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Showing posts with label student loans. Show all posts
Showing posts with label student loans. Show all posts
Saturday, June 20, 2009
Sunday, May 31, 2009
I Have A New Degree, but I Can't Find A Job. I do I Pay My Student Loans?
If you have federal student loans you can apply for an unemployment deferment. If you are currently working less than 30 hours a week, you will not have to start repayment yet. But take note you have to apply for the deferment. It's not automatic and if you don't have the deferment and you don't make your payments it will reflect on your credit report as late. On feature of this deferment with subsidized federal loans is interest does not accrue. Your financial aid office should be able to assist you with this and maybe discuss other options for federal loan repayments. You can go to finaid.org as well.
Friday, May 29, 2009
Can I Consolidate My Private Student loans?
I really don't suggest getting private loans with so many other options. One reason is you will be at the mercy of your lender and they do do not have to consolidate your loan or give any kind of deferments. Also, the current economy has eliminated the private student debt consolidation market for now.
One piece of good news is that the $700 billion bailout bill restored a college tax break that had previously expired. You can deduct up to $4,000 in college tuition and fees if you make less than $65,000 for single filers. A $2,000 deduction if your income is between $65,000 and $80,000 or 4,000 for those making $130,000 and who are married and filing jointly. You'll get the $2,000 deduction for incomes between $130,000 and $160,000. These deductions can be filed whether you are itemizing or not.
One piece of good news is that the $700 billion bailout bill restored a college tax break that had previously expired. You can deduct up to $4,000 in college tuition and fees if you make less than $65,000 for single filers. A $2,000 deduction if your income is between $65,000 and $80,000 or 4,000 for those making $130,000 and who are married and filing jointly. You'll get the $2,000 deduction for incomes between $130,000 and $160,000. These deductions can be filed whether you are itemizing or not.
Thursday, May 28, 2009
Should I Consolidate My Student Loan After I Graduate?
Consolidating your student loans can be a good idea. The best part about it is you can put all your student loan payments into a one payment a month. This will also benefit your FICO credit score. It will also be easier to manage one payment.
The fixed consolidation rate for a Stafford loan is 6.8% as of July 1, 2006.
The fixed consolidation rate for a Stafford loan is 6.8% as of July 1, 2006.
Monday, May 25, 2009
I Have Been Laid Off. How Do I Still Help My Children Go To College?
As we have discussed before do not put your self in a financial predicament over your children's college tuition. Especially, since you have been laid off.
The first thing you need to do is contact the financial aid office at your child school and let them know right away about your layoff. You may now qualify for student aid or student loans that you couldn't before now that your financial status has changed. Be aware there may not be money available at many schools, especially public universities. Many colleges are feeling the economic pinch just like everyone else is. But you never know unless you ask and there is a good chance you can still get extra help. Also, be sure your child has maxed out all available funds from Stafford loans. Stafford loans have a maximum interest of 6.8% that is fixed and is a very affordable way to pay for a college tuition.
Don't forget about the PLUS loan either. If you are still current on all your debts you can defer payment until your child graduate from college. As the economy continues to recover you should expect to working again some time soon. You and your child can then work on repaying the PLUS loan. Please, please remember to borrow what you can actually afford. You can go to the College Boards Web site and use the online calculator to see what the PLUS loan you take out will cost to repay. Do NOT take out this loan if you can not make them payments even after you go back to work.
I know you want your children to be successful, but please be honest with your children if you cannot afford to help them pay for college. This talk can be heart breaking for both of you, but if you can't do it...you can't do it. Do not put yourself in more financial hardship. An alternative may be for your child to go to a less expensive school or wait until the next semester and work for a while to help with the tuition costs.
Again I know this can be a very difficult topic to talk about with your child, but you have to do what you have do in these economic times. Taking out any debt of any kind student loan or not is never smart if it will cause you financial hardship. Do not take on more than you can handle.
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
I Have Been Approved For A Stafford Loan, But I Need More Money For Tuition. Where Can I Get More Money?
