Student Loan Consolidation Lowdown

If you are a student planning to go to college soon then here is a bit of advice. At this age, it is common to experiment. So, if you feel like doing drugs, it is probably your urge to experiment. But if you are serious about making it through college, then it is best to let go of this one urge.

It is just a small step from trying it a few times to becoming addicted and then you may end up having a run up with the law — something that could jeopardize your chances of getting a loan in college. According to recently released research, over 31,000 California college students forfeited their shot at federal financial aid because of a past drug conviction. Last year, 2,219 Californian students were denied federal financial aid because they admitted to a prior drug bust. While this is discriminatory, and possibly the restrictions will be loosened, you still probably need to be careful for the time being. The revised law renders students ineligible for one year following their first conviction for drug possession. Students convicted of selling drugs would lose eligibility for two years. Multiple convictions can lead to a permanent ban.

Dwindling state and federal aid, lower endowments and drops in fund-raising have forced many colleges and universities to raise tuition and cut back on financial aid. This means you suffer the burden of high fees and don’t know if you should continue with higher education since you may be paying back the loan for the rest of your life. A very real scenario, but don’t get upset. This country is not called the land of dreams and innovation for nothing. (Well if it hasn’t been called so yet, let’s begin calling it that way from now on.)

So, where was I? Yes, as I said before, don’t be disheartened yet. Did you know that you could pay for college or at least some part of it using some really innovative methods? These creative methods keep your college dream on track and help you reduce your debt burden as well. Interested? Read on:

Accelerate your degree: Never heard that one before? Well, accelerated classes cram a semester’s worth of material into six- or eight-week sessions. The classes are intense of course, but they really help to move up your graduation date. You land the degree you want at a much lower price.

Check if your college offers accelerated degree programs. Quite a few schools do offer bachelor’s degree programs in three years instead of four. However, you must remember that an accelerated degree program is a great option if you have a clear career goal. You should be ready to work real hard. If you are, then go ahead and put your college education on the fast track.

Contact your rich uncle: Don’t have one? Don’t worry. Just get onto the website MyRichUncle, which provides money from private investors to college students who need help with education expenses. In return, you have to agree to pay a fixed percentage of your gross future income for a fixed period.

Maricopa Community Colleges governing board approved a no-cost contract Tuesday with national student loan company Nelnet, which recently lost data for about 188,000 customers. The breach is said to have occurred when NelNet’s magnetic tapes filled with student loan data were lost during transportation from Denver. Azcentral.com reports:

The newly approved contract allows NelNet to charge a student a $20 convenience fee to handle tuition repayments in installments rather than one lump sum, if the student chooses to accept the service.

Read more: Colleges board OKs pact with student-loan company

Here’s some really good news for public service attorneys in Kentucky. They may become eligible to save on their student loans from The Student Loan People with Best in Law benefits. Communitypress.com reports:

Attorneys who wish to apply for these benefits must have passed the bar exam, be eligible to practice law in Kentucky and be working full time. They may apply for forgiveness of up to 20 percent of the outstanding principal each year, not to exceed $10,000… For complete details about the Best in Law benefits or low-cost student loans, visit studentloanpeople.com or call 888-678-4625.

Read more: Public service attorneys may get student loan break

You would think that a student with huge loan debts would have repayment on top of his/her mind. However, as always, it has been proved again that things are not as they seem. At least that’s how it is in Canada and it is only safe to assume that students in America are no different. According to recent research, it has been found that keeping up with student-loan payments is not a priority for about one-quarter of Canadian students who borrow from the federal government to fund their education.

According to the Canada Student Loans program, about $2.6 billion in federal student loan is currently in default. This is not to say that the students don’t want to repay their loans, it only shows that they are late in their payments. But the problem with these loans is that you just cannot wish them away. They remain with you all through your life until you repay ever cent! Winnipegsun.com reports:

The federal government has the same recourse as any other lender when it comes to getting its money back. Measures include registering the debt with the credit bureau, putting a lien against property and withholding some government income-tax rebate payments.

