Student Education Loan

ASU student loan defaults among lowest in nation

2008-11-20T02:20:00.000-08:00

Once again, Athens State University students fare better than the national average on student loan repayments, according to recent U.S. Department of Education figures.

But according to Athens State University’s Director of Financial Aid Sarah McAbee, the default rate for Athens State’s graduates was even less than half of the nation’s low percentage at 2.5 percent.

“Our alumni historically seem to be good credit risks for these federal loans,” McAbee said. “An affordable tuition, the maturity of our students, and the university’s commitment to assure a manageable debt upon graduation are all strong factors in the low default rate. I am always impressed in the manner in which our former students have fulfilled their financial responsibilities.”

To decrease the amount of debt incurred by their graduates, Athens State’s Office of Financial Aid identifies federal, state, institutional and outside funding sources available to students, including both grant and loan programs.

In addition, Athens State awards approximately 60 scholarships annually with the Athens State University Foundation and the University’s Alumni Association providing more than 100 scholarships awarded each year.

State approves $100 million deal for college student loans

2008-11-12T11:19:00.000-08:00

The state commission in charge of student loans approved a $100 million deal Friday to keep offering loans to students in Illinois.

The Illinois Student Assistance Commission met in Edwardsville and approved a unique arrangement with eight credit unions, including metro-east-based Scott Credit Union. The deal was brokered fairly quickly, with only six weeks from the beginning of talks to Friday's news conference.

Andy Davis, executive director of the commission, said he approached 12 major banks and at least half a dozen foreign banks to invest in student loans, but major lenders nationwide have bailed on student loans to shore up their financial walls during the subprime mortgage crisis. Some states, including Minnesota, Massachusetts and Pennsylvania, simply shut down student loan programs, though Massachusetts recently announced it would resume student loans after a mass bond sale.

The credit unions are a unique solution in the United States, Davis said.

College will be more affordable for thousands of Illinois students thanks to today's vote," said Donald McNeil, commission chairman. "This deal ensures that our college students will be protected from the credit crisis that paralyzed student lending in other states."

Student loans administered by states are guaranteed at 97 percent by the federal government. Illinois agreed to cover the remaining 3 percent for the credit unions, which has been approved by the Illinois Department of Professional and Financial Regulation.

Locally, 78 percent of students at Southern Illinois University and more than 90 percent of students at McKendree University rely on some form of financial aid.

Lynda Andre, assistant superintendent of Edwardsville District 7 and a commission member, said the deal will "protect Illinois students as consumers."

"By enabling students to borrow federally guaranteed loans instead of private loans, students get loans which are safer, more affordable and less-complicated," she said.

Canada student loans impoverish the future

2008-11-12T05:08:00.000-08:00

There's something seriously wrong with a country that allows its future - its students - to begin their adult lives weighed down by a mortgage-like debt.

Earlier this year, I received a student loan balance update informing me that in my quest for higher education, I have so far accumulated $30,000 in debt to my province and country. Upon graduation, I will be expected to pay about $400 a month - a sum that has been set for me, regardless of my state of employment.

Graduates are rarely able to pay these loans back in a timely manner. They are often shackled with tens of thousands of dollars in debt up to 10 years after graduation, when many are also trying to build families and save for their futures.

The Canada Student Loans Program has been taking advantage of na've, newly graduated high-school students by allowing them to withdraw upwards of $10,000 a year, without any introduction to financial management or a promotion of alternatives.

A 2007 study conducted by the Coalition for Student Loan Fairness, a group that advocates Student Loans reform, states: "Even people with mortgages or car loans rarely encounter the problems that graduates experience with the administration of student loan debt."

This same study found that CSLP loans are financed at prime plus five per cent, translating to anywhere from 8.5 to 11 per cent interest rates. This is more than double what it costs the government to borrow the money. And struggling graduates are being forced to pay higher interest rates than they would on a new car or even their mortgage.

Meanwhile, CSLP is annually turning a profit on their debt repayment program. The federal government expected the program to produce a $550-million surplus in 2007.

A study conducted by Winston Jackson, a former professor at St. Francis Xavier University in Nova Scotia, said student loans were just the beginning of an individual's financial problems.

Jackson found that graduates who took out loans in university make nearly 20 per cent less in terms of annual income than those who went through school loan-free.

Unfortunately, many students feel that they have no other option but to take out loans.

While Canada Student Loans imagines itself as a saviour to those who could not otherwise afford an education, reality is it's a for-profit agency more than prepared to saddle those same young students with debts that will follow them long into their adult lives.

In an age when the value of post-secondary education is so high that you almost can't get a job without graduating university, the government must be taking steps to ensure that Canada's future generations aren't being forced to live under the poverty line because of their degrees. Education should be increasing potential, not holding people back.

Fitch to Rate Panhandle-Plains Higher Ed Trust I Student Loan

2008-11-04T10:16:00.000-08:00

Fitch expects to rate Panhandle-Plains Higher Education Authority, Inc. Trust I Student Loan Revenue Bonds, senior series 2008A-1 as follows:

--$200,000,000 student loan revenue bonds, senior series 2008A-1 'AAA'.

For more information, see the Panhandle-Plains Higher Education Authority, Inc. Trust I Student Loan Revenue Bonds, Senior Series 2008A-1 presale report, available to all investors on Fitch's corporate site, www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Student loan stocks mixed amid broader rally

2008-10-24T03:14:00.000-07:00

Shares of student loan lenders and originators were mixed Friday even after a government plan to rescue the banking sector sent the broader markets surging on confidence that the credit markets will open up, allowing lenders to boost business.

The rescue plan would see the government buy, probably at auction, all of the bad mortgage loans that are clogging banks' balance sheets and spooking lenders from doing business with virtually any party because there is little transparency on which companies are affected and to what extent.

Partners LP Michael Taiano also noted that last night, the Senate voted in favor of the House bill voted on earlier this week to extend a government credit facility and put option for new Federal Family Education Loan Program (FFELP) loan originations by one year, effectively providing financing for FFELP loans originated for the 2009/2010 academic year.

SLM Corp., better known as Sallie Mae, surged 29 percent to $15.90, moving well above its 12-month low of $10 that it touched Thursday. It remains 70 percent off its high in the past year. Student Loan Corp. rose $9.50, or 10 percent, to $104.33.

First Marblehead Corp. initially gained in early trading, but gave up 6 percent to $3.52 by afternoon. While the stock has rebounded since the credit crisis almost forced the company it out of business last year, but shares are still down more than 80 percent this year.

First Marblehead, for example, had trouble selling packages of student loans that it initiated because investors were leery of buying any debt. That took away a large part of the company's business. It differs from Sallie Mae because it does not lend money itself and instead collects fees for processing loans.

Nelnet Inc. also rose sharply at the market open was has since retreated 15 cents to $15.10.

Getting a student loan, Is more challenging

2008-10-15T07:11:00.000-07:00

Rising tuition fees, coupled with the weak economy, makes it tough for anyone to afford college.

According to the College Board, the average annual bill to live and attend school full time at a four year private institution was more than $32,000 last year. That is $13,000 more than it was just ten years ago.

Nationally, 8.9 million students filed for aid during the first half of 2008. That is a 16.3 percent increase from last year.

The chaos in the financial markets has driven many lenders out of the student loan business altogether, leaving students looking for help wherever they can get it.

College life comes at a cost. Student, Koedy Brant told Action News, "I don't have enough money to pay for my college. I got thousands of dollars in scholarships and Cal grants and federal aid, but it was still not even close to being enough." That is why many college students apply for loans. But these days getting a loan is getting tougher.

"I'm in the process now. It's a long process to get the loan," said student Aileen Carroll. Some institutions have had trouble finding an on-going source of funding for student loans. "That market is the same market that funds our home mortgages and the other sources that have had some difficulty in the last few months," said Cal Poly Director of Financial Aid Lois Kelly.

Those same issues are having an adverse effect on student loan programs. Kelly adds, "What they are finding is that some of the lenders they might have used in the past no longer have the funding source, and so they can't lend to the students."