The first thing you need to do is contact the financial aid office at your child school and let them know right away about your layoff. You may now qualify for student aid or student loans that you couldn't before now that your financial status has changed. Be aware there may not be money available at many schools, especially public universities. Many colleges are feeling the economic pinch just like everyone else is. But you never know unless you ask and there is a good chance you can still get extra help. Also, be sure your child has maxed out all available funds from Stafford loans. Stafford loans have a maximum interest of 6.8% that is fixed and is a very affordable way to pay for a college tuition.
Don't forget about the PLUS loan either. If you are still current on all your debts you can defer payment until your child graduate from college. As the economy continues to recover you should expect to working again some time soon. You and your child can then work on repaying the PLUS loan. Please, please remember to borrow what you can actually afford. You can go to the College Boards Web site and use the online calculator to see what the PLUS loan you take out will cost to repay. Do NOT take out this loan if you can not make them payments even after you go back to work.
I know you want your children to be successful, but please be honest with your children if you cannot afford to help them pay for college. This talk can be heart breaking for both of you, but if you can't do it...you can't do it. Do not put yourself in more financial hardship. An alternative may be for your child to go to a less expensive school or wait until the next semester and work for a while to help with the tuition costs.
Again I know this can be a very difficult topic to talk about with your child, but you have to do what you have do in these economic times. Taking out any debt of any kind student loan or not is never smart if it will cause you financial hardship. Do not take on more than you can handle.
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
I Have Been Approved For A Stafford Loan, But I Need More Money For Tuition. Where Can I Get More Money?
Thursday, May 21, 2009
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
As we have discussed before, the new emergency legislation that was passed will allow you to postpone making payments until your child graduates from college. I also want to remind you that it is not entirely your responsibility. I know you want to help your child get the best education, but they can contribute too.
You need to sit down with your child and have a serious talk with them about what happens when the payments become due. One of the reasons you are helping your child to go school is to help them have a better paying career. Right? Discuss with them what you expect them to contribute to the eventual repayment of the PLUS Loan. It is best to have this talk before school starts. This may help them give the extra push for working during the summer to help pay for the PLUS Loan. This may also teach them the difference between "need" and "want" and teach them that things like school are more important than Spring Breaks in Cabo.
You need to sit down with your child and have a serious talk with them about what happens when the payments become due. One of the reasons you are helping your child to go school is to help them have a better paying career. Right? Discuss with them what you expect them to contribute to the eventual repayment of the PLUS Loan. It is best to have this talk before school starts. This may help them give the extra push for working during the summer to help pay for the PLUS Loan. This may also teach them the difference between "need" and "want" and teach them that things like school are more important than Spring Breaks in Cabo.
Monday, May 18, 2009
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
Well, you don't have to pay back the PLUS Loan right away. At one time you had to start making payments within 60 days of receiving the money, but the emergency legislation, that we have discussed before, which was passed last year has allowed parents to not have to start making payments so soon. Now you can defer payment until your child graduates. Which means you don't have to start making payments for 4 years. This also can make the repaying of the PLUS loan a family effort. Legally parents have the responsibility of repaying the loan, but getting your children to help repay the loan will definitely reduce the financial burden.
Sunday, May 10, 2009
Getting Smart For The Best Loans For College Tuition.
I came across this article by Eugenia Levenson from CNNMoney.com after our post regarding the best options for getting loans to pay for college tuition. The article reiterated the same options we did. Here is what the article had to say:
By now, most college bound high school seniors have accepted an admissions offer and are cruising blissfully toward graduation, summer, and their chosen campus come fall. For parents, on the other hand, the hard work of financing this education is just beginning.
Here are the options the article discussed:
Don't fight the FAFSA.
There ample reasons to dread the cumbersome Free Application for Federal Student Aid (FAFSA). "It's too long, too confusing, and too complicated," says Lauren Asher, acting president of the Project on Student Debt. That's why many families, especially those whose income may disqualify them from need based grants, are tempted to skip the form altogether. But that would be a mistake. Beside being the gateway to scholarships and grants, the FAFSA opens the door to unsubsidized government backed loans. Filing the form is also a smart insurance policy, especially in a tough economic environment. "It's always good to be able to fall back on Federal loans with competitive rates," says college consultant Fox, "Even midyear, if a parent loses a job it can be comforting to know there's at least that option." And don't worry if you haven't filed one yet. It's not to late. Colleges set their FAFSA deadlines early to draw up financial aid offers, but you can file anytime during the academic year if you decide that you want to apply for a federal loan.
