Paying For School- Merit-Based Government Grants

Free Money for College

Many federal grants are awarded based upon financial need, but others are awarded based upon merit and achievement. Here are a few examples of merit-based government programs.

Robert C. Byrd Honors Scholarship ProgramThis program rewards students who have achieved academic honors. Students can get more information from their high school counselor.

National Science Scholars ProgramThis program rewards high school seniors who have achieved academic distinction in science. Students can get more information from their high school counselor.

Leveraging Educational Assistance Partnership (LEAP)This program was formerly known as State Student Incentive Grants. It is still funded by individual states and the federal government.

Students can determine their eligibility by talking to their high school counselor or college financial aid office.

http://businessmajors.about.com/od/payingforschool/a/MeritGrants.htm

Paying For School- Federal Supplemental Education Opportunity Grants

Free Money for College

Federal Supplemental Education Opportunity Grants (FSEOG) are awarded to students based upon financial need. Part-time and full-time students are eligible. When you receive a Federal Supplemental Education Opportunity Grant, your school will pay you directly or credit your college account.

Students who have been awarded a Federal Pell Grant receive priority, but they are not guaranteed an FSEOG.

Federal Supplemental Education Opportunity Grant Eligibility

• Only undergraduate students who have great financial need are eligible.

Federal Supplemental Education Opportunity Grant Amount

• Grants range between $100 and $4,000 per year.
• Amounts vary depending upon level of need, date of application, the school’s funding level, and the policies of the school’s financial aid office.

Applying for a Federal Supplemental Education Opportunity Grant

• Students can apply for a Federal Supplemental Education Opportunity Grant at their school’s financial aid office.
• To apply, students must fill out a Free Application for Federal Student Aid (FAFSA).
• This application will help the financial aid office determine the student’s level of eligibility and award amount based on financial need.
• Students will receive the results of their application within two to four weeks.

http://businessmajors.about.com/od/payingforschool/a/FSEOGrants.htm

Paying for Business School with a Home Equity Loan

Paying for business school can be expensive, especially if the majority of your tuition will not be covered by scholarships or grants. If you need a way to pay your business school tuition, you may want to consider a home equity loan.

Why Home Equity Loans

Business school is expensive and a student loan can help, but no matter how much you borrow, the student loan interest will add up. By the time you get your degree you will be paying back much more than you originally borrowed.

Home equity loans are a great source of credit because these loans often come with very low interest rates. And, when you get a home equity loan, you can usually borrow up to 100% (or more) of your home’s value. For example, if your home is worth $90,000 and you only owe $50,000, you have $40,000 in home equity to play with.

That could pay for a huge portion of your business school education.

Choosing a Home Equity Lender

The lending market is extremely competitive right now, especially among online lenders. They are currently offering the lowest interest rates that have been seen in years. Don’t be afraid to shop around. It is very important for you to find the home equity loan lender that best meets your tuition needs.

When comparing home equity loan lenders online, there are a few things that you should consider, such as interest rates, closing costs, lending fees, and loan terms and conditions. Once you have chosen an online lender, be sure to review your home equity loan contract carefully before signing it. You should never hesitate to ask questions if the contract contains information that you do not understand.

A Final Note on Paying for Business School with a Home Equity Loan

Paying for your business school education is an excellent reason to get a home equity loan. However, before making the commitment, you need to be sure that you will be able to make your loan payments. If you default on your loan, the bank may be able to repossess your house.

http://businessmajors.about.com/od/payingforschool/a/HomeEquityLoan.htm

Credit Help for Students

Protecting and Repairing Your Student Credit

Many people have their first encounter with credit and credit cards during college. If you’re like most students, you might find it easy to charge now, and worry about it later. Unfortunately, this could have damaging effects on your credit score.

Credit Scores and Credit Reports

Your credit score is a three-digit number (between 500 and 850) that appears on your credit report. The higher your credit score is, the better your credit report will look.

Lenders and creditors use your credit report to determine whether or not you are eligible for loans, credit cards, or other services. Because other people are using this report to judge you, it only makes sense for you to pull your own credit report and see exactly what they’re looking at.

You should check your credit report at least once per year. Look over the report carefully, checking your personal information, marital status, account status, open creditors, and payment histories. If you find any discrepancies, contact the credit bureau immediately.

