College Loans [Look Before You Leap!]

Many people face great financial difficulties when it comes to funding college education. A feasible option for such people is college loans. Individuals in the U.S. have been given a chance to continue with their studies, with the help of college loans, even if their earnings are modest.

It is advisable for people to give due consideration to their expenses if they are interested in covering them with college loans. There are various kinds of college loans available. However depending on their expenses, they will have to choose a loan that suits them the best. A majority of students take college loans to pay their tuition and course fees. Part of this loan can also be used to pay for room rent, supplies, and books.

People can opt for federal student loans, which is the most usually used and can be of two types, subsidized and unsubsidized. In case of subsidized loan, the government, not students, pays interest on the loan. However, these loans are granted to only those individuals who are already facing huge debts. In case of unsubsidized loans, interest is paid by students and is not delayed until after the student graduates.

Private student loans are another type of college loan that can be provided to any person who has a good credit score; it can be used for any expenses. It is important for students to know that this type of loan is unsecured. This implies that it needs no collateral, but instead has very high interest rates.

Parent loans are also a type of college loan, which can be obtained by parents, and since they have good credit, the payoff and the interest rates are reasonably lower.

College loan consolidation is made use of to consolidate all student loans. With the help of college loan consolidation, individuals can pay off to only one lender. Students can opt for consolidation regardless of their credit rating. When applying for a college loan consolidation, it is very necessary for students to research and then choose a reliable company to handle their monetary troubles.

If students are not able to pay their monthly installments, they can also consider a college loan deferment. This means that they get a suspension of payments under special circumstances, such as if they are unemployed or suffering from financial hardship.

Source: Thomas Morva, Online Blogger

Fast Alternative College Loans

You may be looking for alternative college loans to complement the kind of financing you may have already received from the government. If you are looking for alternative college loan financing then you should be happy to know that there are numerous private college loan programs available to you if you are in need of additional college loan financing. These private college loans are based upon the borrower's credit so if you are a student and have no credit, bad credit, or poor credit then you are going to need a credit worthy cosigner before you apply.

One of the more important distinctions you should make when looking for your alternative college loans is whether the loan needs to be sent through the college before it is disbursed to you. Some private college loans do not have to be what is called "school-certified" and these types of loans can actually be sent to you immediately once you are approved. Many consider these kinds of college loans to be fast college loan due to the speed at which they are made but this can depend on the lender as well. Fast college loans have become increasingly popular over the past five to ten years or so and if you don't want to go through the hassle of waiting for you school to authorize your loan then these fast college loans may be for you.

So what does it take to apply for these kinds of student loans? Well fast student loans are based upon your credit so unless you have good credit then you will probably need a credit worthy cosigner to come along and sign for your loan. The lender will also want to see the other kind of basic information most credit-based loan products require such as income, expenditures, and other kinds of personal information. Once you apply for these kinds of fast student loans you can expect a decision within about a week, and once you are approved you can then expect a check in the mail within about two weeks although this can vary depending on the lender. If you need some quick financing for your college education then don't hesitate to apply for such student loans as they can be the difference between matriculation and living at home.

Contributing Blogger: Christopher Prommer

Private College Loans for Non-Traditional Students

After you've decided to pursue a college education, the excitement of the doors your degree will open for you can be brought to a halt when you learn the sticker price of higher learning. Before you decide you can't afford to go to college, keep in mind that there are plenty of options to help you finance your degree, from government grants to private student loans.

The best place to start is by filing the Free Application for Federal Student Aid (FAFSA), which can qualify you for grants, work-study and other forms of student-aid. By filling out the FAFSA, you can also find out how much you can take out in subsidized and/or unsubsidized federal loans such as the Stafford loan. Federal education loans have fixed interest rates and are likely to cost less than variable-rate private loans, so it is best to explore your federal loan options first.

While government student loans are great, the amount you can borrow is limited. Often, you can't borrow enough to pay for expensive programs and living expenses. Also, government loans don't always work well for nontraditional students - if you are going to school part-time or not currently enrolled in a degree program, you probably don't qualify for a Stafford student loan. Not to mention, there are many additional expenses involved when pursuing a graduate degree, such as finding an internship or residency or taking the Bar exam, that federal loans won't cover. That's where alternative loans come in to play.