Read more: Student loan default high

If you are a nurse working full time in Kentucky, you may become eligible to save on your student loans by applying for Best in Care benefits. Best in Care provides interest forgiveness each year to nurses who have Federal Stafford, PLUS or Consolidation Loans through The Student Loan People. Communitypress.com reports:

Registered nurses, licensed practical nurses and licensed vocational nurses who work in hospitals, long-term care facilities, public health care or nursing education at colleges and universities in Kentucky may apply for principal forgiveness on their loans each year.

Read more: Kentucky nurses may be eligible for student loan forgiveness

If you are a college student then you’ve probably been wooed by credit card companies with just about everything from free T-shirts to beach towels. Have you ever wondered why they love you so much? These companies can go to any extent to get you over to their side and use their cards. One of the biggest reasons is because you like to spend and don’t give a thought to tomorrow. That’s something that can wait until you get out of college… right? Well, the credit card companies bank on exactly this sentiment when they woo you. You are potentially lifelong customers who will spend, spend, and spend.

Some statistics to make you go cold in the feet — according to a study conducted by student lender Nellie Mae, the average college freshman carries over $1,500 worth of credit card debt. And by graduation, this amount more than doubles. And the worst part, even before you begin your professional life, your credit score is in ruins. So you spend the better part of your youth trying to repair the damage so you can buy yourself a home, a car… the list is endless. Not a fun scene to imagine.

Agreed you need them. I mean today we cannot do without credit cards, so the smart option available to you is to find the credit card that is best suited to your needs. You will get thousands of offers from issuing banks. Don’t get snowed under or tempted by the gifts. Be smart. Don’t go in for a credit card just because it announces zero percent interest for the first six months. It may sound like a good deal, but what students should keep an eye on when shopping for a new credit card is the annual percentage rate. These rates can reach as high as 18 percent! Next time, I will discuss more tips on how to choose your credit card.

Agreed, a college education is a great investment and a college graduate can easily expect to make $1 million more during his/her lifetime than someone with a high school diploma. There’s only one slight problem in this rosy picture –it’s becoming increasingly difficult for college graduates to pay off their student loans. Today, there are a large number of options to help students with the repayment. Fortwayne.com reports:

Students should choose a repayment term carefully and be sure they understand the rules regarding student-loan repayment and the options for consolidating loans.

Read more: Empty pockets plague grads

Bogged down by rising tuition fees and don’t know which way to turn? Well, if you do think of putting that upcoming tuition bill on a credit card, just check with your university before you try to do so. Many universities now impose additional fees on students and parents who pay by plastic. Some of them even refuse to accept certain credit cards altogether.

Universities have to incur increasing costs in processing credit card transactions. Like merchants, universities and colleges are charged a fee every time a credit card is swiped. When you charge $20,000 or more, the consumer loves it because they get points or miles or some other benefit; but it’s a very high fee for the actual school. A fee that schools and colleges are increasingly reluctant to pay.

Every student needs to worry about one thing — debt, especially credit card debt. Being in debt has become a way of life for a majority of Americans, and we begin young — you’re just out of high school and if you want to study any further, you need loans and have to begin thinking of repayment. And there are other expenses as well like tuition, food, rent, and other incidental expenses. Only a student knows how difficult it can be to make ends meet.

One thing that you will notice once you enter college is how credit card companies solicit you and make you take their cards. Reason? For one, young people don’t usually have a credit history. College credit cards are a good and often necessary option for many students, but you can easily fall into a debt trap if you are not careful. All it could take is a few beers extra or buying something that you really wanted. What can you do to keep your debt within limits? Three things:

• Never neglect to pay the minimum payment on your college credit card as it can quickly develop a bad credit rating that will prevent you from obtaining future credit cards, lines of credit and other funds.
• Never roll over: To build favorable credit ratings, spend regularly on your student credit card, AND pay the balance off each month before it has a chance to roll over.
• Stay within your budget: If you are a super rich brat, this advice isn’t for you. But if you are one of the regular guys, you must know your limits and stay within them.