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An Introduction to Computer Forensics

2009-05-19T16:22:00.000-07:00

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Computer forensics has been defined as a technological, systematic inspection of the computer system and its contents for evidence or supportive evidence of a crime or other computer use that is being inspected. However, computer forensics is also widely used in ivil litigation matters.

The type of evidence sought varies and can include theft of trade secrets, theft of or destruction of intellectual property, and fraud. Computer forensics requires specialized expertise that goes beyond normal data collection and preservation techniques, and care should be taken and selecting a forensics expert.

A computer forensics specialist can use a variety of methods for discovering data that resides in a computer system, including recovering deleted, encrypted, or damaged file information.
Computer forensics specialists generally have experience with a wide range of computer hardware and software than the typical
data recovery expert
may not. Moreover, the specialist often is called upon to testify in depositions and at trial regarding the information recovered.

Computer evidence can exist in many forms or formats. Knowing this possibility, it's possible to recover alternate formats of the same data.

Because the protection of evidence is critical, a knowledgeable computer forensics specialist will ensure that a subject computer system is carefully handled to ensure that no possible evidence is damaged, destroyed, or otherwise compromised by the procedures used to investigate the computer.
The
computer forensics specialist
will take several careful steps to identify and attempt to retrieve possible evidence that may exist on a subject computer system. He will also make certain that extracted and possibly relevant evidence is properly handled and protected from later mechanical or electromagnetic damage.

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SQL Server Database Recovery

2009-05-19T16:17:00.000-07:00

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Most companies use relational database management system (RDBMS) and store their data in SQL databases. What happens if after rebooting the server the database doesn't attach and your backup is corrupt, incomplete or outdated?

Have you ever had a drive containing SQL data crash and the files were recovered by a data recovery company but the SQL database is corrupted? One unreadable sector inside a SQL database will not allow the file to attach. First Advantage's team of data recovery specialist's can expertly assist you in the instances to recover your data.
SQL recovery
from drive failures, more often than not, a two-stage process. First, the physical data (raw sectors) must be recovered in order to gain access to the logical data. If the database will not attach to SQL server, then the second stage is SQL recovery.

Media in database servers suffer from the same failure as drives in personal computers. Even the best configured system can fail due to:

* Corrupted database
* Torn page detection
* Deleted data (tables, records, systems objects)
* I/O error in SQL server
* Deleted or corrupted log file
* Database in "suspected" mode
* Unable to restore from corrupted backup file

Is it possible to recover?
In most cases it is possible to repair the database to an attachable state. If the
data recovery
specialists are unable to repair the database to a point to where it will attach, then the specialist will recover as many tables and records as possible for you with First Advantages' specialized recovery software tools. This recovered data can then be merged back into an empty database that your front end will work with.

Getting Started
If the failure mechanism is hardware or file system corruption, then the recovery specialists would require the original media to be sent to First Advantage data recovery. This is because file fragmentation can scatter pieces of the database and log file all over the media. These pieces must be collected and reassembled so we can start our analysis. If the database was corrupted by some other means then a copy on any media will do.

What can you do to help?
Third party SQL recovery and utility programs can cause damage beyond our ability to recover the files so it is best if clients don't attempt recovery with such programs with the original files. For database repair and/or scavenging, it will save time if you can furnish First Advantage with the database structure (perhaps an empty database or backup) and a list of prioritized tables.

After determining what steps will be necessary to complete your recovery, First Advantage will contact you for approval. No work will be done without your consent. As soon as you approve the recovery, our recovery specialist will continue with the recovery effort by analyzing the database and records, extracting the data and rebuilding the database.

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Computer Hard Drive Failure

2009-05-19T16:14:00.000-07:00

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If you find that your personal or business computer suddenly stops responding to your commands, or the hard drive simply crashes, what are you going to do? Sure, you can run down to your neighborhood electronics store and purchase a replacement hard drive for your computer, but what about your data on the failed hard drive? How important was it?

Did you save it or back it up? Unfortunately, most home users do not back up their systems, and many small businesses have older back-up procedures that are often ineffective for recovering files.
The first thing to do is to remain calm. Acting rashly can actually do more damage to your data. In case of actual hard drive failure, only a
data recovery professional
can get your data back. The fact that you cannot access your data through your operating system does not necessarily mean that your data is lost.

The only irreversible data loss is caused by overwriting bits, physical damage to the drive platters or destruction of the magnetization of the platters, which seldom happens in the real world. In the majority of cases, the malfunction is caused by a damaged circuit board, failure of a mechanical component and crash of internal software system track or firmware. These situations can be addressed by the experts in First Advantage's Data Recovery Services unit, who are able to recover 100% of the data for 96% of customers.
First Advantage's
data recovery
'rule of thumb' is: if you hear a clicking sound emitting from your hard drive, or if the computer's S.M.A.R.T. function indicates an error during the boot process, something is wrong. The safest bet is to call First Advantage for your expert data recovery needs (1-877-304-7189 or use our contact form here.

After receiving your failed hard drive, a First Advantage data recovery specialist's first step will be to try and save an image of the damaged drive onto another hard drive. This image drive, not the actual damaged hard drive, is where the data recovery specialist will try to recover the lost data.
The next step in the imaging process is to determine if the
hard drive failure
was an actual malfunction, a system corruption or a system track issue.

System corruption and system track issues are normally fixed by using First Advantage's proprietary data recovery software, which was developed by our research and development engineers. System corruption or system track recoveries do not require processing in a clean room environment.

Unfortunately, damage to a hard drive's circuit board or failure of the head drives is not uncommon. In each of these failures, a First Advantage data recovery specialist will work on the system in a clean room environment*, substituting parts such as drive electronics, internal components, read/write arms, writing/reading heads, spindle motors or spindle bearings from a donor drive in order to gain access to the data on the failed hard drive. In most cases, the data recovery specialist is able to retrieve and return your lost data.

It's really very simple. If your data disappears, don't panic. First Advantage can recover it for you, as we've done for thousands of satisfied customers since 1981. If we are not successful, then you pay nothing. What have you got to lose?

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Software and Hardware Recoveries

2009-05-19T16:11:00.000-07:00

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So, your computer has just frozen, locking in data essential to your business or personal life. You know you need to contact First Advantage's Data Recovery Service team in order to retrieve it, but you're unsure of the process. Read this article to learn everything you'll need to know about how to get First Advantage on the case, and what happens in the data recovery process.

The initial step in your data recovery process is to contact First Advantage's Customer Care Center personnel (1-877-304-7189). They are highly experienced in answering questions from panicked PC owners, and they will attempt to ease your data anxiety attack. Be prepared to give the call center personnel detailed information about the problem and the circumstances that led to it so they can better address your concerns.

After speaking to the customer care center, the next step is to get the damaged drive to our Data Recovery Services team. There are several ways to accomplish this: you can either ship the system to us via U.S. mail or a private delivery services such as UPS, or you can drop the drive off at one of our branch offices or drop off centers, located in key cities throughout the U.S. (The customer care center can help you find the drop off center closest to you.)
If you elect to ship the drive to us, please remove it from the computer prior to doing so. Not only will you save on shipping costs, but it will help our
data recovery
engineers to more easily perform a diagnostic on the drive. If you elect to bring the drive directly to one of our locations, this step is unnecessary; an engineer can remove the drive for you.

Software Failure Recovery

After the drive is received and the information you provided is analyzed, the defective drive is connected to a data recovery work station, where an experienced data recovery engineer can diagnose the problem.

If it is determined that the drive has not experienced a hardware failure, then our data recovery specialist will first attempt to recover the data by connecting the drive to a work station computer and utilizing First Advantage's propriety software. This will be successful in recovering data that was lost by accidental deletion of partitions or formatting errors. During this process, any existing data is read and then copied onto another, undamaged hard drive. The data recovery engineer will work with the copied data only, in order to prevent further corruption from the damaged drive.

Hardware Failure Recovery

In the event that the software recovery attempt is unsuccessful, the next step is to perform a hardware failure recovery. In this process, the engineer will usually start out by replacing the circuit board. Sometimes, a trial-and-error method will be involved, requiring the engineer to systemically replace various components, such as defective drive heads, so that the recovery can be completed. Since these replacements require compatible parts and firmware, our Data Recovery Services team maintains an extensive supply of essential parts and has a list of responsive suppliers that can quickly fill our parts requests.
In both cases, the recovery engineer will substitute the defective part with a working one until he or she is able to gain
access to the hard drive data
. In 96% of all cases, we are able to recover 100% of the data.

So now that you know what to expect every step of the way, give First Advantage's Data Recovery Services team a call. Either we'll recover your data and return your system to you (and even pay for the shipping!), or you won't pay us a dime. That's our guarantee, and we stand proudly behind it.

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RAID Data Recovery

2009-05-19T16:09:00.000-07:00

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A redundant array of independent drives ("RAID") recovery is much more difficult than a single hard drive recovery and should only be attempted by a qualified specialist, like the experts in the Data Recovery Service unit of First Advantage.

RAID manufacturers set up the internal controls of their arrays in different configurations. Since the RAID configuration is most likely proprietary, it is almost never disclosed to or shared with other data recovery companies.
That's why RAID data recovery engineers must have
years of experience and be able to write recovery programs for each separate RAID data recovery operation.

The first step in the data recovery process is to get the RAID drives' data copied on to a server or other hard drive so that the data set can be re-assembled.
Each recovery procedure is unique to a particular RAID array. For example, a level 0 RAID (also known as a RAID 0) is the most challenging type of recovery because there is no fault tolerance and thus, no margin for error. A RAID 0 is made up of two drives, with the data striped in small sets across one or both of them. Since there is no parity in a RAID 0, the information that was saved on a failed drive is not replicated elsewhere, meaning that it will be difficult or impossible to recover.
On the other hand, a RAID 5 is made up of three or more drives and does offer parity data, so when one drive fails, a replacement drive can be used for recovery and the array can be rebuilt. However, if two drives of a RAID 5 fail, the recovery process becomes more difficult. If enough data can be saved from the malfunctioning drives, an experienced
RAID recovery
engineer can usually succeed, because the RAID parity is still available.

Each
RAID data recovery
is unique, because manufacturers set up their internal arrays differently. A RAID recovery engineer must be able to determine the arrangement of data and the parity cycle to recover the data and rebuild the RAID. The data is accessed on a file system level instead of on a controller level. Normally, an NTFS file system is used in this type of recovery, because the logical drives will be providing the basis for working on a RAID image. This allows the RAID recovery engineer to assemble bits and bytes after a successful recovery using propriety software developed by First Advantage.

RAID data recovery is certainly not recommended for amateurs, nor for the weak of heart. First Advantage has successfully recovered data from RAIDs as well as all popular types of storage media since 1981.

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Computer Hard Drive Failure Recovery Processes

2009-05-19T16:08:00.000-07:00

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If your personal or business computer suddenly stops responding to your commands, or the hard drive simply crashes, what can you do?

Of course, you can run down to your neighborhood electronics store and purchase a replacement hard drive for your computer, but what about your data on the failed hard drive? How important was it? Did you save it or back it up?

Unfortunately, most home users, and many business users, do not back up their systems. Moreover, many small businesses have older back-up procedures that are often ineffective for recovering files.
If you need to
recover data on the hard drive
, the first thing to do is avoid trying to reboot or doing anything that involves the hard drive. Doing so can actually do more damage to your data.

In the case of actual hard drive failure, only a data recovery professional can get your data back. And the fact that you cannot access your data through your operating system does not necessarily mean that your data is lost.

The only irreversible data loss is caused by overwriting bits, physical damage to the drive platters or destruction of the magnetization of the platters, which seldom happens in the real world. In the majority of cases, the malfunction is caused by a damaged circuit board, failure of a mechanical component and crash of internal software system track or firmware.

As a "rule of thumb," if you hear a clicking sound emitting from your hard drive, or if the computer's S.M.A.R.T. function indicates an error during the boot process, something is wrong. You should immediately stop using the hard drive in order to avoid causing further damage and, potentially, rendering the information on the hard drive unrecoverable.
After receiving your failed hard drive, a
data recovery
specialist's first step will be to try and save an image of the damaged drive onto another hard drive. This image drive, not the actual damaged hard drive, is where the data recovery specialist will try to recover the lost data.

The next step in the imaging process is to determine if the
hard drive failure
was an actual malfunction, a system corruption or a system track issue.

System corruption and system track issues are normally fixed by using a specialist's data recovery software. System corruption or system track recoveries do not require processing in a clean room environment.

Unfortunately, damage to a hard drive's circuit board or failure of the head drives is not uncommon. In each of these failures, a data recovery specialist should work on the system only in a clean room environment. There, the specialist can substitute parts such as drive electronics, internal components, read/write arms, writing/reading heads, spindle motors or spindle bearings from a donor drive in order to gain access to the data on the failed hard drive. In most cases, the data recovery specialist is able to retrieve and return the lost data.

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Exchange Server Database Recovery?

2009-05-19T16:05:00.000-07:00

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E-mail servers are an integral part of business success in today's environment. A critical services database that changes very often, such as messaging and collaboration data, should be fully protected by a well-tested back-up solution.

However, back-up devices can also fail - leaving the client with serious problems. Standard repair utilities within the mail applications can cause further problems if media failure or structural damage has occurred.

First Advantage supports Microsoft Exchange Server version 5.5, 2000 and 2003. Our Microsoft Certified Engineers are able to recover the mailboxes located in the Information Store from just about any kind of "Jet Engine Error," "Read Verification Error," database corruption, over-sized files or other file problem.

Typical situations that our experts can address include:

* Inconsistent Information Store state
* 'Dirty' shutdown
* Corrupted header information
* Damage from ESEUTIL
* Duplicate keys (identifiers)

First Advantage's standard services include recovery of:

* E-mail addresses from Active Directory storage
* Folders, messages and file attachments
* Notes, contacts, tasks and appointments
* Creation dates for all objects
* Formatting for RTF and HTML messages

First Advantage's
data recovery
engineers have the capability to recover your Exchange Server Information Store Files from many forms of backup tapes.

Critical Information:
Widely available recovery utilities can delete valuable data. First Advantage's recovery experts suggest that you make a copy of your .EDB, .STM and .LOG files prior to:

* Attempting to attach or repair a damaged Information Store
* Opening a tech support case with Microsoft
* Sending your database to any other company

After determining what steps will be necessary to complete your recovery, we will contact you for approval. No work will be done without your consent. As soon as you approve the quotation, our engineers will continue with the recovery process.

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How Is My Data Recovered?

2009-05-19T15:53:00.000-07:00

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One of the First Questions You Need To Ask About
Data Recovery - "How Is My Data Recovered?"

It's one of the most often asked and necessary questions about data recovery - "How do you get my data back?"

There's really nothing magical about it, although sometimes recovering data can seem almost miraculous.

The Right Knowledge and the Right Tools
Proper data recovery requires two things: knowledge about the proper procedures for data recovery and the right tools, i.e., technology.

Not all data recovery companies offer the necessary knowledge and technology. So in choosing a data recovery company, ask about both. Find out about the credentials and accreditations the people who'll be working on recovering the data.

Then find out what type of facilities (more on that in a moment) and technologies they use.
The first thing a
data recovery
firm should do is
evaluate the hard drive
and determine if the data is recoverable. While doing this, they should also determine what recovery process will be necessary.

Two types of failure in a hard drive
Generally speaking there are two primary forms of failure in a hard drive: logical and physical. Logical failures are usually the result of file-system corruption. Physical failures can be either mechanical or electronic.

The determination of the type of failure will determine the next steps to be taken.

If the drive failure is a logical issue, an evaluation of the file system will be performed to try and repair the corruption. If this doesn't work, then a very low-level scan will be performed, searching all sectors of the hard drive for files.

If the files are located, they can then be copied to a CD-ROM, DVD-ROM or another hard drive. Be aware that logical recoveries can take up an enormous amount of time, especially if the drive is on the verge of physical failure.

If the problem is a physical failure, recovery can be more difficult. Again, there are two categories of physical failure, mechanical and electronic. Physical failure usually necessitates having matching parts to get the drive functioning again. So it's important to find out if the data recovery firm has access to parts that match your hard drive.

Clean Rooms
If the firm you are working with has bona fide expertise in data recovery, they should also have a "Class100 Clean Room." A Class100 Clean Room is designed to maintain exceptional air purity, containing less than 100 airborne particles larger than 0.5 microns in each cubic foot of air. Such an environment is vital for protecting the sensitive internal components of hard drives. If it is going to be necessary to perform an invasive procedure on a hard drive, a Class100 clean room or better is needed.

Ask questions
A data recovery firm should be prepared to answer your questions about how they will recover your data. They should have no problem with evaluating the problem and discussing the procedure for recovery.

Ask about the availability of a "Clean Room." Ask about the type of failure they've diagnosed.

Doing so can help you determine how legitimate a data recovery company they are. For instance, if they don't have a Clean Room, it may mean that can't properly deal with physical failures in the hard drive.

Get answers that satisfy you that the company has the necessary knowledge and tools to do the job right. If they don't, you need to find another data recovery company fast.

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Data Recovery - A Sea of Confusion

2009-05-19T15:04:00.000-07:00

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Your hard drive stopped responding and you don’t know what to do or what not to do. You call the OEM of your computer for support. After a couple of hours on the phone with tech support, it is determined that indeed the drive is failed. They tell you that you will have to seek professional data recovery services.

You do a Google search for “data recovery” and find yourself drowning in a sea of confusion. You search website after website and see options and pricing ranging from $179.00 to $4000.00. Who do you call, who do you trust? Right now you’re feeling what I have coined as “Data Loss Anxiety” and the symptoms are many. I would like to help you through this chaotic period by briefing you on some basic do’s and do not’s, a few industry misconceptions and why you should use First Advantage for your data recovery requirements.

Can I Fix It Myself?

Firstly, don’t panic, you have almost a 100% chance of getting your data back so relax. What we don’t want to do at this time is hinder any chances of recovery. Most importantly, if your drive is making any strange noises and the system BIOS does not see it as being physically present, do not try any further. There is no software or hardware available to the public that will allow you access to the drive. If your system does see the drive being present and it sounds normal but it won’t boot, try slaving the drive into a working system. This may give you complete access to your data. One more thing, please don’t put your drive in the freezer, any amount of condensation will destroy the media when you spin it up. Please see our tips page for more info on what you can safely try.

The Industry Today

Data recovery companies are popping up like mushrooms all over the web. The vast majority of these companies are not able to recover from physical failures. They are software only shops that advertise full service. Their MO is to advertise super low flat rate pricing and cherry-pick what they can handle with minimal effort. All other jobs beyond their capability are tagged as failed. They will contact the client and tell them that the drive is not recoverable when in fact it is. This discourages the client from pursuing any further attempts for recovery...it’s an absolute crime. There are only 4 true full service cutting-edge companies in this industry and we’re the best of them. A big shake-down is occurring right now in this business and only those that can produce will survive.

Why Pick First Advantage?

If you've ever required data recovery in the past you may have used us. We are the original Data Recovery Services, Inc. headquartered in Dallas Texas. Established in 1981, DRS has remained the authority in the data recovery industry serving a global market. In March of 2005, DRS was acquired by First Advantage Corporation (NASDAQ: FADV), a global risk mitigation company looking to expand their service offerings. First Advantage offers a range of recovery services from a simple floppy disk to the most complex fiber channel RAID configurations. All of our procedures are done in house by engineers handpicked from around the world. We develop and manufacture hardware solutions that our competition would die for. Our facilities are cutting-edge with ISO class 5 or better clean rooms. When it comes to pricing, we offer a value added hourly model that our clients agree is the most attractive in the industry. We have a REAL 96% success rate and hear it from new clients all the time “I’ve been told that if First Advantage can’t get it, nobody can”...it’s true.

Please Ask Questions

When you’re doing your due diligence don’t be afraid to ask questions. Put the representative through their paces. Here are some FAQ’s that you really should ask and the answers that you should be given and why.
How Much Will It Cost?
Data on computer storage media can be lost physically, logically or a combination of both. A comprehensive diagnostic must be performed in order to give you a firm, fair price. Typically, you should be given a range on your initial call. The more detail you have of the symptoms, the narrower the range will be. If a company gives you a flat price on your initial call, hang up and go to the next. After a free comprehensive diagnostic, First Advantage will give you a firm price quote with no hidden fees.
How Long Will It Take?
Modern hard drive recovery is very complex and the final result is all based on the success of one routine. This routine involves acquiring a physical sector dump (image) from the drive. Typical turn time for a single drive recovery is 2-5 business days if the drive responds normally to procedures. It can however take longer than this if there are hard to find parts or the drives media is degraded. All firms in this industry have had the occasional drive that reads for three weeks before completion. If a recovery company guarantees you a timeline over the phone, they’re blowing sunshine up your skirt. First Advantage will never guarantee a completion time for any project...we can only estimate. We work as quickly as we can to get you back up and running in the shortest period of time. We do offer critical response and expedited processing to shorten turn times. These premium services push your project to the front and dedicate resources to your project until completion.
What If you’re Unsuccessful?
Some companies will charge you an “attempt fee” if they fail your recovery. This is another reason to stay away from the mushrooms described earlier in this article. Most reputable companies, as is with First Advantage, will not charge you anything for a failed project. Sometimes there are recoveries that are marginal due to unreadable, damaged areas of the drive. Unread areas can cause everything from file corruption to data that is completely missing. We have implemented a Value Assessment Program for just this reason. We will work with you on the cost of your project to give you a fair price on the data that is viable.
How Will I Get My Data Back?
Typically, when a user has a drive failure they will remove the bad drive and go ahead and install another to reload and get going again. You should receive back a universal media that is compatible with your system so you can easily copy the recovered data back to your fresh system. We make sure that that’s exactly what you receive. Most of our clients will receive DVD or an external USB drive free of charge.
Is My Data Confidential And Secure?
A data recovery facility should be secure physically and logically. By this I mean having a monitored security system on the facility, secure electronic connectivity with the outside and data storage management and recycling. All First Advantage Facilities are ISO 27002 certified. First Advantage will not disclose any client information to third parties except (i) pursuant to a final, non-appealable court order or (ii) as required by federal, state or local law.
What If My Recovery Gets Lost In Shipment?
This is good question. First Advantage, as other industry leaders do, creates a “sector-to-sector” image of all incoming hard drives to prevent further possible data loss and keep your original drive unchanged. We retain your image/data for 5 business days after you have received the recovery to insure completeness and reintegration of the recovered data. “Budget” data recovery companies are working directly from problematic drives. Good luck getting any post recovery support from them.

The Bottom Line

Data recovery is not for everyone. You must weigh the cost of recovery against recreation of the data. In cases such as lost photos or video footage, the data cannot be recreated so easily if at all. At First Advantage, we have a genuine interest in recovering your data. We are on a quest to prove that we are the best in the industry. If you really and truly must have your data back, you’ve come to the right company. If you have any questions, please don’t hesitate to call and ask for me directly, I’ll be happy to chat with you about your project. Remember, back up early, back up often.

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How To Survive The Credit Crunch

2009-05-16T04:09:00.000-07:00

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The credit crunch has been with us in the UK for over a year now and, even though a lot of people tried to deny that it existed and was just a term invented by the media.

Whilst other individuals claim that they have not been affected by the slow down in the economy, a large percentage of individuals and families are now starting to feel the full impact of the crunch, even if they haven’t done so previously, particularly those people who have debts through mortgages, personal loans and credit card balances.

It is not only individuals who are suffering however, many businesses are going through particularly tough times at the moment, leading to increased fears over job security. We have all seen the devastating effects on a large number of the high street banks and other financial services companies, such as loan companies, but the current economic slow down is now having a knock on effect on many businesses in other sectors as well, as many people are starting to cut back on their expenditure.