The student can choose to get a loan from another lender, but that creates another problem. Kelly goes on to say, "Now they have the potential complication of owing two different lenders, needing to be certain that they consolidate the loans so that in the future they won't have to make two separate repayments."

Financial advisors at Cal Poly told Action News there are loans available. Students just need to come in and speak with someone about what is best for them. Advisors encourage any student who needs help paying their tuition to stop by the Financial Aid department. Most everyone qualifies for a student loan.

Corrections Officer Pleads Guilty In Student Loan Scam

2008-10-08T11:29:00.000-07:00

A Warren County corrections officer admitted to her role Tuesday in a student loan scam.

Linda Abshear, of Lebanon, pleaded guilty to grand theft, forgery and telecommunications fraud, and a judge sentenced her to two years in prison.

Prosecutors said Abshear played an instrumental role in obtaining more than $100,000 in student loans from Sinclair College for herself and two other people.
Amanda Johnson, 25, of Lebanon, and Charles Caudill, 21, of Waynesville, were indicted with Abshear in June on a variety of charges.

Prosecutors said the three never attended the school, but instead spent the student loan funds on a new car and other items.

University heads want fees paid from student loans

2008-09-30T10:06:00.000-07:00

President of Universty will lobby for the introduction of an Australian-style student loan system when they meet Minister for Education Batt O'Keeffe tomorrow.

The seven college heads have decided to oppose the return of the old fees regime, abolished in 1995, as problematic and inequitable.

Instead, they favour a system where Exchequer support for colleges would be "topped up" by student fees. But the cost of these fees would be lent to students and repaid once they start working.

They say this would help shift the burden of college fees from the parent to the student who actually benefits from higher education.

In an article in today's Irish Times, Ned Costello, chief executive of the Irish Universities Association (IUA), representing the seven presidents, writes: "University heads have carefully weighed up the pros and cons of the various approaches and believe that a replication of the previous fees regime would be wrong."

A senior university figure said: "We don't want a new fees regime which is messy and poorly thought out. This is a once-off opportunity to get things right through a developed system of top-up fees and income contingent loans."

Last week, the Minister said the 33,000 millionaires in the State should be asked to pay university fees. He stressed that any new fees regime would only apply to the wealthy and those with a family income well in excess of €120,000.

University presidents say the issue of who is "wealthy" is open to debate. Punitive fee levels for a small number could see a brain drain of Irish students overseas, they warn, but a low income threshold would be unfair and unjust.

A combination of fees and loans would "build a system which delivers both quality and equity", they say.

The Australian model has been praised as an effective and fair means of generating income for higher education. Key features of the model favoured by Irish university presidents include:

• Colleges charge "top-up" fees to supplement support from the State;

• All students have the option of taking out a loan to cover the cost;

• Repayment is made once the graduate is in employment;

The amount paid is linked to income. Only those above a specific income threshold are liable to fees.

College heads say significant public consultation will be needed before the system can be implemented. This, they say, could be done as part of the new national strategy for higher education.

It is understood UCD president and IUA chairman, Dr Hugh Brady, will tell the Minister that the funding crisis has reached a "tipping point".

The Minister has ordered a 3 per cent cut in payroll costs and a 50 per cent cut in promotional activity. Dr Brady is expected to warn that cuts in student services and less popular courses will be inevitable.

VIEWPOINT: Better ways to ease student debt-2

2008-09-20T03:42:00.000-07:00

The credit’s value should be set high enough to have an impact. I’d suggest $500 a year for individuals age 25 and under who have earned an associates’ degree within the previous 10 years; $1,500 a year for individuals 30 and younger who have earned a bachelors’ degree within the previous 10 years; and $2,500 a year for individuals age 35 and under who have earned a new graduate or professional degree within the previous 10 years.
The tax credit would be a rollover credit, meaning that unused credits could be used in future years. A rollover program would increase the affordability of the program without decreasing the overall long-term economic benefit offered to individuals.
The rollover credits would not expire but would be forfeited if the individual moved away. If the person returns, he/she could start accrue credits once again per the criteria.
Gawrylow is the state policy director at Americans for Prosperity of North Dakota.

VIEWPOINT: Better ways to ease student debt

2008-09-14T03:37:00.000-07:00

We’ve seen dramatic increases in college tuition and student fees here in North Dakota. These, however, are symptoms of greater problems caused by a lack of accountability.

It’s no surprise that about the same time the Legislature abdicated its power to the Roundtable and the State Board of Higher Education, these costs started to spiral out of control.

As of 2006, college graduates in North Dakota had the third-highest debt upon graduation, according to the Project on Student Debt. We need to look for ways to reduce the cost of college education for students, the amount of debt those students carry after graduation and the overall cost of government to those graduates.

The cost of higher education for students has more than doubled at all state-run universities and colleges during the past decade, while taxpayer funding has increased by 50 percent in the same time. By increasing the cost to taxpayers and students alike, we continue to price North Dakota out of the market.

There are a few ways we can address the student debt-load issue without increasing spending.

n Increase the grace period for student loans.

Currently, each graduate has six months from the time of graduation before the first payment is due. The Legislature should extend this grace period to one year to allow more time to find a reasonable job in North Dakota and get on their feet.

n Reform the Bank of North Dakota’s student loan practices.

One-third of all Bank of North Dakota profits ($51 million total profits in 2007) are derived from the Student Loan Department. This department should be converted into a not-for-profit operation.

The bank must be allowed to charge an interest rate equal to operating and administering the student loan programs. However, there is no need for a state-run bank to be adding to the debt load and prolonging the payoff of student loans.

n Create a higher education tax credit.

In an age when education costs were paid in the year incurred, treating those costs as a tax deduction effectively encouraged people to go to college. But with the cost of higher education soaring, the costs are much higher than most can afford in a given year. These days, the costs often take the form of student loans, which North Dakota’s college graduates incur at or near the nation’s highest levels.

At the same time, the economic impact of higher education continues to grow. A college graduate may be expected to pay more than $100,000 more in state and local taxes than a peer without a college degree over a lifetime.

We must encourage individuals who have earned a bachelor’s degree to live in the state with a higher education tax credit. The credit would be claimed by those individuals who have earned their bachelor’s degree at a North Dakota college or university within the past 10 years and have established residency in North Dakota during those years.

The credit would be accessed through individual tax filings. In that way, it would not require any new department or agency.

Danger Lurks When Shopping for Student Loans-2

2008-09-08T03:31:00.000-07:00

Borrowers took out $17.1 billion in private sector loans in the 2006-7 school year, according to preliminary College Board figures. Part of what makes private loans different from other student loans is that rates can range wildly, by several percentage points, even with one lender.

To quote a rate, lenders check an applicant’s credit history. And every time a shopper asks a lender for a rate quote, it can show up as another inquiry on a credit report.

Lots of inquiries send the wrong signals to the formulas that create the popular FICO credit score that Fair Isaac administers, namely that borrowers may be applying for multiple loans because they’re financially troubled and potentially going bankrupt.

While Fair Isaac has mined years of data to determine that people making a bunch of mortgage and auto loan applications over a short period are almost always innocently shopping for a loan, it hasn’t declared student loan shoppers similarly safe.

One reason is that the company doesn’t have a big pile of private student loan data to mine. These loans are relatively new, and not many people shopped around for the best rate before the student loan scandals erupted.

So, in theory, how much could credit scores fall when people shop for loans? Fair Isaac says that each inquiry will generally not cause more than a five-point drop, though it may be more for a student with a short credit history.

Lenders generally check credit reports with only one of the three main credit bureaus. If a lender examines only one such report, an applicant avoids damage on the other two bureaus’ records. Then again, if all the lenders check with the same credit bureau, the damage may be especially high there.

Here’s Fair Isaac’s problem with this whole discussion: It doesn’t believe that any damage occurs most of the time. It believes that the three big credit bureaus don’t classify most student lenders specifically enough for the credit scoring system to recognize them. As a result, those inquiries end up in a general category that gets the same treatment as auto and mortgage inquiries.

