Consolidating your student loans may help you to manage loan repayment; here are the pros and cons: Why Consolidate?
The Advantages and Disadvantages
Consolidation brings benefits and costs. Consider the following before you decide whether consolidation is right for you.
Some Advantages of Consolidation
– Your loans will have a fixed interest rate based on the rates of the underlying loans (see chart at “Interest Rates”).
– You’ll have 1 convenient payment per month to 1 lender, instead of multiple payments to different lenders.
– Your new maximum repayment term is based on the total loan amount and may be from 10 to 30 years, depending on the repayment plan you choose.
– You may be eligible to benefit from Public Service Loan Forgiveness or additional subsidies available to some active duty military personnel.
Some Disadvantages of Consolidation
– Due to the fixed interest rate, you will not benefit if the variable interest rate goes down.
– You may repay your loans for a longer period of time.
– You may accrue and pay greater interest over the long term. This greater interest may increase the total balance of your loan, potentially by thousands of dollars (see charts at “Interest Rates”).
– If you are looking for a lower monthly payment, you may want to consider other repayment options before consolidation.
– Your weighted interest rate will be rounded up to the nearest ⅛ of a percent (0.125).
– You may lose some existing benefits on your loans, including Perkins loans, that you choose to consolidate.
The best way to understand how consolidation will change your loan is to look at the way interest accumulates and how it impacts your repayment.
Parent PLUS borrowers can also take advantage of federal loan consolidation. In addition to consolidating the PLUS loans you have taken for your children, you can also consolidate your own student loans with your Parent PLUS loans or Grad PLUS loans. However, you may not consolidate your loans with your child’s loans
Sunday, November 15, 2009
Sunday, November 1, 2009
Some Companies Help Pay for College Tuition
Disney- The number 1 spot according to BusinessWeek for the “Best Place to Launch a Career”. Disney’s solid benefits and culture makes it great for any college graduate. Many college students have been hired in here to get promoted throughout the company with tuition assistance.
Ernst + Young – Ernst and Young is a big recruiter when it comes to college campuses and one of the main reasons this financial giant is so big is because of their benefits and atmosphere. At Ernst + Young, they care about your education and are willing to reimburse you for certifications, etc.
Google – Google not only offers a great search engine, they also have one of the best benefit programs in the world. Rated as one of the top 100 companies to work for by Fortune, Google will reimburse their employees up to $8,000 per year as long as you get a “B” or better.
Nike – Home of the world’s most popular shoes and top 100 place to work for and launch a career, Nike does more than just offer tuition assistance. They also offer great health care packages, scholarship potential for your families, adoption assistance, and so much more!
UPS - When you think of UPS, you think of delivery but believe it or not, UPS offers a very nice tuition assistance program for all employees. At UPS, you can potentially earn up to $20,000 with their program. The nice thing about this is that they also offer it to part-time employees.
Wawa – If you haven’t heard of Wawa, it’s probably because they don’t have one in your area. Wawa’s are located mainly on the east coast that are like your typical grocery store. Here, some of the benefits you’re going to receive is getting some of your tuition reimbursed.
College Full-Time – When you’re attending college, see what kind of jobs they have on campus. Most of the time, you’ll find that full-time jobs on campus will help pay for your schooling. Sometimes, you may even get your college paid for 100%. This varies school to school.
These are just a few of the companies that help to pay for college tuition, do your homework it could be well worth it.
Ernst + Young – Ernst and Young is a big recruiter when it comes to college campuses and one of the main reasons this financial giant is so big is because of their benefits and atmosphere. At Ernst + Young, they care about your education and are willing to reimburse you for certifications, etc.
Google – Google not only offers a great search engine, they also have one of the best benefit programs in the world. Rated as one of the top 100 companies to work for by Fortune, Google will reimburse their employees up to $8,000 per year as long as you get a “B” or better.
Nike – Home of the world’s most popular shoes and top 100 place to work for and launch a career, Nike does more than just offer tuition assistance. They also offer great health care packages, scholarship potential for your families, adoption assistance, and so much more!
