Student Loan Sinkhole

Learn About the Income Based Replayment Plan (IBR) for Federal Student Loans

2009-06-29T12:25:00.000-07:00

"What is the new Income Based Repayment (IBR) Plan for federal student loans?"

The Income Based Repayment (IBR) is a new repayment plan designed to make repaying federally guaranteed student loans easier. It takes your income and family size into consideration and adjusts your minimum monthly payment accordingly. The intent is to make monthly payments affordable.

"When does IBR take effect?"

July 1, 2009.

"Who can apply to the IBR?"

Anyone who has taken out certain major federally guaranteed loans can apply. These loans would be Stafford, Grad PLUS or Consolidation loan made under either the Direct Loan or FFEL program. It doesn't matter whether your federal student loan is old or new, whether you took it our for undergraduate, graduate, professional, or job training: you can apply.
Note: Federal student loans that are in default, parent PLUS Loans, or consolidation loans that repaid a parent PLUS Loan are NOT eligible for IBR.

"How can IBR benefit me?"

Under IBR, you could enjoy significantly lower monthly loan repayments if your federal student loan debt is high relative to your income and family size. Your monthly IBR payment amount is calculated based on your income, family size and state of residence. If the IBR amount is less than the monthly payment under a standard 10-year repayment plan, then you are eligible to repay your loans under IBR.

"Where can I find an IBR calculator?"

It's actually your lender who will perform the calculation to determine IBR eligibility, not the government. However, you can use the government's IBR calculator to estimate whether you are likely to benefit from the IBR plan.

Click here to see a chart that shows the maximum IBR monthly payment amounts for 2009, using a sample range of incomes and family sizes.

For a PDF of this information, go to http://studentaid.ed.gov/students/publications/factsheets/factsheet_IncomeBasedRepayment.pdf.

Everything You Need to Know About Student Loan Debt Consolidation

2009-06-27T19:33:00.000-07:00

Student loan consolidation is a program offered by banks that will allow the student to group all of their student loans together and then make them into one payment. The bank pays off the other banks and assumes the student loan into one payment for the student.

It is a great debt management technique. If you are having trouble paying your monthly bills because of the current economic climate, you are not alone. A federal consolidation is probably one of the easiest major financial transactions you will ever complete in your life and it also could be the best major financial transaction you will ever complete. A federal student loan consolidation is when you refinance or combine your existing eligible federal loans into a single loan. When you apply for one, you are taking out a new loan to pay off all or a portion of your original eligible federal student loans.

All you need to do is contact your lender and tell them that you want to discuss consolidating and that will get the process started. This is not limited to only one lender. While doing this is better regulated than most forms of refinancing, lenders still manage to add substantial fees to the loan which must be paid. Some may be negotiable; others are not. The less interest you pay on your student loans, the faster you can get out of debt. Interest rates for these consolidation programs are at record lows, and it costs nothing to consolidate.

To learn much more about student loan debt consolidation, visit http://StudentLoan-Debt-Consolidation.com to find out much more about student loan consolidation and how to find the best rates and programs.

-- George Preston

Article Source: EzineArticles.com

How to Use Free Government Grants to Pay Student Loans

2009-06-27T19:24:00.000-07:00

By Jason Arnold

You can get relief in many ways if you are unable to pay off your student loan. You can get free government grants to pay student loans if you consolidate the loan which will also reduce the total student fund as the interest will also decrease. It is important to apply for consolidation of the student loans early and you can do it in your college. You will have to fill the forms for getting debt relief for the student loans.

All the student money that you have taken has to be combined when you ask for the government grants money for paying the loan. This decreases the student loan debt by decreasing the monthly interest. The form that has to be filled for this is very much same as the forms used for applying for money for education.

You will have to fill in a few details to get debt relief for your student loans like your:
• collecting loan information
• student history
• your job history
• future payoff expectations

The financial aid from the government will help you in a number of ways such as:
• paying off student education loans
• reducing your overall debt load
• allowing you to study further
• working in your new job.