So if you’re one of the many people who are feeling the pinch and perhaps struggling to keep up with the monthly mortgage and loan repayments, or seeing you credit card balances increasing at an unhealthy rate, or maybe you’re just worried about job security and the possibility of unemployment in an uncertain future, what can you do to avoid falling victim to the credit crunch, or at least limit the damage done to your own personal financial situation, before we see the light at the end of the tunnel.

Budget Planner

The first stage in sorting out your financial situation and creating a bit of stability is to organise a budget planner by carrying out an income versus expenditure exercise.

Firstly, write down your total take home pay and other income from things such as any state benefits for which you are eligible, plus any overtime or bonuses (although you should be careful when including overtime or bonuses as these tend to be the first things to get cut by employers when times start to get tough).

You should then list all your regular expenses, including luxuries and non-essential items, not just bills. Be honest with the list, if you leave things off you are only lying to yourself and the exercise will not be effective. It’s also important to write down each expense so that you can see exactly where all your money is going.

Cut Down On Unnecessary Expenses

Once you have completed your budget planner and have a full breakdown of your income versus expenditure, it may become immediately obvious where it is possible to make monthly savings.

Sadly, it is normally the luxuries in life which are the first things which must be cut back on, such as going out for an evening, gym membership and even (dare I say it?) cutting down on smoking and drinking. Other savings can be made by perhaps changing where you shop for food and planning meals before you go to the supermarket and only buying what you actually need once you get there.

This can make a big difference to the cost of the weekly shopping trip. Another idea is to leave the car at home for short journeys and walk instead, saving on petrol costs and getting you fit at the same time!

Build Up An Emergency Fund

It is important to have an emergency fund of money which you are able to fall back on in the event of difficult times, such as redundancy, sickness or unemployment.

Ideally the amount of this fund should be in the region of at least three times your committed monthly expenditure (the things every month which you have to pay, such as personal loans, mortgage and utility bills) to help you get through until you get back on your financial feet. A larger sum is or course better, but even a small amount of money put to one side can make a difference to the situation and reduce the potential of increased levels of debt.

Maintain All Protection Plans

One area of your monthly expenditure which you should definitely not cut back on is the regular payments made on any type of protection plan, or insurance policy you may have. This could include payment protection policies, income protection, or life and critical illness cover.

At times when money is tight, these are often the first things to be cancelled, but they were all taken out for a reason, usually this is to protect your family and mortgage or loan repayments in the event of anything untoward happening to you and it is vital to maintain these contracts in order to keep the benefits and peace of mind which they offer, particularly in an uncertain world where unemployment is increasing and high levels of debt can lead to health problems.

If you do not have any such policies in place, you should contact an independent financial adviser who can offer suitable advice on the cover and type of products you need. Even if you already have some policies in place, it is worth while reviewing exactly what benefits and level of cover these offer, to make sure they are still adequate to meet your requirements.

Maintain All Loan Repayments

It is essential to keep up to date with all the repayments on your personal loans, mortgage and credit cards bills, as this will keep your credit score at a higher level.

Falling behind with loan repayments, or even making them a few days late of the due date, can have dire consequences for your future ability to be accepted for any type of credit or loan, as each missed or late payment will leave a mark on your credit record, reducing your overall score.

In addition to this, late payments and arrears on loans and cards usually incur a penalty charge and in some cases, additional interest. In the worst case scenario, getting into arrears on your mortgage, or a secured loan, can eventually lead to your home being repossessed and even with unsecured loans and other debts, a build up of arrears and missed payments can lead to County Court Judgements (CCJ’s) and stop you from obtaining future credit.

Clear Credit Card Balances And Overdrafts

Credit cards are, in most cases, undoubtedly one of the most expensive forms of credit available, along with bank overdraft facilities.

Both of these methods of borrowing charge one of the highest rates of interest around and even when times are good, these should be the first things to be paid off, but in the current economic climate this is even more important.

It may be all very well to say just pay off your credit card debts, we all know that it’s not that easy, if it was, nobody would have any debts at all and you wouldn’t be reading this article! But there are options to get rid of credit card balances.

Ideally you should concentrate on paying more than the minimum required monthly repayments, in order to clear the balance quicker and save further interest. Other options available would be to transfer your credit card balance to a new card which offers zero per cent interest for a certain period, allowing you to clear the debt over a period of time without paying exorbitant levels of interest.

If this is unavailable to you, another option could be through a debt consolidation loan. Although this option would still charge interest, the amount charged is likely to be considerably less than that of a credit card. Check the rate payable both on the loan and your card to ensure this is the right thing to do, before you sign up.

Debt Consolidation Loan / Remortgage

If you are in a situation, as many people are, where you have several different loans and credit card balances with a number of providers, all paying reasonably high levels of interest, it may be possible to cut your monthly expenditure by bringing all your various debts together with just one provider by taking out a debt consolidation loan.

This option could work out significantly cheaper and also much easier to manage every month, as the interest rate charged is likely to be less than that of the debts being repaid, particularly if you opt for a secured loan and you will only have to make one payment each month.

As an alternative to a debt consolidation loan, you could opt to re-mortgage your home to consolidate your various loans and cards that way. If you have early redemption penalties which would be applied to your existing mortgage, this may not be a realistic option, however your existing lender may be able to offer a further advance on your existing loan.

You should take care with either of these options however, as by consolidating existing debts, in many cases you will also be extending the term of any existing commitments and although the monthly repayments may be considerably lower on the new loan, these will be made for a longer period, with interest also being charged for longer and you could actually end up paying significantly more over the long term than you would have done on your original debts.

Still In Difficulty?

If you are still struggling to keep up with the repayments on loans, mortgages and cards and are worried about falling into an arrears situation, you should always contact the provider in the first instance.

A lender will look favourably on someone who approaches them when financial problems first arise and will take a sympathetic view to your problem, offering help and a solution wherever possible.

The worst course of action is to bury your head in the sand and hope the problems will go away, this is the most likely route to having a CCJ issued against you, or even the possibility of repossession.

Help on financial matters can also be obtained from places such as the Citizens Advice Bureau and debt counselling services. Before taking out any new plans or loans, it could well be beneficial to seek professional advice from an independent financial adviser (IFA), who is able to select products and offer advice across the whole of the market.

Finally, you should think very carefully before committing to any particular one course of action, as it is often difficult to undo something once you have started. Weigh up all the pro’s and cons of the various options and make sure that the one you take is the best possible route to meet your own personal needs and requirements.

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Is Bankruptcy Really The Answer?

2009-05-16T04:05:00.000-07:00

. :~ ALIVE FUN ARTICALS ~: .

Over the course of the past twelve months or so, since the start of the credit crunch, many people have been struggling to keep up with their regular repayments on their mortgages, personal loans and other debts such as credit cards, leading to the inevitable situation of building up a large amount of arrears on their loans, receiving letters from their creditors demanding money or threatening court action and in extreme cases looking at the distinct possibility of having their home repossessed.

As the UK economy continues to slow down even further, the prospect of a recession and increasing levels of unemployment seem ever more likely and this is only going to make matters worse for those individuals who may already be struggling to keep up with their finances.

Many people who find themselves in the situation of having spiralling debts, without being able to see any way out of the problem, believe that they have no alternative but to file for bankruptcy to escape their predicament, without being aware of the full implications of their actions, both immediately and in the future, or what other steps they may be able to take to avoid this very public and humiliating admission of financial failure.

There are, of course, both positive as well as negative aspects to a person declaring themselves bankrupt and in some cases there could be no alternative, or bankruptcy may be the best course of action if a person’s level of debt is so extreme that they realistically have no prospect of repaying the amount they owe.

Declaring oneself bankrupt is an extreme measure and should be considered only as a last resort as a solution to the problem. In this article, we try to look at both the beneficial as well as detrimental aspects of bankruptcy and what alternatives may be available to an individual who may be considering this route.

On the positive side of the argument, once an individual has filed a petition for bankruptcy with the court dealing with their case, they will no longer receive the regular bundles of post from loan companies and other creditors demanding payments, as they are not allowed by law to contact the person directly once they have filed with the court, all correspondence must be handled by the administrator who will be appointed by the court.

Furthermore, creditors will be unable to proceed with any foreclosures or repossession proceedings until the full court process has been completed. So this can relieve a lot of the stress and worry which being unable to repay debts can often cause and can at least ease some of the pressure in the short term.

It may also be possible, in some cases, for an individual to retain some of their possessions, such as their house or car, even though they have been declared bankrupt and even though the person in question will be declared bankrupt for a period of three years, with the bankruptcy showing up on their credit file for a considerable period of time beyond the date they become discharged, it is possible for the individual to start repairing their credit rating straight away, by handling their ongoing finances in a responsible manner.

A bankruptcy order can also “clean the slate” with personal loan and credit card companies etc, as most creditors will accept significantly less than the total balance of the outstanding loan, as full and final settlement of the debt. The view of the lender is that they are better off getting paid some of the debt now, rather than none of it at a later date! Once a creditor has accepted a settlement figure and this amount has been repaid, the loan is considered cleared and the lender is unable to chase the borrower for any more money in the future.

On the negative side of the argument, when a person is declared bankrupt, their name is published in the local newspaper and a public record of the event is retained by the court. They will also be excluded from certain occupations or jobs, such as those working in public office, or those in the financial sector such as banking. For those who own a business, this must be closed down, with the inevitable consequences for any employees.

Not all debts are necessarily cleared through bankruptcy, student loans, for example, would not be cleared and this debt would still remain outstanding after the bankruptcy ended.

Once a person has been declared bankrupt, they will find it practically impossible to obtain any type of credit through usual methods such as mortgages, credit cards and personal unsecured loans.

Even once they have been discharged from their bankruptcy, it will still show up on their credit file for several years and the majority of lenders will be extremely reluctant to offer any type of loan or other credit and even if they do, the high level of interest charged is likely to make the loan prohibitive to the borrower. If an individual has managed to retain ownership of their own home, it may be possible to be accepted for a secured loan on the property, but once again, the lender would charge interest at a rate which reflected the previous financial difficulties and also only offer a low loan to value ratio.

So what alternatives exist for someone who may be considering bankruptcy? As soon as a person realises that they are in financial difficulty, they should contact their various creditors to see what help they can offer. In many cases, a solution can be agreed with the lender which benefits all those concerned and stops the problem becoming any worse. This can include measures such as paying interest only for a period of time, or rescheduling the loan in order to reduce the monthly repayments and make the debt more manageable.

Help and advice is available from a number of sources; the Citizens Advice Bureau (CAB), Financial Advisers, debt management companies and insolvency practitioners can all provide valuable assistance and advice for those in need. For a person with loans and debts with a number of different creditors, an Individual Voluntary Arrangement (IVA) could be taken out with a debt management company, which could reduce the level of monthly repayments required and is one step short of bankruptcy.

As we have mentioned previously in this article, whilst bankruptcy can be beneficial in many cases and in some cases, the only possible solution to a person’s financial problems, it is an extreme measure and should only really be considered as a last resort, once all the other possible avenues have been explored and exhausted.

The implications and repercussions of bankruptcy can be devastating and long lasting for an individual and a person in this desperate situation should contact their creditors and take advice at the first sign of financial difficulty in order to avoid this route.

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Changes To PPI Rules Could Mean More Expensive Personal Loans

2009-05-16T04:03:00.000-07:00

. :~ ALIVE FUN ARTICALS ~: .

Over the course of the past few months, there have been great concerns over the practices and methods used in connection with the sale of Payment Protection Insurance (PPI) and Mortgage Payment Protection Insurance (MPPI) and we have reported on many of these issues on a regular basis in our news section.

Payment Protection Insurance is usually taken out, or sold alongside a personal loan or a credit card application and is designed to meet the regular monthly loan or card repayments, in the event of the policyholder becoming unemployed, or suffering from an accident or sickness. Mortgage Payment Protection Insurance is exactly the same as PPI, but designed specifically for use with a mortgage loan and the associated insurances.

Both PPI and MPPI can offer essential benefits and peace of mind to borrowers with loans and mortgages, particularly in these uncertain economic times, when unemployment and redundancy is becoming a real threat for many employees, as many companies continue to cut their staff numbers in order to reduce costs.

But there have been concerns from regulators regarding the sales practices adopted by many loan companies automatically selling PPI policies at the same time as they arrange a new personal loan for a customer.

Over the past year, the Financial Ombudsman Service (FOS) has received more complaints from consumers regarding PPI and MPPI policies, than any other area of business. These range from not being eligible for the cover which was taken out, to not realising that they had actually been sold a policy in the first place.

The other major concern was that, due to the fact that PPI is often sold to the customer at exactly the same time as the loan, many people think that it is a compulsory policy, which must be taken out with the loan provider. As a result of this, consumers are not given the option to shop around for cover from a range of providers, or have suitable time to think about the policy they are being sold.

Due to these concerns, the Competition Commission (CC) has conducted an investigation into the sale of PPI and MPPI policies in connection with the Financial services Authority (FSA) and the Office of Fair Trading (OFT) and has now proposed a number of measures which should increase the level of competition in the PPI market place, thereby reducing the cost of cover for consumers and in turn reduce the level of new complaints being made about the products.

The new proposals are as follows:

* A lender will not be allowed to sell any type of PPI policy at the same time as, or within 14 days of arranging a new loan for a customer. This will allow the consumer to shop around for a quote from different providers and consider the cover they require.
* The loan provider must also provide the customer with a “personal PPI quote”, which highlights the costs and benefits of the plan both individually and when added to the loan.
* The CC has also proposed a ban on the sale of single premium PPI policies, claiming that this does not give the customer sufficient ability to change policy providers part way through their loan repayment schedule.
* All providers of PPI policies must show certain information in their advertisements, including the cost of cover per £100 of benefit and a statement that the cover is optional and also available from other providers.
* Loan and credit companies should advertise PLPPI (personal loan cover) and SMPPI (second charge mortgage, or secured loan cover) in with their adverts for their main product.
* PPI companies should provide details of their plans to the FSA, who will use the information gathered to generate a comparison table on its website.
* PPI companies should also produce a statement for customers every year, in order to help them review the cover they already hold and if they should change to a new provider.

These are, of course, only proposals at the moment and whilst initially they may seem like a good idea, offering loan customers more protection, clearer information and a wider choice of provider for their cover, opinions within the industry vary greatly and those passing comments all seem to have valid points to make.

The Association of British Insurers (ABI) has described the ban on selling PPI at the same time as a new loan as “devastating” for borrowers. Due to the fact that an applicant for a loan will have to wait at least two weeks before applying for PPI cover will mean that a large percentage of individuals are likely to not bother with this cover at all, effectively leaving themselves unprotected.

A spokesman for the ABI said “This is devastating news for consumers. By effectively denying consumers PPI in the very economic climate that they need it most, the Competition Commission has got it completely wrong. Unemployment claims on PPI policies have grown by 69 per cent in the last twelve months, showing just how valuable this cover is proving to be.”

The Finance and Leasing Association (FLA), the trade body which represents a large number of personal loan companies who already sell PPI, agrees with the ABI and has urged the Competition Commission to reconsider its proposals, as these moves are likely to leave a high percentage of borrowers unprotected and also have the effect of raising the cost of a personal loan.

However, Paymentshield, the independent provider of PPI and MPPI, has welcomed the news, claiming that the proposals will open up the PPI market to wider competition and enable borrowers to obtain cover at a much cheaper cost than they might have done by taking the cover directly with their loan provider.

Shane Craig of Paymentshield said “The major obstruction to consumers getting a fair deal on payment protection insurance has finally been blasted out of the way, a decision that should have been made a long time before now but one that is very, very welcome.

Lenders’ ability to sell their own PPI at the same time as a loan has been one of the single most unfair financial practices of recent years and has cost consumers billions of pounds.” A recent survey conducted by Paymentshield has revealed that a customer who took a PPI plan with them, rather than with the loan provider has on average, saved around £2,700 over the term of the loan, which just goes to show how much profit loan companies are making on their own PPI policies.

One major worry is that by not being allowed to sell PPI at the same time as a personal loan, lenders will lose out on PPI sales, along with the large profits which go hand in hand with the policies. This has raised concerns that to compensate for this loss, loan companies will be forced to increase the rates and charges they apply to their products, thereby making the basic loan more expensive for the consumer.

A spokesman for the website Fool.co.uk said “Payment protection Insurance has not only been the icing on the cake but the cake itself for loan providers. The difference between taking out a loan with insurance and one without can mean the difference between borrowing money at 17.8 per cent and 7.9 per cent. So borrowers need to be alert to a possible backlash from loan providers following the Competition Commission’s move to ban PPI distributors from flogging the insurance at the same time as selling the underlying loan.”

The CC seems to have stirred up a hornet’s nest by making these proposals and as we can see from the reaction within the loan industry, many groups will be trying to get them to change their minds, or at least alter the proposals. So far this is at initial proposal stage, the final report is due to be published in January next year and it will be interesting to see if the CC is likely to bow to industry pressure, or whether they stick to their original proposals. We will let you know as events unfold.

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What Is The Most Suitable Type Of Credit For My Personal Needs?

2009-05-16T04:01:00.000-07:00

. :~ ALIVE FUN ARTICALS ~: .

Practically everybody living in the UK today has, or has had at some time or other, some type of credit agreement, whether this is in the form of a personal loan, overdraft, credit card or mortgage.

The majority of borrowers are likely to be able to tell you broadly how each method of borrowing differs from the others and also what the similarities might be, as well as probably have a reasonable idea as to what the relative costs of each method may be.

Despite this vast wealth of apparent knowledge, many people still find it difficult when it comes to choosing the best method of borrowing to suit their particular needs and requirements and also when it could be advantageous to take out one form of credit over an alternative method of borrowing.

In this article, we aim to look at the various alternatives which are available for someone needing additional money, along with the advantages and disadvantages of each option.

One of the most important factors to take into account is how long a term the borrowing is going to be over.

Overdrafts

For short term borrowing, for example, funds to see you through until the next pay day for a week or two, then an overdraft is probably the best option. Although the interest rate charged on overdrafts tends to be one of the highest rates around, the borrowing is usually only for a short period and therefore the cost is minimal. Also, if you have an authorised overdraft facility on your current account, this can be used whenever required, without having to apply for the credit and you do not have to give a reason for the borrowing to your bank.

Some types of current account will allow a free or reduced rate overdraft on small amounts, but with any account, if you exceed the agreed facility level and use an unauthorised overdraft, then there are likely to be penalties and a higher interest rate charged. If your account is constantly overdrawn, then it may be more cost effective to consider an unsecured loan instead, as this will certainly be a cheaper option.

Credit Cards

Credit cards have become extremely popular over the course of the last few years and most people have such a card, even if they tend not to use it. Credit cards can be extremely useful for things like emergency bills, or repairs, which were unexpected and therefore not budgeted for. They are also very useful for making large or expensive purchases, such as expensive household items or holidays, as most credit cards offer insurance as a built in part of the facility.

However, as with overdrafts, credit cards are usually a rather expensive way of borrowing money and as such should be treated as a short term borrowing solution. With most cards, if you clear the full balance every month as the bill arrives, there will be no interest charged, but if you allow a balance to build up, the interest can be extremely expensive and the minimum monthly repayment will probably only just cover the interest charge.

Many credit cards now offer 0 per cent balance transfers from other card providers for a limited period, usually up to 12 months, which can save a large amount of money in interest payments, but there is often a fee for doing this. Credit cards must be used with care, too many people have got themselves into an awful lot of trouble by running up large balances on cards, which they then have no way of repaying, so be careful.

Loans

When it comes to borrowing money, the first thought most people have is to take out a personal loan of some kind, and usually this is the most appropriate route to take for things such as purchasing a new car, or making home improvements, for example.

The problem is that there is such a wide choice of personal loans available in the market place, not only between different providers, but also in the amount to be borrowed and whether to choose a secured loan or an unsecured loan.

Generally, unsecured loans are used to borrow smaller amounts of money, usually up to a maximum of £25,000 and these run over a shorter term than secured loans, usually up to a maximum of 7 years.

In many cases the rate of interest charged on an unsecured loan becomes cheaper as the loan size, or term increases. Therefore, a loan of £3,000 is likely to charge a high rate of interest, whereas a loan of between £5,000 and £10,000 is likely to be cheaper and a loan in excess of £10,000 will be cheaper still.

However, don’t be tempted to borrow more than you actually need, just because the rate is cheaper, as the money plus interest all has to be paid back eventually! When choosing what term to take the loan over, it makes sense to keep it in line with the item being purchased.

For example, if you change your car every four years, then a four year term would be appropriate on the loan. A personal loan to pay for a holiday however would make more sense over a 1 year term, as you will probably want another holiday next year as well and you don’t want these debts to mount up.

Secured loans work on the same principal as unsecured loans, apart from the fact that the lender takes some kind of security against the loan, usually the borrower’s house. This means that if the borrower defaults on the loan, the lender has the right to reclaim the outstanding debt, plus costs, from the secured property in question. This means that it is possible to lose your home if you opt for a secured loan.

Secured loans are usually used for major expenses, such as major home improvements, or extensions, or even in some cases debt consolidation and often run for a much longer term than an unsecured loan, often up to 25 years or possibly longer. As a result of this higher lending amount and additional security for the lender on the loan, a secured loan usually charges a lower rate than that of an unsecured loan, but will cost significantly more over the term due to a larger loan amount and much longer repayment period.

A mortgage, or homeowner loan, is the cheapest rate and longest term loan available and for most people it is the only way that they are able to purchase their own home.

The typical term is for 25 years, but this may be shorter or longer than this, often depending upon the age of the applicant. A mortgage o homeowner loan is exactly the same as a secured loan, except that it takes a first legal charge on the property in question rather than a second charge, as in the case of a secured loan.

This makes the loan a better risk for the lender, as they will have first call on any money from the sale of the property in the case of a default on the loan. There are many different types of mortgage product available and it is worthy seeking professional financial advice before choosing a suitable product, to ensure the loan taken is the most suitable to meet your needs and requirements.

To conclude, there are many different options available when it comes to borrowing money and you should think extremely carefully, checking out all the various alternatives before committing to any one particular route.

If you are in any doubt about what you require, it is worth taking the time to seek professional advice from and independent financial adviser. Even if the adviser charges you a fee for his services, it could save you a lot of money in the long term.

Don’t make any snap decisions when it comes to borrowing money, think about how much you actually need to borrow and also about your ability to be able to repay the debt in the future. Once you have decided on a particular route, be careful to read all the small print before signing the paperwork, ensuring that you fully understand exactly what you are getting into.

And finally, borrowing money in any way is an expensive thing to do, so if you don’t absolutely need to do it, then don’t borrow!

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How To Avoid Debt Disasters

2009-05-16T03:58:00.000-07:00

. :~ ALIVE FUN ARTICALS ~: .

Most of the population of the UK have been in debt at some time or other in their lives, even if they currently don’t have any commitments outstanding. Whether it is in the form of a mortgage or homeowner loan to buy their house, a personal loan to buy things such as a new car, or a credit card for use in emergencies or day to day shopping expenses, the majority of us have experienced being in debt to some degree or other.

But recent surveys have shown that the total level of debt in the UK is growing dramatically, some reports claim that consumer debt on loans and cards is growing at a rate of £1 million every ten minutes and that the average adult in Britain currently has in excess of £30,000 of personal debt (including outstanding balances on homeowner loans and mortgages). So it would appear that we have become a nation of borrowers, with some individuals obviously taking out loans and other credit agreements at an alarming rate.

Whether or not someone is considered as having a large amount of debt is, to a certain degree, relative to their own personal circumstances. This would include taking into account things like the level of earnings that particular person may have, to fund the repayment amounts each month, or what level of assets the person may own which could be used as security against the outstanding loan amount.