UPS - When you think of UPS, you think of delivery but believe it or not, UPS offers a very nice tuition assistance program for all employees. At UPS, you can potentially earn up to $20,000 with their program. The nice thing about this is that they also offer it to part-time employees.
Wawa – If you haven’t heard of Wawa, it’s probably because they don’t have one in your area. Wawa’s are located mainly on the east coast that are like your typical grocery store. Here, some of the benefits you’re going to receive is getting some of your tuition reimbursed.
College Full-Time – When you’re attending college, see what kind of jobs they have on campus. Most of the time, you’ll find that full-time jobs on campus will help pay for your schooling. Sometimes, you may even get your college paid for 100%. This varies school to school.
These are just a few of the companies that help to pay for college tuition, do your homework it could be well worth it.
Friday, October 23, 2009
Alternatives to Student Loans
Federal Supplemental Educational Opportunity Grants (FSEOG) are for undergraduates with exceptional financial need. Pell Grant recipients with the lowest EFCs will be the first to get FSEOGs. Just like Pell Grants, FSEOGs don't have to be paid back.
How much can I get?
You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.
If I am eligible, how will I get the FSEOG money?
If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.
Federal Work-Study TOPFederal Work-Study (FWS) provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient's course of study.
Will I be paid the same as I would in any other job?
You'll be paid by the hour if you're an undergraduate. No FWS student may be paid by commission or fee. Your school must pay you directly (unless you direct otherwise) and at least monthly. Wages for the program must equal at least the current federal minimum wage but might be higher, depending on the type of work you do and the skills required. The amount you earn can't exceed your total FWS award. When assigning work hours, your employer or financial aid administrator will consider your award amount, your class schedule, and your academic progress.
What kinds of jobs are there in Federal Work-Study?
If you work on campus, you'll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Your school might have agreements with private for-profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study (to the maximum extent possible). If you attend a career school, there might be further restrictions on the jobs you can be assigned.
How much can I get?
You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.
If I am eligible, how will I get the FSEOG money?
If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.
Federal Work-Study TOPFederal Work-Study (FWS) provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient's course of study.
Will I be paid the same as I would in any other job?
You'll be paid by the hour if you're an undergraduate. No FWS student may be paid by commission or fee. Your school must pay you directly (unless you direct otherwise) and at least monthly. Wages for the program must equal at least the current federal minimum wage but might be higher, depending on the type of work you do and the skills required. The amount you earn can't exceed your total FWS award. When assigning work hours, your employer or financial aid administrator will consider your award amount, your class schedule, and your academic progress.
What kinds of jobs are there in Federal Work-Study?
If you work on campus, you'll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Your school might have agreements with private for-profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study (to the maximum extent possible). If you attend a career school, there might be further restrictions on the jobs you can be assigned.
Friday, September 25, 2009
THE ARMED FORCES CAN HELP YOU REPAY YOUR LOANS
Student Loan Repayment Program
Are you worried about paying off student loans? With the cost of a college education on the rise, many students and recent college graduates are finding themselves overwhelmed by debt. The Armed Forces can help you manage your college debt with special loan repayment programs for qualified students.
Many people are not aware that the Army, Navy and Air Force recruiters can offer you special programs for repaying student debt.
Army
The Army's Loan Repayment Program (LRP) is a special enlistment incentive that the Army offers to highly qualified applicants at the time of enlistment. Under the LRP, the Army will repay up to $65,000 of a soldier's qualifying student loans.
Huge Education Discounts
Your GI Bill and Tuition Assistance can get you huge discounts on college tuition. Find out how much money you can save while using the benefits you've earned!
Army Eligibility
To be eligible for the Army LRP you must:
Decline enrollment in the Montgomery GI Bill in writing, using DD Form 2366
Have LRP guaranteed in writing in the enlistment contract (DA Form 3286-66).