Start With The Stafford
Even if you don't qualify for the subsidized version, a government - backed Stafford loan is "cheaper and has better repayment terms" than most other loans, says FinAid.org's Kantrowitz. The unsubsidized Stafford loan is available to all students, regardless of family income or credit score and has a fixed interest rate of 6.8%. That's a sweet deal, but the catch is the annual limit: $5500 for freshman, $6500 for sophomores, and $7500 for juniors and seniors.
Next up: the PLUS Loan
The federal PLUS loan, which lets families borrow up to the full cost of tuition, room, and board, has always been a solid option. The credit requirements are minimal, and parents can defer repayment until graduation (though the interest continues to accrue). If your child's college already participates in the direct loan program, you can take out the PLUS at a fixed rate of 7.9%; otherwise the rate is 8.5%. This year families won't be able to do much comparison shopping for federal loans among private lenders, which in the past competed by waiving origination fees and offering other reductions. "Loan discounts have all but evaporated" says Kantrowitz. One that's still available is a .25% rate cut for automatic payments from your checking accounts.
Tap the House
Even with declining real estate values, home-equity loans may still make sense for some families. Interest on home-equity loans of up to $100,000 used for education expenses can be tax-deductible (unless you are subject to the alternative minimum tax). "The average fixed-rate home-equity loan is pretty high now at about 8.6%" says Greg McBride, a senior analyst at Bankrate.com. "That's comparable to the PLUS loan, but the difference for the parent who's in the 25% federal marginal tax bracket is that the after-tax rate works out to 6.5%" You can get a lower initial rate with a home-equity line of credit, but McBride warns that if you use a HELOC, you must plan for the inevitable rate hikes.
If a home equity loan is out of the question, there are alternatives. For instance the Massachusetts Education Financing Authority, a nonprofit state agency, is still offering private loans at competitive rates to residents or students who attend a Massachusetts university. (Other states have similar programs, but some, like Michigan, have suspended lending because of tight credit markets.) Fox also recommends checking with the financial aid office to find out whether the college has any funds set aside for borrowers. "Some schools have been offering their own loan programs to help parents through a difficult time, and the interest rates are typically lower than a PLUS loan," She says.
Your last resort: private loans
Dozens of lenders have stopped issuing private education loans, and most that remain have been raising rates and eligibility requirements. Also, the tend to carry variable rates, so make sure you read the fine print. "Short term interest rates are at record lows and the likelihood is that rates will be higher in future years," says McBride. "Don't fall into the trap that many mortgage borrowers fell into when they focused on the introductory rate without looking down the road."
By now, most college bound high school seniors have accepted an admissions offer and are cruising blissfully toward graduation, summer, and their chosen campus come fall. For parents, on the other hand, the hard work of financing this education is just beginning.
Here are the options the article discussed:
Don't fight the FAFSA.
There ample reasons to dread the cumbersome Free Application for Federal Student Aid (FAFSA). "It's too long, too confusing, and too complicated," says Lauren Asher, acting president of the Project on Student Debt. That's why many families, especially those whose income may disqualify them from need based grants, are tempted to skip the form altogether. But that would be a mistake. Beside being the gateway to scholarships and grants, the FAFSA opens the door to unsubsidized government backed loans. Filing the form is also a smart insurance policy, especially in a tough economic environment. "It's always good to be able to fall back on Federal loans with competitive rates," says college consultant Fox, "Even midyear, if a parent loses a job it can be comforting to know there's at least that option." And don't worry if you haven't filed one yet. It's not to late. Colleges set their FAFSA deadlines early to draw up financial aid offers, but you can file anytime during the academic year if you decide that you want to apply for a federal loan.
