Student Loan Help

I speak to parents every day who call me trying to figure out how they’re going to pay for college for their kin. It’s a heavy cross to bear. “Should we take a home equity line? What about the Parent Plus loan? Do you think I should just co-sign for a private student loan for my child and keep the loan in their name?” These are the most common questions I help them work thru.

From a students perspective they’re just trying to get to school and are less concerned with the financials. They don’t fully understand the financial ramifications that go along with the cost of education. Whether it’s $5,000 or $50,000 it doesn’t really matter to them; at least not while they’re in school. These serve as arbitrary numbers. But those numbers become their foe when it’s payback time.

The purpose of this blog is to introduce a 529 savings plan to you. This education savings plan is most useful to those parents having students several years away from college.

Here is a quick cliff note style overview for you.

- Every state has at least one 529 plan available.

- Two general types of 529 plans exist: prepaid programs and savings programs (prepaid tuition plans allow you to lock in future tuition rates at current prices while savings plan do not offer that same guarantee).

- Your investment grows tax-deferred, and distributions of the funds come out federally tax-free when you are paying for college.

- You are in control of the funds, and can even change the name of the recipient to another child or even yourself.

- 529 plans are viewed as a parental asset which is only assessed a maximum of 5.64% in determining a students Expected Family Contribution (EFC) on their FAFSA, opposed to a whopping 20% on non-529 assets that students hold.

As you can see 529 plans have great benefits and are a terrific way to save for your child’s college. I want you to save now and pay less later.  If you plant it - it will grow.

Student Loan Network serves hundreds of thousands of students from more than 6,000 colleges across the United States . However, we do see some states and colleges where we get more applications than others. If you are interested, here is a list of the popular states where we are making loans.

Michigan Student Loans

New York Student Loans

Pennsylvania Student Loans

Texas Student Loans

Arizona Student Loans

California Student Loans

Florida Student Loans

Illinois Student Loans

Iowa Student Loans

Massachusetts Student Loans

What do you consider your most important bill each month; mortgage, automobile, cell phone? We all have mountains of bills to pay, but the most important bill you will ever pay is the one to yourself. My Dad taught me that a long time ago. I want you to stay ahead in the game of life which is why I am passing this wisdom along to you. Those other bills are certainly important, but not as important as number one.

Think of life like a game of Monopoly. Sometimes you land on Go and collect that $200 while other times you get sent directly to jail (and no one looks good in pinstripes). And think about it, if you get sent to jail you can’t take that ride on Reading Railroad, visit St. Charles Place, or advance to Boardwalk. You’d be relegated to a passenger in the game of life – no fun!

My suggestion is to set an account aside and put money in each week or each month as you deem fit. You are far more important than any other bill that comes your way. No one is going to do this for you. You need to take action to make this happen. Remember, it’s not the denomination that is the important thing here, so don’t get discouraged by that, it’s the act and mindset behind it. As you get older you may be able to contribute more, but for now just start with a $1.

We are always going to owe money to someone, that’s just life, but owing money to yourself is an investment in you. Everyone else can take a number and get in line. 

Follow my simple but rich advice and you can’t go wrong. In fact, I’ll even save you at seat at the Boardwalk Cafe. The view is breathtaking.

Why spend today, what you can save tomorrow?

Have you ever been called a penny pincher? Have you ever been told you are tight with the wallet or are just plain cheap? If so, you’re probably getting the last laugh right about now. With the economy in a state of purgatory and the cost of gasoline and commodities on the rise that nest egg you saved yourself is coming in mighty handy these days I’m sure.

Anyone still around from the Great Depression Era knows how truly bad it can be, and is frugal beyond belief. They mastered the art of saving, unlike today’s generation. The only thing kids save nowadays is their game of Halo.

Well, Dr. Dave is writing you a prescription to be frugal and I want you to follow it to the letter. Now I know what you’re thinking, I can’t just stop spending money cold turkey. Actually, on a sidebar what does that metaphor even mean? I eat cold turkey everyday for lunch. I LITERALLY can’t stop cold turkey, I love it! Anyway, back to you. Take baby steps if you must. No excuses people!

Here are some excuses you’re probably scheming right now: All my friends go out on Friday night, I don’t want to be the only one. I deserve those pair of shoes; they’d look so good on me. I work hard and I want to play hard. My personal favorite – everyone’s doing it. The list of excuses is endless, but your bank account isn’t. I’m not saying become a hobbit, but it’s ok to tell your fiend, “I just don’t have it.”

You don’t need to keep up with the Jones’ to be cool. A penny saved is a penny earned (or at least ¾ of a penny earned with the current exchange rate). Don’t give into the peer pressure. Be your own person.

Next time someone calls you a penny pincher just smile back and say thank you, it’s good to see you recognize an intelligent person when you see one.

HELP WANTED!

Are you a struggling student trying to make ends meet? Do you need money for school? Would you like the opportunity to win a $1,000 scholarship per month and a $10,000 scholarship in October no strings attached??? If you meet this needy criteria you’re search is over. We are the perfect fit for you.

