Sunday, December 25, 2011

How to Get Student Loans For Parents With Bad Credit

Parents always desire to create the best future for their children. Obtaining a college degree is one way to provide the best options for receiving a great paying job or starting a business. Education costs are often not always in the monthly budget while the child was growing up. Some education accounts simply may not have enough money to meet all of the student's needs. Loans are a good way to make sure that education expenses can be paid. Student loans can be used for college courses, trade schools, and certificate programs that help studdnts find gainful employment that pays far above minimum wage. Here are a few tips on how to get student loans for parents with bad credit.

Seeking out financial institutions that check multiple lenders for the best rate can be done easily online. Look for lenders that offer student loans specifically for parents. The loan many times will not go under the student's name. The repayment amount is the sole responsibility of the parents. Many parents do not want their children to assess any debt to attend school. Lenders that understand this often market exclusively to parents and not young adults.

There are lenders that choose to work strictly with people with bad credit. Financial institutions understand the needs of people with less than perfect credit. Bad credit many times is due to uncontrollable circumstances. Examples of these issues are divorce, death in the family, or obtaining an on the job injury. Use truthful information on the application. Lenders usually will confirm references of employment and relatives. Inaccuracies may delay the approval time.

Take time to read through the details before committing to the terms of a loan. Always ask questions if any parts of the terms are unclear. There are no dumb questions when it pertains to financial documents. Clearing up things that are not understood is essential to protect ones credit rating.

Do not be afraid to apply for more than one loan. Sometimes multiple loans may be needed to ensure that all expenses are paid for. Examples of expenses are tuition, books, meal plan costs, living expenses, transportation, personal care items, and rooming costs. It is always better to have a bit more than is needed to not have enough cash on hand. Any loan funds that are not used during the semester can be set aside for emergencies. Preparing a list of all expenses is the best way to have an accurate estimate of costs. If it is the students first semester all of the costs may not be known. Contacting the schools financial aid office is one way to obtain an accurate estimate of expenses.

Pay attention to the repayment schedule to ensure that each payment is paid as agreed. Paying on time is the best way to rebuild personal credit. It will be easier to obtain a loan in the future when there is a positive record of multiple on time payments. Use these tips when applying for bad credit student loans for parents.

Thursday, December 22, 2011

Special Direct Consolidation Loans

As you may (or may not) have heard, the U.S. Department of Education will offer Special Direct Consolidation Loans to eligible borrowers, beginning in January 2012. As with traditional consolidation loans, this program is intended to assist borrowers with loans split among loan servicers by simplifying the repayment process, resulting in one monthly bill and payment. However, this program does not offer borrowers a traditional federal Consolidation loan and cannot be used to resolve defaulted loans.

The window for this special, short-term consolidation opportunity will close June 30, 2012. For borrowers to participate, they must meet two criteria:

o They must have at least one student loan held by the Department of Education (either a Direct Loan or a Federal Family Education Loan [FFEL] owned by the Department and serviced by one of the Department’s servicers).

o They must also have at least one commercially-held FFEL loan (a FFEL loan that is owned by a FFEL lender and serviced either by that lender or by a servicer contracted by that lender).

PROS of the Program: Borowers could receive a possible .5% interest rate reduction - which could mean huge savings!

o The U.S. Department of Education will give a 0.25% interest rate reduction from that rate as of the date of consolidation.
o They will also give an additional 0.25% interest rate deduction if the borrower chooses to repay his or her consolidation loan by auto-debit from the borrower's bank account.

Based on a 10 year repayment period, 6.8% interest rrate and 20,000 in debt, the savings could be as high as $ 611.00 (

Another positive feature: Borrowers could receive credit for previous Income-Based Repayment (IBR) payments. If a borrower made any payments on his or her lender-held FFELP loan(s) under an IBR plan prior to consolidation under this program, those payments will count toward the required number of payments for loan forgiveness if the borrower remains under the IBR plan. By consolidating into a Special Direct Consolidation Loan, any previously lender-held FFELP loan(s) will become a Direct loan and may be eligible for PSLF if the borrower meets the additional eligibility requirements - another HUGE potential savings.

BORROWERS IN GRACE: You should note that you may lose part of the grace period upon consolidation if you consolidate a lender-held FFELP loan that during the grace period,

Beginning in January 2012, the DOE servicers should begin contacting eligible borrowers. However, if you are interested and want to get started immediately, you may contact the DOE servicer currently servicing your ED-held loan(s) for assistance.