Danger Lurks When Shopping for Student Loans

2008-09-06T03:25:00.000-07:00

When college financial aid officers got into trouble last year for accepting gifts from lenders, the moral of the story was clear: You could easily overpay for your student loan by simply borrowing from a college’s recommended lender without first shopping around.

There is just one problem with comparison shopping for a private student loan. Doing so may damage your credit score. Since lenders quote higher interest rates to applicants with lower scores, some students could end up paying thousands of dollars more in interest over the life of their loans.

In few other areas of consumer life are you at risk of being penalized for seeking out the best deal. Indeed, mortgage and auto loan seekers who comparison shop within a relatively short period of time do not see their credit scores suffer. But Fair Isaac, the company that helps credit bureaus calculate credit scores, does not extend the same break to private student loan applicants or their parents, who often co-sign for loans.

The basic inequity here — the fact that people borrowing money for higher education are not given the same benefit of the doubt as people shopping for mansions and BMWs — is unfortunate enough. But the real head-scratcher is how little anyone in the industry seems to know about how often students and their parents suffer damage. Fair Isaac thinks it’s rare, if it happens at all. Lenders and student loan brokers think it’s common.

The disagreement wouldn’t matter if Fair Isaac bowed to the will of the New York State attorney general’s office. The office has been investigating the student loan industry for more than a year and has asked Fair Isaac to treat student loan borrowers like car and home shoppers. So far, Fair Isaac has refused to change its policy.

This issue matters because even a small credit score decline can lead to a more costly interest rate. Every point counts at a time of tightening credit standards, when many lenders have been requiring higher minimum credit scores. In addition, banks have been getting stingier with another source that parents tap for tuition money, home equity loans.

How did it come to pass that 18-year-olds were vulnerable to paying more because they shopped around? To answer that question, and develop strategies for credit score damage control, you need to know a bit more about the worlds of student debt and credit score algorithms.

Concerns About Access to Student Loans Persist, Study Finds

2008-08-30T12:37:00.000-07:00

Some financial aid administrators have lingering concerns that students may not be able to get the student loans they need to pay for college this year despite recently passed federal legislation designed to improve students’ access to those loans, according to a recent survey.

The survey, released this week by the National Association of Student Financial Aid Administrators, showed that NASFAA members who participated in the survey felt that the Ensuring Continued Access to Student Loans Act, HR 5715, may help to alleviate a student loan shortage in the short-term but that a long-term solution is still needed.

More than half of the financial aid administrators who responded to the survey said they had been dropped by at least one lender in the Federal Family Education Loan Program, even though that same lender is still offering student loans to other institutions. Several lenders in the FFEL program announced last spring that they would stop offering student loans to colleges with high default rates, low loan volumes, or both — a practice that 60 percent of the NASFAA members who responded to the survey say is discriminatory and should be prohibited by Congress.

Survey participants were split over the issue of private student loans, which are not backed by the federal government. About half said they thought students would have a more difficult time obtaining private student loans this year but most agreed that the private student loan market has stabilized.

The survey, however, revealed that only a quarter of financial aid administrators have a backup plan in place to handle any problems should the federal and private student loan markets face further disruptions.

New program erases student loan debt

2008-08-28T12:28:00.000-07:00

If you're facing years of student loan payments but aren't making much money because you're working in public service, the federal government has some good news for you. A law that took effect Tuesday could allow you to have some of your college debt forgiven.

The debt-forgiveness provision of the College Cost Reduction and Access Act, enacted last fall, is designed to encourage college graduates to enter - and stay in - public service careers that many people might spurn in favor of better-paying jobs.

Here's how it works:

What will the provision do?

The program will erase any student loan debt - including principal and interest - that a public service worker has after making monthly payments for 10 years.

What's the catch?

You must remain in a qualifying public service profession for the full 10 years that you're repaying the loans to be forgiven. If you work as, say, a legal aid lawyer for nine years and then quit to take a job with a private law firm, you're disqualified.

What qualifies as public service?

Generally, the program applies to anyone who works full-time for a state, federal or local government - including police officers, firefighters, the military and public school teachers. It also applies to some people outside of government, including employees of tax-exempt, non-profit organizations and those working in emergency services, public interest law or public child care, health care or social work.

Does this apply to all student loans?

No. Only Stafford, PLUS and federal consolidation loans are eligible - and only if they are made through the U.S. Education Department's Direct Loan program.

What if I have Stafford or PLUS student loans that aren't part of the Direct Loan program?

As of July 1, anyone with a federally guaranteed student loan can convert it into a Direct Loan consolidation loan and thus qualify for the debt forgiveness option. For information on how to do that, go to loanconsolidation.ed.gov.

Should I consolidate all of my loans into the Direct Loan program?

If you think you'll be eligible for the debt forgiveness option, you might want to consolidate Stafford and PLUS loans through the Direct Loan program, but probably not Perkins loans, said Mark Kantrowitz, publisher of FinAid.org., a financial aid information Web site. That's because Perkins loans already have special features that can make them more attractive than consolidation loans, including heavily subsidized interest.

In addition, if you work as a math or science teacher in a low-income area, you can qualify for a far more generous loan-forgiveness program available only to Perkins borrowers. (The Perkins forgiveness plan erases 30 percent of the teacher's debt in the first two years and all of it within five years.)

Some loans, such as private student loans, can't be refinanced under the Direct Loan program, so they can't be made eligible for debt forgiveness.

Won't my loans be paid off in 10 years anyway?

If you choose standard repayment, you'll pay off your loan in 10 years. But if you have significant student loan debt and aren't earning a lot of money, a better option may be "income contingent" repayment. Under it, you pay significantly less each month - and sometimes pay nothing - depending on your income and how much you owe. That has the effect of stretching out your payments well beyond 10 years.

Every month you're in the income-contingent repayment plan, even when it requires no monthly payments, counts toward the 120 months required to qualify for debt forgiveness, according to the Education Department.

The less you pay each month under this repayment option, the more debt you'll have eligible for forgiveness after 10 years.

Do the payments that I've already made count?

If you already have a federal Direct Loan, any payments you made after Oct. 1, 2007, will count toward the 120-month requirement. Payments made before that date - or made to any lender other than the federal government - won't count.

Lender Jeered as It Departs Federal Student-Loan Program

2008-08-24T12:36:00.000-07:00

Washington — In this era of economic anxiety, college financial-aid administrators can often be heard worrying each time a student-loan company withdraws from the system of federally subsidized lending.

But there’s an exception.

MyRichUncle, which specializes in direct-to-consumer loans, stopped offering government-backed loans last Friday, and the response from college aid administrators appears to be barely restrained glee.

“Best news I’ve seen in weeks!” one aid administrator wrote to his colleagues on an electronic bulletin board.

Many aid administrators are angry with MyRichUncle over its business-building tactics, which include an ad on its Web site that promotes private student loans by depicting a lobotomized college student saying: “I didn’t use my brain. I went straight to the financial-aid office.”

MyRichUncle also gained a reputation for encouraging the investigation last year by New York’s attorney general, Andrew M. Cuomo, into the close ties between some loan companies and some college financial-aid officials.

A spokeswoman for MyRichUncle said the company was “pausing” its participation in the federal loan system until the Education Department begins buying up packages of loans from lenders, as promised by the industry-rescue legislation approved by Congress in May. In the meantime, MyRichUncle will continue offering its private student loans, which are issued without any government subsidy and are therefore often more costly to students than federal loans are.

“As always,” said the spokeswoman, Karin Pellmann, “we urge parents and students to thoroughly research their options when making education-finance decisions.”

Brandon Pierce, director of financial aid at Friends University, in Kansas, had one of the more measured responses to MyRichUncle’s announcement, saying he would “wish them the best in the private-student-loan arena.” Mr. Pierce also expressed his hope that MyRichUncle, if it returns to the federal program, “will decide to work with financial-aid administrators in providing students the best products, services, and benefits instead of against them by undermining their knowledge of the industry.” —Paul Basken

Findings to Help Reform Education

2008-08-20T12:35:00.000-07:00

According to a Nov. 28, 2006 article titled “State Legislators: American Higher Education in Need of Reform” that appeared in the National Council of Higher Education Loan Programs Inc.’s Daily Briefing, the commission’s recommendations include:

Define clear state goals: States need long-term priorities and a public agenda for higher education that links higher education to overall state economic goals.