For example, if someone was making monthly repayments on a personal loan of £500 perhaps, is this a high amount? Clearly, if the individual in question only has a take home pay of maybe £800 per month, then this is an extremely large amount of personal debt, however if the repayment amount is perhaps only ten per cent of the persons take home pay and they have assets such as a car and a large amount of equity in their home to cover the outstanding loan balance, then the situation doesn’t seem to be quite as serious and the borrower is unlikely to be concerned about the level of debt.

The problem which we are currently facing, due to the credit crunch and the global economic slow down, is that earning levels are not guaranteed and unemployment is on the increase, whilst at the same time assets such as houses in particular are losing value, thereby reducing the level of a homeowners equity.

So, to revisit the example used above in the current economic climate, the borrower with a good income may lose their job, causing problems with having sufficient income to meet the loan repayments, whilst at the same time the equity in their home has been reduced through falling house prices and nobody is prepared to buy the car, as the market is currently flat. This may seem like an extreme demonstration of what can go wrong, but in reality this is just the sort of thing which can and does happen all the time.

In other cases, individuals simply borrow money in order to buy the things which they can not afford. This may start with small purchases on a credit card and rather than paying the balance off in full each month, minimum payments are made, thereby leading to a balance building up quickly.

Before the borrower knows where they are, the card is up to its credit limit. At the same time the same person may have a personal loan to purchase a car and a few store cards for those weekend shopping trips, because you’re not really spending money if you’re putting things on your card…are you???

All of a sudden, this individual finds him or herself with a huge problem. All those small purchases they made on their cards, the odd CD here, a pair of shoes there, have all built up to a level where all their cards are “maxed out” and they have an insurmountable level of debt which they have absolutely no way of being able to repay, in many cases they will struggle to even keep up with the minimum repayment amount each month.

So what is the answer for someone who finds themselves, for whatever reason, in a large amount of debt which they are unable to manage? The first option may be to look for a debt consolidation loan to bring other debts together in one repayment amount with a lower interest rate. This can save a large amount of money in monthly repayment amounts and also ensures that the debt is repaid over a fixed term, rather than making minimum payments which only realistically cover the monthly interest amounts.

Another option for someone with credit card balances is to apply for a zero per cent balance transfer card, which can save interest over a fixed term, but repayments must still be kept up to date. Anyone taking this route must remember that their debts have not gone away, they have simply been moved elsewhere and it is vitally important that additional debt is not run up once again. Cut up any existing credit and store cards and only spend what you can actually afford each month, to avoid falling into the trap again.

For someone who may have fallen behind with their personal loan and credit card repayments and may have outstanding arrears, a debt consolidation loan, or a zero percent credit card may not be an option as these will often not accept anybody with a history of bad credit.

In this case it may be necessary to enter into a debt management scheme. For a monthly fee, a debt management company will deal with all a person’s creditors, negotiating minimal monthly repayment amounts at reduced interest levels and in some cases, getting final settlement figures reduced by lenders.

In exchange for this service, the borrower makes one monthly repayment to the management company, who in turn pay the various creditors. For someone opting for this route, it is unlikely that they will be able to get any further credit on cards or loans until the original scheme has finished and the debt has been repaid. If things are extremely serious and there is no other way out, the final option for someone with debts is bankruptcy, but this is an extreme measure and should be avoided wherever possible.

For someone who may have debts which they are finding quite manageable at the moment, but may be concerned about unforeseen eventualities in the future, such as unemployment, or long term sickness, there are a number of insurance products which can cover loan and other debt repayments and balances.

These include, payment protection insurance (PPI), critical illness cover, permanent health insurance and of course, life cover. These policies all cover different things and one individual policy is probably not adequate to cover every possibility. For anyone who has outstanding personal loans or other debts which are unprotected, the best course of action is to have a meeting with an independent financial adviser (IFA) who can advise you on the various products available and which ones are best suited to meet your specific needs and requirements.

Of course, the best piece of advice with regard to getting into debt is quite simple…don’t do it! Think before you spend money on a credit or store card and ensure that you pay off the full amount of the outstanding balance each month, so that balances do not build up.

Before applying for a personal loan ask yourself if you really need the item in question, do you need to borrow as much as you are intending to, would it be more appropriate to save money over a few months to get the amount you need, can you afford the monthly repayments, not only now, but next year and the year after that and is the loan adequately protected in the event of something unforeseen happening to you?

Remember, every penny you borrow has to be repaid at some time, plus interest and borrowing for short term pleasures and luxuries can mean many years in tough repayments!

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How To Prioritise Your Loan Repayments

2009-05-16T03:55:00.000-07:00

. :~ ALIVE FUN ARTICALS ~: .

It is a commonly known fact that the average adult person living in the UK today has a higher level of personal debt through personal loans and credit cards than at any other time previously and the overall level seems to be increasing at an alarming rate.

In many cases, these debts can be spread across a number of different creditors and could include things such as a homeowner loan, or mortgage, a couple of personal loans and maybe three or four different credit cards and store cards. Even when times are good and the economy is strong creating good security for employment prospects, it can be a daunting task managing all the different bills which land on the doorstep each month, ensuring that everything gets paid on time.

But with the onset of the credit crunch and recent slow down in the UK economy leading to recession, and worries over job losses, unemployment and reductions in overtime and bonus payments from employers, large monthly repayments on outstanding loan debts can be a real worry and many people are now changing their attitude towards their personal debt levels and making a serious attempt to reduce their personal loan and credit card balances significantly, or even pay them off completely.

Those individuals who are lucky enough to have sufficient spare cash each month, in many cases are now realising just how vulnerable their situation could be if their income were to stop suddenly and are making extra efforts to clear their outstanding personal loans and credit card debts as quickly as possible, in order to reduce their committed monthly outgoings.

Despite the fact that the base rate of interest on homeowner loans and mortgages has dropped significantly over the past few months, thereby reducing many borrower’s monthly outgoings, this is not the case when it comes to personal loans and credit card rates, which have continued to remain at their previously high levels and with many individuals seeing a drop in their regular income, these are usually the debts which cause the problem with the monthly budget.

When borrowers have several outstanding loans and card balances, it is quite common for them to apply for a debt consolidation loan, which combines all their outstanding debts into one loan with only one monthly payment. Although this can save a great deal of money in monthly payments, allowing a person to have more disposable income each month, in the long term this option can often end up costing the borrower more than their original debts would have done, as usually the payments are spread out over a much longer term, with interest being charged for a longer period and therefore costing more in total, even though the monthly payments are less.

This option is fine for someone who needs to reduce their outgoings each month, but for someone who wants to clear their debts as quickly as possible, it is only extending the repayment period.

So where should a person with a variety of personal loans and cards start when they seriously want to clear their debts?

Firstly, it is important to ensure that each of the creditors receives some level of payment each month, even if this is only the minimum amount, as this ensures a clear credit record for the borrower in the future. The person should then check each one of their credit agreements carefully, whether it is a loan or a credit card, to confirm what the rate of interest being charged is on each debt and whether this interest is added on a daily basis, annually, or all at the outset of the loan.

If a personal loan has had all the interest added at the outset, there is little point in paying this off early unless the loan company offers a discount for early repayment. In some cases a lender will actually charge an additional penalty for repaying a loan early and the borrower should be careful to check the small print to see if this is the case and how long it applies for. If in any doubt, contact the company who provided the loan in the first place.

Assuming that there is no disadvantage to repaying any one particular debt first, typically those commitments which charge the highest rate of interest should be the first ones to be cleared. Under normal circumstances these tend to be store cards, mail order catalogues and credit cards. The rate of interest charged will be shown on the monthly statement.

Where there is more than one interest rate charged, for example on a credit card which charges different rates for purchases, cash advances and balance transfers, the balance which is being charged at the lowest rate is cleared first. This is an important area to note for someone who may be considering a zero per cent balance transfer onto their credit card, if they already have an outstanding balance on the card, charged at a higher rate, none of this debt will be cleared until the interest free element has been fully repaid.

Apart from this trap, balance transfers can be an effective way of reducing interest payments on other debts and clearing them faster, as the full amount of the monthly repayment will be used to clear capital, not interest.

Once credit card balances have been cleared (apart from zero per cent interest elements), the next most expensive form of credit are normally unsecured loans. These may have lower repayment amounts and smaller balances than secured loans and mortgages, but the interest rate charged is usually considerably higher, as this type of loan presents a greater risk for the lender than a secured loan would.

As various outstanding debts are cleared, it is important to redirect the savings made towards the next most expensive loan or credit card, continuing down this route until all debts have been cleared. It may seem like a long way off at first, but it will happen eventually (honest!!) and those individuals who are most focused on channelling funds back into repaying their personal loans will , not surprisingly, be the first ones to become debt free.

If someone is in a situation whereby they can not afford to make all their loan repayments each month, firstly they should contact each of their lenders to arrange reduced repayment levels wherever possible. If this is still not sufficient to manage regular payments, then it makes sense to keep up with the repayments on any secured loans first, as these are the only ones which can cause a person’s home to be repossessed. Any arrears and defaults, should be allowed to build up on unsecured loans and credit cards first, although this should of course be avoided wherever possible.

Finally, if after reading this article, you are in any doubt as to what course of action to take to clear your loans and other debts, there are several services and organisations which are able to offer help and advice on a one to one basis, many of which are free of charge.

Independent financial advisers, debt counsellors, debt management companies can all give advice, but may charge for their service. For general advice on debts charity organisations such as the Citizens Advice Bureau (CAB) can provide an excellent service for no cost. If you are serious about clearing your debts, take some professional advice, develop a repayment plan which is manageable and realistic, write it down and place it somewhere where you will see it every day and then stick to it until you have achieved your goal of becoming debt free.

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Is There An Alternative To A Bank Loan?

2009-05-16T03:49:00.000-07:00

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Over the course of the past eighteen months or so, it seems as though there hasn’t been a day gone by where either a specific bank, or the banking sector as a whole has not been in the news headlines, for a variety of reasons, but all of them bad.

The banking sector is currently in turmoil, as years of greed and irresponsible lending policies have finally taken their toll on the sector, with banks making record losses, being taken over by competitors and receiving billions of pounds worth of government bail outs to help write off bad credit loans.

Due to a lack of liquidity, it has become extremely difficult for an individual to obtain funding through a personal loan or homeowner loan, unless they have a perfect credit rating and even if they are accepted for a loan, despite interest rates being at a record low level, the cost of personal finance seems to have increased dramatically, making a cheap loan seem like a thing of the past.

At the same time as this, interest rates for savers and investors have plummeted and many savers are concerned about just how safe and secure their savings actually are in the bank or building society. It seems hardly surprising therefore, that many people have lost faith in banks, both as savers and borrowers and are now looking for an alternative home for their money, or provider for their next personal loan.

But what are the alternatives to the traditional bank or building society route, for someone who has become disillusioned with the system, or is unable to obtain the loan they require?

Credit Unions

One alternative solution for both savers and those looking for a personal loan is a credit union. Credit unions have been around for many years and operate on the principle of a financial co-operative society, existing for the benefit of members and have been growing in popularity over recent years and particularly since the start of the latest banking crisis.

A credit union is owned solely by its members and run by the same people, all of whom must have something in common with each other, such as all working for the same company, living in the same local area, or being members of another group or organisation. The individual members of the credit union invest their own money in the central fund, along with all the other members, which can then be used to offer cheap loans to other members of the union and offer a better return on an individual’s savings than they would ordinarily receive from a typical bank or building society deposit account. This would be paid to the member in the form of a regular dividend, rather than monthly interest.

For someone looking for a small personal loan, a credit union offers a cheap and flexible alternative to their normal bank. One of the rules of a credit union is that the maximum level of interest which can be charged on a loan to a member is capped at 2 per cent per month, but in many cases the actual rate which is charged is much less than this. Repayments are extremely flexible and a borrower is able to take out a loan for just a few months if they so wish and repay all or part of the outstanding balance at any time without incurring penalties.

The important thing to remember about this type of organisation is that, in order to benefit from it, you have to be a member and the credit union is run solely for the benefit of its members, therefore any profits made are returned to those same members in the form of dividends and lower interest rates on loans, unlike banks which are more interested in generating huge profits for their shareholders, at the cost of the ordinary customers.

With regards to saving through a credit union, this too is extremely flexible. It is possible to deposit a lump sum, or make regular savings amount either by direct debit or directly from salary (particularly in the case of credit unions which are run through employers). The money invested is accessible at any time and it is possible to deposit, or withdraw cash as often as you like. Under current legislation, there is no interest payable on savings within a credit union, but a dividend is paid on a yearly basis, based on the interest charged on the loans made by the union.

Clearly the amount of dividend can vary, depending on term and amount invested, but typically it is the region of between 2 and three per cent, but could realistically be as high as 8 per cent. As from May this year, however, credit unions will have the option of paying interest to their members rather than a dividend.

Whether an individual joins a credit union as a saver or a borrower, they are offered a high level of protection automatically through the organisation. For someone taking out a personal loan, the credit union automatically provides free life insurance to the borrower to cover the outstanding balance of the loan. For savers, it is reassuring to know that all credit unions are covered under the Financial Services Compensation Scheme, which means that a person’s money is protected even if the credit union were to close down.

Credit unions have been around for many years and up until recently have often been thought of as out of date. But due to the recent problems in the banking sector they are starting to grow in popularity once more and the government is now becoming involved, with plans to alter the legislation which regulates credit unions, in order to bring them more up to date and make them more appealing and accessible to a wider range of individuals.

One spokesman for the government said “The excellent service provided by Co-operatives and credit unions take place within an outdated legislative framework and overhauling this will be key to achieving a significant expansion of the sector. I want the sector to thrive and grow further, to be widely seen as a genuine alternative to proprietary companies across the country, not stereotyped as “old fashioned” or confined to its Northern roots. This is a vision of credit unions as the modern day equivalent of 18th century “town banks” providing a local, trusted alternative to the national banks on every high street. To achieve this vision means removing barriers to co-operatives competing fairly in the market place and enabling them to bring a greater range of services to a wider range of people.”

Hopefully, new legislation will bring renewed activity and interest in credit unions and not restrict them by imposing too many prescriptive rulings on their activities. Either way, interest continues to grow in these organisations, both for savings and personal loans and it looks as though they will be here to stay for some time, providing a realistic alternative to the traditional bank.

For more information on credit unions, or to find one in your local area, contact the Association of British Credit Unions Ltd.

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A Matter Of Security

2009-05-16T03:16:00.000-07:00

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When someone is looking for additional funding for whatever purpose, whether it is business related, for a new purchase such as a car or a holiday, or simply a debt consolidation loan to tidy up a person’s finances and make the monthly budgeting plan easier to manage with one single repayment, there are a wide range of options available on the market place, not only from a large number of different providers all trying to compete against each other to offer the best rates, but also a wide variety and choice of alternative funding options, from overdrafts, credit cards, hire purchase agreements, mortgages or homeowner loans, unsecured loans and secured loans.

Each alternative has its advantages as well as its disadvantages and it can be quite a minefield for someone who may be looking for a new loan to have to wade through all the various options. In the majority of cases it can be beneficial to seek professional advice from an independent financial adviser (IFA) or a loan broker, who will be able to help you get the right type of funding for what you require. In this article we are only going to look at one particular option for a loan, that is a secured loan.

As the name suggests, a secured loan is one which takes some form of security for the loan, which may be called on in the situation where the lender has to call in the loan if the borrower should default on his or her repayments. This would be done by repossessing the property in question, which would then be sold on by the lender in order to get their money back. Therefore, when we talk about a secured loan, the security is there for the benefit of the lending organisation, not the person who is applying for the loan. In the majority of cases, the security to be used is the borrower’s home, but it could actually be any asset owned by the applicant, such as an investment, a second house, a car, or even a work of art, for example

As we have already said, in the majority of cases, a secured loan uses the borrower’s main home as the security for the loan. Most individuals who apply for a secured loan already have an outstanding mortgage, or homeowner loan on their property. A secured loan takes advantage of the equity which is held in the property, that is the difference between the value of the house and the balance on the existing loan.

In most cases, the maximum loan to value ratio which is allowed across all loans is around 80 or 85 per cent, but there are some lenders who will allow more than this (very few in the current economic conditions), whilst other lenders may limit the maximum loan to value as low as 65 or 75 per cent. As the loan to value ratio increases, so does the level of risk for the lender and therefore usually the interest rate charged will be higher, along with the lending criteria being tougher.

The main mortgage or homeowner loan on the property takes what is known as a first legal charge on the property, with a subsequent secured loan taking a second charge. In the case of the borrower defaulting on the loans and the property being repossessed, the first charge loan would take priority when it comes to getting paid out, with the second charge loan depending on there being sufficient equity from the sale proceeds. As this poses a higher risk for the secured loan provider, the interest rates on secured loans are invariably higher than those of a typical mortgage.

It is possible to take a secured loan out on a third or even fourth charge basis, depending on the amount of available equity, but these are extremely rare.

As with any other type of finance, there are advantages and disadvantages with a secured loan. On the positive side, secured loans are generally readily available through a number of routes. Most banks and building societies offer them, as do centrally based loan and finance companies. Loan brokers and intermediaries usually have access to either the whole of the loan market , or a selected range of providers and therefore this can be an advantage when sourcing the best loan.

As the loan takes security out against the borrower’s property, the risk on a secured loan is far less than that on an unsecured loan, making it a relatively cheap option. Likewise, due to the additional security of a secured loan, it is possible to borrow much larger sums of money than it is with alternative funding options and the loan is able to be taken out over a much longer period than the usual four or five years of an unsecured loan, often with terms of anything up to 25 years, thereby significantly reducing the amount of the monthly repayment.

A potential borrower who has a less than perfect credit history will stand a better chance of being accepted for a secured loan, once again due to the increased security for the lender, although they are still likely to have to pay a higher interest rate and be limited to a lower loan to value ratio than someone with a good track record.

On the down side, as the secured loan uses the applicant’s property as security for the loan, the borrower must be a homeowner. A tenant, or somebody living with their family for example will not be eligible for a secured loan and will need to seek alternative funding elsewhere. It is also possible for the borrower to have their property repossessed if they should fall behind with their repayments and default on a secured loan and as a result of this, all secured loan documentation contains the warning “your home is at risk if you do not keep up repayments on your mortgage or other loan secured on it.” Although taking a secured loan out over a long term of years has the advantage of reducing the monthly repayments, overall interest will be paid for a much longer period than with an unsecured loan and therefore the total cost will be much higher.

Following the recent credit crunch and the general economic slow down in the UK, there has been a significant reluctance on the part of lenders to offer loans of any kind to borrowers, however good their credit history may be. As secured loans depend on the value of the borrower’s home and with property prices falling in the UK over the past couple of years, many lenders have either withdrawn their loan products from the market place altogether, or severely restricted the maximum loan to value ratio they will allow in order to avoid borrowers entering a negative equity situation.

But as property prices are slowly starting to show some signs of growth over the past couple of months, hopefully this will feed through to the secured loan market and we will see some new, more competitive products appearing from lenders.

Finally, the advice for anybody who may be considering taking out a loan of any kind is to think carefully before you borrow. It can be expensive and take a long time to repay any money which has been borrowed, therefore only borrow the minimum amount you require and don’t be persuaded to go for the maximum amount which you may be eligible for.

Also, unless you are extremely confident and knowledgeable about the loan product you are looking for, it can save a lot of time and, in the long term also a lot of money, to take advice from a professional adviser such as an IFA or loan broker, who is able to offer advice on the best options for your particular needs as well as source the cheapest loan from the whole of the loan market.

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Consolidating Federal Student Loans Keeps Graduates on Course

2009-05-14T15:51:00.000-07:00

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Although many people have achieved the dream of completing their college education, many of them face an unfortunate downside following graduation: paying back the inevitable student loan.

Too often it is not just one loan looming over students, many of whom have yet to settle into the sometimes overwhelming realities of the workforce and daily life.

NextStudent, one of the nation's premier education funding companies, can be the proverbial light at the end of the tunnel by helping students consolidate their multiple federal loans. From Stafford Loans and Perkins Loans to PLUS Loans and HPSL Loans, NextStudent's Federal Student Loan Consolidation Program equals convenience.

"Although the 2.77 percent interest rate on federal loans was at an all-time low between July 1, 2004 and July 1, 2005, the lowest the rates ever had hit in history, now is still a good time to consolidate," said Andrew Ernstrom, education finance adviser at Phoenix-based NextStudent.

Currently the interest rate is in the 5 percent range and is expected to again increase in July 2006. The cap on the program is 8.25 percent, but projections for the next increase are between one or two points.

"Everyone knew the rates were going up about 2 percent this past July 1," Ernstrom said. "So there was a mad dash nationwide to get everyone's loans consolidated," which allowed borrowers to take their variable rate loans and then lock them into a fixed rate.

Historically during the past 40 years interest rates averaged closer to 7 percent.

An important aspect of consolidation includes the six-month grace period. "Make sure to consolidate while you're in the six-month grace period because you get a cheaper interest rate," he said. The rate increases .6 percent when the grace period ends.

Students have been gung-ho about federal loan consolidation. "The only reason people wouldn't consolidate is because they don't think the rates will go up, but all the trends out there say they will, so it makes sense to do it now," Ernstrom said. The interest rates for student loans are set up off of the 91-day Treasury bill. Since May 30 when the rate was reset, the rate increased about .92 percent. "If the rates were reset today, everyone's rates would be .92 percent higher. And by next July who knows how high it could go," he said.

NextStudent's Federal Student Loan Consolidation Program extends loan payments up to 30 years, depending on a borrower's balance. As many people originally take out loans on a 10-year repayment plan, consolidation offers the same interest rate on the same amount of money but at a longer term, making the payment much more affordable. There are no prepayment penalties for the program, so borrowers can pay off loans at their own pace and have the benefit of a longer term if needed. Consolidation can decrease some payments up to 60 percent.

Even if students already have consolidated, NextStudent can help further lower their interest rate with reconsolidation, which allows borrowers to reset their forbearance and deferment rights, take advantage of new industry discounts and also can lower their payment.

"In the past students who had consolidated did not have the opportunity to consolidate again unless they took out new student loans," said Katie Carpenter, education finance manager at NextStudent. "In the past few months the Department of Education has allowed all previously consolidated loans to be reconsolidated," she added.

In turn, consolidation is the answer not only for students paying back their loans but for lenders. According to the Oct. 23, 2005 article titled "College loan plan raises questions" at NCTimes.com (North County Times) by J. Stryker Meyer, "A General Accounting Office report noted that people who consolidate their loans are three times less likely to default on their student loans."

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loan Consolidation.

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College Debt - how to avoid it, and how to get out of it

2009-05-14T15:50:00.000-07:00

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Is this the price you have to pay for higher education, or can you avoid college debt in the first place?

Because most college students are using loans to finance their college education, the debt level of recent graduates is rising rapidly. On average, students graduate owing $12,000-$16,000 in student loans and another $2,000 in credit card debt. Is this the price you have to pay for higher education, or can you avoid college debt in the first place?

The secret to avoiding college debt is to plan wisely and take advantage of the many opportunities to reduce college costs before and during your college years.
Planning ahead

You can avoid college debt by making wise high school decisions:
Take advanced placement classes

Take all the advanced placement classes you can in high school--every AP exam you pass means one less class you need to take in college.
Keep your grades up

Scholarships can be competitive, and even the grades you make early in your high school years can mean the difference in winning or losing. Don't make the mistake of thinking you can save the hard work for your junior and senior years!
Stay involved

Scholarships also may depend on community and school involvement.
Search for scholarships and grants

Scholarships and grants are the best money source for college because it is money that doesn't have to be repaid. To find out about grants and scholarships, visit your high school career counselor and the Financial Aid Office of your intended college. You can also search the internet for scholarships and grants.
Investigate public service options

The United States Military, National Health Service Corps, and Americorps will give you money for your education in exchange for your signing up for a "tour of duty." The time commitment ranges from 10-12 months to 8 years.
Living wisely

The chances to make wise decisions and avoid debt continue into your college years.
Start out in a community college

Most towns and cities have two-year community colleges where you can take your basic courses at less cost than at a four-year college or university. Just investigate to make sure your community college credits will transfer.
Take advantage of Work-Study programs

If you qualify for the federal work-study program, take advantage of it! You will have an on-campus job, possibly in your field of study.
Or work for the school

Many colleges give discounted or free tuition to employees and their family members. There are lots of non-teaching jobs on campus that you can apply for.
Live frugally

Live at home or get a roommate. Avoid expensive spring break trips. Buy used textbooks, and sell your books at the end of the semester.
I already have a loan. Now what?