Be a non-prior service accession.
Enlist with a high school diploma.
Have an Armed Forces Qualification Test score of 50, or higher on the Armed Services Vocational Aptitude Battery (ASVAB).
Enlist in one of the critical military occupational specialties (MOS). These MOS change quarterly. The local Army recruiter will have the current list.
Possess a loan that was made, insured, or guaranteed under the Higher Education Act of 1965, Title IV, Part B, D, or E prior to entering active duty.
To get up to date information on which career fields (MOS) qualify contact your nearest Army recruiting office today. See this page for more details.
Navy
The Navy's Loan Repayment Program (LRP) will also pay for up to $65,000 of loans acquired from a post-secondary education. The LRP is available to all active Navy enlisted positions! See this page for more details.
Navy Eligibility Requirements
You should talk to your Navy recruiter to see if your situation qualifies for the loan repayment program. Your recruiter can also help you explore other opportunities the Navy has to offer.
Air Force
The College Loan Repayment Program (CLRP) is a program created for all non-prior service persons considering enlistment in the Air Force. If you have taken some college courses and have accumulated debt, this great program may be for you. Participants must sign up for this program when signing the enlistment contract. Under CLRP repayment maximum is $10,000 per recruit. Go to the "Education" section of the Air Force site for more details.
Air Force Eligibility Requirements
To find out how you can earn money for college with the Air Force, contact an advisor today.
Here is how it works:
After each completed year of active duty your service branch will make a payment of 33-1/3 percent or $1,500, whichever is greater, on the total remaining original unpaid principal balance.
Are you worried about paying off student loans? With the cost of a college education on the rise, many students and recent college graduates are finding themselves overwhelmed by debt. The Armed Forces can help you manage your college debt with special loan repayment programs for qualified students.
Many people are not aware that the Army, Navy and Air Force recruiters can offer you special programs for repaying student debt.
Army
The Army's Loan Repayment Program (LRP) is a special enlistment incentive that the Army offers to highly qualified applicants at the time of enlistment. Under the LRP, the Army will repay up to $65,000 of a soldier's qualifying student loans.
Huge Education Discounts
Your GI Bill and Tuition Assistance can get you huge discounts on college tuition. Find out how much money you can save while using the benefits you've earned!
Army Eligibility
To be eligible for the Army LRP you must:
Decline enrollment in the Montgomery GI Bill in writing, using DD Form 2366
Have LRP guaranteed in writing in the enlistment contract (DA Form 3286-66).
Be a non-prior service accession.
Enlist with a high school diploma.
Have an Armed Forces Qualification Test score of 50, or higher on the Armed Services Vocational Aptitude Battery (ASVAB).
Enlist in one of the critical military occupational specialties (MOS). These MOS change quarterly. The local Army recruiter will have the current list.
Possess a loan that was made, insured, or guaranteed under the Higher Education Act of 1965, Title IV, Part B, D, or E prior to entering active duty.
To get up to date information on which career fields (MOS) qualify contact your nearest Army recruiting office today. See this page for more details.
Navy
The Navy's Loan Repayment Program (LRP) will also pay for up to $65,000 of loans acquired from a post-secondary education. The LRP is available to all active Navy enlisted positions! See this page for more details.
Navy Eligibility Requirements
You should talk to your Navy recruiter to see if your situation qualifies for the loan repayment program. Your recruiter can also help you explore other opportunities the Navy has to offer.
Air Force
The College Loan Repayment Program (CLRP) is a program created for all non-prior service persons considering enlistment in the Air Force. If you have taken some college courses and have accumulated debt, this great program may be for you. Participants must sign up for this program when signing the enlistment contract. Under CLRP repayment maximum is $10,000 per recruit. Go to the "Education" section of the Air Force site for more details.
Air Force Eligibility Requirements
To find out how you can earn money for college with the Air Force, contact an advisor today.
Here is how it works:
After each completed year of active duty your service branch will make a payment of 33-1/3 percent or $1,500, whichever is greater, on the total remaining original unpaid principal balance.
