Category Archives: Student Loan

How to Go to College Without Student Loans

student-loan

student-loan

A college education is so important that many parents start saving money from their children’s date of birth having their future in mind. However, very few parents save enough money to pay higher education and many others forget the early enthusiasm that moved them to save money. This could be your own story, and now that you have grow up and are close to completing your high school education, the reality is that your parents have not enough money to pay for college and the only workaround to pay your professional formation seems to be student loans. However, there are several tips to keep in mind before taking out a student loan.

  • Help Your Parents Save Money Yourself

Many students believe that their parents have to pay for college education no matter what, and they do very little or nothing to materialize their dreams to enroll in a certain university or college of their choice. They know that either way their family will takes parent loan or a student loan, the education will be paid. However, if you know that your parents are short of money and you can contribute with their budget, talk to them and let them know that you prefer they save the money they would pay for your latest video game towards your education. You can also take a part-time job or summer job and put into a college piggy bank the money you earn to achieve your goals.

  • Good Students Are Often Rewarded

Problem with most teenagers is that they believe that high school is a place to be a rebel, go insane and make tons of friends, the last opportunity to run wild before becoming a serious man or woman at college. Wrong perception! If you spend your time in high school in petty activities, you are going to have fun, but very little opportunities to be rewarded as a good student, or definitely none. Many colleges are glad to finance the education of high school students that have proven to be a valuable asset for their schools, granting them total or partially paid scholarship. The better student you become the more financial benefits you can obtain.

  • Postpone Your Independence Day

Becoming an adult is probably the most awaited moment that any teenager has in mind. Moving out of your parents’ home becomes a golden dream and you cannot wait to start making your own decisions and live in a place that is far from being the conventional and organized place that your mother asks you to keep clean. However, if you gain the courage to ignore the comments about still living under your parents’ roof while attending college, you will find that staying there can help to save money that you can use to pay your education rather that taking out a student loan.

There are many other ideas and tips to same money or earn money to finance your higher education without having to acquire debt. Use your talents to find those ideas, including asking other family members to contribute with donations to get money for your college education.

Is there an income limit for FAFSA (Free Application for Federal Student Aid) ?

FAFSA

FAFSA

Many people do not know if there is an income limit for filing the FAFSA. Or to put it in a better way, the question is if there is an income above which nobody qualifies for financial aid? Well, the answer is there is NO income limit for filing the FAFSA. This means that anyone with any income is eligible to submit a FAFSA form to the Department of Education. This creates another question if there is any absolute maximum income above which a person cannot receive financial aid? The answer to this questions is, it depends.

FAFSA uses a formula depending on your family contribution. There are many variables of which income is a very large part. It will calculate the assets in a family, the number of children in the household, and how many children are attending college. Lets say you have three children in college and your income is $250,000 a year, you will still have a family contribution. This family contribution will be spread across three schools. In this case, a family may qualify for the financial aid for all their children.

On the other hand, if there is a family with an income of $70,000 and one child in college, he may not qualify for the financial aid at certain schools if the family contribution exceeds the cost of attending, like a community college. Everything depends on the financial need of the family. A family having a higher income will have more needs due to number of children in college.

There are many government financial aid programs in which it will be hard to qualify under such scenario; high or low income. Pell Grants have a specific expected family contribution cutoff. Families who are not able to show financial need are not eligible for subsidized federal loans. It doesn’t mean that a family will not qualify for other types of aids including grants and scholarships.

All families should be encouraged to file for FAFSA. Even though you may have a high income, but still you may qualify for the aid. If your family contribution is higher than the cost of attending, the financial aid office comes to know that you are looking for some type of financial assistance. The school may also offer discounted tuition or other programs that will reduce the overall cost. So, its important to file for FAFSA to get some kind of financial aid in one way or the other.

Helpful resources: http://www.fafsa.ed.gov/

Bad credit student loan options

Education costs are increasing every year and students have to go through a lot of expenses that often go unmet. Students with bad credit often wonder how to get qualified for student loans to complete their education. There are many better ways to receive bad credit student loans that can help you pay for everything.

Money above student aid: There are many government aids and many students will often qualify for it. Government student aid is a better form to cover the bare essentials of attending the college or university of your choice. Stafford or Perkin loans are available but they have a strict borrowing limits on the basis of the number of college hours you have under your belt.

A private student loan can help you in paying your tuition, housing, book expenses and many other expenses. You may engage in some part time jobs to have an extra income and in order to repay back the loans while you are pursuing your studies and thereby improving your grades. You will have to undergo a credit check in order to get approved for a private student loan, but most often you will get qualified for these loans.

In order to increases your chances of getting approved for the private student loans, it is a good idea to apply for the loan with a co-signor, especially someone who has a better credit than yours. You can apply for the loan with your parents, or your family members and friends. The lender will look into the credit history of the co-signor so that your chances of getting approved for the loan become much easier.

When you are deciding for the loan amount, make sure that you borrow that much to cover your semester or academic year. Private student loans for bad credit will be disbursed all at once which means that the loan is meant to last you for the entire semester or the academic year.

You may apply for these loans online at better interest rates. Traditional lenders often charge higher interest rates. The online lenders have more capital to offer and the money can be transferred to your checking or savings account within the earliest possible time.

Statute of Limitations on Student Loans

Many people do not know much about the statute of limitations on the student loans. An average student prior to graduation is too much interested in completing his school, getting his degree, finding the best job and getting on with his life. Along with all the activities going on in his life, he is responsible to pay his bills which include student loans.

Sometimes, life gets so busier and many people are strapped with paying mortgages, rent, car notes, credit card bills, insurance, medical bills, utilities and other expenses in this shaking economy.

Due to some unexpected emergencies, you start missing your monthly payments towards your debts and thus it starts falling behind. Slowly and slowly, these debts get seriously delinquent adding up with highest interests and fees.

 

Since the creditors are not able to collect the outstanding balance including student loans, they will send the file to some collection agency who will use all kinds of collection tactics to recover the amount. As an educated customer, you should know about the statute of limitations on these student loans. If you have taken a student loan from some private lender, then it will come under the SOL period. Federal loans are never past the statute of limitations.

You might be asking what a statute of limitation is. It defines the deadlines by which a creditor or a lender can take legal actions against the borrower in order to collect a debt. Once the statute of limitations has expired, the creditor, lender or the debt collection agency cannot take you to the court and sue you.

Statute of limitations is an absolute debt relief and no creditor or debt collector can against it and win the case in the court. Every state has its own SOL laws. If you have not been making any payments on your student loans for the past three to four years, there is a very good chance your student loan will be past the SOL period, but you must double check the state laws.

If you have not made any payment on your private student loans and it is very close to the expiry of the SOL period, the creditor or the collection agency will try every possible means to collect the debt. Make sure that you are aware of the laws and any latest payment activity will renew the SOL period after the loan gets current. You need to stand as an educated consumer when dealing with the scary debt collectors.

More about Statute of Limitations: www.irs.gov/pub/irs-tege/epch1102.pdf