Start With The Stafford
Even if you don't qualify for the subsidized version, a government - backed Stafford loan is "cheaper and has better repayment terms" than most other loans, says FinAid.org's Kantrowitz. The unsubsidized Stafford loan is available to all students, regardless of family income or credit score and has a fixed interest rate of 6.8%. That's a sweet deal, but the catch is the annual limit: $5500 for freshman, $6500 for sophomores, and $7500 for juniors and seniors.
Next up: the PLUS Loan
The federal PLUS loan, which lets families borrow up to the full cost of tuition, room, and board, has always been a solid option. The credit requirements are minimal, and parents can defer repayment until graduation (though the interest continues to accrue). If your child's college already participates in the direct loan program, you can take out the PLUS at a fixed rate of 7.9%; otherwise the rate is 8.5%. This year families won't be able to do much comparison shopping for federal loans among private lenders, which in the past competed by waiving origination fees and offering other reductions. "Loan discounts have all but evaporated" says Kantrowitz. One that's still available is a .25% rate cut for automatic payments from your checking accounts.
Tap the House
Even with declining real estate values, home-equity loans may still make sense for some families. Interest on home-equity loans of up to $100,000 used for education expenses can be tax-deductible (unless you are subject to the alternative minimum tax). "The average fixed-rate home-equity loan is pretty high now at about 8.6%" says Greg McBride, a senior analyst at Bankrate.com. "That's comparable to the PLUS loan, but the difference for the parent who's in the 25% federal marginal tax bracket is that the after-tax rate works out to 6.5%" You can get a lower initial rate with a home-equity line of credit, but McBride warns that if you use a HELOC, you must plan for the inevitable rate hikes.
If a home equity loan is out of the question, there are alternatives. For instance the Massachusetts Education Financing Authority, a nonprofit state agency, is still offering private loans at competitive rates to residents or students who attend a Massachusetts university. (Other states have similar programs, but some, like Michigan, have suspended lending because of tight credit markets.) Fox also recommends checking with the financial aid office to find out whether the college has any funds set aside for borrowers. "Some schools have been offering their own loan programs to help parents through a difficult time, and the interest rates are typically lower than a PLUS loan," She says.
Your last resort: private loans
Dozens of lenders have stopped issuing private education loans, and most that remain have been raising rates and eligibility requirements. Also, the tend to carry variable rates, so make sure you read the fine print. "Short term interest rates are at record lows and the likelihood is that rates will be higher in future years," says McBride. "Don't fall into the trap that many mortgage borrowers fell into when they focused on the introductory rate without looking down the road."
Can I Apply For A PLUS Loan If I Was Turned Down Before?
You sure can. If you were turned down for a Parental PLUS Loan in the past couple of years you should really try again. The emergency legislation, that we have discussed before, was passed in 2008 has made PLUS loans more affordable.
The legislation made it so parent could apply for a PLUS Loan, through December 31, 2009, so long as they are not more than 180 days delinquent on a mortgage payment for their primary residence or any medical bills. In the past the time limit was 90 days.
There is a FICO credit score check of sorts, but it is to show that there are no adverse items on your credit report. However, if you have filed bankruptcy in the past five years you are not eligible for a PLUS Loan. Previously you had to be current on all debts not just mortgage payments and medical bills. With economy's current state the legislation was passed to to give PLUS Loan Lenders more leeway in forgiving late debt payments. Another plus, no pun intended, if a parent dies, I guess that's not really a plus but the PLUS loan debt is forgiven. This is a benefit over private loans, as with private loans the debt still needs to be paid.
The legislation made it so parent could apply for a PLUS Loan, through December 31, 2009, so long as they are not more than 180 days delinquent on a mortgage payment for their primary residence or any medical bills. In the past the time limit was 90 days.
There is a FICO credit score check of sorts, but it is to show that there are no adverse items on your credit report. However, if you have filed bankruptcy in the past five years you are not eligible for a PLUS Loan. Previously you had to be current on all debts not just mortgage payments and medical bills. With economy's current state the legislation was passed to to give PLUS Loan Lenders more leeway in forgiving late debt payments. Another plus, no pun intended, if a parent dies, I guess that's not really a plus but the PLUS loan debt is forgiven. This is a benefit over private loans, as with private loans the debt still needs to be paid.