Get a Free Credit Report.

Protecting Your Credit

In addition to pulling your credit report regularly, there are other things that you can do to protect your student credit record. Here are a few suggestions:

• Pay bills promptly.
• Know your credit limit.
• Know your interest rates.
• Avoid late fees and over-limit fees.
• Dispute erroneous charges.
• Do not let friends borrow your credit cards.
• Do not let friends put bills in your name.
• Repair damaged credit as soon as possible.

Repairing Damaged Credit

If your credit is less than perfect, you should immediately try to remedy the situation. Keep in mind that it may take time to repair damage that has been done to your credit. If you find yourself in a difficult situation, you may want to consider paying a credit repair service to do some of the work for you. These services specialize in credit repair and will be able to fix most credit problems.

If you do pay someone to repair damaged credit, choose the company wisely. Many credit repair services make promises that they cannot keep. Avoid expensive debt repair services at all costs; repairing your credit should be relatively cheap, if not totally free.

http://businessmajors.about.com/od/financingresources/a/CreditHelp.htm

MBA Loans

Find Out What You Should Know Before Signing on the Dotted Line

Getting your MBA can further your career, but it can also be a major investment. After exhausting all other avenues of assistance, including scholarships and grants, many MBA students are forced to finance their degree with a combination of savings and loans.

Loans are usually readily available because lenders feel that MBA students will soon have the ability to pay the money back. However, before you consider getting an MBA loan to finance your business education, there are a few things you should consider:

The Financial Implications of MBA Loans

Though they can be a great way to finance your education, loans must eventually be paid back. Over time, interest accumulates and by the time you get your degree you will be paying back much more than you originally borrowed.

Make sure that you figure out what the total cost of borrowing is before you sign on the dotted line.

You should also honestly evaluate the repayment schedule and determine whether or not you will be able to comply with this schedule after graduation.

Finding a Lender

When applying for MBA loans it’s important to be an informed borrower. Make sure that your lender is reputable and familiar with student loans. I recommend beginning your search by visiting these two sites:

http://www.staffordloan.com/

http://www.salliemae.com/mbaloans

Hidden Costs

Finally, always read the fine print on all of the documents that your lender provides to you. Sometimes there are hidden costs tied to MBA loans or upfront fees. In short, know what you are signing before you sign it.

http://businessmajors.about.com/od/payingforschool/a/MBA_Loans.htm

Getting a Cash Out Mortgage Refinance to Help Pay for College Expenses

Can Cash Out Refinancing Work For You?

College can be expensive. When paying for your tuition, school supplies, food, and commute, it can seem like there is simply not enough money to go around. If you need help paying for college expenses, you may want to consider a cash out mortgage refinance.

The Benefits of Cash Out Mortgage Refinancing

Getting a cash out mortgage refinance can be a great way to pay for your college expenses. Cash out mortgage refinancing allows you to refinance your existing mortgage for more than you currently owe and collect any extra money that is left over. For example, if you owe $60,000 on a house that is worth $110,000, you can refinance the mortgage for $110,000 and keep the extra $50,000 to spend on college expenses.

When you get a cash out mortgage refinance, you may even be able to get a lower interest rate on your mortgage loan.

This could save you money over time, especially if you spend the extra funds wisely.

Choosing a Cash Out Refinancing Lender

Don’t be afraid to shop around when looking for cash out refinancing. The lending industry is very competitive. Interest rates and loan terms will vary depending upon the lender that you choose. When looking for cash out refinancing lenders, compare the following factors:

• The lenders’ knowledge.
• Interest rates.
• Loan terms and conditions.
• Closing costs and other lending fees.

Before signing a loan contract, make sure that you carefully review the entire document. If there is anything that you do not understand, do not hesitate to ask the lender questions.

http://businessmajors.about.com/od/financingresources/a/CashOutRef.htm

Credit Cards for Students Three Things to Know

Before You Apply for a Student Credit Card

While you are a student, the only way to make ends meet may be through the use of a credit card. However, before you indulge in the business or charging, there are three things that you should know about student credit cards. APRs Vary. APRs are the cost of borrowing money. Though many credit card companies are more than willing to give you credit, that credit comes with a price. To save yourself money, you will want to choose a card that has low rates. Many student credit cards have a zero percent APR. These are definitely the types of cards you want. If you already have a card and you are not sure what the APR is, check the bottom of your credit card statement. If the rate is high, try negotiating a lower rate with the credit card company.

1. f the company is not willing to negotiate, try moving your debt to a credit card with lower rates (and no annual fees).
   
2. Credit Cards Have Bonuses. Some student credit cards offer cash-back bonuses on purchases, such as gas and food. These are great credit cards for students, because you actually make money when you charge items, especially if you pay off the balance promptly. Other student credit cards offer air travel rewards based upon a point system. These type of rewards can come in very handy when you want to visit home, take a vacation, etc.
   
3. Your Credit Score is Important. Your credit score is a three-digit number that appears on your credit report. The higher your credit score is, the better your chance will be of getting student credit cards with low interest rates. If you need to find out what your credit score is, you can get a free credit report online.

http://businessmajors.about.com/od/financingresources/a/CC3Things.htm

Private Student Loan

The cost of education continues to increase. After you first take advantage of Federal student loans, you may discover you still have significant unmet expenses you need to cover to pay for your education.

Private student loans may be a good option to help you fill the gap between what federal, state and school assistance provides and what you actually need in order to afford higher education. Private loans (sometimes called alternative student loans) are credit-based consumer loans to be used specifically for paying educational expenses.

Private loans, like auto or home loans, are based on your creditworthiness. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private loan. Terms and conditions applicable to these loans vary greatly. Our LoanFinder will quickly and easily help you compare your options so you can get the loan that's right for you.

Factors such as interest rate, APR, length or repayment, loan minimum and maximu as well as fees should be carefully considered when researching and choosing a private loan. The LoanFinder makes this complicated research easy for anyone to understand by allowing you to compare your options side-by-side and on equal terms.

One feature of many private loans is the ability to completely postpone (defer) repayment until you graduate from college. Other Federal programs such as the PLUS and Grad PLUS (for graduate student) require payment of principal and interest while you are still in school. Also, private loans almost always offer lower interest rates than credit cards.

While we encourage students and families to pursue federal financial aid before considering private education loans, there are many student/family situations where a private loan is viewed as a preferred alternative. Sometimes parents want their student to be responsible for his/her education. In other cases, the convenience of needing no Federal forms to get needed funds is also a consideration. Whatever your situation may be, know that a private loan is often an attractive and affordable option to help pay your education expenses. Just remember, borrow only what you need and compare your options before you borrow.

Federal Stafford Loan

Overview

The U.S. Department of Education administers the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both the FFEL and Direct Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents).

Schools participate in either the FFEL or Direct Loan program but sometimes participate in both. Under the Direct Loan Program, the funds for your loan come directly from the federal government. Funds for your FFEL will come from a bank or other lender that participates in the program. You can research your options using our LoanFinder. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat.

In order to apply for a Stafford loan, you must first complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to apply for all types of federal student aid and serves as your application for the Stafford loan program as well.

Borrowing

If your school is a Direct Loan school, your school will provide all the necessary instructions for you to obtain your Stafford loan. If your school is a "FFEL School", you will need to choose a lender for your loan. eStudentLoan's LoanFinder is designed to help you compare your options so you can find the lender and loan program that's right for you. Note: Your school may present to you a list of lenders from which to choose your loan. However, you are free to choose any lender that participates in the FFEL program -- including the lenders you find on eStudnetLoan. This "Preferred Lender List" is simply provided to you as a convenience as hundreds of lenders offer Stafford loans. Be sure to research your options. While the terms and rates are set by the federal government, lenders offer an array of incentives that can reduce the cost of borrowing. Use the LoanFinder to compare your options before you borrow.

Once you have chosen a lender, you will also need to sign a promissory note. The promissory note is your legally binding agreement to repay your loan. Your school will also conduct an "Entrance Interview" that you must complete in order to receive your loan proceeds. The Entrance Interview will be conducted in-person or online and is an informational session to ensure you understand your rights and responsibilities connected with borrowing a federal loan. The session will liely last no more than 20-30 minutes.

Your school will determine your eligibility for either a Subsidized and/or Unsubsidized Stafford loan. "Subsizdized" means the governmnet pays the interest on your loan while you are in school. "Unsubsidized" means you are responsible for either making interest-only payments on your loan while you are in school or deferring the interest (allowing the interest to be added to your loan principal) while you are in school.