As with any consumer decision - investigate your options, do your research and make an informed decision. For more information, you can call 1-800-4-FED-AID (1-800-433-3243) or visit:

One Final Note of Caution: Please let your school know if you consolidate your student loans. Many schools offer their students support while in repayment and consolidating may disconnect the school's linked access to their borrower's accounts.

How To Get Student Loans When You Have Bad Credit

Making the decision to go to college is a big one whether or not you are a recent high school graduate, an adult that wants to obtain the degree that was put off long ago or someone that wants to make a career change. A college education means you will have the education to make more money, obtain a better career and have more opportunities in the future. Oftentimes, the deciding factor for those that want to go to college is money; college is not inexpensive and many people do not have the funds available to pay for classes and books.

Scholarships and grants are a great way to apply for financial aid for college; neither has to be paid back after graduation. However, these are not always enough to cover the cost of tuition and many people find they need more financial help. This is where student loans come in handy. Student loans are funds that are issued to students to help pay for college. While you are enrolled in college you are not required to pay back the loans; you will begin repaying them shortly after you graduate. For the most part, getting a student loan is easy. However, if you do not have good credit you will have a difficult time obtaining a loan.

Private loans issued by banks for students require an excellent credit score. Those with bad credit scores cannot apply for a private loan on their own. However, they can ask a trusted friend or relative with perfect credit to co-sign a student loan for them. As long as you have a friend or relative that trusts you to pay your loan on time each month after the repayment period begins, you should be fine. However, not everyone has a friend or relative that will do this for them, which means they will have an even more difficult time getting a student loan.

Fortunately, the federal government provides student loans that require no credit check; it doesn't matter if you have terrible credit or amazing credit. As long as you fill out the FAFSA at the beginning of each year, you will be eligible to receive a student loan called a Stafford Loan. This loan comes from the government and is issued to you through your college; your money will be given to the college, your tuition and fees removed from it and the excess will be given to you at the beginning of each semester to pay for your books and other supplies that are school related.

The requirement for obtaining a federal student loan is the FAFSA - the Free Application for Federal Student Aid. This must be filed, along with your income tax information and your parent's financial information if you are a dependent student. By filling out the FAFSA, you are filling out an application for a federal student loan, which you then have the ability to accept. You can accept the full amount offered or you can accept a portion of the loan that is offered to you depending on your tuition and fees needs. There is hope for those with bad credit; college is a possibility for those who don't think that it is.

Sunday, December 18, 2011

Saving For Your Child's Future College Expenses

Have you been thinking about your child's future recently? What college do you want your child to go to? What are the costs involved? Do you have the financial resources to send your child to the preferred college? These are important questions that need to be asked while your child is still young.

The costs of sending a child to college can come up to quite a substantial amount. The actual cost will depend on several factors. For instance, the choice of college will have an immediate impact on the cost. Some courses will cost more than others. Or what if your child needs to stay in college an extra year due to illness just so he or she can graduate from college successfully? These variables all play a part in the cost of education. As a parent, your role is plan ahead for your child.

Let's say you have calculated the cost of education to come up to about $100k for the entire duration. Do you have the entire amount stashed aside solely for your child's education? Would $100k be enough to set your mind at peace? Most people do not have the entire amount stashed away somewhere. When the time comes for your child to pick a college, will you have enough for him or her? If you don't, the consequences can be disastrous. As parent, you want your child to be happy - to be happy to pursue his or her own interests and not have to worry about not being able to land a job. The right college will make all the difference to your child's future. Having the financial resources to send your child to the right college may appear to be a formidable goal. But it can be achieved with proper planning.

What you want to do, is to sit down and think about saving up for the future. A portion of your monthly income should be set aside solely for the purpose of financing your child's college education. Note that education costs are always on the rise. So when planning ahead, make sure you take into consideration inflation and the rising cost of education. A qualified financial planner will be able to help you compute the exact amount you need to set aside each month to achieve your targets.

A few things to remember. It's always wiser to start early than to start late. When time is on your side, you can put aside a much smaller amount each month and still be able to save up enough to meet your financial objectives. If you start late, you will be forced to set aside a huge amount of money on a monthly basis - something that you may not be comfortable with as this may affect your current lifestyle.

Thursday, December 15, 2011

Know Your Options While Removing Your Student Loan Default Account

Whenever a student gets a loan amount on his shoulder, it is obvious that he needs to repay the debt amount within the specified period of time. Generally, the loan offering company takes back the debt amount in monthly installments. However, if someone cannot repay any installment, he will be offered a certain period of time. Within that period of time, if he repays the entire debt amount, he will be declared free from his student loan. However, after completion of that limited period of time, if there remains any unpaid loan amount, the debt will be considered among the student loans in default accounts.