Saturday, May 9, 2009
I Have A Subsidized StaffordLoan For My Tuition, But How Can I Get More Money?
You can apply for a unsubsidized Stafford Loan too. If you have maxed out your subsidized loan you can get another $2,000 a year from an unsubsidized Stafford Loan. Many students unknowingly leave Stafford Loan money on the table because they don't know that it is available to them. Your school's financial aid office should make you aware of the additional loan money that is available. If they haven't, get on it.
Thursday, May 7, 2009
How Do I Get A Stafford Loan?
To apply for a Stafford Loan, or any other student financial aid, you have to complete the Free Application for Federal Student Aid, also known as FAFSA. Without completing this application you won't get any sort of financial student aid. It is time consuming to complete. So set aside some time to do so. And pack a lunch because it can take a few hours to complete. Don't let that scare you though. You must do this to get a Stafford Loan, but it is worth it in long run. Just do it. Your school or university's financial aid office should be able to assist you in completing this form.
Wednesday, May 6, 2009
How Much Can I Borrow For My Tuition With A Stafford Loan?
Emergency legislation was recently passed increasing the amount you can borrow with a Stafford Loan by $2,000 a year. This began in the 2008-2009 school year. For Freshman the loan amount is $5,500; Sophomores $6,500; and juniors and seniors can borrow up to $7,500. If you are not claimed by your parents as a dependant you are eligible for higher loan amounts.
Tuesday, May 5, 2009
Should I Use My IRA To Pay For My Childs College Tuition?
We have discussed this before about using your 401K to pay pay for your children's education. You don't want to hit up your retirement funds to pay for other expenses. Again, with social security going away, what are going to live in on? I hope your kids appreciate their college education, because you are probably going to have to live with them if you don't have enough retirement savings. You could also be jeopardizing their chances for financial aid because the withdrawal from your IRA can be treated as part of your income. You could be making too much money, where as you might not have before the withdrawal. Do not use your IRA, 401K, or any other retirement funds to pay for your children's college tuition.
One piece of good news if you go against my advice and make the withdrawal anyway, unlike a 401K withdrawal, you will not pay a 10% early withdrawal fee if you are using to pay your child's tuition. However, you will have to pay income tax on the amount you withdraw. If you have a Roth IRA though, the withdrawal amount will not be taxed. Though earnings made through interest may be taxed. Bottom line don't do it.
One piece of good news if you go against my advice and make the withdrawal anyway, unlike a 401K withdrawal, you will not pay a 10% early withdrawal fee if you are using to pay your child's tuition. However, you will have to pay income tax on the amount you withdraw. If you have a Roth IRA though, the withdrawal amount will not be taxed. Though earnings made through interest may be taxed. Bottom line don't do it.
Monday, May 4, 2009
If I Shouldn't Take 401K Loan Out To Pay For My Children's Education, How About A 401K Loan?
This is a similar question to the one we answered regarding taking out a 401K loan to pay off credit card debt, with a similar answer...Don't do it. You must resist the temptation to take a 401K loan out to pay for other expenses. In the state of the current economy it is very dangerous to borrow money from your 401K. Although the economy is improving, layoffs are still occurring. A layoff can happen at any time and if it does your loan will be treated as a withdrawal. You will have to pay income tax on the entire amount you borrowed and if you are under 59 1/2 you will have to pay a 10% early withdrawal on top of it. If you need money for college, federal student loans are your best bet.
Sunday, May 3, 2009
Should I Stop Contributing To My 401K To Start Saving For College For My Children?
We discussed a similar question about stopping contributions to your 401k's to pay off credit card debt. I know you love your children and want the best for them. This is going to sound selfish, but you should not stop contributing to your 401k to fund your children's college education.
If you are looking for additional funds to pay for your children's education then it is obvious that you probably don't have an emergency fund either. Right now in the current state the economy is in, it is imperative to have an emergency fund of least six to eight months of expenses.
