Student Loan News, Updates and Blog Posts

They say March comes in like a lion and goes out like a lamb, but that’s not true at all! One lucky winner will be roaring on March 31 after winning 10K!

Who remembers the $10,000 Pyramid? Anyone? It was the original game show hosted by Dick Clark in 1973 before it later became the $25,000 Pyramid in 1982. I’ve seen the reruns on the Game Show network and it looks challenging. You go head to head against an opponent (with your celebrity counterpart) before you step into the Winners Circle and have 60 seconds to get six clues right to earn your 10K. It’s a brain strain for me. Personally I’d prefer something a little less pressure packed. And on that note, what if I told you that scholarshippoints.com offers students a chance to win 10K with little brain strain at all? Would you be interested? Of course you would!

On March 31 the Student Loan Network will be awarding one lucky student 10K! That’s right, $10,000 big ones for college. You don’t need to hold a certain major, have a certain income, or be able to solve clues in a pyramid. You just sign up for free and enter. That’s it! To sign up (click here).

Can you believe how low the prime rate has dropped? The cost of borrowing funds is lower than a limbo specialist right now. I just love me a good recession.

As of today the prime rate currently stands at the bargain basement price of 3.25%. The last time the prime was this low Dwight Eisenhower was our commander and chief. The primes 50-year low makes private loan products very attractive right now.

For those students who’ve exhausted federal loan options and are in need of a private loan (click here). The interest rate is based off the prime which ranges from ½ point below prime, for those with stellar credit, to 4.75 points above prime for those with less than spectacular FICO scores.  Keep in mind that a co-signer is required.

In addition, like a federal Stafford loan the loan is fully deferrable until six months after school.

There is a new economics stimulus Bill that has been introduced into the House of Representatives, that could potentially increase your student aid package that you receive from your school.

The stimulus bill, would be part of the “American Recovery and Reinvestment Bill of 2009″ which is being designed to hopefully save millions of jobs, jump start the economy, and (cross your fingers) give you more financial aid:)

Here are the details:

• Raise Pell grant maximum by $500 (from $4,850 to $5,350)
• Increase unsub max amounts by $2000
• provide $490 million dollars extra for work study for undergrad and graduate students
• Provide $50 million to help the Dep’t of Ed administer new and surging student aid programs through this ever changing educational environment

Sounds pretty good to me…except the Stafford loan sub and unsub limits still don’t come any where close to covering tuition at a private university. Thoughts on this new proposal?

First off, your school and federal government both require that you complete a student loan exit counseling interview if you took out any federal student loans while in school. Failing to complete your exit counseling interview may prevent you from receiving your diploma or obtaining your transcripts to attend another school. Needless-to-say, it is of paramount importance that you complete an exit interview.

So what is it? Basically exit counseling covers a number of topics including the necessity of paying back your student loans, deferment options, reasons for loan cancellation, and identifying who your lender is. It’s amazing to me how many students don’t know who their lender is, but I guess out of sight out of mind.

Exit counseling is important because it provides you with vital information on how much you owe and how to best manage your loans once you leave school. It also outlines all of your rights and responsibilities.

Exit counseling is essentially the book end to the entrance counseling you completed when you began school.

Five most recent student loan help blog posts:

A scholarship is defined as a sum of money or aid granted to a student, because of merit, need, or other, to pursue his or her studies. That seems pretty straight forth, with the exception of the “other” category. It is this category I would like to discuss further.

When I was going to school in the early 90’s I filled out paperwork, wrote essays, and hoped my poverty line upbringing would entitle me to some free money. And while I did get some Benjamin’s it wasn’t near enough. Now fast forward to 2009. I work for a great company that is GIVING AWAY thousands of dollars each month for FREE! That’s right, no essay, no interview, no FAFSA form, just you. We don’t care if Mom and Dad make $20,000 or $200,000 per year – you’re in the running!

We’re an equal opportunity giver awayer, well kinda. You can accrue daily points simply by logging in, reading a blog to get a code, or by taking a survey. The more points you collect the better your chances of winning. You then enter your points into the monthly drawings. We give away between $3,500 and $10,000 per month! We’ve come a long way since our $250 per month pledge a few years ago.

Get on board. Win some cash. We’re way cooler than the Red Hot Chili Peppers who like to give it away, give it away, give it away now.

To register to become a scholarshippoints.com member (click here).

It seems the frustration level is rising. Times are tough, people are losing their jobs, and schools are raising tuition costs. Lenders are changing their portfolios, trying to stay afloat. All of this makes it very hard for a student to get a loan they once got in the past. Gone are easy to receive International school loans, gone are the private consolidation loans, gone are the loans that pop up in your mailbox. You can still obtain a loan, but it will most likely be different from any private loan you have had in the past. It may also require you to have a cosigner, even if your credit score is perfect.

This frustration is real, and it’s resulting in some students dropping out of school, even if its just for a semester while they get all their ducks in a row. So the question is what to do, how to prepare accordingly. If you relied on private loans in the past to pay your tuition, check with your school to make sure they will accept private “school certified” loans…as this seems to be the most prevalent loan in the market right now. If they do not handle those loans, then I would suggest looking into a cheaper state school, which you can afford with just Federal loans.

The biggest mistake I made, and others make, is going to a school for the name….and unless you are going to a Harvard or Yale, you very well may regret it in the future. Assuming large amounts of debt, and not being able to pay it will affect you for the rest of your life.