Rethink funding: Over the years, states have reduced their share of overall higher education costs, and as a result, the share of costs for students, families, and institutions has gone up. Some states may decide to spend more money. All states need to spend money more wisely.

Rethink student aid: States should examine their merit- and need-based financial aid programs to ensure that they are well balanced, reward students who are efficient, and help adults and part-time students.

Help reduce borrowing and debt: Two out of three students graduate with debt, and the average debt is $17,250. Ten years ago, it was $8,000, adjusted for inflation. Legislators must find a way to reduce this drain on the state economy.

Talk to the education financial advisers at NextStudent. They have all the information and advice you need on student loans.

Be sure to tune in next Tuesday for my next blog about this week in student loans.

Polytechnic Students Bemoan Reduced Funding

2008-08-15T12:25:00.000-07:00

students who are receiving Government loans face a bleak academic future because of insufficient funding and loans from the Namibian Students Financial Assistance Fund (NSFAF) of the Ministry of Education.
The students claim that the funding that they receive from the NSFAF is barely enough to cater for half of their academic yearly fees.
There is a difference in sums of money allocated to students from the Polytechnic of Namibia and the University of Namibia, student at the PoN, reading for a qualification in either Accounting, Finance and Administration in the first year is entitled to a loan of N$9 500, in the second year it goes down to N$7 100, subsequent year it becomes N$7 300 and in the final year a mere N$7 000. At Unam, the situation differs completely, with students in the same field of study enjoying a steady rise of funding, according to the loan rates implemented by the NSFAF in 2006.
A first year student at Unam receives N$10 500, second year gets up to N$11 600 and year three N$12 500 and fourth and final year N$12 700.

UBS to back NH student loans

2008-08-10T12:19:00.000-07:00

A nonprofit that makes loans to thousands of New Hampshire college students is pressing its banking partner to step up so it can make loans for the school year just around the corner.
Swiss banking giant UBS AG, "turned their back on us just when we needed their support," the New Hampshire Higher Education Loan Corp.'s president said in a statement asking UBS to give it a line of credit.
Securities regulators in New Hampshire and other states are pressing and in some cases suing UBS and other big banks over the collapse in February of the market for auction-rate securities, a key source of credit for student loans.
Citigroup Inc. said it will buy back more than $7 billion in auction-rate securities and pay $100 million in fines as part of settlements with federal and state regulators.

New Hampshire has been investigating whether UBS violated securities laws in its dealings with the New Hampshire Higher Education Loan Corp., according to Mark Connolly, director of the state Bureau of Securities Regulation.

Student loan firm sued over end to 'repayment bonus' program

2008-08-05T12:15:00.000-07:00

A class-action lawsuit has been filed against St. Paul-based student lender Northstar Higher Education for allegedly breaking its contract with student borrowers.

The suit, filed Monday in U.S. District Court in Los Angeles, says the lender broke its contract by eliminating its "T.H.E. Repayment Bonus" -- a 0.75 percentage point interest-rate reduction -- to cope with the credit crunch.

Northstar suspended the benefit on Feb. 18, citing the failure of auction-rate securities it used to finance loans.

"While Northstar might be facing financial difficulties comparable to other banking institutions, this does not provide it with carte blanche to breach its contractual obligations," said the suit, which is seeking monetary damages and contractual interest-rate reductions for anyone who had a loan with Northstar on Feb. 18. The suit was filed on behalf of plaintiff Jennifer So of California by the law firm of Kabateck Brown Kellner.

Northstar has yet to receive a copy of the complaint. But in a statement, General Counsel Mark Lindgren said: "Northstar takes its obligations to its customers seriously and believes it has fully complied with the terms of its agreements. In particular, Northstar has always sought to provide its customers with the benefits from the T.H.E. Bonus but has never guaranteed that the bonus would be available under any and all market conditions."

Jon Austin, a spokesman for Northstar, said that the company is "confident that we communicated clearly and properly with our borrowers about all of their loan terms and that we will prevail against these baseless and reckless charges being thrown around by a contingency-fee law firm and its Beverly Hills PR firm."

Turmoil in credit markets has forced 120 lenders, including Northstar, to quit some loan programs, according to Finaid.org. Northstar temporarily ceased taking applications for federally backed loans in April but began accepting them again in recent weeks.

Another Hint of Student Loan Troubles?

2008-07-29T06:10:00.000-07:00

There's growing evidence that some student lenders were as overly enthusiastic as some mortgage lenders in the recent past. A revealing blog post by an employee of a company that makes private educational loans documents how lenders' dependence on Internet applications and computerized processing might have made it too easy for students to borrow too much.

Christopher Penn of the Student Loan Network says he dissuaded a potential commission-paying client from taking out $50,000 in student loans because Penn realized what he believes predictive software programs couldn't—that the student was probably paying too much for courses that were unlikely to increase his earning power enough to cover the $500-a-month loan payments.

Similar concerns about the industry were voiced last month by federal fraud investigators in Seattle. They charged that a ring of women who allegedly borrowed nearly three-quarters of a million dollars in fraudulent student loans took advantage of student lenders who were overeager and overly reliant on technology.

The credit crunch has forced many lenders to pull back and refuse loans to students they believe to be bad risks. It will take years to see if lenders have modified their software and lending rules too much, enough, or too little.

Legislators Called to Take Action

2008-07-20T12:26:00.000-07:00

The press release went on to quote Rep. Rob Kreibich, R-WI, co-chair of NCSL’s commission, “We call state legislators to action. They have the power to demand that we do better, to demand that we think of higher education not as the balance wheel of budgets, but as an investment in our future.”

Rep. Denise Merrill, D-CT, co-chair of NCSL’s commission, was also quoted in the press release as saying, “It is a national imperative that states reframe the message that higher education is vital to the success of our citizens, to the economic vitality of our states, and to the competitiveness of the country. States must take the initiative to reform higher education now, to avoid unnecessary federal intrusion. Each state’s systems, traditions, strengths and weaknesses are unique. States need the flexibility to set their own goals. Higher ed has always been a state responsibility and it must remain that way.”

The commission identified four specific ways legislators have contributed to problems in higher education:

They have not set clear goals and expectations for higher education.

They have not made higher education a legislative priority.

They have not exerted strong leadership on the issue.

They have funded higher education reactively, rather than strategically.

Current Education System Needs Strengthening

2008-07-19T12:26:00.000-07:00

The report, titled Transforming Higher Education: National Imperative—State Responsibility, said that state legislators must, “be at the center of a nationwide movement to identify the strengths and weaknesses of the current system, determine a public agenda for higher education, set clear goals, and hold institutions accountable.” The commission found that, on a nationwide basis, for every 100 ninth graders who enter high school, only 18 finish college within six years.

The Blue Ribbon Commission on Higher Education is comprised of a bipartisan panel of six Democrats and six Republicans. The National Conference of State Legislatures assigned this group with the task of examining trends and issues in higher education over an 18-month period. They were to focus on the roles and responsibilities of state legislators.

NCSL Asks State Legislators to Step Up When it Comes to Education Reform

2008-07-18T12:23:00.000-07:00

In a press release published Nov. 27, 2006, by the National Conference of State Legislatures, the final report of its Blue Ribbon Commission on Higher Education found that “more Americans must graduate from college if the United States is going to prosper in a global society.” Additionally, they see it as the responsibility of state legislators to make this goal a reality.

According to the report, “There is a higher education crisis in this country. The American system is no longer the best in the world. Other countries are outperforming us. At the same time, tuition and fees are skyrocketing and financial aid and loan programs aren’t keeping up. As a result, a post-secondary education is not accessible to many Americans. Students are falling through the cracks.”

