Many students are not able to pay for their education, and thus they need student loans. Students with a bad credit can also need bad credit student loans. However, the main disadvantage of bad credit student loans is that a higher rate of interest has to be paid on them. Thus, you must collect a lot of information about the student loans before applying for one.
The best time to start getting information about bad credit student loans is your junior year in high school. In order to determine the exact amount of the loan that you would require, you should research thoroughly on the various available schools, and also on the courses in which you are interested.
You need to properly plan out your bad credit student loan so as to obtain it easily. A bad credit student loan is particularly helpful when the universities require the students to pay the tuition fees immediately.
Students who are looking for a bad credit student loan should pick three schools they are most interested in, talk to the admissions office, and ask what is needed to apply in their school.
A bad credit student loan is payable only after the student has completed his or her education, and has started earning a certain minimum amount. Since April 2005, the minimum amount that the candidate of the bad credit student loan is required to earn has also increased.
Bad credit student loans are available as both secured and unsecured loans, depending on whether you are a homeowner or not. The rate of interest to be paid on unsecured bad credit student loans is higher than that on secured bad credit student loans.
This is because the secured bad credit student loans are backed by your home as a security.
Thursday, June 5, 2008
Parent Loans
Parents still are in the running to help cover the cost of their children’s college education and can do so with PLUS Loans – Parent Loans for Undergraduate Students. With rates as low as 6.25 percent, parents can borrow up to the full cost of college with a federal PLUS Loan, according to NextStudent, the Phoenix-based premier education funding company.
NextStudent offers PLUS Loans at a rate as low as 6.25 percent when coupled with incentives such as a 2 percent interest rate reduction after the first 48 months of on-time payments and a .25 percent interest rate reduction when borrowers repay their loans through Auto Debit.
PLUS Loan Availability
Parent borrowers cannot be turned down for a PLUS Loan no matter their financial situation, as the PLUS Loans are not based on financial necessity. Up to 100 percent of the cost of college is available to borrowers, less any received financial aid. In addition, PLUS Loans are available throughout the year.
Parents can borrow all of a student’s education costs for the 2006-07 academic year all the way through May 31, 2007. The federal PLUS Loan also can reimburse those parents who already paid tuition and education expenses. Total education costs can include tuition, fees, housing, books and supplies, and transportation.
NextStudent offers a fast and easy preapproval process for all federal PLUS Loan borrowers. In addition, PLUS Loans are eligible for federal student loan consolidation, and the interest on PLUS Loans may be tax-deductible.
Benefits of PLUS Loans
Federal PLUS Loans through NextStudent feature other benefits and incentives, including:
• A 3 percent cash rebate on the remaining principal balance after the first 12 months of consecutive on-time payments.
• Easy Application Process with E-Signature. Online application can be qualified in minutes. In addition, NextStudent’s “second look” is available to borrowers who initially are denied because of unresolved credit issues.
• PLUS Credit Resolution Team: NextStudent’s team has an 87 percent rate of success at resolving borrowers’ credit issues, whereby resolutions result in funded PLUS Loans.
• NextStudent offers various PLUS Loan repayment options that include deferred repayment when a student is enrolled at least half-time at school. PLUS Loans are eligible for federal loan consolidation.
Eligibility
Parents must meet eligibility requirements in order to receive a federal PLUS Loan. To qualify parents must be a biological, adoptive or step-parent of a dependent undergraduate student; a citizen of the United States or eligible noncitizen; and must be able to meet minimum federal creditworthiness standards.
Students of parents applying for federal PLUS Loans also must be citizens of the United States or eligible noncitizens; less than 24 years old as of Dec. 31 of the academic year; and unmarried without dependents.
Typically the federal PLUS Loan repayment term is 10 years. Repayment begins within 60 days of final disbursement, and there are no prepayment penalties.
Federal PLUS Loans are a great way for parents to help their children receive up to the full cost of attending college. Interest rates on PLUS Loans are lower when compared to other consumer loans, and the loans feature excellent terms. In addition, NextStudent offers a host of benefits and incentives that make PLUS Loans the perfect way to pay for college.
NextStudent, http://www.nextstudent.com/, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans.
NextStudent offers PLUS Loans at a rate as low as 6.25 percent when coupled with incentives such as a 2 percent interest rate reduction after the first 48 months of on-time payments and a .25 percent interest rate reduction when borrowers repay their loans through Auto Debit.
PLUS Loan Availability
Parent borrowers cannot be turned down for a PLUS Loan no matter their financial situation, as the PLUS Loans are not based on financial necessity. Up to 100 percent of the cost of college is available to borrowers, less any received financial aid. In addition, PLUS Loans are available throughout the year.
Parents can borrow all of a student’s education costs for the 2006-07 academic year all the way through May 31, 2007. The federal PLUS Loan also can reimburse those parents who already paid tuition and education expenses. Total education costs can include tuition, fees, housing, books and supplies, and transportation.
NextStudent offers a fast and easy preapproval process for all federal PLUS Loan borrowers. In addition, PLUS Loans are eligible for federal student loan consolidation, and the interest on PLUS Loans may be tax-deductible.
Benefits of PLUS Loans
Federal PLUS Loans through NextStudent feature other benefits and incentives, including:
• A 3 percent cash rebate on the remaining principal balance after the first 12 months of consecutive on-time payments.
• Easy Application Process with E-Signature. Online application can be qualified in minutes. In addition, NextStudent’s “second look” is available to borrowers who initially are denied because of unresolved credit issues.
• PLUS Credit Resolution Team: NextStudent’s team has an 87 percent rate of success at resolving borrowers’ credit issues, whereby resolutions result in funded PLUS Loans.
• NextStudent offers various PLUS Loan repayment options that include deferred repayment when a student is enrolled at least half-time at school. PLUS Loans are eligible for federal loan consolidation.
Eligibility
Parents must meet eligibility requirements in order to receive a federal PLUS Loan. To qualify parents must be a biological, adoptive or step-parent of a dependent undergraduate student; a citizen of the United States or eligible noncitizen; and must be able to meet minimum federal creditworthiness standards.
Students of parents applying for federal PLUS Loans also must be citizens of the United States or eligible noncitizens; less than 24 years old as of Dec. 31 of the academic year; and unmarried without dependents.
Typically the federal PLUS Loan repayment term is 10 years. Repayment begins within 60 days of final disbursement, and there are no prepayment penalties.
Federal PLUS Loans are a great way for parents to help their children receive up to the full cost of attending college. Interest rates on PLUS Loans are lower when compared to other consumer loans, and the loans feature excellent terms. In addition, NextStudent offers a host of benefits and incentives that make PLUS Loans the perfect way to pay for college.
NextStudent, http://www.nextstudent.com/, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans.
Fund Education
College costs are going up and scholarships and grants don't seem to be keeping pace. For most, that means that college loans are the bridge to a college degree. Loans, such as Stafford, Perkins, Plus and private are readily available and many can fund their education with these student and parent loans. The problem is that you graduate, get a job and before you are settled in, have to begin paying back $20-40,000 or even more in loans. Students graduating with an advanced degree may be as much as $100,000 in debt.
If this is not your idea of heaven, here are a few methods that may allow you to cut that mountain of debt into a molehill. The first thing to consider is where you are going to school. Naturally, everybody wants to go to their first choice college and for many, that is a private, high-profile, high-cost college.
According to Collegeboard.com, the average cost of attending a private college during 2007-08 is over $23,000 per year. For a public college or university, the average cost is a bit over $6,000 and for a two year community college, just over $2,300.
If you are interested in getting through college without a lot of debt, try opting for a local state college or university, especially for the first couple of years. Resident tuitions are usually much lower than that charged to out-of-state residents. Take your basic courses there and get great grades, then you will have a good chance of transferring to the name school and getting even better financial aid, since you have a proven track record. Of course, once you've been there for awhile, you may just decide that the state school is really is pretty good and continue on to finish your studies there.
Cheaper still, go to your local community college first. Many courses will be transferable to a four year college, and the cost per course is far below that of the four year schools.
There are, of course, many other ways to lower the debt load of graduating college. Among them are joining the ROTC program at your school, joining the National Guard, volunteering for the Peace Corps or Americorps or VISTA, teaching, practicing law or medicine in certain federal or state designated localities.
If this is not your idea of heaven, here are a few methods that may allow you to cut that mountain of debt into a molehill. The first thing to consider is where you are going to school. Naturally, everybody wants to go to their first choice college and for many, that is a private, high-profile, high-cost college.
According to Collegeboard.com, the average cost of attending a private college during 2007-08 is over $23,000 per year. For a public college or university, the average cost is a bit over $6,000 and for a two year community college, just over $2,300.