If you have a federal student loan, it is possible to have your loan debt discharged (canceled) or reduced, under certain specific circumstances:

* You die or become totally and permanently disabled
* Your school closed before you could complete your program
* You work in certain designated public school service professions (such as teaching in a low-income school)
* You file for bankruptcy (only if the bankruptcy court rules that repayment would cause undue hardship.)

As you can see, there are many steps to avoiding or relieving college debt. To best manage your debt it is wise to implement a combination of the strategies listed above that work best for you.

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Private Student Loans - dispelling the myths

2009-05-14T15:47:00.000-07:00

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If savings, grants, scholarships, and federal loans don’t cover the cost of your education, it’s time to turn to private loans. But young college students can’t qualify for a private loan, can they? Wrong! This article addresses this and other myths about student loans that you may run into.

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.
Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.
Federal parent loans

PLUS Loans ( Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to the total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after the loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.
Private loans

Both students and parents can take out private loans to cover funding gaps. Terms are basically the same for these loans, although students may be able to have their repayment deferred until after graduation. Another consideration is that students may wish to take out small loans to begin to establish a credit history. You may need to cosign for private student loans.
Other options

Parents do have some additional options for college funding, such as home equity loans. These often have rates as good as private loans.
So which type of loan should I get?

This really comes down to a personal decision. Ask yourself these questions as you are trying to decide:

* What level of debt do you feel is manageable for your child to graduate with?
* How important is it to you that your child takes responsibility for paying student loans?
* Will you and your child work out a repayment plan to repay PLUS Loans and other parent loans?

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Parent Loans or Student Loans - what is going to be best for my child?

2009-05-14T15:46:00.000-07:00

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Which is the better option - student loans or parent loans? Each has distinct advantages and uses, learn about them here!

Parent Loans or Student Loans - what is going to be best for my child?

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.
Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation.
Federal parent loans

PLUS Loans ( Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to the total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after the loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.
Private loans

Both students and parents can take out private loans to cover funding gaps. Terms are basically the same for these loans, although students may be able to have their repayment deferred until after graduation. Another consideration is that students may wish to take out small loans to begin to establish a credit history. You may need to cosign for private student loans.
Other options

Parents do have some additional options for college funding, such as home equity loans. These often have rates as good as private loans.
So which type of loan should I get?

This really comes down to a personal decision. Ask yourself these questions as you are trying to decide:

* What level of debt do you feel is manageable for your child to graduate with?
* How important is it to you that your child takes responsibility for paying student loans?
* Will you and your child work out a repayment plan to repay PLUS Loans and other parent loans?

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Student Loans are Better than Credit Cards

2009-05-14T15:43:00.000-07:00

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You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books or do you apply for a federal or private loan? Well consider the options

* With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
* With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
* With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-

* Pay your balance each month to avoid interest charges
* Pay your bill on time to avoid late charges
* Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.

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College Loan Consolidation - Why NOW is the Best Time

2009-05-14T15:41:00.000-07:00

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If you are thinking about using loan consolidation to possibly lower your monthly student loan payments, then now is the time to start consolidating and lowering those payments. Never in recent history have the interest rates on student loan consolidations been quite as low as they are these days. What does that mean for you? Quite simply, you will be receiving the best available deals for debt consolidation when you choose to consolidate your student loans now and here. Whether you have just a small amount of student loan debt or a very large amount, consolidation can start helping you to lower your monthly payments NOW if you get started on it right away.

Start on the 'Net

Where is the best place to turn when looking to receive consolidation on your student loans quickly and easily? A good place to start might be the Internet. Research exactly what student loan consolidations can do for your financial status. Secondly, visit a web site like NextStudent.com, where you can learn about the latest trends in debt consolidation for student loans. Additionally, you can contact their financial advisors, who will walk you through the debt consolidation process and make sure that you save as much money as possible paying back your student loans.
Now in the Time

Once you have started the process, you can sit back and know that student loan consolidation is saving you hundreds of dollars a year on repaying your student loans. While the process is not complex, it is important for you to work with a trusted name when using debt consolidation. Some companies will simply rip you off and end up costing you more money than they save. You may be at a disadvantage with your debt hanging over your head, but that does not mean that you cannot receive a great deal through consolidation! Consolidate NOW and start saving with the ultra-low consolidation interest rates out there these days. You will thank yourself in a few years.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about College Loan Consolidation.

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College Savings Plans – are they the best choice for my child?

2009-05-14T15:38:00.000-07:00

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College savings plans could be the best way to help fund your childs education. Learn more about the College 529 savings plan here.

Student loans are better than credit cards

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -

* With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
* With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
* With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-

* Pay your balance each month to avoid interest charges
* Pay your bill on time to avoid late charges
* Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.

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Student Loan Consolidation – How does it Work?

2009-05-14T15:37:00.000-07:00

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Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.

What is loan consolidation?

Loan consolidation means bundling all your student loans into a single loan with one lender and one repayment plan. You can think of loan consolidation as akin to refinancing a home mortgage. When you consolidate your student loans, the balances of your existing student loans are paid off, with the total balance rolling over into one consolidated loan. The end result is that you have only one student loan to pay on.

Both students and their parents can consolidate loans.
Should I consolidate my loans?

Loan consolidation offers many benefits:

* Locks in a fixed, usually lower, interest rate for the term of your loan, potentially saving you thousands of dollars (depending on the interest rates of your original loans)
* Lowers your monthly payment
* Combines your student loan payments into one monthly bill

In addition, consolidated loans have flexible repayment options and no fees, charges, or prepayment penalties. There are also no credit checks or co-signers required.

You should consider consolidating your loans if the consolidation loan would have a lower interest rate than your current loans, particularly if you are having trouble making you monthly payments. However, if you are close to paying off your existing loans, consolidation may not be worth it.
How will the interest rate for the consolidated loan be?

The interest rate for your consolidated loan is calculated by averaging the interest rate of all the loans being consolidated and then rounding up to the next one-eighth of one percent. The maximum interest rate is 8.25 percent.

To figure your interest rate, visit loanconsolidation.ed.gov for an online calculator that will do the math for you.
How much can I save?

How much you save by consolidating loans depends on what interest rate you get and whether you choose to extend your repayment plan. According to Sallie Mae, the leading provider of student loans in the United States, consolidating student loans can reduce monthly payments by up to 54 percent. However, the only way to reduce your payment this much is to extend your repayment plan. You typically have 10 years to repay student loans, but, depending on the amount you're consolidating, you can extend your repayment plan all the way up to 30 years. Remember that if you choose to extend your repayment term, it will take longer to pay off your overall debt and you'll pay more in interest. There are no preypayment penalties, so you can always choose to pay off the loan early.
Am I eligible to consolidate my loans?

In order to consolidate your loans, you must meet the following criteria:

* You are in your six-month grace period following graduation or you have started repaying your loans
* You have eligible loans totaling over $7,500
* You have more than one lender
* You have not already consolidated your student loans, or since consolidation you have gone back to school and acquired new student loans

The following types of loans can be consolidated:

* Direct Subsidized and Unsubsidized Loans
* Federal Subsidized and Unsubsidized Federal Stafford Loans
* Direct PLUS Loans and Federal PLUS Loans
* Direct Consolidation Loans and Federal Consolidation Loans
* Guaranteed Student Loans
* Federal Insured Student Loans
* Federal Supplemental Loans for Students
* Auxiliary Loans to Assist Students
* Federal Perkins Loans
* National Direct Student Loans
* National Defense Student Loans
* Health Education Assistance Loans
* Health Professions Student Loans
* Loans for Disadvantaged Students
* Nursing Student Loans

Where can I get a consolidation loan?

You can consolidate your loans through any bank or credit union that participates in the Federal Family Education Loan Program, or directly from the U.S. Department of Education. The loan terms and conditions are generally the same, regardless of where you consolidate. You may want to check first with the lenders that hold your current loans.

If all your loans are with one lender, you must consolidate with that lender.

If you decide to consolidate your student loans, remember that you can only do so once unless you go back to school and take out more loans. Therefore, you will want to make sure you get the best deal the first time. The interest rate will be the same from all lenders, but some lenders may offer future rate discounts for prompt payment and a discount for having monthly payments directly debited from your account.
Can my spouse and I consolidate our loans together?

You can consolidate your loans together, but it is not a good idea for a couple reasons:

* Both of you will always be responsible to repay the loan, even if you later separate or divorce
* If you need to defer payment on the loan, both of you will have to meet the deferment criteria

When should I consolidate my loans?

You can consolidate your loans any time during your six-month grace period or after you have started repaying your loans. If you consolidate during your grace period, you may be able to get a lower interest rate. However, since you will lose the rest of the grace period, it is a good idea to wait until the fifth month of the grace period before consolidating. The consolidation process usually takes 30-45 days.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Student Loan Consolidation.

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Federal Student Loans versus Private Student Loans – which is best for me?

2009-05-14T15:35:00.000-07:00

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You have gotten all the grants and scholarships you can, but you still need money for your education. It’s time to look at loans. But which is better – federal loans or private loans?

College Savings Plans - are they the best choice for my child?

College Savings Plans, also called Section 529 plans, are one of the best ways to save for college because they offer:
# Tax advantages
# A variety of investment options
# Flexible contribution options
# Parental control
# Little impact on eligibility for need-based financial aid

Tax advantages

Investments in 529 plans are usually exempt from federal taxes. Earnings are tax-deferred and are not subject to capital gains taxes. Redemptions are also exempt from federal income tax if they are used to pay for tuition, room and board, fees, books, supplies, or equipment.

Most states also offer tax advantages, at least if you enroll in the plan for your own state. In addition, contributions may be deductible on your state income tax.

In addition to these income tax benefits, College Savings plans can be a valuable estate planning tool. The accelerated gift option allows you to average gifts over $11,000 per beneficiary over a five year period with no federal gift tax. This means you can contribute up to $55,000 per beneficiary in one year with no gift tax. Contributions are immediately removed from the donor's gross taxable estate (and included in the estate of the beneficiary).
Investment options

Most states offer three or more investment options ranging from conservative to aggressive. One is usually an age-based portfolio that invests mainly in stocks while a child is young, then shifts to bonds and money-market funds as college years come closer. 529 plans are managed by experienced investment companies, such as Vanguard, Fidelity, and TIAA-CREF.
Contribution options

Anyone can contribute money on behalf of a beneficiary, allowing friends and relatives to give the gift of education. In addition, the minimum investment amount required to open an account is usually lower than mutual funds require, making section 529 plans affordable for lower income families.

States set their own contribution limits for college savings plans. Most states base their limit on an estimate of the amount of money needed for seven years of post-secondary education. Limits range from $146,000 to $305,000.

In addition, most states allow you to regularly transfer funds from your checking or savings account to your 529 plans. Some states even let you set up payroll deductions.
Parental control

The money in a College Savings Plan is controlled by the account owner, not the child. So if the child decides to not go to college, they do not have access to the funds. Instead, the account owner can get his or her money back (with income taxes and a 10% penalty owed on earnings) or transfer the funds to another family member.
Impact on eligibility for need-based financial aid

College savings plans have a low impact on financial aid eligibility because they are considered an asset of the account owner (usually the parent), rather than the student.
Choosing a plan

Most states have their own College Savings Plans, but you do not have to enroll in the plan in your state. Look first at the plans in your own state, especially if they offer tax advantages. Other factors to consider as you compare state plans are expenses and investing options.
Prepaid tuition plans

Another type of Section 529 plan are the prepaid tuition plans. Prepaid tuition plans are guaranteed to increase in value at the same rate as college tuition. So, if you purchase shares worth one semester of tuition at a state college, those shares will always be worth one semester of tuition, even 10 years later when tuition rates have doubled. These plans offer basically the same tax and contribution benefits as College Saving plans, and they are guaranteed by the government. However, because prepaid tuition plans are considered a resource, they reduce need-based financial aid dollar for dollar. Therefore, families that expect to qualify for need-based financial aid should avoid prepaid tuition plans and invest in college savings plans instead. Another alternative is to roll prepaid tuition plan funds over into the state's 529 college savings plan before college begins.

There are many advantages to college savings plans; however, there are many ways a parent can help a student pay for a college education. Make sure to research as many avenues as possible to make the most informed decision on how to pay for school, and you could end up with the optimal college funding solution.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible.

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Private Loan Consolidation

2009-05-14T15:33:00.000-07:00

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College life teaches you how to stretch a dollar, how to make a pizza cover breakfast, lunch, and dinner, and how to get the most out of your money. That said, when your college education is over and achieved, the student loans following it should not last a lifetime and follow you throughout your career!

Consider Consolidating Your Loans and Save

Rather than lug around student loans for years to come, why not consolidate all your different student loans into one private loan consolidation that makes it easy for you to pay off your student loans with just one low monthly payment every month. Six months after you graduate, you can be sure that creditors will be banging down your door, looking for your first payment towards your student loans. Whether you borrowed from a bank, the government, or through some other private means, student loans add up quickly. A private loan consolidation allows you to take all of your student loans and throw them into one general debt - this way, you can make payments towards that debt and only have to deal with one private company, instead of 2, 3, 4, or 5 loan firms and/or creditors.
Where To Find A Consolidation Loan

Best of all, there are a plethora of companies out there willing to give you a private loan consolidation. They will analyze your student loans, see where the loans came from and what interest percentages the loans carry, and then they will get on the project immediately, possibly saving you hundreds, even thousands of dollars over the next few years! Stop paying money out to creditors who are holding you hostage with their high-interest fees. Obtain a private loan consolidation today from a company that can help you to save money and eliminate your loans quickly as well. Research on the internet or speak with a financial advisor today and find the private loan consolidation that will put all your debt into one small easy and convenient package - which can disappear before you hit mid-life!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to get Private Loan Consolidation.

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No-Cost Student Loan Consolidation

2009-05-14T15:31:00.000-07:00

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A no-cost student loan consolidation – doesn’t that just sound too good to be true? Think about it. You have just accrued thousands of dollars in debt through student loans after 4 years of college, or possibly even more. Then, a company offers to take all of your loans off of your hands, put them into one central loan, and do it all for free! Well, while it might not be too good to be true, it all depends around your particular situation, which could make this a “free” process, or could still work out to the benefit of the consolidation company that you are working with throughout the process.

How A Student Loan Consolidation Works

Here is how the student loan consolidation works. You have used up thousands of dollars in student loans to pay your way through college, obtain housing throughout college, and pay for other odds-and-ends while attending college. A student loan consolidation then takes all these different loans, pays for each of them, at which time you then pay the student loan consolidation company for the total amount of loans taken out during college.
Example of Student Loan Consolidation

If you were to have outstanding loans of $5000 to one company, $6000 to another, and $9000 to a third, the student loan consolidation allows you to owe $20000 to one company, rather than to three. This can save you money in the long run, as these companies also may be able to offer you a competitive interest rate, which means you will be paying less overall for your student loans in a shorter amount of time and to only one company.
Potential Student Loan Consolidation Problems

Problems can occur with student loan consolidations if you catch a deal that does not work out favorably to your situation. For instance, if you choose a no-cost student loan consolidation that does not offer you a low interest rate, you could actually end up paying them more than you originally would have! It is important that you choose a company not for their "no-cost" approach, but for their willingness to get your student loans paid off with a consolidation that promotes a quick pay-off with minimal interest rates.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about how to get No-Cost Student Loan Consolidation.

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PLUS Loan - Why Choose a PLUS Loan?

2009-05-14T15:30:00.000-07:00

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A PLUS Loan can be your ticket into college, but it really has more to do with your parents than it has to do with you. What exactly are PLUS Loans? Well, basically, a PLUS Loan is a loan that must be obtained by your parents in order to pay off your educational tuition. If you are a dependent of your parents and a future undergraduate student at any college or university within the country, a Federal PLUS Loan might be the right choice for your family. Additionally, your parent’s credit history must be in good standing in order to receive a PLUS Loan for you.

Why A PLUS Loan Works

Why should you choose a PLUS Loan when going into college though? Aren't there better options for you? Often times, college students have little to no credit history, and they themselves cannot afford to put a loan onto their credit history. Scholarships can only take most students so far, and parents/students usually cannot bring in enough income to pay off a college tuition, especially at most private universities. When this becomes the case, a PLUS Loan offers the best alternative to the student taking out a loan, as parents can use their established credit to help students through college without a hitch.
Supplementing Your Aid

The best part about a Federal PLUS Loan though is the fact that it helps you to cover any expenses at school that are not already being covered, For instance, if your yearly tuition at school is $10,000, and you receive $5000 a year through some other source of financial aid, a PLUS Loan enables you to pay the other $5000 without worry. Additionally, applying for a PLUS Loan is as simple as filling out your FAFSA form, which can be obtained at your school's financial aid office, and sending it in. PLUS Loans are dispensed directly to your school and leave you with no worries during the school year. If you are thinking of options for paying your way through college, think about applying for a PLUS Loan.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about PLUS Loans.

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Private Loan Consolidation - When Federal Consolidation is Not an Option

2009-05-14T15:29:00.000-07:00

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Sometimes, when it comes down to your money, it is better off just handling it yourself and putting it into the trusted hands of someone who will make the wisest decisions with it. With that in mind, once you graduate from college, it is very likely that you will be saddled down with student loan debt and any other debt accrued during your college years (i.e. credit card debt). In situations like these, federal consolidation may either not be an option or just might not be the best option for your current needs. When this happens, think about using a private loan consolidation to get you out of dire financial straits. This can still save you money and will allow you to be less tied down by your student loan debt.

Examples of Private Loan Consolidations

An example of private loan consdoliation is a bank or some other financial institution that is willing to take your accrued student loan debt, pay it off for you, and then offer you a lower interest rate as you work to pay them back over a scheduled course of time. It is important to note that not all financial institutions offer these forms of consolidation, so research before you start thinking about private loan consolidations and find the best private loan offers for your specific needs.
Work Out A Plan

Finally, once you have found the right private institution to cover your student loans, work out the right deal for your specific situation. Try to work out a payment plan over the course of a certain number of months/years that is affordable for yourself or your family. Often times, these forms of consolidation will allow you to receive lower interest rates, which, in turn, will allow you to pay less money to achieve debt-free status. As with any consolidation, search around for the deal that is most suitable for your loans. Do not just settle for the first offer that comes your way. You can save hundreds and thousands of dollars per year on student loans through consolidation, so make the situation work for you.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Private Loan Consolidation.

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Consolidate Loans Before the Rate Change!

2009-05-14T15:26:00.000-07:00

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Have you ever heard the old adage, “There is no time like the present”? Well, if there was ever a time that that advice was very necessary, today is the day, as when it comes to debt consolidation on student loans, today is definitely the day to consolidate. Debt consolidation on your student loans can help you to save hundreds of dollars every year, as it helps to cut down the interest rates that you are currently paying on a variety of different college student loans. By cutting down these interest rates, you pay less money to repay your student loans. And the present just happens to be the best time to complete this process, as consolidation rates are so low that you can save even more money these days by using debt consolidation on your student loans!

Student Loans Are Such A Drag!

Student loans are, quite often, a very painful process for many people. If you did not get the job that you expected out of college, it can be a real burden to pay back these loans for services that you do not feel helped you out. Alternatively, you may be doing your dream job, and giving up money from that job for something that already happened is not always the best feeling in the world. But, regardless of your situation, college loans are just a lingering aftereffect of your past that you would like to eliminate as quickly as possible.
Apply Now For Low Rates

Though it may be hard, the present day rates on debt consolidations can at least bring your bank account some level of joy, as you will not have to repay as much money for your student loans as you might have previously expected! Debt consolidation these days make the process of repaying student loans more painless, and with rates these low, it would be a shame for you to miss out on the opportunity to save yourself some money. Scan the Internet, on web sites like NextStudent and many others, to find the consolidation plan that works best for you and your student loans. But do not delay: there truly is no time like the present!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on how to College Loan Consolidation.

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Consolidation of Debt and Student Loans

2009-05-14T15:25:00.000-07:00

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So you have finally got the degree, but were you surprised with what came along with it? A pile of debt and student loans that need to be paid back starting very shortly after college! Whether it is a Federal PLUS Loan or a loan obtained from your local bank, chances are that a college graduation also brings collection agencies to your mailbox, as everyone wants to be paid back for helping to provide you with a college education. But, while you are writing out all these checks to different loan agencies, have you considered and thought consolidation through yet? Better, yet, do you even know what consolidation is?

How Consolidation Works

The consolidation of your student loans can save you hundreds and thousands of dollars in the long run when it comes to your student loan debt. Here is how it works: When you applied for those student loans from different government agencies and loan companies way back when, they each gave you a different interest rate and payment plan for eventually paying them back. Consolidation takes all of these different loans, repackages them into one convenient loan, and then gives you the ability to pay one loan back over time. Therefore, if you owe 5 different companies payments for your student loans and debt, consolidation allows you to now pay just one central company back, thus saving you time and money with a lower interest rate and less checks to write each month.
How Consolidation Helps

Consolidation of your student loans can happen right away, as you can visit different loan companies that offer consolidation after college and start saving money right away. Consolidation combines all of your debt into one neat and tidy bill that can be paid off much easier and in a more timely fashion than other options. Why deal with the baggage of 4 or 5 different loan companies nagging you for money, when you can pay one company off and live without that constant hassle? Check out consolidation today, and save yourself from the headaches of student loan debt.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on Consolidation of Debt and Student Loans.

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Financial Aid Options

2009-05-14T15:24:00.000-07:00

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Before entering college, you may find yourself pondering exactly how you will be able to pay for college. Many public colleges and universities cost thousands of dollars, while private colleges and universities can cost $10,000, $20,000, $30,000, or even more just to attend. Before getting too worried about these high prices, it is important to know that help is just a click of the computer mouse away, as the internet can help you to find the financial aid option that is right for you!

FAFSA First

Without knowing any of the options, it is important to first fill out a FAFSA form with your school's financial aid department. The FAFSA form allows you to tell the federal government all of your financial information. Once they have that in hand, they can determine what your best financial aid options are.
Loan Options

One option often used by students entering college is loans. Loans, like the federal PLUS loan, Perkins loan, Stafford loan, and FFEL loan, can all help you to pay your way through college without putting a dime down to do so. You will, of course, be required to pay back some or all of these loans (depending upon your financial status and the financial status of your parents), but loans can be an effective way of paying your way through college.
Grant Options

Another option is grants, which can be obtained through the government (like the Federal Pell Grant, for example) or through your particular school. Grants pay your way through college and do not need to be repaid once you graduate. These grants are usually only "granted" to those who are in need of financial aid, but be sure to apply for them if you think that you are eligible.
Other Financial Aid Options!

Other less conventional methods of financial aid are also available to college students. Federal work study allows students to work at colleges and universities while they are enrolled there for several hours per week. Money earned can then be used as a means of financial aid. Check with your specific college or university for other financial aid options that may exist and be at your disposal.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Financial Aid Options.

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How to Search for Scholarships

2009-05-14T15:22:00.000-07:00

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Finding scholarships for college or a major university is a lot like picking an actual college. It is not an easy process or something that just happens overnight, but rather, it takes hard work, dedication, and a lot of research to find the scholarship opportunities that are best for you. On the one hand, you are putting a lot of time, work, and effort into finding a scholarship. But just think about the thousands of dollars that you can save by obtaining a scholarship for college.

