Preventing College Debt From Accumulating

By Devora Witts

One of the biggest problems of college students and newly graduates is student debt. Since the aid that the government provides to help those in need go through college studies is not enough to cope with all the expenses, students resort to all kind of financial sources in order to raise the money that they need. Student debt accumulates rapidly and eventually, when the main part of the debt becomes due, the repayment installments are too onerous and sometimes absolutely unaffordable. That is why we suggest some measures to reduce if not avoid these results.

It is not possible in most cases not to resort to private institutions when you need financing for coping with college expenses. The government does not provide all the money needed and there are always additional expenses not contemplated in the federal student loan programs. However, it is possible to borrow smartly and to keep to a minimum the amount of money you need to borrow for getting by extra college expenses.

Loans Instead Of Credit Cards

A way to avoid additional debt during college periods is to avoid using credit cards for coping with additional expenses. It is sometimes better to budget what you will need and request a personal loan. That way a higher control over your expenses will assure that debt will not accumulate and you will get used to putting aside the money needed to pay for the loan’s installments every month.

Credit cards and the famous minimum payments can ruin people’s finances due to the lack of discipline. This is a considerable problem especially for college students which are not used to being careful with their spending habits. Minimum payments contribute to debt generation and accumulation due to interests. Personal loans on the other hand, have fixed payments (or with little variations) and fixed amounts. Thus, budgeting with these financial tools is significantly easier than with credit cards.

Shopping For Lenders, Taking Advantage Of Offers

From time to time there are wonderful offers from lending institutions that want to obtain customer fidelity offering 0% APR products or subsidized rates. It is a good idea to subscribe to as many newsletters as possible from different financial institutions so you can receive in your mail or email the current promotions. Remember though to examine the offers closely for any hidden fees or costs that some lenders like to conceal on the fine print.

Shopping for lenders is essential. You have to request quotes from as many lenders as possible before deciding for a specific one. Remember that financial products are just that, products. Thus, you can bargain with lenders as you can do so with a trader, merchant or retailer. It is a good idea to show them what other lenders are offering you and ask them if they can improve their offer. Rest assured that they will happily reduce the rate or exempt you from fees or costs in order to keep you as a client. Do not hesitate to negotiate with lenders; after all, you have nothing to lose.

About the author:
Devora Witts is a certified loan consultant who instructs people regarding Consolidation Bill and Bad Credit Fast Loans. To get aid with your financial
situation you can visit her at http://www.badcreditloanservices.com

Filed under: California Colleges, Campus Lifestyle, College Debt, College Planning, Refinance, Students , academic quality, Awareness, College, College Debt, college expenses, college planning tips, money, self help, self improvement, student loans, Students, Universities

Free San Francisco Bay Area College Planning Workshops

Bay Area College Planning Workshops will help you to learn about the many issues College financial aid funding can typically present to a family. We will present useful information which can assist in safeguarding your families future. Our San Francisco Bay Area College Planning  Workshops will teach your family about:

CLICK HERE FOR FREE COLLEGE PLANNING WORKSHOPS

•  Tax Scholarships: What are they?

•  Ways to get Thousands of Free dollars from the Colleges of your choice.

•  How to keep on top of college admissions, FAFSA and scholarships.

•  How some families have reduced their out of pocket college expenses by thousands.

•  How some middle and or upper-middle class families send their kids to college for free.

•  How to double or even triple your eligibility for Financial Aid.

•  How to pick colleges that give the best Financial Aid packages. 

•  Unlocking the unknown – How to win at the College funding game.

•  The 5 myths concerning College funding.

•  How to help your student find direction in the College search process.

CLICK HERE FOR FREE COLLEGE PLANNING WORKSHOPS

December 2009 Workshops
 
Alameda Free Library Workshop
1550 Oak Street,
Alameda, CA 94501
Date: Tues Dec 8th
Time: 6:30pm-8pm
 
Redwood Christian High School Workshop
1000 Paseo Grande, 
San Lorenzo, CA 94580
Date: Tues Dec 8th
Time: 7pm-8:15pm
 
Webinar: “Learn the Insider Secrets to Get Free Financial Aid for College!”
Click on the link to register: https://www2.gotomeeting.com/register/734644299
Date: Wed Dec 9th
Time: 6:30pm-8pm PST
 
Moraga Library Workshop
1500 St. Mary’s Road,
Moraga, CA 94556
Date: Sat Dec 12th
Time: 11am-12pm

Find out about the many more College funding secrets many Colleges hope you will never discover.  