USA Funds Introduces Loan Counseling for Graduate, Professional Students

2008-07-18T06:03:00.000-07:00

USA Funds(R), the nation's leading education loan guarantor, announces the introduction of USA Funds Grad Guide(SM), its new online loan counseling program for graduate and professional students. USA Funds Grad Guide is designed to address the unique financial issues faced by students pursuing graduate and professional degree programs. The program meets both Stafford and Grad PLUS loan counseling requirements.

USA Funds Grad Guide helps better prepare graduate and professional students to make wise decisions regarding their current education loan debt by providing them with the option to review their total student loan indebtedness to date. The tool displays aggregated student loan information from the Meteor network, allows the student to include information about additional loans, and summarizes Stafford, PLUS and consolidation loan information in one comprehensive view.

USA Funds Grad Guide entrance counseling is the newest component of USA Funds Loan Counselor(R), USA Funds' suite of counseling services to help student loan borrowers understand their rights and responsibilities and take control of their education debt. USA Funds Grad Guide provides the following features to help students navigate their options, plan a budget and understand the details of credit, including student loans:

-- A video adviser to explain big idea concepts for each topic.
-- Repayment and consolidation calculators.
-- An interactive budget calculator.
-- Information about credit scores.
-- Details of issues to consider before taking out student loans.

"As part of our commitment to graduate and professional education, we have tailored this counseling program for students pursuing advanced degrees," said Denise B. Feser, USA Funds senior vice president, customer relations. "USA Funds Grad Guide delivers information relevant to these students who typically incur larger student loan debts to complete their postgraduate studies."

USA Funds invites campus financial aid professionals to learn more about USA Funds Grad Guide and the other USA Funds Loan Counselor components by visiting the USA Funds booth during the national conference of the National Association of Student Financial Aid Administrators in Orlando, Fla., July 6-9.

Headquartered in Indianapolis, USA Funds is a nonprofit corporation that works to enhance postsecondary education preparedness, access and success by providing and supporting financial and other valued services. During the year ending Sept. 30, 2007, USA Funds guaranteed education loans totaling $25.8 billion for students and parents throughout the nation. USA Funds serves as the designated guarantor of federal education loans in eight states: Arizona, Hawaii and the Pacific Islands, Indiana, Kansas, Maryland, Mississippi, Nevada and Wyoming. USA Funds also invests $16.3 million annually in scholarships and outreach programs that advance its mission of support to higher education. For more information about USA Funds, visit www.usafunds.org.

Student loans come under spotlight

2008-07-13T06:01:00.000-07:00

HA NOI — Deputy Prime Minister Nguyen Thien Nhan will establish inspection groups to examine the implementation of student loan policies in various cities and provinces with extraordinarily high and low levels of outstanding loans, according to the Government Office.

Members of the inspection groups will include representatives of the Ministry of Education and Training (MoET), the Ministry of Labour, Invalids and Social Affairs (MoLISA) and Viet Nam Social Policy Bank.

The inspections are scheduled to be completed by the end of the month.

A one-year summary of the policies is expected before August 20 in order to improve the implementation of said policies by the time the new academic year begins, according to a Government Office notice issued on Monday.

The Deputy Prime Minister also required the Finance Ministry to provide over VND4.05 trillion (US$241 million) to the Social Policy Bank for student loans for the first semester of the 2007-08 academic year, by the end of November.

To increase the effectiveness of student loans, Nhan asked city and provincial people’s committees to provide accurate numbers of poor students eligible for student loans.

Meanwhile MoET and MoLISA are to make early predictions of the total number of admitted students at the entrance exams to help the Social Policy Bank work out next year’s demand for student loans.

The bank reported that by the end of May, almost 750,000 students have received soft loans worth a total of VND5.3 trillion ($312 million) since the policy took effect last October.

The number accounted for more than a quarter of the total 3.1 million students of higher education institutions and vocational schools nation-wide.

Students received VND800,000 ($50) a month at a monthly interest rate of 0.5 per cent.

However, MoET is considering raising the monthly supplement to VND1 million ($60) due to inflation.

Meanwhile the ministry is drafting a proposal to set a new tuition schedule for higher education institutes, as many poor students cannot afford the current rates.

Wholesale Educational

2008-07-10T14:53:00.000-07:00

Every parent wants his or her child to learn fast and grow up to become efficient and smart. Educational toys offer the best ways to help a child learn and have fun simultaneously. Parents who purchase educational toys for their children can save a lot of money by buying them at wholesale prices.

A wholesaler buys toys in large quantities from the manufacturers or importers. He sells smaller quantities to retailers, who in turn sell them to customers. Typically, wholesale rates are offered only to retailers who purchase the toys in bulk. However, there are times when a wholesaler sells these toys directly to the end user, namely the parent or teacher. There are a number of educational toys available at wholesale prices throughout the year. They are generally old stock that the wholesaler would like to dispose of quickly to make room for new models. Consequently, the wholesaler is inclined to sell them at cheaper rates.

The sale of educational toys at wholesale prices also happens during summer breaks or during festivals. When parents or teachers buy educational toys in large quantities, cheaper rates are offered to them.

There are many companies offering educational toys on the Internet at wholesale rates. The most popular educational toys now offered at wholesale rates on the Internet are kid's laptops. These laptops are a good buy, because they make little kids computer savvy at a young age.

There are also other electronic learning toys for kids of all ages that provide a complete learning experience. In the past, many parents were hesitant to buy educational toys for their kids because the prices were really exorbitant. The availability at wholesale prices has proved to be an incentive for parents to buy educational toys.

Educational Toys provides detailed information on Educational Toys, Children's Educational Toys, Educational Games, Educational Baby Toys and more. Educational Toys is affiliated with Reading Glasses.

Universal Technical launches $10 million student loan program

2008-07-08T05:59:00.000-07:00

. has developed a $10 million loan program to help students bridge the tuition gap in today's tight credit market.

Students who have exhausted traditional Title IV financial aid options or who are unable to qualify for credit-based loan programs are eligible, the Phoenix-based university (NYSE:UTI) said in an announcement Wednesday.

Loans will be originated by 1st Century Bank and serviced by ACS Education Services Inc. (NYSE:ACS). UTI will back the loans, assuring repayment.

"Traditional federal student aid and alternative student loans are still the first and best sources of funding for our students, but this program will greatly assist those who would otherwise be unable to pursue their education goals because of an inability to obtain reasonable loans through other sources," said Kimberly McWaters, UTI president and CEO. "Helping eligible students bridge the tuition gap on a limited basis is a good use of UTI's strong balance sheet and further enhances our capacity utilization."

UTI has additional programs to help students with tuition and expenses, including the recently created UTI Foundation. The nonprofit awarded nearly $400,000 in grants and scholarships so far this year and anticipates awarding nearly $1 million by the end of the year to students pursuing opportunities at UTI.

The UTI Foundation Student Emergency Fund raised more than $130,000 from employee fundraising events and contributions from the company, its employees and alumni to aid UTI students this year already enrolled.

Types of US Department of Education Loans

2008-07-05T14:59:00.000-07:00

There are three main possibilities when considering US Department of Education loans: grants, which are monetary gifts, student loans, and work-study programs where the money for education is earned. Only in the case of student loans does the money need to be repaid. Most federal grants are based solely on financial need, and some are given on a first-come-first-served basis, so it is important to apply as early as possible.

Work-Study programs are not technically US Department of Education loans, but they are a federally mandated way to receive financial aid to attend college. A number of work-study hours are specified as part of the financial aid package. These usually involve jobs working with non-profit companies or on campus, and pay a modest salary. The money earned can be used for college tuition.

True US Department of Education loans include the Perkins Loan, the Stafford Loan, and the PLUS loan for parents. Perkins loans have a particularly low interest rate and can be paid back over a time period of as long as 10 years. There are a limited number of Perkins Loans available to each school every year. The Stafford Loan has a higher interest rate than the Perkins loan, and doesn’t necessarily offer a grace period after graduation. However, there are more Stafford loans offered by the US Department of Education every year. Stafford loans are even available to students who don’t have a pressing financial need. Stafford loans may be paid off over a period of as long as thirty years.