If you are interested in getting through college without a lot of debt, try opting for a local state college or university, especially for the first couple of years. Resident tuitions are usually much lower than that charged to out-of-state residents. Take your basic courses there and get great grades, then you will have a good chance of transferring to the name school and getting even better financial aid, since you have a proven track record. Of course, once you've been there for awhile, you may just decide that the state school is really is pretty good and continue on to finish your studies there.
Cheaper still, go to your local community college first. Many courses will be transferable to a four year college, and the cost per course is far below that of the four year schools.
There are, of course, many other ways to lower the debt load of graduating college. Among them are joining the ROTC program at your school, joining the National Guard, volunteering for the Peace Corps or Americorps or VISTA, teaching, practicing law or medicine in certain federal or state designated localities.
College costs
Very few parents or students would argue that college costs are soaring these days. It is now more expensive than ever before to get a good education for your children. It is true that there are many types of student loans available, and even some government student loans and grants, but these often fall short of the needed funds for college. The additional money has to come from someplace and a home equity loan is one of those possible avenues for college cash.
Homeowners may have an advantage over those who do not own their home. In many cases a homeowner may have enough equity in the home to take out either a home equity loan or home equity line of credit. These types of loans can be used for just about any purpose, with college education financing being one of the most common. Depending on your circumstances, the interest that you pay on these types of loans can be tax deductible. However, always consult your tax advisor regarding the deductibility of interest for home loans as the law can vary.
Just how does one get these types of loans? That is a good question. Generally speaking, you begin by shopping for the best deals on home equity loans or lines of credit. Once you have narrowed down the search, you can apply to the lender. The amount of equity you have in the home will be the basis for the maximum amount that you can borrow.
In most cases, you will be limited to about 80 percent of the equity that you have in the home. You can find lenders who will go above that mark, but you may have to shop for them.
You will need two things when you talk to the lender. The first is an estimate of what the current value of the home is. You can often use receipts from the tax assessor's office for this purpose. The second thing you need to provide to the lender is the balance still owed on the home.
To get a sense of the amount of equity that you have in your home use this example. Assume your home is worth $100,000 and you still owe $50,000 on it. If the lender is allowing 80 percent of value, you would be looking at a maximum loan of around $30,000.
If you already have a second mortgage on your home, that will need to be accounted for as well. Of course, your past credit history will also be a factor.
Depending on your needs and circumstances, a home equity line of credit may work better for you. This type of loan allows you draw out money as you need it rather than take the money in one lump sum.
Even with home equity loans and lines of credit, homeowners should still pursue the other forms of college financing available to their children such as grants and scholarships. Every little bit helps with costs rising the way they are today.
Many lending institutions are now specializing in these type of loans are offering some very competitive interest rates that are in line with the current mortgage rates
Homeowners may have an advantage over those who do not own their home. In many cases a homeowner may have enough equity in the home to take out either a home equity loan or home equity line of credit. These types of loans can be used for just about any purpose, with college education financing being one of the most common. Depending on your circumstances, the interest that you pay on these types of loans can be tax deductible. However, always consult your tax advisor regarding the deductibility of interest for home loans as the law can vary.
Just how does one get these types of loans? That is a good question. Generally speaking, you begin by shopping for the best deals on home equity loans or lines of credit. Once you have narrowed down the search, you can apply to the lender. The amount of equity you have in the home will be the basis for the maximum amount that you can borrow.
In most cases, you will be limited to about 80 percent of the equity that you have in the home. You can find lenders who will go above that mark, but you may have to shop for them.
You will need two things when you talk to the lender. The first is an estimate of what the current value of the home is. You can often use receipts from the tax assessor's office for this purpose. The second thing you need to provide to the lender is the balance still owed on the home.
To get a sense of the amount of equity that you have in your home use this example. Assume your home is worth $100,000 and you still owe $50,000 on it. If the lender is allowing 80 percent of value, you would be looking at a maximum loan of around $30,000.
If you already have a second mortgage on your home, that will need to be accounted for as well. Of course, your past credit history will also be a factor.
Depending on your needs and circumstances, a home equity line of credit may work better for you. This type of loan allows you draw out money as you need it rather than take the money in one lump sum.
Even with home equity loans and lines of credit, homeowners should still pursue the other forms of college financing available to their children such as grants and scholarships. Every little bit helps with costs rising the way they are today.
Many lending institutions are now specializing in these type of loans are offering some very competitive interest rates that are in line with the current mortgage rates
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