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8 Loan Tips Every College Student Should Know

8 Loan Tips Every College Student Should Know

Before taking out any student loans, there are certain things to take into consideration. First, you need to figure out which financial aid is the best choice. Make a list of all the lenders and how much you owe them. Borrow only the amount you need for your education. Please see below for other helpful tips.

1. Figure out which Financial Aid Is Right

According to Big Future by the College Board, students should compare all financial aid offers. Online calculators are available to help with the calculations. It will allow students to enter the cost of tuition, room and board, and all other necessary expenses.

2. Know Who and How Much You Owe

According to the Institute for College Access and Success you should make a list of all the lenders and how much you owe them. It will allow you to figure out your options when it is time to repaying the loan or obtaining any loan forgiveness.

3. Borrow what You Need

Borrow what you need to pay for college. After you have calculated the cost of tuition, room and board, and the other expenses, use that figure as a benchmark for the loan amount. Do not add to that number.

4. How Do You Know the Cost of College?

When figuring out how much a college will cost, start with a list:

• Tuition and fees
• Room and board
• Books and supplies
• Personal expenses
• Travel expenses
• Local transportation

After preparing the list of expenses, it will give you a rough idea of what the cost of college will be.

5. Get a Part-Time Job

You can get a part-time job to supplement your college costs. Most colleges offer work-study programs. They have a job board with various jobs from which you can apply.

6. When Is the Loan Due?

Know when the loan is due and find out what the grace period is. The grace period is the waiting period from when you get finished with college and when you have to repay the loan. Some financial institution will give you six months before you can start repaying the loan.

7. Communicate with the Lender

If you have moved, or if you have changed your telephone number, give that information to the lender right away. It may cost you more if the lender has incorrect information when they need to contact you.

8. Which Repayment Plan Is Right for You?

If your repayment option is too expensive, you can extend it to lower your payments. You can get a pay as you earn plan. This option will calculate your repayment based on the percentage of your income.

In conclusion, before taking out a student loan, there are eight tips that you can follow. Find out which financial aid is right for you. Know the lender and how much you owe. Only borrow what you need. Figure out the cost of college. Get a part-time Job. Find out when the loan is due, and make sure to keep in touch with the lender. Finally, figure out which repayment plan is right for you.

Will Getting a Title Loan Lower My Credit Score?

Will Getting a Title Loan Lower My Credit Score?

Title loans are high-interest, short-term loans that you can get by using your car title as collateral. Because they are secured loans, the lender generally doesn’t care what your credit score is. And many title loan companies do not bother to report the loan to credit bureaus, so having a title loan, even if you default or fail to make payments, is unlikely to directly affect your credit score. But the loans can hurt your finances and indirectly affect your credit score.

How does a title loan work?
When you get a title loan, you basically sign over the title to your car in return for a cash loan from a lender. If you pay the loan back on time, you get your car title back. However, if you can’t pay it back, then the lender will take possession of your car. You generally have to own your car free and clear to be able to take out a title loan, because the lender does not want to deal with any liens that could prevent it from getting its money.

Advantages of title loans
Title loans can be a good way to get a loan for people with a low credit score. Because of the collateral involved, the lender doesn’t care about your credit score. The loans also are easy to get and the application process is quick.

Disadvantages of title loans
Title loans are notorious for their high interest rates, which often can be in the triple digits. Title loans also often come with very high fees, so in essence, you are paying a lot of extra money to get your loan. They are very short term, also usually only giving you a month or two to pay back the money.

How a title loan could affect your credit score
Though title loans aren’t likely to directly affect your credit score, they could have an indirect effect. For example, if in the course of trying to pay off your title loan you are late on other payments, such as your credit cards, that could cause your credit score to drop. In fact, studies show that people are loathe to lose their cars, which means they are likely to pay off their title loans at the expense of other areas of their finances.

Before getting a title loan, you should consider the effect it will have on your finances and the potential indirect effects it could have on your credit score.

6 Key Facts to know before signing a Personal Loan

6 Key Facts to know before signing a Personal Loan

A personal loan provides cash in the time of need. The loans are available to individual’s meeting specific requirements set forth by the financial institution offering the cash. While loans are beneficial when money is needed and otherwise unavailable, it is imperative that you are aware of a few facts before signing on the dotted line -or trouble could very well be a part of your future. Take a look at the top 6 most important loan facts to know before signing on the dotted line.

1. Interest Rates

Personal loan interest rates vary from one lender to the next, making it imperative for you to take the time to check the numbers before agreeing to a loan with any company. There are several factors that affect your interest rates, including your credit score.

2. Time Frame for Repayment

The length of time you’ll have to repay a personal loan is very important. Some people prefer short-term loans, while others prefer to make smaller payments over the course of several months or years. Whichever you prefer, understanding the total time allotted for repayment of the funds is essential.

