StudentPlatinum.com has created a useful resource for students and parents who are wondering what they can do to improve their credit. The primary benefit of improving your credit is that you can secure lower rates and more favorable terms on loan and credit cards. Get more information on how to Improve Your Credit Score at:
http://www.studentplatinum.com/improve-credit-score/
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.
The Financial Aid Podcast is hosting a select group of financial aid, media and industry leaders to participate in a live podcast addressing the recent news regarding the credit crunch and student loans. Learn how you, as a student, parent, or family member can pay for college in 2008. Student questions such as the following will be addressed:
* What is the current status of the student lending market? Will loans be available to me?
* I keep hearing that loans might not be available from some lenders - what does that mean for my Stafford loan?
* What is the government doing - or what should they do - to help make paying for college a reality for most students?
* Where can I find scholarships, grants and other financial assistance?
* What do “tighter credit requirements” mean to me?
Show will air live April 9 at Noon EST.
Register Now to ask your questions in advance!
Is money the root of all evil? I guess it depends on who you ask. If you ask the man with all the money he’ll sing you a happy tune and do a little dance. If you ask Mr. Bojangles, on the other hand, you may still get the dance, but he’s just dancing for your spare change.
In recent weeks I have been preaching the power of discipline and the rewards of time, but I know my target audience doesn’t want to hear that. You want the Wii, iphone, and whatever the latest gadget is right now. And I can’t say that I blame you – I want them too. The problem with having everything now however is that you have to pay later, and pay dearly you will.
Let’s say you purchase the iphone and Wii without any of the frills. That will run you about $1,000. That’s a lot of mucho dinero. Now let’s say you put them on your credit card earning 9.9% (many of my friends have cards around 13%). If you make minimum payments it will take you about 5 years to pay it off and it will be double the cost!
Waiting use to just apply to your wedding night, but not anymore. So wait to make that purchase. Throw down the cold hard cash after you’ve saved up; you’ll save yourself hundreds of dollars in the process. Before long you’ll be the one tossing your spare change into someone else’s Mr. Bojangles tip jar as you hum along your merry way.
The Financial Aid Podcast has a special episode today - financial aid and distance learning options for active duty soldiers. If you or someone you know is currently on active duty, even deployed overseas, their education can continue.
Application is fast with no GPA or other requirements
Quincy, MA –The Student Loan Network, an Edvisors Company (www.edvisors.com), is marking its 10th anniversary by sponsoring the Ten-Year $10K Scholarship - a special $10,000 scholarship to be awarded in the first quarter of 2008. “We are celebrating ten years by giving back to our students. It is becoming increasingly difficult to pay for the rising cost of a college education. Our goal for the last ten years has been to help students find the right solutions - from scholarships and grants to federal and private loans,” said Joe Cronin, President of the Student Loan Network. “What student couldn’t use a $10,000 scholarship?”
Any current college or graduate student - or anyone who will be enrolled in 2008 - is eligible for this scholarship. By registering at www.studentloannetwork.com/10k, students will receive one entry. The application is simple - it takes about half a minute to complete and has no essay, transcript, or GPA requirements. Each time someone refers a friend who registers, they will receive another entry. “The funds will be sent directly to the winning student’s school,” explained Cronin, “so our only requirement is that the student will be a full-time student during 2008. It’s important that these funds are used for tuition and other essential education expenses, and sending money directly to the school ensures that.”
Visit www.studentloannetwork.com/10k to learn more about the Ten-Year S10K Scholarship. Students do not need to be customers of the Student Loan Network to be eligible. No purchase is necessary.
About Student Loan Network
The Student Loan Network, an Edvisors company, is one of the nation’s fastest growing providers of student loans and related information. Since 1998 we have connected 25 million students and parents with over $1 billion in scholarships, grants and federal, private and consolidation loan funding. To help make the confusing and stressful financial aid process easier, the Student Loan Network also delivers helpful information, including the award-winning Financial Aid Podcast, a multitude of financial aid-related blogs and the monthly Financial Aid Newsletter. Learn more about the Student Loan Network at http://www.StudentLoanNetwork.com.
Shelley Rep from NCHELP (NCHELP.org) posted the following:
The Congressional Budget Office has issued its estimate of the cost to the federal government of H.R. 4137, the College Opportunity and Affordability Act of 2007, as approved by the House Education and Labor Committee on November 15. This bill represents the House version of Higher Education Act reauthorization. In contrast to the budget reconciliation legislation enacted in September (which was a cost cutting and spending bill), the HEA reauthorization is referred to as a policy bill.
According to the CBO, the bill (if enacted) would increase direct spending by $75 million in 2008 and decrease direct spending by $27 million over the 2008 to 2017 period. One of the “savers” in the bill is the change in the definition of “cohort default rate”. The bill includes an amendment offered by Congressmen Grijalva (D-AR) and Bishop (D-NY) that would revise the definition of cohort default rate by adding to the period of time in which a default is counted as part of a school’s cohort default rate. Right now, a borrower default is included in the rate only if it occurs during the fiscal year when the loan enters repayment or the following year. The amendment would add one year to this period. Schools are subject to losing eligibility to participate in Pell and the student loan programs if their default rate exceeds 25% for three years. While no schools have been subject to this sanction in recent years, that could change if the amendment were included in final legislation.
CBO projects that this change would reduce the number of schools eligible to participate in the student loan programs, thereby reducing direct spending by $27 million over the 2008 to 2017 period. Accordingly, all the net savings in the bill are attributable to the change in the cohort default rate definition.
The CBO cost estimate also points out that the bill reauthorizes and amends many of the discretionary programs, and creates new discretionary programs. Discretionary programs require annual appropriations. CBO estimates that implementing these programs would cost $97.4 billion over the 2008 to 2012 period.
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An interesting way to balance the budget? Submit your comments and/or thoughts.
Ever since I was a teenager my father, Stephen E. Bonvie, spoke these eloquent words, “The power of disciple the rewards of time.” He spoke these words in context of saving money. Of course I was caught in the age old conundrum of having the knowledge and game plan at age 15, but not having the means by which to execute these words. As you get older you tend to possess the income, but have already let valuable years pass you by. It’s a tough paradox. Honestly, most of us struggle just to keep our heads above water, and loans serve as the perfect bridge to get what we want. We are a buy now pay later society. We take out loans for everything these days. We take out loans for automobiles, homes, computers, and education; just to name a few. The key is to take out loans on assets you forecast will appreciate over time - like education.
It’s been awhile since I’ve posted to this blog mainly because it has been very busy at the Student Loan Network. We get requests for help in lots of ways but mostly by phone. June, July and August our call volume spikes from students, parents, schools, lenders, or other industry partners. Loan consolidation has been the hot topic for awhile now with borrowers. Recent graduates want the most affordable repayment plan with the best savings so they call up and pick our brains about loan consolidation. Also, during peak, borrowers are busy completing promissory notes, so we’re getting calls from students about how to fill out our online application for the Stafford, Plus, and GradPlus loans. Personally, it is my favorite time of the year because I really feel like I am making a difference in the life of a student. Well, need to run. Sorry so short but the phone is ringing.
The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans
