Student Loans For Community College – What You Need To Know

July 22, 2010 By Leave a Comment

For some odd reason, our Government thinks that everyone should have a four year degree or more and only attend four year colleges. Well, at least the way they treat those people who want to attend Community Colleges and Vo-Tech schools you’d think so. For these people, getting financial aid has been made much harder. There was a time, if you wanted to take credits at a community college before heading to a four year college, it was no big deal to get a student loan to cover it. Or, believe it or not, some people just wanted to learn a trade at a Vo-Tech school. The money was there and usually within two years they were out in the workplace earning a living and repaying any loans they took out to pay for their schooling. Such is not the case any longer thanks to Uncle Sam. In the past, it was pretty simple and straight forward finding student loans for Community college. But those days are gone.

One thing you need to do if you plan on attending a two year College or Vo-Tech school is to fill out your FAFSA. This is why many students don’t get the financial aid they need and it will not get any easier under the new laws being attached to nearly every bill that goes through Congress. Your FAFSA application is the cornerstone to you getting financial help from the Government if you want it. And you’d better make sure it’s filled out correctly and truthfully! These applications have been known to come back and bite people who were not honest in answering the questions on them.

There are programs that help people seeking an education or training at 2 year Colleges. Two of the most popular ones are Stafford Loans and Perkins Loans. One good thing to come out of many of these new bills is that by 2012 the interests rate on Stafford loans will be fixed at 3.4 percent. This alone makes these types of loans very desirable for students heading off to college.

Many students and even some school councilors do not understand that the Perkins student loans can be used by two year college students. The Perkins loans are usually more of a campus based loan, but are certainly available to two year colleges. The limits on many of these loans have been increased for people seeking out an education at a four year college but as of now it’s only speculation on whether or not this will help those attending a Community college or Vo-Tech school.

If you’d like to be one of the ones receiving financial aid through the Perkins loan program, it’s vitally important that you submit your FAFSA to the school of your choice at the earliest time possible. The old saying ‘The early bird gets the worm’ is not truer than in this circumstance!

Finally, my last piece of advice to those wishing to go to a Vo-Tech or Community college and are having a tough time getting a federally back student loan would be this. Don’t give up. You can work your way through these colleges and improve your credit along the way. Also, don’t overlook applying for a Private student loans for Community college or Vo-Tech schools. Depending on how much money you need, you may find a lender willing to write you a note if you have a good credit history or a good cosigner.

Filed Under: Finance, Get out of Debt, Loans, Personal Finance, Student Loan Tagged With: , , , , ,

Applying For No Cosigner Student Loans Via The FAFSA

May 18, 2010 By Leave a Comment

The Free Application for Federal Student Aid is exactly what it sounds like, and is the application a student needs to fill out, along with other forms and applications depending on the university, in order to receive federal student aid, such as Pell Grants, miscellaneous scholastic grants (depending on state, these are often tied with Merit Exams, such as the Michigan Merit Exam, which offers a scholarship based on various test scores), and subsidized, or unsubsidized federal student loans. Another option that is available is the federal work-study program, which offers the student the opportunity to apply for and receive aid based on work within an organization on the student’s campus. These jobs require a certain grade point average and other qualifications depending on the position.

Applying for financial aid is a relatively simple process. Go to the FAFSA website at fafsa.ed.gov, and follow the directions for applying within. The student will need parental information if they do not meet certain criteria, such as being above the age of 24, going for a masters degree, married or a veteran of the armed forces. The student will also need a social security number and their current year’s tax data. After the student submits all of the relevant information, they will receive an estimated family contribution (EFC). This number tells the student how much their family is required to pay toward the student’s costs, which will not be covered by loans or other aid.

This EFC is also what the school uses to determine how much the loan or grant award will be. Once the application is received by the university (which is achieved by the student entering the school code within the FAFSA), the student will receive an award letter describing the type of aid they are eligible for. If the student is eligible for grants, such as the Pell, Grant the award will automatically be accepted and applied toward the student’s tuition costs. Work study and loan awards are not automatically accepted, and require additional paperwork before the awards will process on the student’s account. Work study requires that the student apply for and be hired by a participating on-campus employer. Student loans require a signature, as well as entrance counseling when the student accepts the loan, and exit counseling when the student completes their required credits for graduation. In the end these are great financial aid instruments, and if you were looking for no cosigner student loans, these are the types of loans you should look for.

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The Advantage of Bill Consolidation Loans

May 6, 2010 By Leave a Comment

If you have bad credit, a bill consolidation loan can be of great advantage. Unlike non-consolidating bad credit loans which usually add to one’s total debt load, by consolidating your debts you can eliminate those high interest credit card payments. It also reduces several monthly payments and leaves you with one. A bill consolidation loan will greatly improve your credit because it will pay off all of your existing debts. Paid debts are looked upon very favorably by the credit bureaus.

Exchanging many monthly payments for one, will literally save you hundreds of dollars per month. The extra money you have every month will enable you to pay cash for needed items instead of using credit. A debt consolidation loan for people with bad credit will be paid off much quicker than all of your debts being paid separately.

It is not always easy to obtain a bill consolidation loan when you have less than perfect credit. There are lenders who offer such a loan but it will take some research to find one that will give you a fair deal. When you have weak credit, a bill consolidation loan provides you with a new lease on life. The ability to start fresh is a wonderful gift. If you find yourself choosing which bills to pay and which ones have to wait until next month, a debt consolidation loan could be the answer you’ve been looking for.

People with a large amount of debt often feel overwhelmed and can’t get control of their finances. Most people do not realize the total amount they are paying for an item when they use a credit card to buy it. Credit card interest rates are astronomical. The interest rates and fees make it nearly impossible to repay. One late credit card payment can quickly lead to a monthly payment that is far beyond reach. This may cause you to give up making payments to that company. The result of this decision is a very poor credit rating.

Bill consolidation has another advantage. You will no longer have a pile of unpaid bills staring you in the face. Your debts will be reduced to one and you will have money left over at the end of the month. All of this will greatly reduce your level of stress and leave you in control of your finances instead of your finances controlling you. You will be able to raise your head and be proud of what you are accomplishing. It has been said, if you don’t like the situation you are in then do what you can to change your situation.

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