Sunday, September 20, 2009
Income based Repayment Program
The Income-based Repayment Program (IBR) is an alternative payment option for borrowers who cannot afford to pay off their federal student loans under the standard 10-year repayment plan. Monthly payment under the IBR plan is based on the borrower’s income and family size.
Borrowers getting qualified for the IBR plan will continue student loan payments for 25 years after which any outstanding student debt will be forgiven or wiped out. However, if you’re into public service, that is, if you work as a teacher or in government service or at a non-profit [501 (c) (3)] organization, then you may qualify for loan forgiveness after 10 years of payment.
If your student loan payments are relatively higher than your income, you have a chance to qualify for the Income-based Repayment Program. You need to contact your lender (s) and prove that you’re in partial financial hardship.
The lender will determine if you’re eligible for the program.
In order to qualify, you will have to fill out IRS Form 4506-T and authorize your lender to collect your tax returns for the current year and past 3 years. Once you qualify for the IBR plan, you may remain in it even when you’re out of financial hardship.
The federal student loans which can be paid off using the Income-based Repayment Program are:
Stafford loans
Grad PLUS loans
Most of the federal consolidation loans
Loans which are already in default cannot be included in the program.
Borrowers getting qualified for the IBR plan will continue student loan payments for 25 years after which any outstanding student debt will be forgiven or wiped out. However, if you’re into public service, that is, if you work as a teacher or in government service or at a non-profit [501 (c) (3)] organization, then you may qualify for loan forgiveness after 10 years of payment.
If your student loan payments are relatively higher than your income, you have a chance to qualify for the Income-based Repayment Program. You need to contact your lender (s) and prove that you’re in partial financial hardship.
The lender will determine if you’re eligible for the program.
In order to qualify, you will have to fill out IRS Form 4506-T and authorize your lender to collect your tax returns for the current year and past 3 years. Once you qualify for the IBR plan, you may remain in it even when you’re out of financial hardship.
The federal student loans which can be paid off using the Income-based Repayment Program are:
Stafford loans
Grad PLUS loans
Most of the federal consolidation loans
Loans which are already in default cannot be included in the program.
Saturday, September 12, 2009
Peace Corps
Volunteer programs. Peace Corps volunteers with Perkins loans can cancel as much as 70 percent of their debt after four years of service. Peace Corps volunteers who complete a two-year term can wipe out 30 percent of their Perkins loans' balance. Another 20 percent can be cancelled upon completion of a third and fourth years of service. Federal student loan payments may also be deferred while serving in the Peace Corps.
Wednesday, September 9, 2009
Help For Public Service Workers
Loan forgiveness for public service employees. The College Cost Reduction and Access Act of 2007 created a new loan forgiveness program for public service employees. This program requires quite a commitment – 10 years working as a public service professional. But the payoff – the cancellation of all remaining federal direct loans after 10 years of service — may be just the incentive a heavily-indebted college grad needs to choose a lower-paying, service-oriented career path.
Eligible public service jobs include everything from emergency management, public health and safety and law enforcement to social work, childcare, library sciences, public interest law services, and jobs serving people with disabilities and the elderly.
To be eligible for this program, you must make 10 years of consecutive, on-time repayments of your federal direct loans. This program also includes federal direct consolidation loans, so it would be possible to consolidate federal Stafford loans into the direct loan program and therefore be eligible for the cancellation of your remaining loan debt after 10 years of service. Keep in mind that the standard repayment period for federal student loans is 10 years. If you choose standard repayment for your student loans and keep up with your payments, your student loans will be paid in full in 10 years. You won't qualify for loan forgiveness because you'll have no remaining debt left to forgive!
Only grads that are eligible for reduced student loan payments, because of very high debt levels or consistently low salaries, would be eligible for this loan forgiveness program. To qualify, they would still need to make 10 years of on-time payments through an income-based or income-contingent repayment plan and work full-time for 10 years in a public-service job.