PLUS loans are the final type of US Department of Education loans. They are offered to parents of undergraduates, as opposed to the students themselves. Payments on Federal PLUS loans start two months after the money is received, and can be paid off over a ten-year term.

About The Author

Mark Kessler's website offers a comprehensive free resource of college financial aid. Don't even think about paying for school until you've read this about Consolidating Student Loans, as well as Alternative Student Loans, ACS, Bad Credit, and US Department Of Education Student Loans, including a variety student loan articles.

Cheaper, Bigger, and Cooler Student Loans

2008-07-03T05:58:00.000-07:00

Finally, students and parents can celebrate a little good news: It's getting a little easier and cheaper to borrow for higher education.

The government has responded to the credit crunch by allowing all undergraduates to borrow more money from one of the cheapest federal loan programs, cutting interest rates for needy students, and easing repayment for strapped parents. In addition, while turmoil in the financial markets has driven some banks out of the student loan business, it has attracted upstart companies that are now offering students help making alternative arrangements, such as borrowing from rich relatives. So with a little shopping around, students and parents should be able to find lenders offering at least a small discount on modest-size educational loans.

More money: New federal rules taking effect July l increase the amount that almost every full-time undergraduate will be able to borrow from the federal Stafford program to at least $5,500. The newly expanded federal Stafford loan program will allow upperclassmen to borrow up to $7,500. Students older than 24 or who are independent from their parents can borrow at least $6,000 more than that.

The Stafford loan will cost students no more than 6.8 percent a year in interest and 2 percentage points in fees, for a total annual rate of 7.25 percent. And despite the credit crunch, some lenders are still waiving the fees and offering other small discounts.

Lower-cost loans: In addition, Congress cut the interest rate Stafford loans will charge students who qualify as needy to just 6 percent for the academic year that starts in the fall of 2008. It also has ordered further small cuts to the "subsidized" Staffords (which go only to needy students) in future years. Those reductions will cut the total cost of repaying the loan over 10 years by hundreds of dollars.

Best of all, nearly every student who fills out a Free Application for Federal Student Aid—even those who filled out a FAFSA just a few weeks before school starts and whose parents have high or low incomes—can receive a regular federal Stafford loan.

Once students have graduated, those who go into low-paid public service jobs may eventually get some of their education loans forgiven.

Payment flexibility: Parents are also getting a break under the new rules. Parents who take out a new federal PLUS loan—which can cover their child's full cost of attendance after considering other financial aid—will be able to defer payments until six months after the student leaves school. Also, parents facing financial difficulties because of the housing crunch or medical bills may now be able to get a PLUS loan, despite a poor credit record.

Although they offer some special goodies, such as free insurance, PLUS loans aren't cheap. Lenders can charge a maximum fixed rate of 8.5 percent a year plus 4 percentage points in fees, giving a true maximum annual percentage rate of 9.4 percent. (If a parent gets rejected for a PLUS loan because of credit problems, the student can borrow as much as $7,000 a year more through the Stafford program.) Education loan payments are tax deductible to parents with low and middle incomes.

That's why many parents with good credit, solid income, and home equity find that private loans are often better deals. Parents who can persuade a bank to let them tap their home equity despite today's housing and credit crunches may find banks willing to offer rates that start out as low as 4 percent in the summer of 2008 (though, of course, those rates and payments will very likely rise over time). Homeowners not subject to the alternative minimum tax may be able to deduct the home equity payments from their taxes.

Parents who don't want to touch their home equity may be able to find banks willing to make unsecured loans at similarly attractive rates. Discover Financial Services, for example, says it is offering borrowers with credit ratings in the top 20 percent private education loans at half a percentage point below the prime rate—which means it's charging just 4.5 percent in the summer of 2008. Of course, the payments on those loans will rise when prime rises, as it probably will.

Many parents also prefer private loans because they hope to eventually transfer the debt to the child. But advisers warn that although the student's name may be first on the loan, it can be hard to remove a parent's responsibility for the debt if the student ever defaults.

New and different: Several upstart companies have emerged to help students and parents looking for even cheaper and easier ways to borrow. Students who find a friend or relative willing to lend them college money can pay a small fee to Virgin Money or Greennote to do the paperwork to turn informal lending agreements into business deals that are billed and treated like bank loans. Fynanz is attempting to line up investors willing to lend to students they don't know. It typically demands students be backed by a cosigner.

Qualifying for US Department of Education Loans

2008-06-29T14:59:00.000-07:00

The qualifications include US Citizenship (some non-citizens with social security numbers are also eligible), financial need, possession of a valid Social Security Number, and proof of eligibility for higher education in the form of a high school diploma, General Education Development (GED) certificate, or similar. Furthermore, applicants for US Department of Education loans must be in good financial, academic, and legal standing. In other words, they must be registered with the Selective Service if required, they must not have defaulted on a student loan in the past, they can have no record of conviction on charges of sales or possession of drugs, and they must maintain a certain grade point average (GPA) to continue to receive student loans from the Department of Education.

US Department of Education Loans

2008-06-25T14:58:00.000-07:00

If you have heard about any kind of Federal financial aid for students, you are already familiar with US Department of Education loans. The US Department of Education handles all government aid for defraying the cost of attending college in America, from grants to loans. The first thing that you will need to do to apply for US Department of Education loans is to fill out a FAFSA, or Free Application for Federal Student Aid form. FAFSA forms compare the amount of money required to attend a specific college to the amount of money that can be expected to be paid by the family of the attendee. Any difference is the amount of money eligible for student aid.

Education Loans Found higher Degree To Boost Career

2008-06-20T14:55:00.000-07:00

In this information age, the best and the highest paying jobs are offered only to a privileged few, who are experts in their chosen fields. A superlative educational degree is an essential prerequisite to gain confidence of the employers and ascend the ladders of success in the fiercely competitive corporate world.
Education loans are available in the UK to persons, just starting their university education or to those already enrolled in a course. The lending agencies encourage people to improve their skills by pursuing higher education. While undergoing his chosen course, a person might be bothered by the living costs during that period, to relieve the applicant from this burden; education loans in UK not only provide for the tuition fees and the cost of the university education but also fund the student’s maintenance expenditures.
Such students can also receive the much-needed financial assistance from the loan agencies in UK. If, for any reason, a student has to extend the duration of his course, the lending agencies step in to fulfill the student’s requirement. An applicant who wants to pursue a course from a university situated in London will be entitled to a greater amount of education loan than the one who attends a university in a relatively smaller city. In the case of an independent adult learner, his income is the main consideration while deciding on the amount of education loan.
This process is also available via Internet. Many lenders facilitate online application for the education loans and that too with minimum documentation. The entire process might take a few weeks to complete. It will be appropriate if the person applies to the concerned lender well in advance. The applicant should also take into account the deadlines of applying for the courses and try to synchronize the loan application process with it.
The repayment of an education loan does not start immediately. A student can repay the education loan after he has completed his education. The installments have to be sent directly to the lender. The repayment terms for an education loan are quite lenient, and if a person is not able to find employment or his salary is below £10,000, his repayment is suspended until he gets a job and starts earning a higher salary.

Online Distance Education Loan

2008-06-16T14:54:00.000-07:00

Is your dream of having education through the internet about to be aborted? You don’t have to forego your education for lack of fund. There are many people like you that have completed their online education. Thanks to online education loan.

With an online education loan, you don’t have to worry financing your online educational pursuit. Financially, there are some out there that cannot afford the cost of online education. Never mind the people out there telling you that online education is cheap. The term “cheap” is subjective. What may be cheap to you may not be same with me. Everyone is on different income bracket. Contrary to the wide speculation that online education is not as expensive as traditional education, statistics reveal that lots of people are still not able to afford it. For instance, if you want to get a master degree online, you must be ready to part with more than $2,000. To some people, this is on the high side.

This is why many people are turning to online education loans. This is a loan that can help you pay for all for the required fees by your online school. In other words, you don’t have to break into a bank before paying for your online education.

But how do you get online distance education loan?