Again I know you want your children to be able to live up to their full potential, but jeopardizing your financial security is not the way to do it. Also in this point in time, your 401K has probably taken a beating. When people's investments tank their instincts tell them to run, but this is not the time to run. It is the time to stand and fight. You need to keep your money in your 401k and continue to invest even though it doesn't seem like the right thing to do. I am assuming that you have at least ten years until you retire. The reason I am telling you to keep your money in your 401K is this: When the market is down you are able to buy more shares of what you are investing in, and the more money you will make when the stock market goes back up.
Also, you are going to need as much money as you can get your hands on when you retire. With the threat of social security being gone one day your 401k, IRA's, and cash savings will be all that you will have to rely on. If you don't have retirement savings you may one day be a financial burden to your children. So unless you want to work for the rest of your life or live with your children after retirement don't withdrawal funds from your 401k to pay for your children's education. I am not telling you to leave your children high and dry without an education. There are several federal loan programs to choose from, whether it be the military, employer tuition assistance, or loan forgiveness programs to pay for a college education.
If you are looking for additional funds to pay for your children's education then it is obvious that you probably don't have an emergency fund either. Right now in the current state the economy is in, it is imperative to have an emergency fund of least six to eight months of expenses.
Again I know you want your children to be able to live up to their full potential, but jeopardizing your financial security is not the way to do it. Also in this point in time, your 401K has probably taken a beating. When people's investments tank their instincts tell them to run, but this is not the time to run. It is the time to stand and fight. You need to keep your money in your 401k and continue to invest even though it doesn't seem like the right thing to do. I am assuming that you have at least ten years until you retire. The reason I am telling you to keep your money in your 401K is this: When the market is down you are able to buy more shares of what you are investing in, and the more money you will make when the stock market goes back up.
Also, you are going to need as much money as you can get your hands on when you retire. With the threat of social security being gone one day your 401k, IRA's, and cash savings will be all that you will have to rely on. If you don't have retirement savings you may one day be a financial burden to your children. So unless you want to work for the rest of your life or live with your children after retirement don't withdrawal funds from your 401k to pay for your children's education. I am not telling you to leave your children high and dry without an education. There are several federal loan programs to choose from, whether it be the military, employer tuition assistance, or loan forgiveness programs to pay for a college education.
Saturday, May 2, 2009
Free College Tuition Money...Finding Ways To Pay For College
With college tuition increasing every year about 5% to 8%, students usually begin their careers with massive debt from student loans. The cost of tuition can be overwhelming for most college bound students, but there are ways to help pay those tuition's.
CNN personal finance editor, Gerri Willis and author of the book, "Home Rich-Increasing the Value of the biggest Investment of Your Life", gives us some ways to ease student loan burden.
1. Let Uncle Sam forgive your student loan
Uncle Sam has some programs that can help with the daunting costs of tuition. A private four year college can run you $25,000 a year and Uncle Sam can help you through loan forgiveness.
You must perform volunteer work, military service or teach or practice medicine in certain types of communities to qualify for these programs.
Volunteering Loan Forgiveness Programs
- AmeriCorps: Serve 12 months and receive up to $7,400 in stipends plus $4,725 toward your loan--that amount is expected to increase.
- Peace Corps: Cancel 15% of your federal Perkins Loan per year.
- Volunteers in Service to America: Provide 1,700 hours of service and receive $4,725.
2. Loan Forgiveness For Teachers.
If you are teacher at an elementary or school in an area that has students from low income families, a portion of your Perkins Loan can be forgiven. For up to five years, you can have a portion of your Perkins Loan forgiven for year you teach. Check with your school districts administration to which schools are eligible.
If you are teacher in a high need school and teach math and science you can also get up to $17,500 forgiven from their Stafford loan.
Visit The American Federation of Teachers at AFT.org for their list of other debt forgiveness programs.
3. Cut Medical or Law School Bills.
Visit the American Bar Association (no this isn't amount drinking), for a list of loan repayment assistance programs. Many law schools forgive the student loans if you serve in public interest or in a non-profit position.
Some options for health care student loan forgiveness programs are:
- National Health Services Corps
- Nursing Education Loan Repayment Program
These organizations offer loan forgiveness to physicians and registered nurses who agree to practice for a set number of years in areas that lack adequate medical care--and that includes remote areas or economically depresses regions.