For more information on this program, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Eligible public service jobs include everything from emergency management, public health and safety and law enforcement to social work, childcare, library sciences, public interest law services, and jobs serving people with disabilities and the elderly.
To be eligible for this program, you must make 10 years of consecutive, on-time repayments of your federal direct loans. This program also includes federal direct consolidation loans, so it would be possible to consolidate federal Stafford loans into the direct loan program and therefore be eligible for the cancellation of your remaining loan debt after 10 years of service. Keep in mind that the standard repayment period for federal student loans is 10 years. If you choose standard repayment for your student loans and keep up with your payments, your student loans will be paid in full in 10 years. You won't qualify for loan forgiveness because you'll have no remaining debt left to forgive!
Only grads that are eligible for reduced student loan payments, because of very high debt levels or consistently low salaries, would be eligible for this loan forgiveness program. To qualify, they would still need to make 10 years of on-time payments through an income-based or income-contingent repayment plan and work full-time for 10 years in a public-service job.
For more information on this program, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Monday, September 7, 2009
Help for Teachers
Loan forgiveness program for teachers. Teachers who are willing to make a five-year commitment to a school in need can get some much-needed help with their student loans. The richest rewards are reserved for science, math, and special education teachers.
Science and math teachers who work in low-income high schools may be able to cancel as much as $17,500 of their federal Stafford loans. This money gets eliminated from a teacher's loan balance after he or she completes five years of teaching at a designated low-income school.
Special education teachers who work in designated low-income schools for five years may be eligible for as much as $17,500 in loan forgiveness for their federal Stafford loans.
Other full-time teachers working in a designated low-income elementary or high school for five years may be able to cancel as much as $5,000 of their federal Stafford loans.
For more information on teacher loan forgiveness programs, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Science and math teachers who work in low-income high schools may be able to cancel as much as $17,500 of their federal Stafford loans. This money gets eliminated from a teacher's loan balance after he or she completes five years of teaching at a designated low-income school.
Special education teachers who work in designated low-income schools for five years may be eligible for as much as $17,500 in loan forgiveness for their federal Stafford loans.
Other full-time teachers working in a designated low-income elementary or high school for five years may be able to cancel as much as $5,000 of their federal Stafford loans.
For more information on teacher loan forgiveness programs, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Saturday, September 5, 2009
Help for Nurses
Nursing Education Loan Repayment Program. This program repays up to 60 percent of student loans for registered nurses who agree to work full-time (32 hours or more a week) for two years in a non-profit facility in need of nurses. Nurses that choose to work a third year have the opportunity to repay an additional 25 percent of their student loans.
Repaying as much as 85 percent of student loan debt after 3 years is some deal. For more information, visit the web site of the Health Resources and Services Administration.
http://bhpr.hrsa.gov/nursing/loanrepay.htm
Repaying as much as 85 percent of student loan debt after 3 years is some deal. For more information, visit the web site of the Health Resources and Services Administration.
http://bhpr.hrsa.gov/nursing/loanrepay.htm
Help for People Working in Healthcare
National Health Service Corps. Doctors, nurse practitioners, physician assistants, dentists, dental hygienists and mental health professionals including psychologists, social workers, and marriage and family therapists can wipe out a big chunk of their education debt by choosing to work for two years in an underserved community.
In exchange for two years of full-time employment, up to $25,000 in student loans will be repaid each year. Further loan repayment is available if you choose to serve beyond the two-year contract. One-year amendments are available with up to $35,000 available in loan repayments.
Healthcare professionals with extra-heavy student debt burdens could pay down as much as $50,000 in loan debt in just two years and as much as $85,000 of loan debt in three years. Talk about a great opportunity.
For a searchable list of job opportunities in the National Health Service Corps, visit: http://nhsc.bhpr.hrsa.gov/jobs/index.asp
In exchange for two years of full-time employment, up to $25,000 in student loans will be repaid each year. Further loan repayment is available if you choose to serve beyond the two-year contract. One-year amendments are available with up to $35,000 available in loan repayments.