It is very essential to give a reason why you cannot pay the money that you have taken out. There can be many reasons such as:
• sickness
• unemployment
• low employment
• other financial reasons why you can't pay your student loans

Debt consolidation is free government money which helps you clear the funds which you have taken for studying. You may be told not to pay back the student loans and this is like free government money.

Get in touch with the financial institution from where you have taken money to consolidate your student debt, and if you would like to receive free government grant money then please click the link below:

=> Free Government Grant Money Tips <=

Article Source: EzineArticles.com

Weird Scholarships - Strange Or Stupid But They Are Still Worth Money

2009-06-27T19:09:00.000-07:00

By Steve F. Harper

Heading off to college and looking for a student grant is a serious business but there are some weird scholarships out there that, although they may seem stupid, are worth a lot of money.

Among the millions of possible college grants are some that most people wouldn't imagine exist. There is a duct tape scholarship. Just wear nothing but duct tape to your high school prom and you are in with a chance. Then there are the lefties. Students who write with their left hand are eligible for a special left handed college grant.

Tall people can claim a scholarship if they are over 6'11" for men or 5'10" for women. Not to be out done, there is also a short people's college grant.

If you are thinking of studying languages or linguistics then you may be able to claim $500 from The Klingon Language Institute. It really exists and the good news is you don't even have to be fluent in speaking Klingon. There is more for Star Trek fans. There are scholarships for would be writers and even a medical one from the Star fleet Academy although I do not believe there is one for having long pointed ears.

Baking cakes, apple pie or being able to call ducks all carry valuable college grants. You can get free education at Texas A&M University if your surname is Scarpinato. If you like shooting things and read up on the Bill of Rights, the National Rifle Association may pay for your education.

There are lots of crazy scholarships available. Some are just stupid or funny but the fact is that they pay out cash which can be very helpful in helping you with your college fees.

The vast majority of the millions of scholarships that are available are more down to earth and there really are millions of them worth millions of dollars every year. If you are heading off to college and even if you think you have looked into all the possible sources of college grants you may be surprised at how many more are available.

Please visit my site for information on weird scholarships and also more conventional Scholarships and Grants for College.

Article Source: EzineArticles.com

Student Loans - Student Loan Consolidation Advice

2009-06-27T19:00:00.000-07:00

By Michael_Wai_W

Many graduates nowadays are having problem repaying their student loans and looking at the current economy situation, it is not uncommon that graduates are applying for deferment or forbearance for their loans. How about the graduates who are not qualify for both deferment and forbearance? Do they have to default their loans?

If you are one of them, you might want to look into student loan consolidation. This program was designed to bring your multiple student loans into one low interest and manageable monthly payment.

If you want to consolidate your loans, you have the option to do it with the federal government or private agency. And to let you know, both of these programs have their own pros and cons. For starter, you can enjoy fixed rate with the federal government student loan consolidation. Although private agency will consolidate your loans with fluctuate market rate, they do offer complimentary packages to bring out their unique service. Since every loan consolidators offer different packages, you have to research and look into each of them before you decide which to go to.

By the way, please remember to discuss with your loan consolidators about the repayment plan that suit you the best. Remember, one man's meat is another man's poison. The repayment plan that suits best for other people might not be the one you need. You can have a hard time juggling between your consolidation and your life when you choose the wrong plan.

Now, student loan consolidation is still a loan and you still need to pay it back. It is not that you are enjoying low monthly payment that you are free to spend. In fact, you have to be more diligent during your spending because you don't want to spin yourself into a new debt. You can be in deep trouble if you defaulted your consolidation.

If you really need to have credit card, only buy the things that you can afford and remember to clear your bills every month. Never for a moment think that you will be alright by paying the minimum monthly payment. This is because the interest rate is going to multiply on your outstanding balance and eat deeper into your wallet.