It’s very simple to get online distance education loan if you know how. I know of the best way to secure a loan for your online education. Many people are not exploring this and are therefore at the mercy of many lenders out there. The lenders give you the loan at cut throat rate that make you their slave. There is a better way of securing a loan to finance your online education.

It is assumed that you are working presently. Have a discussion with your employer on how he or she can give you online education loan. Contrary to popular opinion, many employers love employee who are striving to develop themselves. These employers will be more willing to lend you the money to get online education. He or she knows that you and the company will be the better for it after you’re through. However, some, I say some may ask you to sign an agreement that requires you staying with the company for some years. If this is okay with you, then take the loan and get your online education certificate without any problem.

What if you’re not working? The governments of some states or countries do give out loan to qualified students. If you search well, you may find some schools that give out loan to intending and qualified students. However, I urge you to go through the conditions attached with the help of an attorney before putting pen to paper.

Online education loan will make your dream possible. Just use the tips given in this article and you’ll surely be happy.

Ras Reed is a prolific writer that gives free information on online education. Get more info at Online Distance Education.

Higher Education as Key to Career Advancement

2008-06-10T14:52:00.000-07:00

Minneapolis workers overwhelmingly value higher education as key to career advancement, higher financial compensation and greater satisfaction with life according to a new Internet survey of working adults living in Minneapolis-St. Paul conducted for DeVry University.

Eligibility for Educational Loans

2008-06-09T14:51:00.000-07:00

Educational scholarships and grants are very much difficult to get. The reasons could be many. However, educational loans are less difficult to get. The student has to first try applying for federal loan. These loans have low fixed rates of interests. For the students who are in a bad financial situation they can be eligible for Perkins federal loans. Here the interest rates are not only low but the grace period is longer. The education loans help the students to plan the life after graduation. They make the student a more responsible individual as educational loans have to be repaid after the graduation.

To obtain the educational loan sponsorship there is no particular criteria or eligibility. A student who is in need of the educational loan sponsorship can approach the authorities who provide the educational loan. The loan amount can vary from one person to another depending on the kind of education one wants to pursue. The financial counselor would be the right person to advise the student on the type of loan he would need depending on the financial conditions.

The advisor would also advise the student on the repayment options. The student can either repay the amount while still in school or six months after graduation. There are institutions that offer education loans repayments upto ten years. The refund alternatives on education loans also include deferment, forbearance and consolidation. Though the educational loans are easily available, they are huge financial obligations. Therefore one should not rely on the educational loan alone for completing the education.

Types of Educational Loans

2008-06-08T14:50:00.000-07:00

Education loans helps to make the education plan of the student materialize. There are different types of student loans available under the category of education loans. These educational loans help to strengthen the future of the student. The types of educational loans available are

1. Federal Family Education Loan programme - here the educational loan is issued by the bank, credit union or the school.

2. Federal Direct Loan programme - the loan is issued by the department of education.

3. Private Education loans- here the loans are not endorsed by the government agencies. They are provided by the financial institutions. The private education loan programme is optimum for both undergraduate and graduate studies. However, the draw back of the private educational loans is that the rate of interest high and there is no grace period.

4. Student loan consolidation – the several loans are consolidated into one loan. This makes monthly payment easier and affordable. The repayment period is also longer.

Personal loans helping for students

2008-06-07T14:47:00.000-07:00

Amidst high cost of University education, many students are opting for personal loans to finance their education expenses. A report from Halifax says that nearly 30 per cent of the students polled were indebted in excess of 10,000 while around 50 per cent had more than 7,000 of debts.
It is important for the students to avoid expensive debts. Experts suggest that they should shop around while taking out personal loans. A responsible borrowing and regular repayments can help students in safeguarding their academic interests.
Sue Harper, head of student banking at Halifax, said: "Our advice to students is to budget carefully and to shop around for the best financial deals. The difference between the most generous interest-free overdrafts and the most expensive could be worth several hundred pounds over the course of your studies."
Consumer debt expert Melanie Mitchley said: "If you do decide to borrow money be aware of the amount you are borrowing and think about how you will repay it".
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.shakespearefinance.co.uk

Education loans can open new routes for your better future

2008-06-04T15:03:00.000-07:00

As children starts growing, educational expenditures also grow. In the present scientific world, there are many different fields where your children can explore. However, the primary requirement is money. You cannot compromise with your children's future. In such a grim situation, education loans could solve all your financial problems. Let your children explore the knowledge from the best universities. Education loans will take care of all financial expenditures.

Education loans are provided to UK students who have just started their university or have already enrolled for some courses. Education loans take care of all the expenditures including tuition fees, cost of university education, students maintenance expenditure, etc.

For applying education loans, you need to apply to your Local Education Authority. This can be done via Internet also. The authority before granting you the education loans will check out the loan amount, professional degree if any, etc. The professional or any other extra degree will give you the privilege of getting the loans from other competitive applicants.

Education loans will help you in achieving your higher degrees without being worried about the finance. However, education loans like any other loans are a big financial obligation. Education loans take care of all the educational expenses but you should not always depend on such loans. Nevertheless, education loans can help you in all possible manners.

Apply for education loans and go for your higher studies. Once you achieve the goal, you can earn a lot in return. So, come forward and obtain education loans for yourself or for your children to give them a better future.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Apply-4-loans as a finance specialist.

Education Loans to a Bright Future

2008-06-04T15:02:00.000-07:00

Education loans are very important for students pursuing higher education. The tuition fee of professional education is very high. Apart from tuition fee, there are several other expenses that students have to bear, i.e. cost of living that include hostel charges and food. For parents of many students, it is not easy to bear all these expenses. Therefore, students have to go for an education loan.

In the UK, education loans are provided by Student Loans Company. Student Loans Company is owned by the British Government and provides financial assistance to eligible students. To get a loan from Student Loans Company, students can apply through their local education authority in England and Wales. Students of Northern Ireland can apply for a loan through the Student Awards Agency for Scotland or their local education and library board.

Government offers graduate loans to graduate students to help them cover their expenses. Graduate loans are of two types – Stafford graduate loans and Perkins graduate loans. Stafford graduate loans are given to all students regardless of their financial position. Such loans are further subdivided into two – subsidized and unsubsidized. In case of subsidized loans, students do not have to pay interest whereas interest is payable by students on unsubsidized loans. Perkins graduate loans are offered to students whose financial position is not sound.

Besides government loans, students can take out a loan from banks, financial institutions or private lenders. You can take out a personal loan to finance your education. Personal loans are usually unsecured and therefore, they carry high rates of interest. If you own a house, you can take out a homeowner loan to finance your education. Homeowner loans are secured loans and carry low rates of interest. Homeowner loans offer all the advantages of a secured loan – low rates of interest, small amount of monthly payments, flexible repayment terms, etc. You can also take out a home equity loan to finance your education. Home equity is the present value of your house minus the unpaid mortgage balance.

You do not have to start repaying your education loan until you finish your course and start making a living. Once you get a job, you are supposed to repay your loan as per the terms and conditions.

Student Debt Consolidation Loan

2008-06-04T15:01:00.000-07:00

Education has become too expensive and we have taken out loans to meet expenses on education. After sometime these loans are unmanageable, because these are in large numbers. For this situation, student debt consolidation loan is particularly constructed for people like you.
Student debt consolidation loan is available to solve private college debt consolidation loan. The student debt consolidation loan is available with lot of advantages such as, you have to pay much lower interest, until you paid off borrowed amount, your monthly installment is lowered, flexible repayment option with no extra charges etc.

Student debt consolidation loans can also be availed for bad credit students who have suffered lack of attendance. This thing shows that lenders do not keen interested to provide loans to bad credit borrower that is why, they imposes higher interest rate compared to good credit borrower. But, you can get student debt consolidation loan at lower interest rate after selecting good lender and whose quotes are suitable for you.

Student debt consolidation loan can be availed in both forms secured and unsecured student debt consolidation loan. Secured student debt consolidation loan can be availed by placing your asset as collateral. Due to presence of collateral, lenders have less risk that is why he provides loan at lower interest rate. In unsecured student debt consolidation loan, you have no need to provide asset as collateral. Available within least time, because collateral is not required for valuation. A good option for tenants and pg students.