Once you have been declared as a defaulter of student debt, you need to get prepared to face some unwanted negative consequences. At first, the loan offering company will cater all the details of your defaulted debt account to some third-party collection agency in order to extract the residual amount from the defaulter. These people will definitely employ some methods that will make the life of the defaulter unstable. At that point of time, you need to look around for some profitable options that will let you remove the student loan default account from your shoulder.

At that point of time, you can always have the opportunity to seek help from the financial advisors. In that case, you will be able to know about various profitable options that will let you handle your defaulted debt situation. Under such scenario, you will be able to know about the various profitable schemes that will let you clear your student loan default account. In that case, you can depend on the debt consolidation program that can conveniently handle all your defaulted accounts.

While you are willing to opt for the loan consolidation scheme, you need to know the fact that there are mainly two types of plans available in the market. Here are a few words that will enable you to know about these options to erase your student loans in default accounts conveniently.

    * Federal Debt Consolidation Program: In this scheme, you can have the opportunity to merge all your defaulted debts with a much lower rate of interest. However, the processing period is considerably much higher compared to the other private plans available in the market.

    * Private Loan Consolidation Scheme: Here, one can conveniently combine all his debt accounts along with the student loan default account into a single account. The processing time is pretty fast when compared to the federal scheme. You can also have the opportunity to defer your loan repayment period for a certain period of time. Thus, people would love to opt for this scheme whenever they have some defaulted debt account on their shoulders.

In short, if people are facing some trouble regarding the student loans in default accounts, you can opt for the debt consolidation program available in the market.

Tuesday, December 13, 2011

Do Business Scholarships Last For Multiple Years?

From time to time, students earn business scholarships that do not provide all of the assistance that they had hoped to receive. This can be very frustrating, because the person will think that they have all of their finances in place when they actually do not. They may also choose a school that they cannot really afford because they do not know that they are going to have to pay for it. Before students apply to college, they need to be sure that they know what type of financial aid they are going to get.

This issue usually only comes about when a student thinks that a one-year scholarship will be renewed every year. If the tuition costs come out to $10,000 and they are given $9,000 during their freshman year, they will assume that they only have to pay $4,000 out of their pocket over the course of the four years. If this is a one-year deal, though, it will expire after the first term. They will really have to pay $31,000 on their own, which is a large difference, especially when it is exposed without warning.

This is not to say that all business scholarships are only good for the first year on campus. A full-ride scholarship may provide funds for as long as it takes the student to complete the course. Every year that they are at the university, it will be renewed so that it can be used again. As long as the student keeps his grades up, he will never have to worry about money. This takes a lot of stress out of the college experience and the quest to find scholarships.

Other awards are only good for four years. If it takes the student five years to complete the course because he mis-times a few classes or has transferred from another school or he spends a semester abroad, he will overstay his business scholarships. He will have to pay the whole amount for that last semester. While this is not as bad as having to come up with the money every year, it is nice to know in advance if this is going to happen.

All in all, the only way for a student to know what type of financial aid he has is for him to talk to his advisor. He may also want to talk directly to the financial aid department. People will be able to look at his files and tell him everything about his situation as far as money is concerned. Every student should do this once a year.

Saturday, December 10, 2011

Repaying Your Student Loans - The Best Plan of Attack

Many of us are being crushed by student loan payments. The best way to repay your federal student loans depend on your situation. There are several programs available if you meet certain criteria. If you have a federal loan and are having trouble making your payments, you may be able to re-negotiate the terms of your loan, and you have a few repayment options. Contact your lender for more information about:

1. The standard plan. You are automatically enrolled in this option. You will be paying your loan off in 10 years, making equal payment each month.

2. Graduated plan. You start out making lower payments. Then as your income increases, so do your payments, over a ten year period.

3. Extended repayment. If you have more than $30,000 in debt, you can extend the repayment out over 25 years.

4. Income-based. If your loans are waaaay more than your income, you may be able to make reduced monthly payments. After 25 years, the balance is sometimes forgiven.

5. Income-contingent. This almost the same as income-based, but a little less forgiving.

6. Consolidation. This plan will allow you to combine all loans, and repay them over 30 years.

Did you know that you can reduce you interest rate on your student loan by.25% if you set up automatic payments on your federal student loans? You can access your loans by visiting Just login and choose KwikPay to set it up.

If none of these programs works for you, apply for deferment or forbearance. Deferment will allow you to stop making payments for a year. Interest still gets applied. Forbearance will allow you to stop making payment for up to 5 years. You may qualify for economic hardship, active military duty or being a part-time student. In any case, do not just stop making payments. You will be considered delinquent if your payment is 21-30 days late. After 60 days, you will be reported to the credit bureaus. If you default, the federal government can assign you to a collection agency, demand payment in full, or garnish your wages.