Using the Internet To Search

One of the most valuable resources for searching for a scholarship is the Internet. Web sites like NextStudent offer you the chance to sit in front of your computer screen and find hundreds and thousands of college scholarships being offered around the country. When searching for a scholarship, think about your qualities, skills, and high school activities that may place you into a scholarship opportunity. Scholarships come in many shapes and forms, and it is quite likely that you can receive a scholarship for everything from playing a sport to being a member of the computer club at your school. People want to give money for high school students to eventually attend college, so take advantage of these situations.
Seek Guidance

While the Internet and NextStudent offers you the chance to search for scholarships for yourself, not everyone can be a pro at picking out their best qualities and finding matching scholarships. If this is the case with you, do not be afraid to visit your high school's guidance office and ask a counselor for help. Here, he/she can match your specific qualifications up with the right scholarship opportunities. And, when it comes to scholarships, half the battle is just applying and throwing your name into the hat to receive a scholarship. Many others do not take advantage of this opportunity, and they miss out. But that is where you come in to take advantage of the situation. Get out there and search for the right scholarship. College isn't cheap, but scholarships sure do make a difference!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on How to Search for Scholarships.

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Parent PLUS Loans

2009-05-14T15:21:00.000-07:00

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Do you have good credit that you would like to put towards the further education of your child? Is your child planning on becoming a student at an American college or university? Is your child a dependent and planning on attending this college or university as an undergraduate at least “half-time” during the college or university semester schedule? If these questions apply to you, then a parent PLUS loan just may be the best option for financing the education of your child.

What a PLUS Loan Is

A PLUS loan is basically a loan given out to the parents of dependent children looking to enroll at any college or university. The PLUS loan covers up to any amount that is not already covered by any other form of financial aid. For instance, if your child is going to a university that costs $10,000, and he/she receives $7,000 is financial aid from other sources, a PLUS loan is good for up to $3,000 in this specific instance. No lender is necessary under the pretenses of a PLUS loan, because the U.S. Department of Education works directly with your college or university to distribute the loan application, process the loan application, and eventually distribute the loan funds to the appropriate sources (i.e. the college or university).
How To Obtain a PLUS Loan

Little is required of you to receive a PLUS loan as the parent of a child wishing to take out a loan in order to finance a college education. Simply submit a Direct PLUS loan application and promissory note to the U.S. Department of Education office located within your specific state. All of this information can be obtained through your college or university's financial aid office, and application packets are readily available through the same office. It is also recommended that you fill out a FAFSA form (also available through your school's financial aid department), so that your child may receive the largest amount of financial aid possible.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Parent PLUS Loans.

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Pell Grants

2009-05-14T15:19:00.000-07:00

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While loans are an effective way to pay your way through college, wouldn’t it be nice to have your college education essentially paid for you by the federal government? With a Federal Pell Grant, you can receive the necessary money to attend college without worrying about paying back a loan, because a Pell Grant does not have to be repaid after you finish your college education. Still, it is important to understand that not every college student is eligible for a Federal Pell Grant while they are attending college.

Who Is Eligible?

So, how can you find out whether or not you are eligible for a Federal Pell Grant before you decide which college to choose? Simply fill out your FAFSA form before entering college, which gives you more information on your eligibility for a variety of college grants and loans. The FAFSA will ask for your own financial information, as well as the financial information of your parents. The U.S. Department of Education then grants you an EFC number, which will indicate whether or not you are eligible for a Federal Pell Grant.
Specifics of A Federal Pell Grant

The amount that a Federal Pell Grant can be worth depends heavily upon several factors. For instance, the maximum Federal Pell Grant allotted in 2002-2003 was $4000. This was determined by the funding provided by the federal government into the Federal Pell Grant system. Your specific aid via the Federal Pell Grant depends upon your own EFC number and family financial information, the annual cost to attend your college or university, and whether you are a part-time student or a full-time student. If you qualify for a Federal Pell Grant, your college or university will then work with the U.S. Department of Education to either credit your school account, cut you a check, or find another means of aiding you while you aspire to receive your higher education.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Pell Grants.

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Private Education Loans

2009-05-14T15:18:00.000-07:00

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Sometimes, financial aid, scholarships, and federal grants and loans are just not enough to help you pay your way through college. Also, sometimes a federal loan is just not what you are looking for, as you must abide by the strict regulations surrounding the loans and must follow specific plans to pay back these loans. In these instances, why not apply for a private education loan through a company that specially tailors a loan just for your specific educational purposes?

What is a Private Education Loan?

A private education loan is often an unsecured and credit-based loan that can be given out to either the potential college student, parents of a potential college student, or some combination of the two. The loans can be used for both tuition and living expenses accrued during a college education process and can help students to make their way through college without the added hassle of working to pay off bills or simply worrying constantly on financial matters. Additionally, with a private education loan, there is no need to wonder where the next financial aid check is coming from or who is going to help you to pay your full tuition this semester. All you need to do is sit down with a financial advisor who specializes in private education loans, explain your situation, and he/she can tailor a private education loan and pay-back loan right before your eyes.
Be Wary of Bad Private Loans

It is important to remember that not all private education loans are beneficial to your specific standing financially. For instance, a private education loan may ensure that you receive the necessary funding for college, but it may also straddle you with high interest fees in return. This can make a loan harder to pay back. But, if you are seriously considering college and a private education loan, speak to a financial advisor who can help you to stay on track with payments, both those coming in to you and those going back to the loan company.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Private Education Loans.

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Refinance Student Loans - How and Why?

2009-05-14T15:16:00.000-07:00

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Let’s face facts. Going to college these days, especially private universities, is no cheap task and can put you well into debt before you even enter the “real world” for yourself. Most people, especially young college students, do not have the tens of thousands of dollars to pony up every year for college tuition either. Therefore, most college students choose to use student loans to put themselves through college, whereby they can pay the tuition without breaking a sweat. However, when it comes time to graduate from college and pay these student loans back, many people do not know where to begin. How about refinancing these loans before you even start anything else?

Advantages of Refinancing

By refinancing your student loans, you can save yourself hundreds, even thousands of dollars before you start repaying your loans, an option that many people fail to use. When you leave college, chances are that you have a variety of loans on the books with an array of different interest rates attached to each one. Refinancing these loans can help you to lower these interest rates, or, at least, bring some of them down, thus lowering your monthly payments and saving YOU money in the end. Even if all of your interest rates cannot be refinanced, chances are that you can save money in some places through refinancing.
Where To Refinance?

But, when it comes to refinancing, where do you turn to find a reliable place to lower your interest rates? The Internet may just be your one-stop-shop for refinancing your student loans from college, as you can search a variety of sites that offer refinancing services to suit your needs. Be careful though. Not every web site offering financial help will actually help you, and non-credible sites may actually just be out to steal a buck from you. Deal with those college student loan web sites that deliver real refinancing results and are properly licensed. Then, sit back and enjoy your money-saving tactics.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on how you can Refinance Student Loans.

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Scholarship Search

2009-05-14T15:15:00.000-07:00

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So you’ve made the decision to go to college? Great! But the decisions are just beginning for you, as in the coming months, you will need to make dozens of decisions concerning your future. While searching for scholarships may be one of those tough decisions, make it a whole lot easier by following these 10 simple things that you will need to do before applying for scholarships.

10 Things You Need Before Searching For A Scholarship

1. Decide which college you will be attending next semester, or whenever you are planning to start. The sooner you know this, the sooner you can find out what scholarship offers that specific college offers for its students.
2. Make a list of the qualities that you think make you a candidate for attending college and receiving a scholarship. A leader? Good at math? Involved in the community? These can all help you to receive a scholarship.
3. Start thinking about a possible major in college. Alternatively, do not be too dead set on a major just yet. Keeping your options open could get you a scholarship!
4. Find a good search engine to help you find a college scholarship. NextStudent is a good example of this.
5. Visit your high school's guidance department to obtain more information about receiving a scholarship.
6. Obtain transcripts for your school that indicate what your current GPA is.
7. Have a family member or friend tell you what they think your best qualities are. Often times, you may not be able to see your own best qualities. These can be used to search for scholarships.
8. Be sure to keep in close contact with your academic advisor. There may be scholarship web sites or scholarship newsletters that can help you to find something that can help you obtain a scholarship.
9. If you really have enough time (high school sophomore or junior), search for scholarships and see what colleges are looking for when offering scholarships. Join clubs and attend conferences to build your resume up and become a more worthy scholarship candidate.
10. Be ready to work! Obtaining scholarships is not easy work, but it does have a big payoff in the end: money for school! Don't expect it to be easy, but be aware of the ends.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn how you can improve your Scholarship Search.

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Scholarship Search Engine

2009-05-14T15:13:00.000-07:00

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Getting scholarships for college is not the hard part – but actually going out and finding scholarships that fit your requirements is! For years, high school guidance counselors used to suggest possible scholarships to students or give them large booklets filled with hundreds and thousands of college scholarships. Going through these books and actually finding a scholarship became a task all in and of itself. With the popularity of the internet though, finding a scholarship for college through a search engine has never been easier and has even been made simpler through the usage of specific search engines tailored just for college scholarships!

Starting Your Scholarship Search

The first thing to do before using a search engine to find college scholarships is to make a list of all of the skills or qualities about yourself that might appeal to someone handing out a college scholarship. Are you athletic in some sport that some colleges offer? Do you write poetry that would make Walt Whitman smile? Can you name all of the states in America in alphabetical order in under 2 minutes? Chances are, if you have some talent or skill, someone will be offering a scholarship that could put you into college.
Finding Your Scholarship Matches

Next, go into any search engine and start searching for web sites that offer scholarships. You may be able to find entire sites devoted to finding and searching for scholarships that are tailored around your needs. Try and be fairly specific, as the term "scholarship" is likely to bring up thousands of sites that do not apply to you. If you want a scholarship for those interested in writing, type in something like "creative writing college scholarships." This should at least bring up some more options for you.
Apply For The Scholarships Now!

Finally, start applying for scholarships that you find through a search engine. Sign up for more information from sites that host advertisements for various scholarships. These sites will then e-mail you the latest scholarship opportunities in your field of interest. The scholarships may be out there somewhere for you. Just make sure to turn to your favorite search engine to find out exactly where they are located.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about our Scholarship Search Engine.

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Stafford Loan Consolidation

2009-05-14T15:11:00.000-07:00

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A Stafford Loan, can help to finance your way through a college or university.

Subsidized Stafford Loans

A subsidized Stafford Loan, which you can receive based upon your specific financial aid. When a Stafford loan is subsidized, you are not required to pay any interest on the loan while you attend school. The federal government subsidizes the interest accrued on your account while you attend school and does not charge you interest until you finish school.
Unsubsidized Stafford Loans

An unsubsidized Stafford Loan, which you do not receive based upon your own specific financial aid. Rather, you can receive this type of loan but must pay interest on the loan even as you are still taking classes and enrolled in school.
Two Different Stafford Loans?

Often time, college and university students find that Stafford loans will be dispensed to them both as subsidized and unsubsidized loans, meaning that part of the loan will be subsidized and part of it will not. As they move through college, this means that they are paying interest on the loans, or simply allowing the interest to build up over time.
How To Consolidate Your Stafford Loans

Stafford loans consolidations can help you to combine the two types of loans after college into one low monthly payment that makes it easier and quicker for you to pay off your college loans. You have the ability to find a loan consolidation company, who will then work with you to take all of your Stafford loans, both subsidized and unsubsidized, and place them into one central loan that can then be paid off over time.

How exactly will this help to save you time and money? For starters, you will only be paying interest on one loan, rather than two, and by consolidating your loans, you can often achieve more favorable interest rates on your debt. In the end, this will allow you to save time, money, and frustration that comes with paying off loans over long periods of time.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Stafford Loan Consolidation.

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The Federal PLUS Loan Program

2009-05-14T15:10:00.000-07:00

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College is a time filled with important decisions and problems that must be solved in order to ensure your future and positive results at the time of your college graduation. Everything from choosing a college to choosing your roommate to choosing your computer for college can rack your brain and make the decisions that much harder. So, why not let one decision fall squarely on the shoulders of your old standby? Your parents. With the Federal PLUS Loan Program, your parents can help you to obtain loans that will put you through college.

First Steps To Applying

The first thing when thinking about applying for a Federal PLUS Loan is to do some research and understand exactly how a Federal PLUS Loan works. If you are a dependent and a future undergraduate student enrolled, at least, part-time at any college or university, you are eligible for a Federal PLUS Loan, whereby your parents can obtain a loan to help pay for your college expenses. In addition to these requirements, the status of a PLUS loan also depends heavily upon your parents' credit history. If they do not have a good credit history, chances are that your parents will not be approved for a Federal PLUS Loan.
Federal PLUS Loans Are Supplementary

In the event that your parents are approved for the Federal PLUS Loan that they apply for, they will then receive either what they have requested to supplement other loans and scholarships towards your college tuition. Or, the government may decide to only give your parents less than what you have requested due to their credit history. It is important to remember that, although your parents are the ones requesting a loan for your college, you should also seek out other options for paying your student tuition, because PLUS Loans often do not cover the entire tuition. Scholarships and other types of loans are often available for college students. Seek out all possible options before settling on a PLUS loan.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about The Federal PLUS Loan Program.

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William D. Ford Student Loan Consolidation

2009-05-14T15:08:00.000-07:00

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Looking for a way to pay your way through college? The William D. Ford Student Loan is the newest federal financial aid program that was established for college students in 1994. While older student loans for college forced students to apply for loans through private banks, these days students are able to receive direct loans through the U.S. Department of Education, because of the William D. Ford Student Loan Program. These loans are applied for through the FAFSA (Federal Application For Student Aid) and are then distributed directly (if accepted and applied for) to your school to pay for your education.

So Many Decisions!

Following college though, many students are confused as to the payment repayment options concerning direct loans to their college. These totals for loans often total in the thousands of dollars range and must be accounted for. Direct loans can also come from a variety of different federal sources, each of who will want their money back. This makes an option like student loan consolidation almost imperative, as graduated college students can apply to consolidate their federal direct loans. By doing this, they can lower their interest rates on loans and save thousands of dollars per year.
Do Your Research

The William D. Ford Student Loan Consolidation option makes it easy and convenient for former students to repay their loans. All they need to do is simply contact an agency like NextStudent, who will then help them to consolidate their student loans. Federal agencies can also be contacted to follow through with this procedure. Be sure to research consolidation before you start and find your best option. When it comes to saving money through consolidation, it is only possible if you find interest rates that are low and will reduce your monthly payments. The Internet is your best bet for researching the William D. Ford Student Loan Consolidation and finding out more information about saving yourself money in the future. College may be over, but the learning continues!

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Student Loan Consolidation.

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Student Loan Consolidation to be Affected by Recent Laws

2009-05-14T15:07:00.000-07:00

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The passing of the Deficit Reduction Act of 2005 in February brought with it major cuts to the federal student loan program. Along with cuts to other federal programs such as Medicare, Medicaid and food stamps, the student loan program was hit hardest, with a whopping $12 million in cuts.

In addition, legislation instituted and set to take effect on July 1 will negatively impact student loan consolidation, which will prove to be a thorn in the sides of students throughout the country.

NextStudent’s Low Consolidation Rates

Borrowers who currently are in school now can lock in student loan consolidation rates at 4.75 percent, thereby preventing their federal rates from increasing before the July 1 deadline, according to Phoenix-based NextStudent, an education funding company.

NextStudent also offers a 2.5 percent fixed rate, with benefits applied, whereby eligible borrowers can consolidate student loans and reduce their payments by as much as 70 percent.

Locking in now at a low rate is a smart idea for both students and graduates. Along with a lower student loan consolidation rate, borrowers can receive incentives such as one easy monthly payment, no prepayment penalties and a longer payment term.

Consolidate Before July 1 Change

Other stipulations concerning student loan consolidation are important to note, as the July 1 effective date is just a couple months away. Borrowers should be aware of other regulations set to be instituted before rates skyrocket and student loan consolidation becomes more difficult.

Student loan consolidation will retain the single holder rule. If one FFELP lender holds all of a borrower’s loans, that lender has the right to refuse to release the loans to another company. NextStudent’s low 2.5 percent student loan consolidation rate for qualified borrowers may not be offered through various lenders, so it is important to act now before the interest rate increase.

The new legislation will eliminate spousal consolidation, whereas borrowers no longer will have the option to jointly consolidate with their spouse.

In-school student loan consolidation will be eliminated; therefore, if a borrower is in school, that borrower will be unable to consolidate until he drops below six credits.

NextStudent’s Student Loan Consolidation Benefits

NextStudent’s student loan consolidation is a free government program with no fees and no costs. Other benefits include: one-minute eligibility determination; reduced or postponed monthly payments; and the prevention of interest rate hikes.

With a long list of regulations set to negatively turn around student loan consolidation, student borrowers now can take advantage of rates they may not see after July 1.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loan Consolidation.

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First Lawsuit Filed to Challenge Deficit Reduction Act

2009-05-14T15:03:00.000-07:00

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Students and concerned citizens may see some recourse after the upset of the passage of the Deficit Reduction Act, S. 1932, that was approved narrowly Dec. 21 by the Senate and then signed into law Feb. 8 by President Bush.

Due to a clerical error in the bill and in a move that challenges the bill’s constitutionality, Republican activist and Mobile, AL, elder law attorney Jim Zeigler on Feb. 13 filed a lawsuit disputing the bill. Along with cuts to programs such as Medicare and Medicaid, the bill hits the federal student loan program hardest, slashing a total of $12.7 billion. Zeigler served as President Bush’s attorney during the 2004 election.

The clerical error followed the bill’s approval, as the bill was forwarded to the house where it then was mistakenly changed by a Senate clerk.

Medicare Provision Upsets Bill

The Senate passed the bill that included a Medicare provision that would pay 13months of renting certain types of durable medical equipment, whereas the House version passed with verbiage of 36 months for Medicare patients. Accordingly, the Constitution requires identical versions be signed by both the Senate and House before a bill is signed into law by the president.

No date for a hearing has been set for Zeigler’s lawsuit, Civil Action: 2006-80 and filed in the U.S. District Court for the Southern District of Alabama. However, with the word out that the bill is in violation of the Constitution other lawsuits could follow.

“If my lawsuit succeeds the entire act will be declared unconstitutionally enacted,” Zeigler said.

Lawsuit Could Befriend Student Loan Industry

With regard to the Deficit Reduction Act’s huge cuts to student loans, Zeigler said, “All of the provisions of the student loans will revert to how they were prior to Feb. 8 even though my particular area of concern is with Medicare and nursing home eligibility that is of no consequence in the case itself.

“My legal point is that the house passed one version, the Senate passed another version and the president signed the Senate version. That violates the Constitution, Article 1 Section 7. Me and my lawsuit could become the new best friend of the student loan program,” he said.

The differing versions have Democrats and constitutional law experts questioning the legality of the bill. From the start, Democrats have been up in arms over the legislation. The clerical error seems to be a notch in the belts of Democrats who would like to see the bill undone. The error has afforded Democrats the possibility of undoing the bill.

Democrats Want Recourse

Rep. Nancy Pelosi, D-CA, Democratic House Leader, along with Rep. Henry Waxman, D-CA, the ranking member on the Government Reform Committee, and six senior House Democrats sent a letter to Rep. Dennis Hastert, R-IL, Speaker of the House, stating that Americans have the right to be notified of the mistake. They requested that GOP leaders reconsider the bill with the intention to pass identical bills by the House and Senate.

With heat from Democrats and Zeigler’s lawsuit, GOP leaders could very well find themselves in a tough position regarding the Deficit Reduction Act. However, many Republican leaders now say identical bills do not have to pass to become law.

“Were putting together possibly a preliminary injunction to ask the judge to enjoin the effective date of the law. And we’re studying that right now,” Zeigler said of his lawsuit. “I’ve had four inquiries from other states about joining this suit or filing a separate lawsuit in coordinating efforts.”

NextStudent is one of the nation’s premier education funding companies and is a trusted source in getting you all the appropriate information on student loans. NextStudent believes that getting an education is the best investment you can make. For information about both federal and private student loans, student loan consolidation.

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Reconsolidating is a Legitimate Way to Help Students Save Thousands

2009-05-14T15:02:00.000-07:00

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Student loan reconsolidation is a prime example of how graduates can ease their financial burden after college. Many college graduates and even students still attending college take advantage of student loan consolidation, which bundles together all of a student’s loans into one easy payment at one set interest rate. With reconsolidation students can receive additional financial and program benefits.

There are those current and former students who are unschooled about student loan reconsolidation, according to NextStudent, a premier education funding company based in Phoenix. The company offers a legitimate and valuable reconsolidation program that can further help student borrowers with their monthly payments.

Student Loan Reconsolidation Now Available

Until recently the option of student loan reconsolidation was not available to individuals who previously consolidated their federal loans. Due to legislation recently passed by the Department of Education, reconsolidation not only is available but offers a variety of benefits, including the possibility of saving thousands for individual borrowers.

Major cuts and changes to the federal student loan program are looming on the horizon and expected to take effect on July 1, including changes on interest rates and effective dates. With the passing in February of the Deficit Reduction Act of 2005, S. 1932, rules and regulations regarding student loan reconsolidation could easily turn around the entire program, making it much more difficult for graduates to participate.

NextStudent’s Reconsolidation Program

Student loan reconsolidation allows borrowers to retain the effective interest rate on their original consolidation, according to NextStudent. Through reconsolidation borrowers also reap the benefits of current interest rate discounts from lenders, discounts that originally were not offered at the initial point of consolidation.

NextStudent provides student loan reconsolidation for borrowers with a balance of at least $10,500 and at least 2 outstanding loans. Of these loans one loan must be an unconsolidated loan or from another lender. The federal regulation currently doesn’t allow lenders to reconsolidate a single loan. Incentives to the program include re-extension of the monthly term, in effect lowering the monthly payment, depending on a borrower’s balance; renewal of Title IV benefits, i.e. forbearance and deferments; and availability when there is one lender or multiple lenders.

Discount Packages Offer Benefits

Reconsolidation discount packages through NextStudent offer individuals benefits such as:

* A 1 percent locked rate reduction after 36 consecutive on-time payments
* NextStudent is one of the only lenders that locks in borrower benefits
* A rate reduction of 0.25 percent for setting up automatic withdrawal

Because of the many positive incentives available with student loan reconsolidation, borrowers benefit from a program that helps fit in with a variety of lifestyles and payments. The July 1 deadline for changes to the student loan program, including reconsolidation, is mere months away. It is important to take advantage of student loan reconsolidation now, as availability soon might be a thing of the past.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans and Student Loan Reconsolidation.

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NextStudent offers students last chance to reconsolidate and save thousands

2009-05-14T14:59:00.000-07:00

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PHOENIX – March 28, 2006 – NextStudent, http://www.nextstudent.com/, one of the nation’s premier education funding companies offering both consolidation and reconsolidation programs, offers students their last chance to reconsolidate student loans. There only are two days left to reconsolidate, as the option no longer will be available anywhere after March 31. Borrowers now must take advantage to reduce their monthly payments and save thousands before reconsolidation is a thing of the past.

The Deficit Reduction Act was signed into law in February by President Bush and included major cuts and changes to the federal student loan program, including reconsolidation, set to take effect on July 1. However, the effective date for reconsolidation recently was changed to March 31 by the Department of Education so that all completed paperwork is in by June 30. Borrowers must reconsolidate now so their applications are in by March 30, as the Department of Education will not accept applications after March 31.

The student loan reconsolidation program offered through NextStudent only is available until March 31. Borrowers with a balance of $10,500 or more are eligible. The program offers borrowers the ability to keep the interest rate on their original consolidation. In addition, borrower benefits include interest discounts offered from lenders that previously were not available when consolidation was first offered.