3. Repayment Amount

The amount of the monthly repayment is also important to know before signing on the dotted line. It is imperative that the repayment amount (which includes interest fees) is within your allotted budget.

4. Use a Loan for Most any Purpose -But Ensure that you can Afford It

Loans are available for most any purpose that you see fit, but don’t be in such a hurry to get a loan that you forget to budget for it later. If you’re unable to afford repayment of the loan, do not get the money! You’re only setting yourself up for failure.

5. A Personal Loan is an Unsecured Loan

Unsecured loans do not require that you put up any collateral to obtain them. This means that you aren’t putting any of your valuables up for loan repayment guarantee that you could lose should you run into trouble repaying the borrowed funds.

6. Several Factors Influence the Loan Amount You are Approved to Receive

Factors such as the lender selected for the loan, your credit rating, and income are just some of the things that influence a lender to give you a personal loan. These factors also influence the value of the loan that you are eligible to receive.

5 Financial Tips for College Students

5 Financial Tips for College Students

With each passing year, college becomes more and more expensive for every new student that decides to throw their hat into the ring. While the pursuit of an associate or undergraduate degree is laudable, there’s no reason why you should bankrupt yourself along the way. If you’re the penurious type, you could easily save yourself a ton of money over four years with these tips.

Use Credit Cards Sparingly

It’s easy for college students to rack up debt at preposterous interest rates if they’re not careful. While you should have one card to build credit and deal with unforeseen expenses, it’s best to pay upfront rather than borrow. Make sure that the card you do choose has no annual fee and plenty of bonuses.

Start a Rainy Day Fund

Even if you save $20 a week, you’ll have over $4,000 in cold, hard cash by the time you earn a degree. More importantly, that reserve will help you to avoid borrowing money if something like a totaled car or a health emergency crops up. This will save you big money on interest payments for bank loans.

Learn to Track Down Discounts

While clipping coupons is associated with senior citizens living on Social Security, the practice can save you thousands every year. Thanks to the web, it’s easier than ever to find online discount codes for everything from IKEA furniture to copier toner cartridges. Use Google Alerts, Groupons and digital rebates to trim your expenses for necessities to a minimum.

Buy Used Whenever Possible

Even before matriculating, you should know that brand-new textbooks from the campus store are a ripoff. Buy your books used online instead. You can probably buy the books that you need in your own town or city from graduate students unloading their undergraduate course materials. Used furniture stores and Goodwill are prime locations to scout great deals on lightly used merchandise.

Graduate Early If You Can

By taking 18 to 20 credits per semester as well as summer classes, any coed can finish a degree in three years. Before you decide to go down this road, weigh the pros and cons of early graduation for your specific major. If you attend a private college, the savings accrued by ditching that fourth year can be substantial.

Experience Is the Best Teacher

It’s unlikely that you’ll become a financially savvy college student right off the bat just by reading a few articles on the web. In some cases, you need to take a major hit to the wallet by making a major mistake to learn your lesson. In any event, these tips should apply universally to students at any school.

5 Clever Ways to keep up with your Tax Info all Year Long

5 Clever Ways to keep up with your Tax Info all Year Long

Depending on your sources of income, tracking for tax purposes may be handled by your employers or all on you.

If you’re lucky enough to get a W-2 from your primary employer and you have free-lance, contract work or rental income on the side, check your tax withholding status at your full time job. If at all possible, bump up your withholding amount to protect you from paying penalties on the contract work.

However, if all of your income is contract work, paid out on a per job basis, or based on rental income, track your income. You might consider getting an EIN, or Employer Identification Number, and setting up an additional bank account. Even if you never plan to have employees, this number will enable you to name your business. For tax purposes, you can run income paid to this business account on a federal Schedule C through your 1040. Review the tax laws in your particular state to guarantee that you are not omitting tax laws in the states you work in. At the end of the calendar year, your bank statements will provide you with detailed history of your income.

Once a month, compare your year to date income for the current year to the same dates of last year. If you notice a bump in income, it may be time to consider making an estimated payment to avoid a large tax bill in the spring or any penalties that may be assessed.

If you have business expenses related to different projects or rental properties, track them by project or by address. This can easily be done with a vinyl file portfolio, labeled by specific project. For example, if a rental property needs a repair or a service technician needs to work on an issue, keep that invoice tied to the address so you can track that deduction on your 1040 tax return. If you do your own work, save all sales slips, invoices and cash register receipts in this same fashion. Once you sit down to fill out your tax return, each project and the expenses tied to it can be quickly tabulated. Doing this as soon as you pull the receipt out of your pocket can save you a cumbersome and messy project.

Cash payments are a special challenge for free-lancers and contract workers. If and when possible, route this income through your dedicated bank account. It may seem like an extra step, but carefully tracking your income in any format is a good habit to get into, and may save you a lot of stress and worry in the future.