Gobble up the savings! November 21, 2006

Ok, excuse the silly title but we are all getting into Thanksgiving mode and I thought I’d post something for our readers who may already have Federal loans (Stafford, PLUS, GradPLUS, Perkins) and might want to consolidate. Typical loan terms are for 10 years – so regardless of how much you have in loan volume, any unconsolidated loan must be paid off in 10 years. This means monthly payments are really high and, often, unmanageable. One payment here another payment there – it all get confusing and really takes a hit on your cash flow. The best solution to this is consolidation – think one monthly payment (which can be done online), a lower payment and great benefits. You can get up to 1.25% off if you make 36 on time payments and set up automatic payments. That’s right, you get a discount for setting up auto pay! Check out StudentLoanConsolidator.com – they have great information, an easy online application and knowledgeable customer service reps who can help make such a stressful process a breeze!

I know I mentioned your savings. If you have…

$20,000 in Stafford loans at 6.54% unconsolidated gives you a monthly payment of $228/month. Consolidate this loan and you’ll have a payment of $155/month – save $77/month – $923 A YEAR!!

Again, you’ll retain all your federal benefits, such as deferment and forebearance so if you ever experience an economic hardship or go back to school, you can put off payment.

Happy Thanksgiving Everyone!

Scholarships it is! November 15, 2006

I recently got a question about scholarships. This is the best type of financial aid because it doesn’t have to be repaid! Check out www.StudentScholarshipSearch.com – Student Scholarship Search Center. It’s a free search site that allows you to check scholarships, grants and more. You can even search by your program, state of residence, and more!

So, for graduate students, I just searched the entire directory under the terms “graduate school,” and came upon 52 scholarships! Now, the trick with scholarships is to find the ones that match your program of study, interests, school, etc. as most of them have certain conditions you must meet to qualify. I just found a Real Estate scholarship – for any undergrad or graduate student studying real estate. A graduate student can get a scholarship of $30,000!!

Some tend to shy away from scholarships because they often require an essay or application and some other forms of documentation. THIS IS FREE MONEY! Do the extra work – it just might pay off!

For daily scholarship updates, be sure to tune in to the Financial Aid Podcast. Your host, Christopher Penn, always has new and unique scholarship offerings to share!

Can the Graduate Plus Loan be used for Living Expenses? November 7, 2006

Graduate school is not only expensive as far as tuition is concerned; it is also expensive for the student because it is so time consuming and holding down a full time job is nearly impossible. Often times the student needs an additional loan to help with everyday living expenses, including rent. Since the Graduate plus loan is a Federal student loan it has to be processed through the school. This means that you apply for the loan through a lender…and that lender sends the loan directly to the school. Typically, a school will only certify an amount that is needed to cover tuition and other school expenses. What does this mean though? It means that schools determine their own eligible school expenses…and it is up to a student to make them aware of other expenses you may have so when that loan comes to the school, you are both in agreement on how much you need. So basically you need to collaborate with the school so that you are on the same page as far as your budget is concerned…and then apply for the Graduate Plus Loan for the amount that has been determined by you and your school.

“It’s mid-semester…and I’m already broke” November 6, 2006

I remember this – all the budgeting and planning didn’t quite cut it and come November, I was broke. For me, it was all the expenses I never really thought about that got me into trouble – presentation materials, a new CD burner, ink cartriges (boy, are those expsnsive). And while I was able to find a way to pay for these things, thanks to my part time job, the same thing happened again in March and the next November. What a cycle! Had I known about the other options available to me, I would have been able to feel more comfortable with my finances. While Federal studnet loans, typically, are annual funds that go to the school, private student loans can be taken out at any point in the school year. You can even get one at every semester start date! Graduate students who may have really high expenses (lab fees, specialty equipment, computers, costly books, etc.) should look into the GradLoans private student loan. You can use it for whatever you want and Graduate students can apply on their own signature (check into adding a co-signer, though, for better rates/approvals).