With only two days left to reconsolidate, borrowers can receive incentives and save thousands, easing their monthly payments. NextStudent’s program offers borrowers availability when there is one or more lender, and re-extension of the monthly payment term, which lowers the monthly payment and is dependent upon a borrower’s balance. Borrowers who reconsolidate before March 31 receive a 1 percent rate reduction after 36 consecutive on-time payments and receive a 0.25 percent rate reduction when they set up automatic withdrawal. It is important for borrowers to sign up now, as they only have two days left.

About NextStudent

NextStudent, http://www.nextstudent.com/, listed at No. 15 on the Top 100 Consolidating Lenders for fiscal year 2004, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education lending products and services including an online scholarship search engine, low and no-cost federal student loans, parent loans, private loans, student loan consolidation programs, student loan reconsolidation programs and college savings plans.

The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private, can help subsidize college loans – and represents more than 2.4 million scholarships worth $3.4 billion.
For more information about NextStudent and its student loan reconsolidation program, please visit the company’s Web site.

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Nextstudent Flies Extra Mile To Ensure Reconsolidation Applications Arrive On Time At Department Of Education

2009-05-14T14:56:00.000-07:00

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This is the last chance for borrowers to reconsolidate their student loans and receive benefits and incentives before the Department of Education ceases to accept applications, as reconsolidation no longer will be available after March 31.

This is the last chance for borrowers to reconsolidate their student loans and receive benefits and incentives before the Department of Education ceases to accept applications, as reconsolidation no longer will be available after March 31.

Many cuts and changes to the federal student loan program included in the Deficit Reduction Act are set to take effect on July 1. However, the Department of Education recently changed the effective date for reconsolidation to March 31 so that all its paperwork is complete by June 30. With that in mind, borrowers only have two days left to reconsolidate and get in their applications to NextStudent to reduce their monthly payments and save thousands.

The staff at NextStudent is compelled to provide the best customer service the student loan industry has to offer by going above and beyond for our customers. The entire staff is working diligently and is dedicated to doing everything possible to comply with the laws the Department of Education recently implemented requiring that reconsolidation applications are postmarked by March 31.

We are paying additional fees at no extra charge to our customers to send all reconsolidation applications by overnight mail. All our airport drops will be made this evening and tomorrow with hopes of ensuring that the overnight packages arrive at the Department of Education by March 31.

This is the absolute last chance for borrowers to take advantage of a program to help ease their monthly payments. NextStudent’s reconsolidation program is available to borrowers with a balance of $10,500 or more. Through the program borrowers are able to retain the interest rate on their original consolidation. In addition, borrower benefits include interest discounts offered from lenders that previously were not available when consolidation first was presented.

NextStudent’s reconsolidation program is available when borrowers have one or more lender. Through reconsolidation borrowers can re-extend their monthly payment term, which lowers the monthly payment, depending on a borrower’s balance.

Other incentives include a 1 percent rate reduction after 36 consecutive on-time payments and a 0.25 percent rate reduction with automatic withdrawal setup. With barely two days left, it is important for borrowers to sign up now.

About NextStudent

NextStudent, http://www.nextstudent.com/, listed at No. 15 on the Top 100 Consolidating Lenders for fiscal year 2004, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education lending products and services including an online scholarship search engine, low and no-cost federal student loans, parent loans, private loans, student loan consolidation programs, student loan reconsolidation programs and college savings plans.

The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and represents more than 2.4 million scholarships worth $3.4 billion.

For more information about NextStudent and its student loan reconsolidation program, please visit the company’s Web site.

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Single Lender Rule in Hands of the Senate; Students Urged to Speak Out

2009-05-14T14:54:00.000-07:00

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The U.S. House of Representatives on March 30 voted to extend for six years the Higher Education Act of 1965. The bill called the College Access and Opportunity Act, or H.R. 609, includes a student loan provision that would repeal the single holder rule. Other items include the reauthorization of financial aid through 2012, student loan forgiveness provided for service in areas of national need, and a requirement for lenders that consolidate to provide more information to borrowers.

Although H.R. 609 included the elimination of the single holder rule, it only is in force for those student loans received on or after July 1. Therefore, the single holder rule remains in effect for the next three months, which negatively impacts student borrowers' options.

The bill now is in the hands of the Senate. The House and Senate currently are in recess and report back to work on April 24. Therefore, a Senate vote could occur any time after April 24. The single lender rule, even with Senate approval, would not be repealed until July 1. At this time only the Senate can make changes to the reauthorization bill. However, if the Senate institutes changes that then are passed, the bill would revert back to the House.
Eliminate Single Lender Rule

Repealing the single lender rule is important for student loan borrowers. With the rule as it stands, student loans must be sent through the Department of Education, leaving students without many options.

The single lender rule prevents student borrowers from consolidating their college loans with other lenders for better benefits. Without the option of student loan consolidation borrowers could be tied for years to one lender’s unsatisfactory agreement. This could hinder borrowers from receiving benefits that are more advantageous to their needs. In addition, the single lender rule prohibits borrowers from reconsolidating in order to receive better terms.
Students Need More Choices

The elimination of the single lender rule would afford student loan borrowers many more options to help ease their financial situation. Student loan borrowers could have the choice to search for better rates and benefits, thus making it easier to pay off their bills.

Borrowers and other concerned citizens do not have to sit on the sidelines while waiting to find out the results of the Senate's vote and how it impacts their future. They easily can speak out and ask their senators to allow students the right to consolidate their loans through a lender of their choice.

Students have a long history of standing up for their rights and speaking out about injustices, so it would not be out of character for them to take a stand. Since the government is supposed to work for the people, the people need to speak up. All those concerned with repealing the single lender rule can write a message to their senators through the following link:

http://www.senate.gov/general/contact_information/

Students and concerned citizens also can call (202) 224-3121 and ask to speak with their senators.

Students and concerned citizens throughout the United States have been watching closely to see the effects of all the legislation affecting the federal student loan program. The negative effects basically began with the passing of the Deficit Reduction Act of 2005, S. 1932, which was signed into law Feb. 8 by President Bush and cuts $12.7 billion to the federal student loan program.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Durbin, Miller Introduce Bill to Cut Student Loan Interest Rates

2009-05-14T14:50:00.000-07:00

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In an effort to cut the interest rates in half on student loans before they increase on July 1 and to provide better access to college, Sen. Richard J. Durbin, D-IL, who also serves as assistant senate Democratic leader, in conjunction with Rep. George Miller, D-CA, senior Democrat on the House Committee on Education and the Workforce, introduced April 13 the Reverse the Raid on Student Aid Act of 2006, or H.R. 5150. Interest rates would be cut for student borrowers and parent borrowers alike.

The bill comes on the heels of the March 30 passing of the College Access and Opportunity Act of 2006, or H.R. 609. Miller originally presented an amendment to H.R. 609, also called Reverse the Raid on Student Aid; however, in a vote of 220 to 200 the House voted against that amendment.

Bill to Provide Better Access to College

By setting interest rates at 3.4 percent for Stafford Loans and 4.25 percent for PLUS Loans disbursed on or after July 1, the new legislation is intended to provide college access to all those students who qualify for a higher education.

Durbin and Miller, in a telephone press conference, expressed their intention to try to push the bill through Congress before the interest rates increase.

Convincing Republicans of the Bill’s Need

In order to receive the needed support for the bill, the legislators must convince a variety of representatives, mainly Republicans, of the extreme need for the bill and the advantages it will bring to students. In effect, Republicans will have to be persuaded to spend the approximate $37 billion over five years required to slash the interest rates in half.

“The high cost of tuition should never prevent a qualified student from getting a college education, but Republican leaders in Congress apparently don’t see it that way,” Miller said in an April 13 press release distributed from his office. “Democrats want to take America in a new direction, and that includes reversing the Republican raid on student aid and making college more affordable for all students and families.”

According to the release, the Republicans in Congress were behind the recent $12.7 billion in cuts to the federal student loan program. Those cuts have put college students and their families in a no-win situation. The price of college has skyrocketed throughout the years, and the “Republican Raid on Student Aid,” according to Miller and Durbin, has not helped in any way, as it has made college less affordable for those who have difficulty paying for it in the first place.

It’s Time to Act

“Unless we act now, starting July 1st, the price of a college education will increase dramatically for students across the country,” Durbin was quoted as saying in the press release. “New interest rates on student loans could make the ticket price of a higher education unaffordable, and cost students the opportunity to get a college education.”

According to recent reports, the press release said, the price of tuition, fees and room and board at four-year public institutions from 2001 through 2006 increased by 44 percent. Additionally, the U.S. Department of Education said during the past decade that average student debt rose more than 50 percent.

As stated in Miller’s press release, Durbin said, “The concern for our global economic viability is real. Raising interest rates on today’s students shortchanges our children while threatening our country’s ability to remain competitive in the global marketplace.”

Durbin and Miller hope that students and parents will work to try to gain support for the new legislation. Those concerned easily can contact their congressional representatives and ask them to approve the bill. Representatives can be contacted in writing by going to http://www.house.gov/writerep/, or by calling (202) 224-3121.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more NextStudents’ Student Loan Consolidaiton and College Loans programs.

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NextStudent Enters Securitization Market For First Time

2009-05-14T14:47:00.000-07:00

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NextStudent Inc., through its affiliate companies, last week completed its first securitization of student loans when the NextStudent Master Trust I issued $571 million in Auction Rate Student Loan-Backed Notes in a nonregistered private offering.

Citigroup was the lead investment banker on the deal. Co-managers included JPMorgan, Deutsche Bank Securities Inc. and RBC Capital Markets.

“With the successful issuance of these securities, NextStudent has completed its transformation from a student loan and scholarship search/marketing company to a student loan finance company,” said John F. (Jack) Wallace III, Executive Vice President of Finance at Phoenix-based NextStudent. “As a first-time issuer in the U.S. capital markets we are pleased with the investors’ reception of our securities,” said Wallace.

The proceeds of the transaction were used to purchase a portfolio of federally guaranteed Consolidation, PLUS and Stafford student loans previously held through a bank warehouse facility. Additionally, approximately $150 million was pre-funded for the purchase of PLUS, Stafford and Consolidation student loans during the next six months. “NextStudent plans to enter the Asset Backed Commercial Paper market next month by closing a $500 million deal led by JPMorgan. Citigroup and Banc of America Securities will be co-managers on the deal,” Wallace said.

About NextStudent

NextStudent, http://www.nextstudent.com/, listed at No. 17 on the Top 100 Consolidating Lenders for fiscal year 2005, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education lending products and services including an online scholarship search engine, federally guaranteed student and parent loans, private loans, student loan consolidation programs and college savings plans.

The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and includes a database of 2.4 million scholarships worth approximately $3.4 billion.
For more information about NextStudent and its student loan programs, please visit the company’s Web site.

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Conyers Joined by 10 Congress Members in Lawsuit to Declare Deficit Reduction Act Unconstitutional

2009-05-14T14:45:00.000-07:00

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The Deficit Reduction Act of 2005, S. 1932, that was signed into law on Feb. 8 by President Bush continues to come under fire. Another lawsuit to declare that the legislation is unconstitutional was filed April 28 by Rep. John Conyers Jr., D-MI, ranking member on the House Judiciary Committee, who was joined in the suit by 10 Congress members including Rep. George Miller, D-CA, ranking member, House Committee on Education and the Workforce.

The first lawsuit to challenge the bill’s constitutionality was filed Feb. 13 by Jim Zeigler, Republican activist and Mobile, AL, elder law attorney. Public Citizen, a Washington-based nonprofit consumer advocacy group, on March 21 filed its own suit seeking to declare the Deficit Reduction Act’s unconstitutionality.

Different Versions of the Legislation

According to Democrats the House and Senate passed different versions of the legislation, therefore rendering the bill unconstitutional. The House passed a version of the bill that included funding for 36 months of durable medical equipment and the Senate’s version contained only 13 months. As a constitutional requirement, both the House and Senate must sign identical versions of a bill prior to it being signed into law by the president.

“Once again the Administration is playing fast and loose with the Constitution. Anyone who has passed the sixth grade knows that before a bill can become a law, both Houses of Congress must approve it. That the Bush Administration is now saying otherwise underscores the Constitutional crisis we are facing in this country,” said Conyers in an April 27 press statement released from his office. “Over 200 years of legal precedent dictate that such discrepancies can be handled through simply refiling the paperwork, or re-voting the whole bill. Because the bill cuts billions of dollars to the Nation’s most needy, the Republican leadership prevented a re-vote at all costs.”

Lawsuit Holds Spellings, Bush Accountable

Conyers suit names anyone responsible for the budget, which includes Secretary of Education Margaret Spellings and President Bush along with other parties responsible for enacting the budget cuts required by the Deficit Reduction Act, according to Democratic aides.

With his lawsuit, Conyers asks for the entire bill to be declared unconstitutional and, therefore, not law, Democratic aides said. The lawsuit asks that an interim restraining order be put in place to prohibit enactment of the law.

“Republican leaders were in such a rush to ram this bill through Congress and get the President to sign it that they violated the Constitution in the process,” said Miller in the press statement. “And they were in a rush because this was a very, very bad bill. They wanted to spend as little time as possible having to explain their backwards priorities -- like cutting $12 billion from financial aid programs for college students -- to their constituents.”

The lawsuit was filed in the Eastern District Court of Michigan, case No. 2:06-CV-11972. Judge Nancy Edmunds is scheduled to preside over the case; however, it is not known when the case will be heard.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about NextStudents and Student Loan.

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Students Should Consolidate Loans before July 1 Deadline

2009-05-13T16:56:00.000-07:00

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There roughly are seven weeks remaining until interest rates on student loans are expected to greatly increase and rules and regulations will change. College and graduate students alike will feel a major pinch unless they now take action to consolidate their student loans.

Students throughout the country will feel considerable negative effects due to the passing Feb. 8 of the Deficit Reduction Act of 2005, S. 1932. Although many entities are finding fault with the legislation and others are seeking to challenge the bill, interest rates on student loans are poised to skyrocket on July 1.

Federal programs such as Medicare and Medicaid were cut with the passing of the Deficit Reduction Act. However, the federal student loan program took the deepest cuts, totaling more than $12 billion, leaving the nation’s students, parents and student loan companies outraged.

College More Expensive Than Ever

It is highly probable that students will face paying thousands more for their student loans because of the passing of the Deficit Reduction Act. Working-class and middle-class families that already have difficulty paying for higher education will be hit hardest. Tuition at universities and colleges throughout the country has been on the rise while the availability for student grants has decreased, making a college education less attainable.

Students who have federal loans, including PLUS and Stafford loans, can help ease their situations through student loan consolidation. By consolidating federal student loans before July 1 students easily can lock in a lower interest rate for the life of the loan. Through consolidation, students do not have to worry about a variety of monthly bills, as the program combines all of a student’s loans into one monthly payment. In addition, with student loan consolidation students can save as much as 60 percent, which can add up to a savings of thousands in the long run.

As the nation strives to be more globally competitive, the cost of college tuition is increasing. As costs increase and negative changes in the federal student loan program take hold, more and more students and families find it is more difficult to attend college. The rising cost of living is no help to graduates who find it difficult to pay back their student loans.

Student Loan Consolidation Can Save the Day

Student loan consolidation can be a big help to those students and graduates already weighed down under the heavy burden of college debt. However, with the looming July 1 rate increase scheduled to take effect, students should take action and consolidate their student loans before the deadline.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about student loans.

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Students can Lock in Lower Interest Rates on Student Loan Consolidation Before July 1 Deadline

2009-05-13T16:55:00.000-07:00

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In a little more than six weeks the interest rate on federal student loans is expected to increase. Recently short-term interest rates increased by 25 basis points, and the new target rate for federal funds is 5 percent. With the anticipated rate hikes so close, student loan consolidation is advisable for student borrowers who want to lock in rates before the July 1 deadline.

Every July 1 federal interest rates change for federal student loans according to the 91-day Treasury bill affecting Stafford loans and the 1-year Treasury bill that affects PLUS loans.

Rate Increase Expected

Although exact rate information will not be available until May 30, the following increased rates are expected on July 1: A 7.3 percent rate on Stafford loan repayment on loans made since July 1998; a 6.7 percent rate for in-school, grace and deferments; and an 8.1 percent rate on PLUS loans.

The rate increases coupled with the new rules and regulations brought forth by the passing in February of the Deficit Reduction Act of 2005, S. 1932, are poised to negatively effect the federal student loan program, most notably the rules for consolidation. The legislation includes $12.7 billion in cuts to the federal student loan program.

Student Loan Consolidation Still Available

Students still have time to take advantage of federal student loan consolidation, which bundles together all of a student’s loans into one monthly payment at a rate that is locked for the loan’s full term. Through student loan consolidation, students also are able to extend the repayment period on their loans, which saves thousands over time.

Through NextStudent, a premier education funding company based in Phoenix, student loan borrowers can save as much as 60 percent through consolidation. The company’s offerings include a 4.75 percent interest rate for in-school borrowers. A 2.5 percent interest rate is offered to qualified borrowers when benefits are applied, including a .60 percent in savings for consolidation after graduation, a .25 percent rate reduction when students choose Auto Debit, and an additional 1 percent reduction after 36 consecutive on-time payments.

College Becoming More Expensive

As the cost of a higher education increases along with interest rates, consolidation could be the answer for students with heavy student loan debt, especially those students from low-income and middle-income families finding it more difficult to pay for college in the first place. Graduates who consolidate can use their savings to put toward the necessities of their new lives, including rent and bills, instead of trying to pay off a variety of loans with high interest rates.

Students should keep the July 1 deadline in mind and take steps now to make their lives easier through consolidation. It is important to lock in a low rate before the increase takes effect and low rates no longer are available.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Consolidate Student Loans before July 1 for Best Rates, Incentives

2009-05-13T16:54:00.000-07:00

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The road to student loan consolidation is about to take a sharp turn, as interest rates and rules are slated to change on July 1, just about five weeks away. Interest rates on federal student loan consolidation are expected to increase approximately 2 percentage points, making payments much more difficult for student loan borrowers.

All the changes and interest rate increases are the result of the passing in February of the Deficit Reduction Act of 2005, S. 1932. The legislation also included $12.7 billion in cuts to the federal student loan program.

Consolidation Saves Money over the Long Term

With all the expected changes and rate increases poised to take effect, student loan consolidation can be the answer for student borrowers who have numerous loans with varying high interest rates. Through federal student loan consolidation, borrowers can bundle together their outstanding loans into one easy monthly payment while also saving money over the long term, according to NextStudent, the Phoenix-based premier education funding company. In addition, students can extend their payment period.

Through old-fashioned comparison shopping, student loan borrowers easily will find that among the top 20 consolidation lenders, NextStudent’s student loan consolidation program offers the best rates, benefits and incentives.

Compare and Save

Student loan borrowers can comparison shop their student loans at http://www.consolidationcomparison.com/, “The smart, easy way to compare student loan consolidation options from up to 12 lenders,” according to the company’s Web site.

After students plug in their loan facts, www.ConsolidationComparison.com calculates and provides information from a variety of lenders. Information includes: principal amount, monthly payment, total cost of loan, APR and number of payments after consolidation. NextStudent’s rates, monthly payments and number of payments are the lowest of all the top 20 consolidation lenders.

NextStudent’s Great Rates, Benefits

Along with the best rates in the industry, NextStudent offers borrowers top benefits and incentives along with top-rate customer service not seen elsewhere in the industry.

With that knowledge, students can avoid the upcoming expected increased rates on July 1, which include: 8.1 percent on PLUS loans; 6.7 percent for in-school students, grace and deferments; and 7.3 percent for Stafford loan repayment for loans made since July 1998.

By consolidating before the July 1 deadline, student loan borrowers can receive NextStudent’s low rates along with personalized service. The company’s federal student loan consolidation program has no fees, no hidden charges and no prepayment penalties. Offered rates are as low as 2.5 percent with benefits applied, including .60 percent reduction for borrowers who consolidate after graduation, .25 percent reduction for students using Auto Debit, and a 1 percent rate reduction for borrowers who make 36 consecutive on-time payments. In-school borrowers can receive a 4.75 percent rate. All borrowers’ information is fully secure and confidential.

The interest rate hike coupled with the ever-increasing cost of a college education is making it much more difficult for students and their families to pay for higher education. Students from low-income and middle-income families are feeling the pinch even more. However, student loan consolidation can be a way in which student loan borrowers can ease their situations with a lower interest rate and decreased monthly costs.

As July 1 nears, student loan borrowers should make the decision to take control of their outstanding loans through consolidation. Borrowers can make their lives easier with a lower interest rate and one monthly payment, while they save money over the long run.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Consolidation Locks in Students’ Federal Loan Rates before July 1 Increase

2009-05-13T16:53:00.000-07:00

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After weeks of speculation about the upcoming expected interest rate increases, student borrowers now know that their federal student loan rates will jump 1.84 percentage points on July 1, 2006, less than five weeks away.

The interest rate increase announcement is based on the May 30, 2006 auction of 91-Day Treasury Bills. The rate increase is the second largest in the student loan program’s history.

Only Five Weeks Remaining Until Rate Increase

With less than five weeks away and the forthcoming interest rate hikes, it is more important than ever that student borrowers consolidate their federal student loans before July 1, 2006, according to NextStudent, the Phoenix-based premier education funding company.

Student borrowers should take note that for Stafford loans disbursed on or after July 1, 2006, the new rates will be fixed at 6.8 percent. PLUS loans disbursed on or after July 1, 2006 will be fixed at 8.5 percent. By consolidating before July 1, students can avoid the interest rate hikes and lock in a low, fixed interest rate for the life of the loan.

The interest rate changes were incorporated into the recently passed Deficit Reduction Act of 2005, S. 1932, which was signed into law Feb. 8 by President Bush. The legislation cut a total of $12.7 billion to the federal student loan program.

NextStudent Offers Low Rates, Personalized Service

NextStudent’s federal student loan consolidation program is free and there are no hidden charges or fees and no prepayment penalties. The company offers low interest rates coupled with first-rate personalized customer service. Information on borrowers is completely secure and confidential.

With consolidation, all of a student borrower’s loans are combined together, adding up to one easy monthly payment. NextStudent features a 2.5 percent interest rate with benefits applied, which include .60 percent rate reduction for consolidating after graduation; .25 percent rate reduction when students use Auto Debit, and a 1 percent reduction when student borrowers make 36 consecutive on-time payments. A 4.75 percent interest rate is available for eligible in-school borrowers.

There still is time before the July 1 deadline to consolidate and save money with a new low interest rate. Student borrowers also can extend their payment period and save money over the long term. By saving through consolidation student borrowers can put the extra funds into the other important things in their lives.

College Costs on the Rise

The cost of college increases every day, making it much more difficult for students to obtain their dream of a higher education, especially for those students from low-income and middle-income families. However, consolidation can be the answer for students who want a lower interest rate and easier monthly payments.

July 1 is just around the corner, so now is the time for students to consolidate if they want to help ease their monthly financial burden and save money over the long term.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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NextStudent Offers Low In-School Consolidation Rates Before July 1 Deadline

2009-05-13T16:51:00.000-07:00

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Student loan borrowers in less than three weeks will come face to face with new legislation changing rules and regulations and increasing interest rates affecting federal student loans. Most notable is that federal student loan interest rates on July 1, 2006 will increase 1.84 percentage points, the second-largest interest rate hike in the history of the program.

Upon the news of the rate increase, announced at the May 30, 2006 auction of 91-day Treasury bills, student borrowers have been rushing to find the best consolidation rates for their loans.

According to NextStudent, the premier education funding company based in Phoenix, student loan consolidation, especially now before July 1, helps borrowers combine their numerous loans into one and offers one low interest rate. Along with NextStudent’s low interest rates, its reputation for top-quality, personalized service is unsurpassed within the industry of student loans.