Loan Limits

Stafford loans have fixed maximums based on your year in school. If you're a dependent undergraduate student, each year you can borrow up to:

• $2,625 (for the 2006-07 academic year) and $3,500 (for the 2007-08 academic year) if you're a first-year student enrolled in a program of study that is at least a full academic year
• $3,500 (for the 2006-07 academic year) and $4,500 (for the 2007-08 academic year) if you've completed your first year of study and the remainder of your program is at least a full academic year.
• $5,500 if you've completed two years of study and the remainder of your program is at least a full academic year. This amount remains unchanged for both academic years.

If you're an independent undergraduate student or a dependent student whose parents have applied for but were unable to get a PLUS Loan (a parent loan), each year you can borrow up to:

• For the 2006-07 academic year: $6,625 if you're a first-year student enrolled in a program of study that is at least a full academic year (no more than $2,625 of this amount may be in subsidized loans).
• For the 2007-08 academic year: $7,500 if you're a first-year student enrolled in a program of study that is at least a full academic year (no more than $3,500 of this amount may be in subsidized loans).
• For the 2006-07 academic year: $7,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (no more than $3,500 of this amount may be in subsidized loans). For the 2007-08 academic year: $8,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (no more than $4,500 of this amount may be in subsidized loans).
• $10,500 if you've completed two years of study and the remainder of your program is at least a full academic year (no more than $5,500 of this amount may be in subsidized loans). This amount remains unchanged for both academic years.

You can not borrow more than your cost of attendance (determined by your school) minus other financial aid including other loans so, the amount you may borrow could be less than the maximums listed above.

Interest Rate

The interest rate on Stafford loans disbursed after July 1, 2006 is fixed at 6.8%. You may be charged fees up to 4%. However, most lenders and guaranty agencies pay this fee on your behalf. Still, you need to pay careful attention to ensure your lender offers this benefit.

Repayment

You will not have to begin repayment of your Stafford loan until 6 months after you graduate, leave school or drop below half-time attendance.

There are four different repayment plans avaialable:

1. Standard - even monthly payments over a ten year period.
2. Extended - even monthly payment over a 12-30 year period depending upon the total amount you borrow.
3. Graduated - payments start out low, then increase in stages. You can generally take from 12 to 30 years to repay your loan. The length of your repayment period will depend on the total amount you owe when your loan goes into repayment.
4. Income Sensitive - monthly payment is based on your yearly income and your loan amount. As your income increases or decreases, so do your payments. Each payment must at least equal the interest accrued on the loan between scheduled payments, and no scheduled payment amount can be more than three times greater than any other scheduled payment amount. You may take from 12 to 30 years to repay your loan depending on the total amount you have borrowed.

http://www.estudentloan.com/student-loans/federal-stafford-loan.html

Student Loan Basics

Student loans come two primary sources -- the federal government and private lenders. In order to obtain federal student loans, you will first need to file the Free Application for Federal Student Aid (FAFSA). The FAFSA is your application for all federal financial aid including federal student loans. There are four main federal loan programs:

* Federal Stafford Loan
* Federal PLUS Loan
* Federal Graduate PLUS Loan
* Federal Consolidation Loan

You can learn the ins and outs of each at their respective page on this site. The Federal Stafford loan is made in the name of the student, is based on need, does not require a credit check (it's guaranteed by the government rather than credit/income/assets, etc.) and does not have to be repaid until after the student graduates, leaves school or stops attending on at least a half-time basis. Some school offer Stafford loan directly through the federal government. These are commonly known as Direct Stafford Loans. The schools that offer Direct Loans are known as Direct Lending Schools. Other schools offer Stafford loans through banks or other lenders. These schools are commonly called FFEL schools (Federal Family Education Loan). In order to obtain a federal Stafford loan through a FFEL school, you will need to choose a lender. You can use our LoanFinder to find the lender and Stafford loan that's right for you.

Federal PLUS loans are made in the name of a parent. While they do require a credit check, the credit criteria to obtain a PLUS are not as stringent as they are for other types of consumer loans. Repayment of a PLUS loan begins after the loan is fully disbursed. Again, some schools offer PLUS through the federal government and others offer it through banks or other lenders. Our LoanFinder can help you find, compare and choose a Federal PLUS that meets your needs.

