students and parents who do not research college cost and financial aide well, find students going to college for 6 years( for a 4 year degree), or dropping out due to unmanageable cost. In-depth research and planning early in the students’ high school years can avoid these tragic problems. Get crucial information about college and student loans here.

The College Boards Research
According to the College Board, tuition and fees have increased from an average of $600 per year in 1976, to $6000 per year in 2007, for public colleges. The tuition increases are $2500 per year in 1976 to $22,000 per year in 2007 for private colleges. These numbers do not include room and board, books, lab fees, registration fees, car expenses, plane tickets, computers, clothes, bus tickets, or other hidden cost that colleges do not list.

The Real Cost of College
The total cost of college including room and board, tuition and fees, books, lab fees, registration fees, and bare necessities could easily range from $120,000 for a public college to $300,000 for a private college. This range could leave a middle class student with student loans (after Pell grants, Work Study, Summer Jobs, and Parents contribution), as much as $40,000 for a public school, to $150,000 in school loans for private schools. Many private schools have large yearly increases in tuition every single year, this must be factored in as you add up your total expected cost. If you do not qualify for government assisted subsidized loans, you may have to take out unsubsidized student loans that charge interest on loans while you are in school.

The College Acceptance Letters
College acceptance letters and financial aid information will soon be available. The average college tuition alone is $17,000 today. Most financial aide packages do not cover all of your cost, even for the poorest student. You are usually expected to come up with as much as 20-30% of the cost, after your financial aide award. Some students don’t find this out until they have traveled across the country to go to college and find themselves without enough money. Most financial aide packages don’t cover books; registration fees, lab fees, car expenses, computers, plane tickets, and other necessary items.

Do Your Research
Do your research when it comes to college cost and available financial aide. Most schools have a maximum amount of financial aide they will give to each student. For instance, if you are an out of state student, who attends a state school, your financial aide will be based on the cost for an in-state student. Therefore, you will have large gap that you will have to fill in, in order to pay all cost, no matter what you financial status. Know all of your colleges costs, this is difficult information to find, especially with private schools. Many schools hide some cost to keep students coming. Navigate the colleges’ website for cost; and also call the colleges’ registrations office, financial aide office, and housing office, and if possible talk to past alumni. It will literally take every single one of these inquiries to find out the true college cost. Most private schools will be off limits to middle income and low income students, unless they receive a full scholarship with many guarantees. Learn to Save Money here.

Keep Student Loan Amounts Low
Choose a college where you can keep loan amounts very low. There is no guarantee a graduate will be employed before school loan payments become due, or that they won’t become sick or disabled at some time during their loan repayment period. Know the difference between private loans and federal loans. Federal loans come with more safety nets. Private lenders such as Sallie Mae charges students when their loans are in deferral. With federal loans, if you are unemployed or suffering an economic hardship, you will not be charged to defer your loans. A rule of thumb is that your total loans should not exceed your expected beginning salary. For example, if you plan to go into teaching, a beginning teacher can expect to make about $21,000 a year, so your loans for 4 years should be capped below $21,000. Since many students change their major many times during college, and no one actually knows when they will be hired, or what their salary will be, it is wise to keep total college loans as low as
humanely possible.

How the Current Administration is Helping
President Obama has made it easier to navigate the oftentimes complicated maze of college and financial aide. He has required colleges to be more open about their cost, and the financial aide available. In the past many colleges hid some of their cost to prevent parents and students from making an informed decision, as I mentioned before.

President Obama made changes in Pell Grants so the amount awarded per student is greater, and the number of students who qualify per income is greater.

Effective January 2012, if you’re someone who has different kinds of loans’ guaranteed and direct-you’ll be able to roll them both into one direct loan and bring down your interest rate. You’ll only have to write one check a month, and you’ll see a discount. This switch saves money for taxpayers across the board and it helps pay for the second step President Obama announced in October 2011.

As a part of 2010’s student loan reform, borrowers’ loan payments could be no higher than 10 percent of their disposable income. This is a big deal-but it wasn’t going to go into effect until 2014. The President announced that he’s speeding up this program so it will affect students in 2012-two years early. This will have huge consequences for people struggling to make their student loan payments.

Federal Financial Aide Website
To get financial aide for college you can obtain a pin, and start your application process at the Federal Financial Aide Website. When all of your information is in, (check the site regularly), they will send a financial aide award letter to the colleges you submitted. Make sure you place every single college you are interested in on your FAFSA application. You will choose only one college at the end, and FAFSA will forward your information there. Read the FAFSA website carefully so you are well-informed before you start.