Expert Debt Management
Expert Debt Management
If you are like many young people today, you want to better your future. This comes most often in gaining an education to open up opportunities in the job world. But what you are not happy about is the cost of what school can cost. Yet, if you don't get an education you also seem to be stuck in a position you don't want to be in. So the result is often the student loan.
Student loans provide many obvious benefits, paying for your education of course, and also getting the funds at very low rates of interest, most often zero interest until your program is over plus a few grace months. You will inevitably have to repay them, this can be a daunting debt since education is such a high price. But you may want to learn some tips on how to come out of it the best you can.
Many big universities are very expensive, check to see what a local community college has to offer. You may be able to get the education you desire at a fraction of the cost from a smaller school. Even if you can do some of your program at a local small college, you can usually transfer over the credits to a different educational institute to finish up your program. (Always check for how the credits transfer or if they do).
Look around for scholarships and bursaries. There is quit a bit of free money out there that can go towards your education. You also don't necessarily have to be in the top of your class or a star athlete to receive these. Check with your school about them. They should have a list of ones you can apply for. Also check out online for other bursary opportunities.
When it comes to saving and paying for an education beyond high school, it can be a scary task. It is a big decision as it not only effects the education you get but it also can cost an arm and a leg to pay for it. If you're paying for your own schooling or if your saving for your children's the main key to try to adhere by is to start as early as possible. If you can start putting away a few dollars here and there or have monthly contributions to a savings plan is ideal. This is because you can take advantage of compounding interest as well as it does not seem like such a huge chunk of money when it comes out of your bank account over many years.
If you are planning early enough, one should check out the 529 plan. It is a state sponsored investment program with special tax benefits. It was specially designed to help people save for future education costs. There are a few simple requirements to follow but it is well worth checking into. Each state has at least one form of the 529 plan available, these plans may vary slightly from one state to the other so inquire about one from the state you are in. There is no income restrictions either associated with them and most allow for a monthly payment plan to take advantage of compounding interest.
Now not all of us are or have planned that far in advance for either ourselves or our children so 'there you are' close to entering a college or university and you don't have the finances to allow you to enter unless you get some help. So here are some ideas to help.
For some this is not an option and this I understand. However if it is, consider yourself blessed and enjoy it. Sometimes there is a relative somewhere in the family that you can trust that either rates education importance very high and maybe willing to either give or lend you some money at either no interest or some low term conditions attached. There may even be a relative that will let you rent a room off of etc. Check into these possible options. For some those options don't exist or if they do, the thought of lending off of 'ol aunt Mable' would be too much of a pain as she would require you going over there on a regular basis to hang out with her. However there are other forms of financial aid.
There are student loans and other financial aids out there for students to help cover the cost of your education and living expenses. If you know the school you are going to, check with them about any grants available, sometimes there are ones out there that don't require that you are at a 4.0 GPA or an amazing athlete in order to get them. See what is available and apply. Scholarships are also available to some select students, but often do require very high marks or other special giftings. Student loans are offered and are done so at a lower rate of interest than you will find for a house or car etc. Most student loans don't require you to pay them back either until you have completed your educational program. Now student loans sometimes come with small catches. If your earnings and sometimes your parents earnings are above a certain amount you may not be eligible or your eligibility maybe for a lower amount than you where hoping for. Regardless inquire from your school or future school about the process involved.
There is the private lender option for education but this option will cost you considerably more. You can go to a bank and take out a secured loan and use that money towards your education and living expenses however, you will end up paying more money on interest than with student loans because of the nature of them. You will probably be paying at least the prime rate (perhaps if you get it as a line or credit) but more than likely you will be paying above the prime rate of interest in return. Sometimes there are also some student job opportunities on the campus to help out your finances. Check out campus cafeterias, restaurants, shops etc. Also if you happen to be a relatively good, reliable student and are in your 2, 3, 4th year or more, talk to your professor about any teacher assistant positions.
There is also FAFSA (Free Application for Federal Student Aid) which is a form you fill out to determine any eligibility you may have for assistance from a Federal Student Aid program (FSA). Some of the must haves to obtain this are that you must be a citizen or possibly an eligible non citizen of the US and have a legitimate Social Security Number. You must have a diploma from high school or an equivalent such as a General Educational Development certificate. Your program that you are enrolled in must be approved for FSA.
Check with your state/country tax laws but student loans are usually allowed to have a portion of the interest to be tax deductible. Check for any other benefits with taxes and student loans. Use any money from this to go to paying off the debt immediately. Also don't defer your debts to a later date unless absolutely necessary, the longer you wait the more you pay back, and trust me, the day does come.
There is also the debt consolidation method, having not only loans for education but just other things in life can start adding up and become out of hand. Let a professional debt consolidation company guide you through your options. Consider the benefits and negatives and make the decision based on your situation.
Disclaimer: This site is not , nor should it be taken to be, legal, financial or other professional advice. It merely provides a generalized guidance and generalized information only. Consult a financial advisor or an attorney to discuss any legal or financial issues involved with credit and debt decisions.
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