To learn much more about student loan consolidation, visit StudentLoanConsolidationHowTo.blogspot.com where you will find this and much more including student loan consolidation comparison.

Article Source: EzineArticles.com

FAFSA Form Gets Simplified

2009-06-26T17:30:00.000-07:00

Do you dread filling out the Free Application for Federal Student Aid, or Fafsa? I know we do. Well, there’s good news for us. The Fafsa is about to get shorter and easier.

The government uses the FAFSA to calculate a student’s eligibility for financial aid, including Pell grants, student loans, and college work-study programs. Most colleges also require it as part of their financial aid application process.

The form has more than 150 questions on a student’s family income, savings and assets. The changes involve eliminating questions, providing quicker estimates and streamlining information from the Internal Revenue Service.

The changes are supposed to make it easier to apply for financial aid — and thereby increase college enrollment among low-income and middle income students.

The U.S. Department of Education estimates that 1.5 million students who are probably eligible for Pell grants fail to apply each year. Critics say the difficult FAFSA form is to blame, that it scares off the neediest students.

Starting this summer, students can skip questions that don’t apply to them. For example, students who are married, or 24 years old or older may skip 11 questions about their parents, because they’re exempt from having to provide their parents’ financial information.

In other changes, students with low incomes won’t be asked for asset information, and only returning students will be asked about prior drug convictions.

Education Secretary Arne Duncan called on Congress to enact legislation that would let students and their families apply for financial aid needing only the information on their tax returns. Now we also need bank statements, investment information and documentation of untaxed income.

Obama's Plan for Student Loan Debt Reform

2009-06-25T11:26:00.002-07:00

As so many of us have come to know, it's very difficult to pay for college these days without resorting to student loans -- and accumulating student debt. Most of us grew up with the idea of borrowing money to pay for college and so that, in and of itself, doesn't frighten us. What concerns us more is the type of student loans we take out and how they affect student loan repayment.  

Those loans generally come in three types: 
- federally-guaranteed loans obtained directly from the government 
- federally-guaranteed loans obtained through private banks and other lenders 
- wholly private loans obtained through banks and other lenders  

Federally-backed student loans are preferred. Why? Because Congress has fixed the interest rate that student borrowers are asked to pay on federally guaranteed student loans. In exchange, not only does the government guarantee the loan, it also subsidizes it.  

Private student loans are another matter. Read the fine print. Private student loans often have significantly worse terms than federally-backed students loans, and give lenders the right to change your interest rates. Hence, the stories about students (and their families), who find themselves straddled with a student loan debt that far exceeds the amount of money they originally borrowed.  

The Obama Administration has made a proposal for student loan debt reform. It wants to stop paying banks to make loans. It wants the government to make the loans directly to the students. The Congressional Budget Offices says that direct government lending would save $94 billion in subsidy payments over the next decade. The savings would be used to increase Pell grants to students. The plan would also link annual increases to inflation. It would not only save money, but provide transparency and long-term affordability for student borrowers.  

The idea has sparked a bitter battle among policy makers. Why? In part, because the plan would limit congressional control. It would make spending on Pell grants mandatory. Knee-jerk Republican opponents say it's just another plan to make Big Government. Spineless Democrats who are from districts where banks provide a lot of employment fear upsetting their big money constituents.

As for the lenders, of course, they don't want to lose a cash cow. The current system turns tens of thousands of student borrowers into life-long indentured servants. It guarantees lenders billions annually, every year, for years in advance, through interest payments and hefty government-made (i.e., taxpayer-paid) fees alone.

The lenders claim they’re providing necessary services: marketing and debt collection, among others. As far as I’m concerned, the only services they’re providing are to themselves!   

For students, the benefit of the government's plan might not be immediately evident: In terms of loans, for example, it might amount to only a few hundred dollars more in grant money. However, over the long term it would be a major boon. Direct government student loans would be free of the onerous predatory private lending practices that we have now.

  - Mother of a College Student

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2008-08-31T19:53:00.000-07:00

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