 - Prior registration required for all workshops and teleseminars -

CLICK HERE FOR FREE COLLEGE PLANNING WORKSHOPS

 

Filed under: AP Courses, Admissions, Applications, Banks, Bay Area, California Colleges, Campus Lifestyle, Career Path, Career Search, Classes, College Financing, College Planning, College Workshops, Consultants, Graduate School, Graduation, High School, Home Schooling, Internships, Junior College, Law Schools, Major, Med School, Nursing, Out of State Tuition, Parental Guidance, Public Service, Recruitment, Refinance, Scholarship, Students, Tax Credits, Tuition, Universities, athletics, ncaa, single parent families , Admissions, Choosing Universities, Classes, College, College Applications, college expenses, college funding, College Planning, College Workshops, financial aid, money, parents, planning, Workshops

Andrew Cuomo’s “Code of Conduct” Plan: The Best Attempt To Stop “Predatory Lending” In the Student Loan Industry

If you are a parent of a college bound student or a student trying to finance your education on your own, you owe it to yourself to throughly investigate Andrew Cuomo’s campaign to expose and indict the student lending industry. This information could save you thousands of dollars and millions of headaches!

In June of 2008, Attorney General Andrew Cuomo of New York outlined and implemented a Code of Conduct plan for the 6 largest student loan lenders. Cuomo’s characterization of Student Loan lending institutions as purveyors of “predatory lending” practices is the most accurate and hard hitting characterizations of the industry by a politician yet.

Cuomo’s plan includes the following 7 provisions:

1. Ban on Financial Ties. Lenders are prohibited from giving anything of value to any college in exchange for any advantage sought by the lender. This severs any inappropriate financial arrangements between lenders and schools and specifically prohibits “revenue sharing” arrangements.

2. Ban on Payments for Preferred Lender Status. Lenders may not pay or give colleges any financial benefits whatsoever to get on a college’s preferred lender list.

3. Gift and Trip Prohibition. Lenders are prohibited from giving college employees anything of more than nominal value. This includes a prohibition on trips for financial aid officers and other college officials paid for by lenders.

4. Advisory Board Rules. Lenders are prohibited from paying college employees anything of value for serving on the advisory boards of the lenders.

5. Call-Center and Staffing Prohibition. Lenders must ensure that employees of lenders never identify themselves to students as employees of colleges. No employee of a lender may ever work in or providing staffing assistance to a college financial aid office.

6. Disclosure of Range of Rates and Defaults. Lenders must disclose to any requesting school the range of rates they charge to students at the school, the number of borrowers at each rate at the school, and the lender’s historic default rate at the school. This will ensure that schools will have the information they need to select preferred lenders who are best for students and their families.

7. Loan Resale Disclosure. Lenders shall fully and prominently disclose to students and their parents any agreements they have to sell loans to any other lender.

Look at these provisions carefully. Would you want to collaborate or become a customer of an organization that is being reprimanded for provisions 2 and 3. Essentially these are rules against kickbacks. Does it not make sense to search for an alternative to the stratospheric, exorbitant costs of college tuition loans?

What would you rather have as your plan to finance a student’s education:

High interest rate and long term loans that create financial unrest for your family for years or a financial plan that allows you to take advantage of the millions of dollars of government financial aid that goes untapped every year?

Filed under: Admissions, Banks, College Financing, Consultants, Graduation, Major, Med School, Out of State Tuition, Parental Guidance, Public Service, Recruitment, Refinance, Scandal, Scholarship, Students, Tuition, Universities , Andrew Cuomo, Choosing Universities, college expenses, College Financing, college funding, financial aid, Financial Plans, Predatory Lending, self help, student financial aid, student loans, Tuition

Students and Parents Be Aware: The Newest Form Of Financing Is Not Financing At All

The newest form of financing is not financing at all. If this statement does not intrigue you then you are ignoring what could be the best strategy to fund the college education from the university of your choice. Bay College Planners has strategies to help families “reposition” their wealth-income in order for them to qualify for vast scholarship monies available every year.

This is not financing a loan from a high interest rate, disreputable banking source. This is not placing you the student in hock up to your ears for years to come.

The video report features one of our affiliates in San Diego. But the message is the same: we can help you attain scholarship monies without going into debt for years to come.

For questions please contact Bay College Planners’ Dan Evertsz or Gerna Benz.