In-School Consolidation Available

Student loan borrowers should be aware that between now and July 1, 2006 the U.S. Department of Education is allowing for in-school consolidation, at the discretion of the original lender. After July 1 in-school consolidation no longer will be available. Although there are three or four lenders who do not partake in the process, NextStudent is among the lenders that actively help current students consolidate their student loans, a process whereby the original lender releases loans to other lenders and allows borrowers to consolidate.

NextStudent now offers an in-school consolidation fixed rate that most often is available at 4.7 percent, and can be as low as 2.5 percent in some cases. After July 1 the in-school consolidation fixed rate can go as high as 7.25 percent.

Allay Fears about In-School Consolidation

Many students have unwarranted fears regarding in-school consolidation. Through the program student borrowers must sign a waiver to give up their grace period – the six-month time frame following graduation that allows for deferment of student loans. The waiver then puts the in-school loans into an immediate repayment status. The biggest fear of students is they think they have to make payments while they are in school.

However, it is important to understand the actual facts regarding in-school consolidation. Following the completion of an in-school consolidation, which takes up to six weeks, a student borrower’s loans revert back to an in-school deferment; therefore, payments do not have to be made until after graduation. An added benefit is that borrowers who graduate have up to six years to defer their payment.

Along with the expected in-school consolidation interest rate hikes taking effect July 1, other interest rates also will increase. Stafford loans disbursed on or after July 1, 2006 will have a new fixed rate of 6.8 percent. PLUS loans disbursed on or after July 1, 2006 will have a new fixed rate of 8.5 percent.

NextStudent Offers Other Low Rates

NextStudent offers other low consolidation rates to borrowers who consolidate before the July 1, 2006 deadline. A 2.5 percent interest rate is available to eligible borrowers, with applied benefits, including .60 percent reduction for students who consolidate after graduation; a .25 percent reduction for borrowers who use Auto Debit; and an added 1 percent reduction for students who make 36 consecutive on-time payments.

Through the consolidation program interest rates are locked for the loan’s life, payment terms can be extended and thousands saved over the long term. NextStudent offers aggressive discounts and benefits while it brings to students a long-established reputation as a company specifically geared toward borrowers’ needs.

With less than three weeks remaining for all consolidations at low interest rates, it is important to rein in outstanding student loans with high interest rates to receive the best possible rate available, according to NextStudent. After July 1, students no longer will be able to receive the low rates now available.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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NextStudent’s Graduate Plus Student Loans Help Students Attain an Even Higher Education

2009-05-13T16:50:00.000-07:00

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For college students who desire to attend graduate school but do not think it is in their financial reach, there is an alternative. Students can easily actualize their goals through a program that features the benefits of a parent student loan but funding that is distributed directly to the student, according to NextStudent, the Phoenix-based premier education funding company.

NextStudent’s Federal Graduate PLUS Student Loans are convenient and manageable and start with rates as low as 8.5 percent. In addition, the program also offers additional incentives such as aggressive rebates.
Graduate Plus Loans Cover the Cost

Student borrowers looking to attend graduate school will find that the Graduate Plus Loan could be available regardless of a borrower’s credit score. With a host of graduate school expenses, students can rely on the Graduate PLUS Loan entirely to cover the costs of tuition, books and even computers.

Graduate school easily can be justified when the cost is accompanied by numerous benefits and incentives, according to NextStudent.
NextStudent’s Built-In Incentives

Among the incentives of the Graduate Plus Loan through NextStudent is a 3 percent cash rebate at repayment, which can be applied toward a student borrower’s education. When borrowers sign up for Auto-Debit and make the first on-time monthly payment, NextStudent pays a 3 percent cash rebate of the loan amount.

A cash rebate equal to 5 percent of a borrower’s outstanding principal balance is available after the borrower completes the first 48 consecutive on-time monthly payments if they participate in the Auto-Debit program.

Another of NextStudent’s Graduate Plus Loan incentives is a .25 percent interest rate reduction when borrowers repay their loans automatically through the Auto-Debit program.
Graduate Plus Loan Benefits

NextStudent also offers a host of benefits to their Graduate Plus Loan program, including:

* Generous Borrowing Limits: Students can borrow up to the entire cost of education (less any federal aid), including books, supplies, and even a computer!
* Simple Application Process with E-Signature: Borrowers who apply online can qualify within minutes. In addition, NextStudent offers a “second look” for borrowers who receive an initial denial due to unresolved credit issues.
* NextStudent has a PLUS Credit Resolution Team that has an 87 percent success rate at resolving credit issues for borrowers, resulting in funded PLUS loans.
* Flexibility: Graduate PLUS Loans offer various repayment options including deferred repayment while students are enrolled in school at least half-time. In addition, the loans are eligible for consolidation. Also, there never are prepayment penalties.

Students who are uncertain about attending graduate school because of the involved costs now can get that higher degree. Through NextStudent’s Graduate Plus Loan, graduate school is more affordable and within reason and reach.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about private student loans.

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NextStudent’s Graduate PLUS Loans Available to Fall Graduate Students

2009-05-13T16:47:00.000-07:00

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Numerous graduate students who are starting classes this fall now are scrambling for the funds needed for their tuition and other educational expenses at graduate school. With the high cost of graduate school and the fall semester just around the corner, graduate students still have time to get the funds needed to help cover the full cost of their education, according to NextStudent, the Phoenix-based premier education funding company.

NextStudent offers a new federal Graduate PLUS Loan program that, while geared to graduate students, has all the benefits of a PLUS Loan. Funds can be disbursed directly to students or to their schools; the decision is up to students. Students can request that the funds be distributed immediately upfront or at different intervals throughout the year.
Graduate PLUS Loans Available Throughout the Year

Many new graduate students may be concerned that it is too late to apply for a Graduate PLUS Loan. Therefore, it is important to note that the loans may be taken out at any time of the year.

With a rate as low as 8.25 percent, NextStudent’s federal Graduate PLUS Loans are easy to manage and are a convenient way for graduate students to get the funds they need to further their higher education needs. The loans may be available despite a student borrower’s income. Students can borrow up to the full cost of their education, which includes tuition, housing, books, lab fees and computers.

An added bonus for graduate students who receive a Graduate PLUS Loan is that those students qualify for in-school deferments, including residency and unemployment deferments, whereas the option is not available when parents take out a PLUS loan for students.

A host of additional incentives and benefits are part of NextStudent’s Graduate PLUS Loan program. Aggressive rebates directly are built into the program so that graduate students have the means to get the most out of their loans to help them fund their education.

Aggressive Rebate Incentives

NextStudent’s Graduate PLUS Loan program offers many incentives including 3 percent cash rebate at repayment. The rebate helps student borrowers since it can be put toward education funding. NextStudent pays a 3 percent cash rebate of the loan amount for student borrowers when they sign up for Auto-Debit and make their first on-time monthly payment.

When student borrowers complete their first 48 consecutive on-time monthly payments, they are able to receive a cash rebate equal to 5 percent of their outstanding principal balance when they participate in Auto-Debit.

A .25 percent interest rate reduction is available to student borrowers who pay their loans through Auto Debit.

Benefits of Graduate PLUS Loan Program

The federal Graduate PLUS Loan’s benefits are another reason for graduate students to take advantage of the program. NextStudent’s benefits include generous borrowing limits; an easy, quick application process when students apply online. A “second look” is available to borrowers who initially are denied due to unresolved credit issues; NextStudent’s PLUS Credit Resolution Team has an 87 percent rate at successfully resolving borrowers’ credit problems that then result in funded Graduate PLUS Loans; a variety of repayment options available that include deferred repayment as long as students are enrolled at least half time at school. There are no prepayment penalties. In addition, the Graduate PLUS Loans can be consolidated.

Students looking to further their education dreams through graduate school now have no reason not to take the challenge. Although it is midsummer, paying for graduate school is just a Web site away. NextStudent’s Graduate PLUS Loan program can take care of student borrowers and their funding needs for graduate school.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about College Loans and student loan consoldiation.

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Private Student Loans Through NextStudent Help Students Fund Their Education

2009-05-13T16:46:00.000-07:00

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College students who have not secured their funding for college or who were unable to cover their total education costs with federal aid have another option. NextStudent, the Phoenix-based premier education funding company, offers private student loans for undergraduate and graduate students.

Private student loans are available throughout the year to student borrowers who need money for college. The student loans are unsecured and are credit-based. NextStudent’s Undergraduate and Graduate Private Loans can help students cover up to the full cost of their education, less any financial aid received. Education expenses covered include tuition and fees, housing, computers, supplies and many other everyday expenses related to education, according to NextStudent.
No Deadlines

There are no application deadlines or fees with NextStudent’s Private Loans; therefore, undergraduate and graduate student borrowers can apply at the beginning, middle or near the end of the school term. Student borrowers can apply directly online with a fast and easy application form and receive preapproval in minutes.

With NextStudent’s Private Loan Program student borrowers may qualify with or without a co-signer. Funds are disbursed directly to the borrower, and payments do not have to be made until after graduation. There are various money-saving repayment options and interest payments may be tax deductible.
Eligibility Requirements

To be eligible for NextStudent’s Undergraduate and Graduate Private Loans, students must be enrolled at school at least half time in a degree or certificate program at a school approved by The Education Resources Institute, TERI, a nonprofit organization by which all NextStudent private loans are guaranteed. Private loans also are available for distance learning and international students.

Student borrowers can borrow an annual maximum of $40,000 or the calculated cost of attendance (lesser amount) with a program maximum of $130,000.

Repayment on the Undergraduate and Graduate Private Loans starts six months following graduation, or when the student borrower drops to less than half-time enrollment status. Student borrowers have up to 20 years to repay their loan. However, student borrowers with balances of more than $40,000 may have their term extended to 25 years. The minimum loan payment is only $25.

NextStudent offers private student loan options throughout the year for eligible undergraduate and graduate students who need the funds to help them achieve the dream of a college education. There are no deadlines or time constraints so that student borrowers can receive the funding they need no matter the time of year.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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College Students Can Receive Private Student Loan Funds from NextStudent Before Fall Semester Begins

2009-05-13T16:44:00.000-07:00

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With the approaching fall semester, many college-bound students still are in need of essential funds for school. Whether students need funds to cover the full cost of their tuition and expenses or funds to supplement the financial aid they received, NextStudent, the premier education funding company, can help students through its Private Student Loan Program.
NextStudent, based in Phoenix, AZ, is dedicated to helping students and their families find affordable ways to pay for college. Along with a host of highly competitive education finance products, the company provides a variety of Private Student Loans.
Private Student Loan Funds Disbursed Fast

For college students who are concerned that it is too late to receive loan funds for college, Private Student Loans through NextStudent may be disbursed in as little as five business days.

Student borrowers can apply for Private Student Loans through NextStudent at any time throughout the year, as there are no application deadlines. From the beginning of the school term through the end, student borrowers have the ability to secure education funds to help them pay for all their education expenses.
Free and Easy Application Process

The application process is quick and easy and student borrowers can be preapproved within minutes after speaking with one of NextStudent’s knowledgeable Education Finance Advisors. Private Student Loans are unsecured and credit-based, and there are no application fees. The loans may cover as much as the full cost of a student’s education, less any received financial aid. Expenses can include tuition and fees, supplies, housing costs and computers, according to NextStudent.

Student borrowers can apply for a Private Student Loan with or without a co-signer; however, NextStudent approves more Private Student Loans when there is a qualified co-signer.

The NextStudent Private Student Loan Program requires that student borrowers are enrolled at least half time at college. They must be in a degree or certificate program at a TERI-approved school. The Education Resources Institute, or TERI, is a nonprofit organization. It guarantees all private loans issued from NextStudent. International students and those in distance learning courses also can apply for Private Student Loans.

An annual maximum of $40,000, or the calculated cost of attendance (lesser amount), is available to private student loan borrowers. The program maximum available is $130,000.
Private Loans Disbursed Direct to Student

Private Student Loan borrowers can rest easy, as funds are distributed direct to the borrower. Repayment on the private loans does not have to begin until six months after graduation, or when the student drops below half-time enrollment status at college.

On private loans of less than $40,000, student borrowers have as much as 20 years to repay the loan. The repayment term may be extended for loans of more than $40,000. In addition, the minimum loan payment is $25, and interest payments may be tax deductible.

Since NextStudent offers Private Student Loans throughout the year, student borrowers can rest easy knowing that they can receive the funds they need at any time. The fall semester is around the corner, and student borrowers easily can apply now and receive the college funds they need within weeks.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Variety of Student Loan Options Available through NextStudent

2009-05-13T16:43:00.000-07:00

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As tuition at state colleges increases every year along with the increasing inflation rate, students and their parents often wonder how to pay for the entire cost of college. Oftentimes, federal student loans do not cover the full cost of tuition. However, NextStudent, the Phoenix-based premier education funding company, has a variety of ways to make it possible to receive that college degree.

Depending on the college, students can expect to pay either thousands or tens of thousands per academic year to attend college. It does not help that the Deficit Reduction Act of 2005 that passed in February cut approximately $12.7 billion to the federal student loan program. It also included interest rate hikes on federal Stafford loans.

With all the negative news on student loans, there is a bright spot. NextStudent brings to students a host of loan options along with first-rate benefits and aggressive incentives to help make paying for college easier and more manageable.

Federal Stafford Loans

The federal Stafford loan interest rate now is set at 6.8 percent. Through NextStudent’s program, student borrowers can benefit from offerings including a 2 percent upfront cash rebate when they repay through Auto Debit and make one on-time monthly payment. Also available are a 1 percent rate reduction after the first 12 months of consecutive on-time payments and an additional 1 percent reduction after 24 months of consecutive on-time payments. An added bonus to the program is a .375 percent rate reduction when student borrowers repay through Auto Debit.

NextStudent’s PLUS Loan Program

NextStudent’s PLUS Loans – Parent Loans for Undergraduate Students are available to parents who want to help their children pay for college when federal aid is not enough. Parents can borrow 100 percent of college costs, less financial aid. The rate is as low as 6.25 percent when coupled with incentives such as a 2 percent interest rate reduction after the first 48 months of on-time payments, and a .25 percent reduction when parent borrowers repay their loans through Auto Debit.

Private Student Loans

Another option through NextStudent is Private student loans that can be applied for and received throughout the year. For student borrowers who qualify the loans can be disbursed quickly in as little as five business days. Private student loans are unsecured, credit-based and have no application fees. They can cover up to 100 percent of a student’s education, less any financial aid. Although Private student loans can be applied for with or without a co-signer, NextStudent approves more Private loans with a qualified co-signer.

All of NextStudent’s student loan programs have benefits and incentives and their own flexible terms on repayment. To help make it easy for student borrowers to get to college, typically there are a variety of repayment options so that students have one less thing to worry about while they are in school. In addition, NextStudent’s Education Finance Advisers are knowledgeable and caring and help make the process of acquiring student loans – no matter the type – fast and easy.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Student Borrowers Save More with NextStudent’s Consolidation Program

2009-05-13T16:42:00.000-07:00

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Some student borrowers may have missed the July 1 deadline to consolidate their federal student loans before the interest rate increase, but there still is time to consolidate at low rates especially if students are in their grace period. NextStudent, the Phoenix-based premier education funding company, advises students with federal Stafford loans issued prior to July 1 to consolidate and automatically receive a .6 percent reduction on already low rates.

Federal student loan consolidation bundles together all of a student borrower’s loans into one easy, manageable monthly payment. Savings over the long term can add up to thousands. NextStudent’s benefits and incentives bring down interest rates even more. In addition, with federal student loan consolidation there are no charges, fees or prepayment penalties.
Lower Rates in Grace Period

For student borrowers who had loans prior to July 1, 2006, the initial interest rate on consolidation with a .6 percent rate reduction while in grace period is 6.625 percent, as opposed to the new repayment rate of 7.25 percent on student loans. The 6.625 percent rate can be reduced with NextStudent’s aggressive incentives:

* An interest rate reduction of .25 percent for student borrowers when they sign up with Auto Debit and have their payments deducted automatically
* An added interest rate reduction of 1 percent that is locked for the life of the loan following the first 36 consecutive on-time payments, OR an interest rate reduction of 2 percent following 48 consecutive on-time payments

It’s Easy to Apply for Consolidation

As consolidation rates are much lower than current student loan rates, now is the perfect time to consolidate and save money. Applying for NextStudent’s federal Student Loan Consolidation program does not take much time and easily is done online. NextStudent’s application is hassle-free and can be completed in four easy steps with Electronic Signature. There is no need for a co-signer and there are no credit checks. Student borrowers do not even need to know the details of their current student loan portfolio.

By bundling together all of a student’s loans and extending the repayment period, borrowers save time and money over the long term. Depending on a borrower’s balance repayment can be extended as long as 30 years. In addition, NextStudent offers the advantage of various options on repayment, including graduated repayment and income-sensitive repayment. There also are deferment and forbearance options available.

Now is the perfect time for student borrowers who missed the deadline to consolidate the student loans they had prior to July 1, 2006. By consolidating before the end of the grace period student borrowers can receive a low interest rate and sign up with NextStudent for other aggressive incentives to help them save even more over the long term. Student loan consolidation can rid borrowers of too many unwanted monthly bills and help make life easier and less expensive.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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PLUS Loans through NextStudent Help Parents Pay for College

2009-05-13T16:40:00.000-07:00

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Some parents think they need to dip into their savings to help pay college costs for their children. After years of putting away hard-earned funds into a savings plan that should be geared toward emergencies and the future, parents should think twice. NextStudent, the Phoenix-based premier education funding company, offers PLUS Loans – Parent Loans for Undergraduate Students, a smart alternative for parents.

The general advice out there is that parents should keep their savings in tact for their future. Parents can keep their savings safe and sound and still help their college-age children by taking out a NextStudent PLUS Loan. Rates start as low as 6.25 percent when combined with aggressive incentives including a rate reduction of 2 percent after the first 48 months of on-time payments and a reduction of .25 percent when parent borrowers repay with Auto Debit.
Parents Can Keep Savings Intact

Federal PLUS loans make it easy for parents to help, as they can borrow as much as the full cost of college, so parents do not have to touch their savings. Since the college loans are not based on financial need, all parents are eligible, regardless of income. PLUS Loans are easy to get and are available anytime during the year at up to 100 percent of the cost of college, less any financial aid received. Total costs include tuition, fees, books, supplies, housing and transportation.

Through NextStudent, parent borrowers will receive personalized service from their own Education Finance Adviser. The preapproval process is fast and easy, so parents can rest easy that they will receive the sufficient funds in time.
Great Incentives, Benefits

NextStudent also offers a host of benefits and incentives that make PLUS Loans the correct choice:

* A cash rebate of 3 percent on the remaining principal balance following the first 12 months of consecutive on-time payments.
* Easy Application Process with E-Signature. Online application can be qualified in minutes. NextStudent offers its Credit Solution program that is available to borrowers who initially are denied because of unresolved credit issues.
* PLUS Credit Solution Team at NextStudent has an 87 percent rate of success at resolving borrowers’ credit issues, whereby resolutions result in funded PLUS Loans.
* A variety of PLUS Loan repayment options include deferred repayment when a student is enrolled in school at least half time.

PLUS Loans are eligible for federal student loan consolidation and the interest may be tax-deductible. Repayment on the loans starts within 60 days of final disbursement. The typical repayment term on federal PLUS Loans is 10 years. In addition, there are no prepayment penalties.

Parents of college students do not have to reach into the cookie jar to use their savings to pay for school. NextStudent’s federal PLUS Loan program is geared to make it easy for parents to help pay for college so their children can get that all-important degree.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Federal Stafford Loans from NextStudent Have Great Incentives on Already Low Rates

2009-05-13T16:37:00.000-07:00

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After exhausting all forms of “free money” for college, such as scholarships and federal grants, the next best thing for students are federal student loans to help them pay for school. Federal Stafford loans have low interest rates and are more appealing when they feature benefits and incentives, according to NextStudent, the Phoenix-based premier education funding company.

College costs increasingly are on the rise along with the cost of tuition and other expenses, making it difficult for some students to imagine their dream of a higher education. NextStudent believes that student loans should not be an extra burden to already cash-strapped college students, so the company offers incentives to make payments easier and more manageable.

Federal Stafford loans have a low interest rate of 6.8 percent and are secured by the government. They do not require collateral or a credit check and payment is postponed until after graduation. There are no guarantee fees and students do not need a co-signer.

NextStudent’s Stafford Loan Incentives

NextStudent has professionally trained Education Finance Advisers who know all the ins and outs of the numerous student loan programs offered. They are available to assist student borrowers with all their questions about the Federal Stafford Loan program. Through NextStudent’s program, student borrowers receive:

* A .375 percent reduction on their interest rate when they make payments through Auto-Debit
* A 2 percent interest rate reduction: 1 percent after the first 12 months of consecutive on-time payments, with an additional 1 percent rate reduction after 24 months of consecutive on-time payments
* A 2 percent upfront cash rebate, whereby borrowers receive the full amount they qualify for at disbursement. Borrowers must participate in Auto-Debit and make one on-time monthly payment to qualify.

Types of Stafford Loans

There are two types of Stafford loans: subsidized and unsubsidized. To qualify for a subsidized Stafford loan a student must show financial need. The government pays the interest while a student is in school and during grace periods and deferment. With unsubsidized Stafford loans, students are responsible for the interest; however, payment is deferred until after graduation. All students are eligible for unsubsidized Stafford loans.

Eligibility

In order to be eligible for a federal Stafford loan, borrowers must either be a citizen of the United States or an eligible noncitizen, enrolled at least half time in a degree or certificate program, a high school graduate or have an equivalency diploma, and current on existing federal education loans.

Federal Stafford loans are eligible for federal student loan consolidation. There are no prepayment penalties. Repayment typically starts six months after graduation. In addition, there are alternate available repayment options, including deferment and forbearance.

Federal Stafford loans are affordable and can help students get through college without the worry of paying back student loans until after graduation. NextStudent’s program offers a variety of incentives to make these loans even more affordable and manageable. There is no reason not to take advantage of a great deal that helps students obtain their dream of a college education.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about student loans.

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Private Student Loans from NextStudent Help Students Stay on Course to Pay for College

2009-05-13T16:36:00.000-07:00

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There are some people who think a college education is not worth the effort or the price. Higher education costs are on the rise and seem out of reach to many prospective college students. As most people cannot afford the cost of college, there are a variety of student loan options available, according to NextStudent, the Phoenix-based premier education funding company.
Although the cost of college is increasing, a college education still is a smart idea. Most often those who choose to go the college route in the end will fare better in the job market and typically will receive better salaries than those who opt out of college.

There are numerous scholarships and grants available to college students. By researching the many scholarships and grants, students can find the “free money” that is out there to help fund their college education.

NextStudent’s Student Loan Options

Oftentimes, “free money” is not enough to cover the full cost of an education. This is when student loans step in to help save the day. NextStudent offers a wide variety of student loan options to help make student and parent borrowers’ lives easier. From federal Stafford Loans to PLUS loans – Parent Loans for Undergraduate Students, NextStudent has the loan to best suit each individual borrower’s needs.

Private Student Loans Can Save the Day

There are times when private student loans are necessary because borrowers have exhausted the funds available through federal student loans. It never is a bad time to apply for private student loans, as they are available any time during the year and have no application deadline.

With private student loans, student borrowers can pay for the entire cost of their education, less financial aid received, which includes tuition, fees, housing costs and supplies. It is easy to apply and preapproval is complete within minutes. There are no application fees and the loans are credit-based and unsecured. Even though borrowers may apply without a co-signer, more private student loans are approved by NextStudent when a qualified co-signer is named.

Students in a pinch need not worry, as the loans go direct to the borrower. In addition, repayment on the loans can start as much as six months following graduation, or when a student is enrolled less than half time at college.