The Federal Graduate PLUS is just like the PLUS for parents except that it is made in the name of a graduate student. It is important to remember that the Federal Graduate PLUS requires payment as soon as the loan is fully disbursed.

Federal loan consolidation is for students who have graduated or parents who wish to extend the repayment period on their current PLUS. You can combine all of your federal student loans into one loan with a Federal Consolidation Loan. Consolidating also locks the interest rate you pay on your loan.

If federal loans are not enough to cover your educational expenses, if you do not wish to make payment of principal and interest while in school or if you want a loan that is in the student's name, there are private student loans (sometimes called alternative student loans). Private loans are made by banks and other lenders. They must be used solely for education expenses, but offer convenience and flexibility not found in other federal loan programs. However, you will need good credit and most students will need a qualified co-signer in order to obtain a private loan. Also, while interest rates, fees and other loan program terms are competitive, they vary widely from lender to lender. It is important to compare your options before choosing a private loan. Our LoanFinder is a great place to start comparing private loans. Once you have found a loan that meets your needs, you can apply online and in many cases get an instant decision on approval.

the bottom-line with student loans is that you do have options when you can not pay all of your college costs out-of-pocket. Do your research using our LoanFinder to be sure you get the loan that's right for you.

http://www.estudentloan.com/student-loans/student-loan-basics.html

Living on One Income in a Two Income Economy

Manage Your Finances More Easily
The Web makes many of our daily tasks easier, from getting up-to-date news and weather information, to paying bills and doing taxes online.

One of the biggest online aids comes in the form of calculators that tell you everything, from whether you should save money or pay off debt, to whether you'll have enough money to retire. I've come across a lot of online calculators on my travels around the Net, and these are my personal top ten favorites:

Debt Planner Calculator
This is the most eye-opening calculator I've come across. Enter the balance on each of your credit cards, the interest rate, and the minimum payment, and the results will tell you how long it would take to pay off the balance if you make just the minimum payment each month, how much interest you'll end up paying, when you'll be debt free if you make a monthly payment which you specify, and how much you'd have to pay monthly to be debt free by a certain time.

It will also generate a payment plan that will allow you to pay off your debt with the least amount of interest.

Save Money Or Pay Off Debt?
Many people struggle with the decision to put money in savings or pay off debt. This simple tool shows you which way you'll come out ahead.

Loan Payment Calculator
Quickly calculates what your monthly payments will be if you're borrowing money for a major purchase.

Net Worth Calculator
Everybody should know their financial status, and this easy-to-use calculator will figure out what you're worth by reconciling your debts and your assets. As the Money Machine says: "it's tough to get where you're going when you don't know where you are." This is never more true than when you're talking about your finances.

Spending vs Saving Calculator
What's it worth to reduce your spending? Enter how much you spend on any activity or item each month and this calculator will tell you how much you'll save and how much that amount would be worth by retirement if you invested it. For example, if you're 30-years old and you spend $50 a month eating out, you could save $600 each year. If you invested this amount, you'd accumulate $7,734 in 10 years after paying income taxes. If you invested it in a tax-deferred retirement account, you'd accumulate $107,818 by the time you retire. Impressive, isn't it?

Roth or Traditional IRA Calculator?
Tells you how much you can contribute to a Roth or Traditional IRA, which will provide the most retirement income, and more.

Retirement Calculator
Enter some basic information and this calculator will estimate how well your current savings program will prepare you for retirement. Are you saving enough? Can you retire early? If you're not on track, how can you catch up?

Fixed Rate versus Adjustable Rate Mortgage Calculator
This tool compares fixed rate mortgages and adjustable rate mortgages side-by-side to help you determine which is best for you.

The Cost of Borrowing From Your 401(k)
Before you borrow from your 401(k), find out the true cost to you. It's not as simple as using the interest rate at which you repay the loan. This calculator tells you the true cost of borrowing from your retirement account.

Credit Card Chooser
Choosing the credit card that's right for you can either save you money or cost you money. This tool lets you see how your decisions will affect interest charges and your credit card balance. Once you've chosen the type of card that's best for you, apply online if you wish.

http://financialplan.about.com/od/onlinecalculators/a/TopCalculators.htm