Before taking student debt consolidation loan make strong plan regarding repayment and follow it. It will help to improve your credit history. Lenders also give you option that if you fail to make repayment, then you have to pay late charge and can continue your repayments.
Now, you have no need to face too many hurdles before choosing student debt consolidation loan, because online method is available for you. Through this method, you can avail loan within least time.

Alex Jonnes is associated with Advise On Easy Debt Consolidation Loan. To find Student Debt Consolidation Loan, Debt consolidation loan, Bad credit debt consolidation, Debt Consolidation Loan Online visit http://www.easy-debt-consolidations.co.uk

Consolidating Student Loans Things To Consider When Choosing Student Loan Consolidation Services

2008-06-04T15:00:00.000-07:00

After I graduated college I had a mountain of debt. I had 4 different student loans all due at different times during the month. I was barely able to make all the payments, never mind remember when each one was due. When I first graduated it was also hard to find a good paying job right away. This made my stress level quite high as I didn't know how I would ever be able to pay off these loans. Fortunately I found a good student loan consolidation service which made my life a lot easier.

A good student loan consolidation service can reduce your monthly debt by as much as 60%. The interest rate and repayment times are all dependant on your credit rating and monthly income. I cut my monthly debt by around $400 when I consolidated, and it really helped me to start saving money.

One of the reasons you can save so much money is because you can choose to lengthen your repayment time by as much as 30 years. Even without an interest rate reduction, you should be able to save at least 40% on your monthly payments this way. The other thing I liked was that I didn’t need to think about 4 different bills every month with 4 different due dates. All I had was one easy payment a month. What a great way to start fresh after college. Once I got a good job I was able to make larger monthly payments and pay my loan off early!

When I consolidated my student loans my income to debt ratio also went down. If you don’t know your income to debt ratio is very important to banks when deciding if you qualify for a loan or not. Let’s say that you make $4000 a month and you have $2000 a month in bills. Your income to debt ratio would be at 50%. Most banks like to see your income to debt below 50% when deciding if you qualify for a loan and at what interest rate. Student loan consolidation services can reduce your income to debt ratio.

Consolidating my student loans was one of the best decisions I made in my early adult life. It allowed me to take my time in finding the right job and gave me peace of mind. If you are buried in student loan debt, then I highly recommend a good student loan consolidation service.

I am currently hosting a free website with loads of information on student loan consolidation services Please stop by at http://studentloanconsolidationservices.org for reviews and info on some of the best programs. We will also be adding a forum, so check back often !

Education loans helps to make Student Carrer

2008-06-04T14:49:00.000-07:00

However, due to the rising cost of college tuition fees and other expenses many students are finding it difficult to access education. However, today the banks and other financial institutions are coming forward to offer student loans. Apart from the educational loans sponsored by the banks, most of the students have to depend on the college grants and scholarships. Though the grants and scholarships have an advantage over the student’s loan, they are limited to certain students due to the shortage of funds.

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Finance loan for Studies Education

2008-06-04T14:42:00.000-07:00

1. Nowadays, it is extremely easy for students to get the education they desire. Education loans are helping many students realize their dreams. They help them to cope up with the rising costs in the market. With education loans, all the student needs to worry about is his grades. All other financial overheads are easily taken care of.
2. Lenders who allow students to apply for loans give them enough flexibility to choose the sort of loan they want. Students may use the education loan in any manner they desire. Some of the areas that an education loan covers are; tuition fees, accommodation, books and computers.
3. Many organizations are closely associated with educational institutions, offering special discounts and schemes for students of that particular institution.
Education loans can be arranged at low interest and can be paid back as and when a student gets a job. Because of this, the student does not need to worry about a part time job to pay off the loan. This makes an education loan a very viable option for most students. Scholarships can be extremely useful in paying back the education loan. Most education loans also provide for sudden requirements. Hence, the student is assured of having money in the pocket in times of an emergency.

Bad credit is never a problem. Even people with a bad credit history can apply for an educational loan. There are several agencies that specialize in such cases. Searching online is the best available option. One can easily compare and contrast the different rates that several agencies offer. This makes it possible for us to choose the agency that best suits our needs. These agencies work closely with the customer to find a suitable loan with easy repayment plans. A credit check is sometimes mandatory while applying for an education loan. A credit score is generated after a person enters the appropriate credit details. One can also consolidate existing loans through an education loan. One must always ensure that the loan is paid back on time as failing to do so might adversely affect one’s credit score.

Article Source: http://www.articlesbase.com/loans-articles/avail-finance-for-studies-with-education-loans-222281.html

About the Author:

Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances. He writes on loans. His ideas can help you rejuvenate your money. To find Bad credit personal loans, Secured loans, Unsecured loans, Wedding loans, Bad credit history loans visit http://www.ezpersonalloansuk.co.uk

Student Loan Corp. 2Q earnings fall 40 percent

2008-02-10T12:19:00.000-08:00

Student Loan Corp. said Friday second-quarter profit fell 40 percent, weighed down by an increase in its provision for loan losses.

For the three months ended June 30, the company reported net income of $42 million, or $2.10 per share, compared with $70.5 million, or $3.53 per share, in the year-ago quarter.

The company set aside $45.8 million during the quarter to cover bad loans, compared with $3.9 million in the prior-year period. The increase was driven by losses inherent in the higher risk, uninsured segment of the company's private education loan portfolio, Student Loan said.

Net interest income, the difference between how much it costs a bank to borrow money and how much it receives from lending money to customers, rose 16 percent to $119.4 million from $102.9 million in the second quarter of last year. The increase was driven by higher average loan balances, the company said.

Total other income, including fees and gains on loans sold, fell 32 percent to $41.1 million from $60.5 million. Results were hurt by a $29 million decrease in gains on securitized loans due to unfavorable market conditions.

Operating expenses rose 13 percent to $51.8 million from $45.8 million in the 2007 quarter.

Lower Interest Rates Make Student Loans More Affordable

2007-12-19T12:21:00.000-08:00

When it comes to paying for higher education, many students are finding that they are coming up short when they take a look at their tuition bill. The price of higher education continues to surge, far outpacing the cost of living at many institutions.

Lately, college students have received some good news when it was revealed that the interest rates for various college lending options has actually dropped. For example, the federal student loan program, called Stafford Loans, is leading the way by dropping from 6.8% to 6% effective July 1^stfor their subsidized loans, a particular type of loan available for all students, but often favored by those with a low-income.

Over the next three years subsidized Stafford loan rates will continue to drop until they bottom out at a rate of 3.4%. These rates apply to newly written loans, but not for loans previously issued. Unsubsidized student loans will continue to carry the 6.8% rate.

Students who have already completed their education and are in the process of paying off their student loans have received some welcome news too. Specifically, those students with federally guaranteed student loans issued before July 2007 are learning that now is an excellent time to consider consolidating their loans under the government’s Direct Loan program.

If former students consolidate their loans before the next rate change kicks in, they’ll pay a fixed rate of just 4.2% for the life of the loan. This is down significantly from the most recent 7.2% figure thanks to rate cuts made the Federal Reserve Bank over the past year.

Grads who fail to take action will continue to see their rates adjusted annually, depending on market conditions. Clearly, for people who want to get a handle on their debt, consolidating now makes sense.

For students taking out private student loans, there is good news for them too. Annual borrowing limits have been raised to $45,000 and rates with various lenders remains competitive. Just as they are with Stafford Loans, payments are deferred until after you graduate, allowing you to concentrate on getting good grades and finding the right job.

Lastly, the amount of money qualifying students can get from a Pell Grant for the coming school year has been raised to $4731, a $421 boost over the previous year. Federal Pell Grants are based on a family’s financial need and because they are a grant, the monies are not paid back.

Yes, the cost of getting a higher education continues to rise, but thanks to changing market conditions loan plans and other assistance options is making college more affordable for millions of Americans.