Healthcare professionals with extra-heavy student debt burdens could pay down as much as $50,000 in loan debt in just two years and as much as $85,000 of loan debt in three years. Talk about a great opportunity.
For a searchable list of job opportunities in the National Health Service Corps, visit: http://nhsc.bhpr.hrsa.gov/jobs/index.asp
Thursday, August 27, 2009
Americorps
Americorps seems to be a promising opportunity to help the community and pay off student loan debt while doing so.
After successfully completing your AmeriCorps term of service, you are eligible to receive an AmeriCorps Education Award. You can use your AmeriCorps Education Award to pay education costs at qualified institutions of higher education, for educational training, or to repay qualified student loans. The award is $4,725 for a year of full-time service, and is prorated for part-time. You can access the award in full and part, and can take up to seven years after your term of service has ended to claim the award.
If you successfully complete a term of service in VISTA, you are eligible to receive either an AmeriCorps Education Award or an end-of-service stipend of $1,200. The AmeriCorps Education Award option is subject to available education trust allocations to AmeriCorps*VISTA. You must select the AmeriCorps Education Award option prior to the start of service.,br>
You can use your AmeriCorps Education Award in any of the following ways—or a combination of them.
Three Options for Using Your AmeriCorps Education Award
Repay Qualified Student Loans
The national service legislation defines qualified student loan as a loan backed by the federal government under Title IV of the Higher Education Act (except PLUS Loans to parents of students), or under Titles VII or VIII of the Public Health Service Act.
You may also use your AmeriCorps Education Award to repay a student loan made by a state agency, including state institutions of higher education.
AmeriCorps Education Awards may not be used to repay any other type of loan, even if the loan was obtained for educational purposes. You can use your AmeriCorps Education Award to repay defaulted student loans as long as the loans meet the definition of qualified student loan.
additional information about Americorps can be obtained at: http://www.americorps.gov
After successfully completing your AmeriCorps term of service, you are eligible to receive an AmeriCorps Education Award. You can use your AmeriCorps Education Award to pay education costs at qualified institutions of higher education, for educational training, or to repay qualified student loans. The award is $4,725 for a year of full-time service, and is prorated for part-time. You can access the award in full and part, and can take up to seven years after your term of service has ended to claim the award.
If you successfully complete a term of service in VISTA, you are eligible to receive either an AmeriCorps Education Award or an end-of-service stipend of $1,200. The AmeriCorps Education Award option is subject to available education trust allocations to AmeriCorps*VISTA. You must select the AmeriCorps Education Award option prior to the start of service.,br>
You can use your AmeriCorps Education Award in any of the following ways—or a combination of them.
Three Options for Using Your AmeriCorps Education Award
Repay Qualified Student Loans
The national service legislation defines qualified student loan as a loan backed by the federal government under Title IV of the Higher Education Act (except PLUS Loans to parents of students), or under Titles VII or VIII of the Public Health Service Act.
You may also use your AmeriCorps Education Award to repay a student loan made by a state agency, including state institutions of higher education.
AmeriCorps Education Awards may not be used to repay any other type of loan, even if the loan was obtained for educational purposes. You can use your AmeriCorps Education Award to repay defaulted student loans as long as the loans meet the definition of qualified student loan.
additional information about Americorps can be obtained at: http://www.americorps.gov
Wednesday, August 26, 2009
Intro
I am a 31 year old college graduate with student loans to pay off. During my college education I switched majors from Elementary Education to Criminal Justice; I ended up pursuing a career in Education and was certified by using the alternative route to teacher certification (go figure). I taught for two years and then after childbirth I decided to take a year off to be with my child. During my time off the economy plummeted and several schools closed in my area. I haven't been able to secure another teaching position and the student loan notices are getting down right depressing; thus began my quest to find methods to pay off my student loans. I will share the information I find with you in this blog. Wish me Luck!
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