Filed under: Admissions, Applications, Banks, Classes, College Financing, Consultants, Graduate School, Graduation, Major, Parental Guidance, Refinance, Scandal, Scholarship, Students, Tuition , college expenses, College Financing, college funding, financial aid, money, Scholarships, student financial aid, Tuition

Ten Methods To Slash Tuition Costs: How Parents and Students Can Win The Battle For College

The following list by www.bankrate.com may be helpful in raising awareness to alternative or different methods of slashing the stratospheric costs of a college education.

Every parent and student concerned for their future plans should consider this list:

1. Get College Credit in High School: Students can take AP college credited classes, with the help of a knowledgeable counselor, which will help to cut down on the number of courses need to graduate from college. Most AP courses are paid for by the high schools so as not to deter students from enrolling.

2. Junior Colleges: If you can convince your student, spending the first year or two in college at a JC is a huge cost savings. In many cases, students have yet to declare a major. In these cases, general education requirements can be fulfilled at a JC. The cost savings in tuition, books, supplies, housing, food, and travel may give a student and parent a head start on costs for graduate tuitions.

3. Cash in on Tax Credits: “What students need to know is that there’s the Hope and the Lifetime Learning tax credits,” says Joseph M. Re, author of “Financial Aid Financer: Expert Answers to College Financing Questions.”

“If you play those right, you can pick up $7,000 from Uncle Sam (over a four-year period) to pay for college. The Hope credit provides a $1,500 tax credit for each student for the first two years of college, as long as you are the one paying for college — rather than the federal government or private financial aid. (Parents who claim the student as a dependent on their tax return would be eligible for the credit.) The key to taking advantage of this credit, Re says, is to plan ahead and be aware of the stipulations.”

4. Rewards for Public Service: Some organizations like Americorps, the Peace Corps and Teach for America all offer educational service awards to students seeking cash for college.

5. Work for the College: According to Susan Hall her job with the University of Richmond (VA) comes with the “school’s tuition remission program which allows her, her spouse, and any of her dependents to attend the university for free, provided that they have the grades and test scores to make it into the school.” The benefits are obvious.

6. Pay Lower Out of State Tuition: Due to the complexity of this strategy, I am quoting www.bankrate.com :

“Get an out-of-state education, pay an in-state price. That’s the beauty of the Academic Common Market. Designed for students who can’t find their desired program of study in-state, the Academic Common Market allows students from any of the 16 member states to enroll in an institution in another member state without footing an out-of-state tuition bill. Reciprocity agreements such as the Academic Common Market, the National Student Exchange, and the Midwestern Higher Education Compact (which allows students to attend out-of-state public schools in member states at 150 percent the cost of in-state public school tuition or offers a ten percent discount at out-of-state private schools in member states) are some of the best-kept secrets of the financial aid world. If you’ve got your eye on an esoteric program of study (18th century French architecture?) or are set on a certain out-of-state school, taking advantage of a reciprocity agreement can save you money.”

7. Refinance Your Home: The home is normally the greatest asset a parent can count on for quick cash. A cash out refinance can provide the majority of funds needed to get a student through to their degree.

8. Qualify Student as “Independent”: “If you qualify as an independent and your income is very low, you probably would be eligible for a Pell grant which would be for $4,100 and you would probably be eligible for an FSEOG grant which would be another $4,000,” says Joseph Re. An independent student therefore would have a much easier time qualifying for grant monies than a family with an income in excess of $50,000 per year.

* Consult your tax accountant or attorney on all of the strategies outlined here but especially this one.

9. Attend a “Work College” : Work Colleges allow a student to work a part time job at the university between 10-20 hours per week. The becomes an employee of the college and as such earn a sizable reduction in tuition costs. Check out the Work College Consortium.

10. Establish Residency in the State of your College choice: “If you really want to pay in-state prices, the best way to do that is simply to live in-state before you enroll in school. To establish residency, independent students or families (when students are dependent) must show proof of living in state for at least one year prior to enrolling in school. Remember to throughly check and investigate the requirements of each state/college in regards to residency. Check out The College Board’s Web site.

Filed under: AP Courses, Admissions, Applications, Banks, Campus Lifestyle, Classes, College Financing, Junior College, Out of State Tuition, Public Service, Refinance, Scholarship, Students, Tax Credits, Tuition, Universities , academic quality, Choosing Universities, College, College Applications, college expenses, College Financing, college funding, college students, financial aid, money, Scholarships, student financial aid, Tuition