The perfect candidate will also enjoy sleeping late, going to parties, playing video games, exercising their mind, and most importantly receiving free money!

Guaranteed: Someone is going to walk away with $1,000 per month and $10,000 in October just for signing up. Sign up takes all of thirty seconds. I wish I knew about this site when I was going to school.

How to register: go to www.scholarshippoints.com click on Login/Register. That’s it.

Now here is the coolest part. You can accrue points like a lottery to increase your chances of winning the monthly scholarship awards! You can take surveys, post blogs, do a scavenger hunt on the website; the list goes on and on. You can also elect to do none of the above and just register once and be done with it. It’s completely up to you.

We all want something for nothing, and some of us will get it.  Will you be one of them?

People say to me Dave, because that’s my name, they say Dave can I have a portion of my federal Stafford or Plus loans forgiven? That’s when I hit high gear and impress them with my ready knowledge and quick wit.

I figured since I’ve been fielding this question a lot recently it might be a good idea to publish the bible you see below for your benefit. Bathe in my knowledge.

Stafford and PLUS Loan Discharge and Cancellation Summary Chart

Information provided by the Department of Education.

Portfolio Recommendations for you.

I’m bringing sexy back! Below is what I refer to as my Sexy Six. These are the six items/accounts you simply must have in today’s money hungry world.

1. Checking account: Good for paying bills, setting up direct deposits from your work, paypal accounts, etc.

2. Debit Card: Perfect for emergency situations. Just be mindful of fees. Most don’t charge if you go to one of their ATM machines, but most others do charge a minimal service fee.

3. One major credit card: Good for online purchases, renting a car, and other conveniences. Not to mention it helps build credit!  If you are looking for a credt card you can go here http://www.studentplatinum.com/

4. Interest bearing Savings account: Especially for students. It’s good to have a second account (separate from a checking) where you can save money. Hence the title – savings account.

5. 529 Account: Ideal if you are a parent saving money for your child’s college education. Has many tax benefits and allows you to stay in control of how the funds are disbursed.

6. IRA / 401K account: One of the best ways to save money for your future. These range greatly. Having a diversified portfolio is key.

Did I miss something you feel is a MUST? Leave a comment and let me know!

StudentPlatinum.com has created a useful guide for those of us who don’t understand as much as they should about their credit. More importantly, the site guides you through the steps you will need to improve your credit score to insure you qualify for student loans. Visit:

http://www.studentplatinum.com/improve-credit-score/

Remember, when applying for private student loans, a qualified cosigner helps you to get approved with the best rates and lowest fees. And always maximize scholarships and federal student loans first!

One of the most common questions I receive is, “Am I eligible for a federal loan?” The following eligibility criteria comes directly from the Department of Education.

U.S. Citizen

U.S. national (includes natives of American Samona or Swain’s Island)

U.S. Permanent resident who has an I-151, I-551, or I-551C (Permanent Resident Card)

If you’re not in one of these categories, you must have an Arrival-Departure Record (I-94) from U.S. Citizenship and Immigration Services (USCIS) showing one of the following designations:

“Refugee”

“Asylum Granted”

“Cuban-Haitian Entrant, Status Pending”

“Conditional Entrant” (valid only if issued before April 1, 1980)

Victims of human trafficking, T-visa (T-2, T-3, or T-4, etc) holder

“Parolee” (You must be paroled into the United States for at least one year and you must be able to provide evidence from the USCIS that you are in the United States for other than a temporary purpose and that you intend to become a U.S. citizen or permanent resident).

If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you’re not eligible for federal student financial aid.

If you’re in the United States on certain visas, including an F1 or F2 student visa, or a J1 or J2 exchange visitor visa, you’re not eligible for federal student financial aid.

Also, people with G series visas (pertaining to international organization) are not eligible for federal student financial aid.

The more you know the farther you’ll go!

Here’s a look at earnings by educational attainment of the population 25 years and over according to the U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement.

Over a lifetime a person with a B.A. will earn nearly double that of someone who is a High School graduate.

Of course it is expensive to go to school. If it was free I think most of us would go. Here are some suggestions on helping to reduce the cost of education.

Lower-cost schools: If you are looking to obtain your B.A. than you may want to consider a two-year community college before transferring. Community colleges tend to a lot less expensive.

State Higher Education Agency: Contact your state Higher Education Agency about any aid program or scholarships sponsored by the state.

Tax Breaks: The interest accrued on your school loans is tax deductible. The maximum credit is up to $2,500. You may also qualify for the Hope or Lifetime tax credit.

Scholarships: Pay with someone else’s money. We have a great scholarship search engine you should browse and we even give out monthly scholarships here with nothing more than signing up required. No essays, no merit, just signing up!

Federal Loans: It is always best to obtain federal loans over private student loans as the benefits and interest rates tend to be more favorable to students and parents.

Go exercise that mind of yours; you’ll be making more benjamins in the long run!