It is estimated that private student loans will surpass federal student loans in 2025 if current trends continue. The flexibility offered by loans from a bank or other lending institution sometimes outweighs the risk of variable interest rates and lack of security from the government. However, there is definitely competition for non-federal education funding. A minimum credit score of 650 is required by most private student lenders. If you have bad credit or need to clean up your credit score to get a private loan, get a free copy of your credit report from any of the three major credit bureaus -- Experian, Equifax or TransUnion -- to check for mistakes and pay off outstanding debts, starting with any accounts that have gone into collection first.

When you take out a private student loan, you should shop around, just as you would with any type of loan. You need to consider the interest rate, repayment options, and length of the grace period of the loan when talking to different lenders. Also take into consideration the reputation of the lender.

Use this list of private student loan comparison sites to find out if your lender is giving you the best rates: http://www.finaid.org/loans/loancomparisonsites.phtml.

When you take out your private student loan, be careful to only borrow what you need for college and living expenses. Most banks will let you borrow much more than the minimum, but remember you will be paying it all back plus interest after graduation. Also, consider making monthly payments while you are in school to avoid accruing costly interest. Even if it means a little extra work, it can save you a lot of money in the future.

Contributing Blogger Source: Christina Leonard

High School and College Kids Unemployed for the Summer

Contributing Blogger: Lance Winslow

When we were younger, we always had jobs in the summer time between school years. That's how we made extra money, and we were expected to work. No one was going to give us anything. Yes, we were on our own, and we had to make our own way. Luckily there were always business owners that needed labor, and although they weren't willing to pay us a lot of money, they would give us work. And work we did, they would work us hard.

Well, our youth this year also appear to be on their own, unfortunately they aren't getting much help out there from the business owners. In fact, there are very few jobs available, our kids need to get work experience, and they need to know what it is like to actually work. Failure to have them working is really bad for their future and our future too, as a nation. We cannot afford to support these kids forever - they need to learn hard work ethic.

There was a rather troubling article recently in the Wall Street Journal, it was an editorial titled "The Jobless Summer," and there was a rather troubling chart attached to the article showing how unemployment for teens and young adults had almost fallen off a cliff in the last five years. The downward trend was at such a steep angle it was scary, basically from 2007 until now the teen and young adult unemployment has gone from 36.5% down to 24% and it's still diving.

Wherever it does stop certainly won't be good for young folks seeking summer employment in 2011. With less than one in four finding work now, one has to wonder how they will pay for their iPads, SmartPhones, and service plans, or student loans for that matter. Our kids need to learn that money doesn't grow on trees, and they need to learn how to budget themselves, save their money, and become fiscally responsible.

They need to know, learn, and understand basic math especially when it comes to money. We cannot let our kids down in this regard, these are things they must learn. These are not only math skills, they are life skills. Hard work ethic, saving money, and acting responsible is paramount for America's future. Indeed I hope you will please consider all this and think on it.

Bad Credit Alternative College Loans

Contributing Blogger: Marcus Coleman

When you have bad credit and are in search of financial aid to attend college then you may want to consider some of the more exotic alternatives that can provide you the necessary money so that you can go to school. These types of alternative college loans can often be made to you even if you have bad credit, and if you want to make yourself eligible for these types of loans then you simply need to fill out a FAFSA application at some point during the winter time.

The FAFSA, or free application for student aid, is the universal application that college students from around the country fill out to become eligible for a variety of college loan funding that is typically not contingent on credit. Filling out this application often does not take more than a couple of hours, and as long as you can send it in on time you should automatically be making yourself eligible for some of the best college loans on the market.

Once you have sent in your FAFSA you should expect to receive an award letter from you college at some point in the spring time. Within this award letter should be a listing of all the various kinds of aid that you have been granted, and the majority of the time there will be an assortment of federal educational loans, grants, and perhaps even some scholarships. The federal college loans that should be included within your letter should be the Perkins loan, and the Stafford loan. Keep in mind that both of these federal loans have a long history of being approved for undergraduate students who exemplify the appropriate need, as this is the crucial factor that will get you approved.

Both of these kinds of federal loans are based off of your need for such funding, and once you are given the opportunity to accept such funding you should not hesitate to follow-through because these types of loans can be made at a very low interest rate when compared to other kinds of college loan funding. These types of loans are a great alternative to taking out private college loans, which can sometimes carry even double or triple the interest rate of these kinds of loans. By sending in your FAFSA on time you should be able to qualify for such financing, and you should always remember that it is much wiser to take out these types of federal loans before you look to any sort of private financing.em