Visit the American Association of Medical Colleges at aamc.org for a list of state and other loan repayment programs for medical students.
CNN personal finance editor, Gerri Willis and author of the book, "Home Rich-Increasing the Value of the biggest Investment of Your Life", gives us some ways to ease student loan burden.
1. Let Uncle Sam forgive your student loan
Uncle Sam has some programs that can help with the daunting costs of tuition. A private four year college can run you $25,000 a year and Uncle Sam can help you through loan forgiveness.
You must perform volunteer work, military service or teach or practice medicine in certain types of communities to qualify for these programs.
Volunteering Loan Forgiveness Programs
- AmeriCorps: Serve 12 months and receive up to $7,400 in stipends plus $4,725 toward your loan--that amount is expected to increase.
- Peace Corps: Cancel 15% of your federal Perkins Loan per year.
- Volunteers in Service to America: Provide 1,700 hours of service and receive $4,725.
2. Loan Forgiveness For Teachers.
If you are teacher at an elementary or school in an area that has students from low income families, a portion of your Perkins Loan can be forgiven. For up to five years, you can have a portion of your Perkins Loan forgiven for year you teach. Check with your school districts administration to which schools are eligible.
If you are teacher in a high need school and teach math and science you can also get up to $17,500 forgiven from their Stafford loan.
Visit The American Federation of Teachers at AFT.org for their list of other debt forgiveness programs.
3. Cut Medical or Law School Bills.
Visit the American Bar Association (no this isn't amount drinking), for a list of loan repayment assistance programs. Many law schools forgive the student loans if you serve in public interest or in a non-profit position.
Some options for health care student loan forgiveness programs are:
- National Health Services Corps
- Nursing Education Loan Repayment Program
These organizations offer loan forgiveness to physicians and registered nurses who agree to practice for a set number of years in areas that lack adequate medical care--and that includes remote areas or economically depresses regions.
Visit the American Association of Medical Colleges at aamc.org for a list of state and other loan repayment programs for medical students.
Sunday, April 19, 2009
I Have A Great Credit Score. Why Am I Getting Declined For Loans?
What do mean by great credit score? Unless you have a FICO credit score of at least 720 you can just about forget getting approved any kind of credit. It's the only way to get any kind of credit with decent terms.
Banks, lenders, and credit card companies aren't just handing out money like they used to. That goes for any kind of credit: credit cards, mortgages, car loans, student loans, etc. Back in the day of irresponsible lending it fairly easy fro anyone to get credit. But those days are gone. Probably forever or at least in our lifetime. In the past if you had a FICO credit score of 720 you would get a loan with decent terms and no questions asked. if you had a FICO credit score below 720 you could probably still get a loan or credit card but, probably would pay a higher interest rate or more fees. Today a FICO credit score below 720 can mean no loan, no way. Lenders today are being very cautious to who they lend money to. If you have a FICO credit score below 700 it is very difficult to get a loan right now. If you do qualify for a loan you will probably be looking at paying a higher rate of interest and higher fees than you would have just a couple of years ago. So when you say you have a great credit score it needs to be 700 or more. The days of a FICO credit score in the 600 range being considered great credit are gone.
Banks, lenders, and credit card companies aren't just handing out money like they used to. That goes for any kind of credit: credit cards, mortgages, car loans, student loans, etc. Back in the day of irresponsible lending it fairly easy fro anyone to get credit. But those days are gone. Probably forever or at least in our lifetime. In the past if you had a FICO credit score of 720 you would get a loan with decent terms and no questions asked. if you had a FICO credit score below 720 you could probably still get a loan or credit card but, probably would pay a higher interest rate or more fees. Today a FICO credit score below 720 can mean no loan, no way. Lenders today are being very cautious to who they lend money to. If you have a FICO credit score below 700 it is very difficult to get a loan right now. If you do qualify for a loan you will probably be looking at paying a higher rate of interest and higher fees than you would have just a couple of years ago. So when you say you have a great credit score it needs to be 700 or more. The days of a FICO credit score in the 600 range being considered great credit are gone.
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