If you do not have any student loans, think hard before borrowing the money. Consider attending a community college, or state university. The cost of these schools is usually significantly lower than private universities. Unless you are considering an Ivy League school, the college that you attend will matter much less than your grades when it comes time to find a job.

Thursday, December 8, 2011

Defaulting on Student Loans

College students are living in the present with no thought of tomorrow...until they start nearing graduation day. That college education came at a price and now graduates have to start thinking about how they are going to pay off their student loans. Students may have trouble finding a job after graduation or a job that provides enough income. Students will default on their loans if they do not make payments for 270-360 days. This does not mean that there are no payment options available to make these debts affordable. The federal government has provided many ways to pay off your loans and these options should be explored before it is too late.

Defaulting on your loan means that you are no longer eligible for deferment, so you need to make sure that you apply for payment options before you reach default. All students have a six-month grace period before they must start repaying their loans. Once that six months is up, you have the option for filing for a specialized kind of repayment plan pending qualification. If you cannot afford standard repayment, you may qualify for extended repayment. With this option, you must have more than $30,000 in debt but not possess an outstanding balance. Extended payment gives you 25 years to pay off your debts with a fixed or graduated rate. Graduated repayment is another option and it gives you up to ten years to repay debts. Payments start low and increase every two years.

There are also income-based plans that allow you to only make a monthly payment that is affordable with your income. Income contingent repayments allow you to pay either 20 percent of your monthly income or an amount calculated by "amount that would be paid of the loan over 12 years multiplied by an income percentage factor that varies with your yearly income" according to the Federal Student Aid department. You are not obligated to stick with these plans either. If you realize that the one you chose is not working for you, you may switch after a year and sometimes less.

If none of these options are right for you and you are still struggling with paying off your loans, you should know that student loans cannot typically be absolved through bankruptcy. If you come to this point, a wage garnishment may be sought against you by a creditor. A wage garnishment is a legal request that seeks to take money as payment from an employee's salary. To avoid a wage garnishment you should seek professional help from a bankruptcy attorney. There is a defense against these kinds of creditor tactics, but you should speak with a legal professional in order to develop a strategy in your defense.

Monday, December 5, 2011

How Would College Scholarships Make A Difference To You?

Getting an education is very important in today's economic environment. The unfortunate thing is, it can also be very expensive to get the education you need, and because of the cost, many potential students do not attend or finish college. But this is where college scholarships can make a huge difference to you. Make no mistake about it, they are available. The amount of money that is given out through those scholarships may vary from year to year and the money may not be available for all individuals. That is why it is important for you to make sure that you give yourself every advantage that is possible by following these tips.

One of the first tips that I can give to you is not to wait until the last minute to try to find college scholarships, or you will have a very difficult time doing so. It is important for you to not only find scholarships in advance but to apply for them as early as possible. You must make sure that you meet any deadlines and all of the information needs to be filled out accurately. Once a scholarship opportunity comes onto the radar, be sure that you are on it as quickly as possible to give yourself the best opportunity.

Many students do not apply for scholarships because they think that a person needs to be an athletic star or an academic superstar to be qualified, but that is no longer the case. Yes there are scholarships that focus on a particular curriculum or require a certain ethnic group but the vast majority only require you to apply for them, and a good number of these do not even require a minimum grade point average.

You should also broaden the range of where you are going to be searching for those college scholarships. Many people tend to focus on the federal schol`rships, and there are some of those that are available. Don't overlook the possibility, however, of finding college money that is available in your local area. In many cases, you will have a much easier time applying for and receiving this money because of the lower amount of competition. Look for various clubs, grocery stores, banks and other businesses that may be actively giving money for a college education. You should also check on the state level, as there may be money that is allocated for college scholarships as well.

You should also be involved in finding college scholarships through national organizations that offer them, such as the Discover Card Scholarships where it is given to members who hold that particular credit card. There are also other credit cards and similar affinity cards that frequently offer scholarships for card holders and members.

Broaden your search. This not only includes asking in your local area or with various organizations that may actually offer the scholarship money, it may mean checking in with the college as well. In some cases, scholarship money is going to be offered through the University and it would be up to the financial department at the University to distribute those funds. Even if they don't have money directly, they may still be able to point you in the right direction to give you a better opportunity of getting the funding that you need. With one or more college scholarships in hand, then you can focus on graduating instead of worrying about how to pay back the cost of your student loans.