Student Loan Amounts and Eligibility

Private student loan borrowers can receive as much as $40,000 annually, or the calculated attendance cost (lesser amount). The available maximum for the program is $130,000.

Student borrowers must be enrolled at college at least half time in order to participate in NextStudent’s Private Student Loan Program. Other requirements include being enrolled at a school approved by the Education Resources Institute in either a degree or certificate program. All NextStudent private loans are guaranteed by TERI, which is a nonprofit organization. The loans also can be available to international students and students taking distance learning courses.

Even after student borrowers run out of all their other student loan options and “free money,” private loans are the next best step to help pay for college costs. No matter the time of year, NextStudent offers its Private Student Loan Program to borrowers who want to make sure they can fund the remainder of their college education in order to be able to take the right step into the future.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans and Student Loan Consoldiation.

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July 1, 2006 Extension on Student Loan Consolidation Coming to an End

2009-05-13T16:34:00.000-07:00

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Most student loan borrowers are unaware that as of July 1, 2006, the Department of Education placed an extension on the deadline. The extension allows student loan borrowers to receive pre-July 1, 2006 interest rates if they have a partially completed application on file with a lender.

The U.S. Department of Education allowed student loan borrowers to lock in the significantly lower pre-July 1, 2006 interest rates by submitting an application for consolidation before the deadline. However, due to the enormous demand this year for student loan consolidation, many student loan borrowers were unable to finish their consolidation application in time. This resulted in an increase in monthly payments and thousands of dollars in extra interest costs for student loan borrowers who missed the consolidation deadline. However, there is good news for those who did not fully complete their consolidation application in time.

Incomplete Applications

Many student loan borrowers prior to July 1, 2006 responded to a piece of mail immediately directing them to call about their student loans and then partially completed an application. This past year there also were borrowers who submitted a partially completed online application before the deadline. Since these borrowers did not sign the application they suspected they were ineligible for the lower interest rates.

Act Now to Receive Lower Interest Rates

For example, federal student loan consolidation provider NextStudent has countless partially completed applications from incoming callers and online inquiries that were started before the July 1, 2006 deadline. These applications were completed yet lack a signature; therefore, those borrowers are eligible to receive the pre-July 1, 2006 interest rates. In order to receive a lower rate, borrowers must act now and call NextStudent to sign their application. The Department of Education’s extension most likely will expire by December 2006, which does not give borrowers much time to act.

To check and see if you are eligible for the pre-July 1, 2006 interest rates and save thousands of dollars on your student loans, immediately contact NextStudent at 1-800-299-4639 or online at http://www.nextstudent.com.

Consolidation Comparison Calculator

If you are ineligible to receive pre-July 1, 2006 interest rates there still is hope. With student loan consolidation, you can cut your student loan payments by as much as 60 percent. There are many different providers in the industry, and borrowers can become very frustrated after calling numerous companies to receive a quote.

Fortunately, NextStudent has developed a unique student loan consolidation comparison calculator, which provides rates offered by the top consolidation lenders in the student loan industry. Simply enter your student loan information into the consolidation comparison calculator, and it will provide the monthly payment, interest rates and discounts offered by each lender.

Additionally, the new student loan consolidation comparison calculator is absolutely free and coded in a format that easily can be added to any Web site. NextStudent wants all borrowers to benefit from this calculator and provides it in a “skinable component” format so other Web sites can have access to its benefits. Webmasters simply can go to webmaster page and copy and paste this code into their Web site. This enables webmasters to offer the calculator directly off their own Web sites rather than having to place a link to NextStudent’s Web site.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans.

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Private Student Loans through NextStudent Help Subsidize Federal Student Aid

2009-05-13T16:32:00.000-07:00

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The cost of higher education is on the rise across the United States, and many students and parents are feeling the crunch since federal student aid is not able to cover the total cost of college. As a result, NextStudent, the Phoenix-based premier education funding company, offers private student loans for undergraduate and graduate students who are unable to cover their education costs with federal aid.

Student borrowers can borrow as much as the full cost of college, less any financial aid they receive. The available annual maximum is $40,000 or the calculated cost of attendance (lesser amount) with a program maximum of $130,000.

According to NextStudent, one of the additional benefits of its Private Student Loan Program is that borrowers can apply for an unsecured and credit-based private loan at any point during the school year. As a result, NextStudent’s undergraduate and graduate private student loans can help students cover not only tuition, fees and housing, but also additional educational costs that students might not have factored into their initial funding needs, such as computers, supplies and other everyday expenses related to education.
Borrowers in Control

NextStudent’s Private Student Loan Program puts borrowers in control of the monies they receive by distributing funds directly to the borrower. Additionally, student borrowers may qualify with or without a co-signer. However, by applying with a co-signer borrowers are more likely to get approved by NextStudent. Borrowers also have a choice of various money-saving repayment options, and interest payments may be tax-deductible.

Student borrowers have up to 20 years to repay their loan. However, student borrowers with cumulative balances of more than $40,000 may have their term extended to 25 years. The minimum loan payment is $25.
Accessible Funds for Students

NextStudent’s undergraduate and graduate private student loans are easily accessible to many students. To be eligible, students must be enrolled in school at least half-time in a degree or certificate program at a school approved by The Education Resources Institute, TERI, a nonprofit organization by which all NextStudent private student loans are guaranteed. Private student loans also are available for distance learning and international students.

NextStudent offers private student loans throughout the year for eligible undergraduate and graduate students who need the funds to help them achieve the dream of a college education. There are no deadlines or time constraints so that student borrowers can receive the funding they need no matter the time of year.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by
making college funding simple. Learn more about student loans.

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NextStudent Offers PLUS Loans for Graduate and Professional Students

2009-05-13T16:31:00.000-07:00

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As the job market in the United States continues to generate a need for applicants who are highly competitive in specified fields from technology to the ever-growing medical field, undergraduate students across the country are beginning to feel the squeeze as graduate and professional degrees become “must-haves” for even intermediate and entry-level positions. According to Phoenix-based NextStudent, a premier education funding company, the proliferation of graduate and professional programs has led to new sources of education funding designed to benefit these goal-orientated students who are, in essence, beginning their career by continuing on in their education.

NextStudent now offers a PLUS Loan Program for graduate and professional students with rates starting as low as 8.5 percent. The Graduate PLUS Loan Program features the same benefits directly to graduate and professional students that parents of undergraduate students receive from traditional PLUS loans. Because NextStudent Graduate PLUS loans are federally sponsored, they offer many of the perks of traditional PLUS loans, including eligibility for federal student loan consolidation, tax-deductible interest and a variety of repayment options.

The decision to continue education onto the graduate and professional level is one that oftentimes comes with considerable financial stress because of the continued financial obligation. However, NextStudent’s Graduate PLUS Loan Program may allow borrowers to fund up to the full cost of their education (less any financial aid received), including living expenses, books, supplies and even computers.

Eligibility and Credit Resolution

Graduate PLUS loans easily are accessible to many students. To qualify a student must be a U.S. citizen or an eligible noncitizen. Although a credit check is required, many students with limited or no credit history still qualify for Graduate PLUS loans.

NextStudent offers a simple online application process through E-Signature, and many prospects who apply online qualify within minutes. Also offered is a “second look” for borrowers who receive an initial denial because of unresolved credit issues. NextStudent has a PLUS Credit Resolution Team that has an 87 percent success rate at resolving borrowers’ credit issues, resulting in funded PLUS loans.
Flexible Repayment Options and Aggressive Incentives

NextStudent Graduate PLUS loans offer several repayment options including deferred repayment while a student is enrolled in school at least half time, and there are no prepayment penalties, ever. There also is a 3 percent cash rebate at repayment on the remaining principal balance after the first 12 months of consecutive on-time payments when student borrowers pay through Auto-Debit. In addition, a 2 percent interest rate reduction is available after the first 48 months of consecutive on-time payments when student borrowers pay through Auto-Debit. Student borrowers receive a .25 percent reduction when they choose repayment through Auto-Debit.

With all the great incentives offered by NextStudent and its Graduate PLUS Loan Program, now is the right time for students to take the next step and go for their graduate degree.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans.

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Regardless of Need, Students Qualify for Stafford Loans through NextStudent

2009-05-13T16:28:00.000-07:00

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A federal Stafford Loan is one of the most affordable ways for students to pay for their college education. Stafford loan rates are lower than other forms of consumer financing, and repayment is postponed until the student is out of college. However, according to NextStudent, the Phoenix-based premier education funding company, many people do not realize that there is a Federal Stafford Loan Program that is NOT need-based. Anyone from Donald Trump’s daughter to Donald Duck’s son (if he wasn’t a cartoon character that is) can apply and qualify for the unsubsidized Federal Stafford Loan Program.

Two Types of Federal Stafford Loans

NextStudent offers both unsubsidized and subsidized Federal Stafford Loan Programs. Both programs offer great benefits with the difference that the unsubsidized loan is not need-based. Therefore, the student is responsible for all the interest on the loan and payment is deferred until after graduation. However, the beauty is the government sets the interest rates on all federal Stafford loans, and federal law prohibits the interest rate from exceeding 8.25 percent— currently it is set at just 6.8 percent.

Subsidized Stafford Loans are need-based loans. With this type of loan, the interest is paid by the government as long as the student is in school, as well as during the grace and deferment period of the loan.

Helping Build Responsibility

Stafford loans do not require collateral or a credit check. Because Stafford loans are taken out by the student, not the parent, the federal government makes it easy for almost every student to obtain one of these loans. Students can build credit and self-esteem knowing that they are responsible for financing at least part of their education.

When students receive their Stafford loans through NextStudent, they receive the benefit of working with a professionally trained NextStudent Education Finance Advisor as well as the benefit of an Automatic Debit Discount of 0.25 percent off the initial government set interest rate and an additional 1 percent off the interest rate after 36 consecutive on-time payments.

Easy Repayment Methods

Repayment on federal Stafford loans usually does not begin until six months after graduation. Typically the minimum monthly payment is $50 and is dependent on the borrowed amount. In addition, there are no prepayment penalties. Deferment, forbearance and income-sensitive repayment options are also available. Both unsubsidized and subsidized Stafford loans qualify for NextStudent’s Federal Student Loan Consolidation Program, which eliminates the hassle of writing multiple checks and keeping track of multiple rates by bundling several loans into one single loan.

Federal Stafford loans are a great way for college bound students to get the funds they need to get the degree needed for their future. NextStudent has numerous options and benefits to help student borrowers get on the right track to their education.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.

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Single Consolidation offered from NextStudent for Multiple PLUS Loans from Multiple Children

2009-05-13T16:26:00.000-07:00

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The federal PLUS Loan— Parent Loans for Undergraduate Students, is a smart and easy way for parents to pay for their child’s college education. The PLUS loan is not based on financial need or income, so most people qualify for the loan. Since it is a federal loan, the interest rate is as low as 8.5 percent. These loans help families meet college costs, beyond tuition and fees, at below-market rates and with generous terms. Parents can borrow up to 100 percent of the total college costs, less any financial aid received.

According to NextStudent, the Phoenix-based premier education funding company, a little-known fact about PLUS loans is that parents can consolidate multiple PLUS loans into a single loan, even for different children. So, if a parent has three children in college at one time and takes out a PLUS loan to cover college costs for each child, the parent can consolidate those three loans into one easy-to-manage loan.

Here’s the key: Loans are identified by Social Security number. Therefore, the same parent must take out all three loans. The bonus is, if that same parent still has three children with three PLUS loans in school the next year, that parent can consolidate the three new PLUS loans into the initial consolidation, making for one loan, at an extended term and a lower monthly payment.

NextStudent Offers Excellent PLUS Loan Benefit Package

When parents qualify for a PLUS loan through NextStudent, they get more than money, they get personalized service and incentive features:

* Cash Rebate of 3 percent at Repayment: on the remaining principal balance after the first 12 months of consecutive on-time payments
* Interest Rate Reduction of 2 percent: after the first 48 months of consecutive on-time payments
* Interest Rate Reduction of .25 percent: for using Auto-Debit for repayment
* Generous Borrowing Limits: Borrow up to the entire cost of education (less any federal aid), including books, supplies, and even a computer!
* Simple Application Process with E-Signature: When borrowers apply online, NextStudent can qualify an application within minutes. Also available is our Credit Solutions program for borrowers who initially are denied due to unresolved credit issues.
* PLUS Credit Resolution Team: NextStudent’s team has an 87 percent success rate for qualifying borrowers.
* Flexibility: PLUS Loans have various repayment options including
deferred repayment while students are enrolled in school at least half time. The loans are eligible for consolidation and there never are prepayment penalties.

It’s Easy to Renew a NextStudent PLUS Loan

Parents can take out a PLUS loan for their child each year that the child attends college. During the initial application for a PLUS loan, Master Promissory Notes (MPN) are completed and good for 10 years, provided that the student remains at the same school, is current in his or her FAFSA filing, and the parent is credit-approved. To renew the PLUS loan the parent must contact the school’s financial aid office and submit a PLUS loan renewal form, http://www.nextstudent.com/PDF_Applications/PLUS-Serial.pdf.

Parent borrowers must remind the school that their lender is NextStudent, Lender ID 834051. However, it is important to remember that the “renewed” PLUS loan essentially is a “new” loan. It is separate from the previously acquired PLUS loans but does qualify for consolidation.

It is easy for parents to help their children pay for college with NextStudent’s PLUS Loan Program. First-rate benefits and incentives make paying for college much more manageable so that parents can help their children receive the college education of their dreams.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.

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Students and Parents Can Choose Lenders When it Comes to FFELP Loans

2009-05-13T16:25:00.000-07:00

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Students who fill out their FAFSA and qualify for Federal Loan Programs such as subsidized and unsubsidized Stafford Loans and PLUS Loans, can have their loans processed through two federal programs: the Direct Loan Program (DLP) or the Federal Family Education Loan Program (FFELP). The difference between the two programs is “the who” behind who funds the loans.

With the Direct Loan Program, the loans are funded through the U.S. Department of Education in conjunction with a university and with the Federal Family Education Loan Program the loans are funded by private lenders that participate in the FFELP program. Most schools offer either/or but there are some schools out there that offer both programs.

According to NextStudent, the Phoenix-based premier education funding company, students and parents should keep in mind that it is their decision when it comes to choosing “the who” behind who funds their FFELP loans. A university’s financial aid office can and will recommend a private lender for students to work with— however, it is just that, a recommendation. The Higher Education Act mandates that schools can not require students to get loans through the preferred lenders suggested by their college’s financial aid office.

Choosing the Best Lender

The interest rates on FFELP loans are mandated by the Department of Education, so all lenders that participate in this program must charge the same rates, the federal rate. However, there are other ways that lenders vie for business. Many offer special benefits, such as discounts for electronic payments and rate reductions for on-time payment history. When choosing a lender it’s important to take a look at these benefits carefully, and choose the lender that can save you the most over the long run.

Lenders also compete for your business by offering different types of repayment schedules. Look for a lender that offers flexible repayment options, such as reduced payment or postponed repayment, while your child is in school. Hardship policies are also an important factor because certain lenders will, under certain hardship circumstances, lower your monthly payment or postpone repayment until you’re back on your feet.

Lastly, look for a lender that offers the best support, service and convenience, such as online applications, a toll-free contact number, and a professional, courteous staff that will help you through the loan process and over the life of your loan.

NextStudent’s FFELP Loan Incentives
NextStudent offers parents and students some of the most competitive loan incentives for FFELP loans. First and foremost, NextStudent is committed to excellent customer service. Every NextStudent customer is assigned their own Education Finance Advisor, one person to help the customer throughout the entire loan process. Also, there are no collateral or credit checks when applying for a NextStudent FFELP loan.

The NextStudent Premier Stafford loan package includes:

* 2 percent upfront cash rebate
* 3 percent cash rebate on the remaining principal balance after the first 30 months of consecutive on-time payments
* .375 percent interest rate reduction when the borrower elects to use auto-debit for repayment

The NextStudent PLUS and Graduate PLUS loan package includes:

* 3 percent cash rebate on the remaining principal balance after the first 12 months of consecutive on-time payments
* 2 percent interest rate reduction after the first 48 months of consecutive on-time payments
* .25 percent interest rate reduction when the borrower elects to use auto-debit for repayment

Before they sign on the dotted line, students and parents should make sure that the lender they chose to fund their FFELP loans is one that works for them.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans.

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Premier Service in Student Loan Industry Offered

2009-05-13T16:23:00.000-07:00

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Student loan borrowers spend countless hours attempting to figure out the best way to finance their college education, including finding the best rates and deals available from lenders. Sometimes the best deals are not those that just sound great over the phone but are backed by the solid standing and integrity of the lender and its representatives. If ever there is any doubt, it is best to have the company put the facts in writing.

Since students and their parents have so many student loan options from which to choose, it is important that borrowers carefully review their choices and select a reputable lender. Such character qualities as a proven track record of honesty, excellent customer service, and a history of providing helpful information over high-pressure sales pitches are essential, according to NextStudent, the Phoenix-based premier education funding company.

Top-Notch Training Sets Standard

When students or their parents contact NextStudent they are assigned a personal NextStudent certified Education Finance Advisor. The EFA will answer all their questions and provide guidance through the often confusing student loan jungle. This ensures that borrowers receive the highest level of customer service and equips them to make the best decisions based on their individual goals and objectives for college.

With NextStudent’s emphasis on outstanding customer service and dedication to making college funding a simple, easy process, the company places high demands on its EFAs to adhere to that standard. Therefore, becoming an EFA is much more than being hired as a talented telemarketer with closing skills and getting on the phone. EFA candidates start with four weeks of in-depth training, which include both classroom time and live calls made under the direct supervision of their managers. In order to assist customers, representatives must test at 90 percent or better, or else they continue to practice their skills until that score is attained.

Next, EFA candidates spend a rigorous six months of on-the-job training in order to become NextStudent certified in each of the four product areas: NextStudent’s Student Loan Consolidation, Private Student Loans, Federal PLUS Loans and Stafford Loans. They are not able to take incoming calls from NextStudent customers until they have demonstrated specific mastery in each area.

Quality Assurance, Promotion from Within Maintain Standard

Borrowers may be confident that they are receiving accurate information when dealing with a NextStudent Education Finance Advisor, as all EFAs carefully are monitored on a weekly basis, both directly by their floor managers and through the Quality Assurance Department.

The NextStudent certified Education Finance Advisor training program and its comprehensive quality assurance measures backed by some of the most advanced proprietary student loan technology on the market ensure that borrowers receive the premier level of service in the industry. Whether that means educating students as to their federal aid entitlements or selecting the best incentive package for their consolidation loan, borrowers can be rest assured that NextStudent EFAs are helping them make the best decisions for their college financial aid needs.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans.

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Pay for Study Abroad Programs with NextStudent’s Parent Loans for Undergraduate Students

2009-05-13T16:21:00.000-07:00

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With the advent of the Internet and international communications booming, college-sponsored study abroad programs are becoming a more important aspect of higher education. These programs, which once were geared toward language and international study majors, have become a “college experience” staple and a chance for students to really immerse themselves in another culture to learn more about our global neighbors.

According to NextStudent, the Phoenix-based premier education funding company, Parent Loans for Undergraduate Students, popularly known as Federal PLUS Loans, are a smart way to pay for study abroad programs. The PLUS Loan is available to parents year-round, even if tuition and most other education expenses have been paid. Additionally, the PLUS Loan is not a need-based loan—just about everyone qualifies for this type of loan. However, a student must have filed the FAFSA in order for the parent to be eligible for a PLUS Loan.

Generous Borrowing Limits Offered for PLUS Loans

With a NextStudent PLUS Loan parents can borrow up to the entire cost of their child’s education (less any financial aid), including books, supplies and even study abroad programs. The trick is that the study abroad program must be sponsored by an accredited college in the United States. Because these loans are funded by the federal government, the interest rates are set by the government, and all private lenders that offer these loans must offer the same interest rate. However, private lenders distinguish themselves by the benefit packages they offer to prospective borrowers—in this case to parents.

PLUS Loan Benefits Offered by NextStudent

Most PLUS Loan applicants qualify within minutes when they apply online with NextStudent’s simple application process with E-Signature. There is no grace period for PLUS Loans and repayment begins within 60 days after the loan is fully disbursed. However, PLUS Loans are eligible for the Federal Consolidation Loan Program. Additionally, a parent can consolidate PLUS Loans from different children, as long as each loan is taken out under one parent’s Social Security number.

When a parent qualifies for a PLUS Loan through NextStudent they receive the following benefits:

* A 3 percent cash rebate on the remaining principal balance of a loan after the first 12-months of consecutive on-time payments
* A 2 percent interest rate reduction after the first 48 months of consecutive on-time payments
* A .25 percent interest rate reduction for electing to use Auto-Debit

Study aboard programs can have a positive impact on a student’s college experience. The benefits aren’t just academic, they are social, personal, intercultural, and they look great on a resume!

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans.

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Federal Family Education Loan Program Lender Campaigns for Student Savings

2009-05-12T15:31:00.000-07:00

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For years, NextStudent, a Federal Family Education Loan Program (FFELP) participant, has been a major proponent of student loan benefits, assisting college students and their parents in funding their college dreams and helping them save thousands in new and consolidated loans in the process, according to the Phoenix-based premier education funding company.

In the past three years alone, 4,653,000 students have consolidated their federal student loans through FFELP lenders, receiving generous discounts and incentives that have placed these students on stable financial ground. Unfortunately, that may change shortly if proposed student loan legislation becomes law.

Benefits, Freedom to Choose at Stake

Currently, student borrowers have the ability to choose their lender and select the company that has the best reputation, customer service record and savings. If proposed student loan legislation becomes law, borrowers no longer will have the right to choose and would have to go with the federal government’s Federal Direct Lending Program (FDLP), which passes on very little real savings to borrowers.

When the government initiated the FDLP almost 17 years ago, proponents claimed that since private lenders would be cut out of the picture and consumers would deal directly with the government for loans, taxpayers would save. That has not proved to be the case; in fact the opposite is true. The FDLP has not saved taxpayers any money, but rather is operating at a $16.5 billion shortfall, a tab most likely to be picked up by taxpayers.

Using the government’s own accounting figures, cutting private lenders out of the equation actually may harm borrowers. When private lenders compete for business, they offer generous savings, discounts and other incentives that save students thousands of dollars over the course of their student loans.

NextStudent is a Champion for Student Savings

NextStudent began offering discounts and incentives to serve more customers. This move ultimately benefited borrowers by expanding these same benefits and savings industry-wide. NextStudent also became a major proponent in saving students thousands through the outstanding incentives offered through its federal consolidation loan program. For instance, NextStudent’s Standard Locked Federal Student Loan Consolidation Package offers a generous 1 percent LOCKED RATE reduction after borrowers make 36 consecutive on-time payments.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.

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Students Spring into Funding College for New School Year

2009-05-12T15:28:00.000-07:00

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Now that spring break is a gently fading blip on college students’ radar, many students are prone to coast through the final weeks of the semester and forget about more serious considerations like planning for next year. High school seniors are in a different boat altogether, diligently working their way through their first Free Application for Federal Student Aid (FAFSA). In their case, it is wise for students and their parents to monitor where they are in the college funding process and plan accordingly, according to NextStudent, the Phoenix-based premier education funding company.

Complete FAFSA as Soon as Possible

NextStudent, a Federal Family Education Loan Program (FFELP) participant, encourages all students to fill out the FAFSA as soon as possible if they have not done so already. While it is not too late to apply, it is best to submit the FAFSA sooner rather than later. The closer the FAFSA is submitted to Jan. 1, the greater a student’s chance of getting the required financial aid, since some student loans are on a first-come, first-served basis.

Financial Aid Calendar

High school seniors shortly will begin receiving their acceptance letters, usually prior to May 1. In addition, students will receive an Award Letter from each of the schools to which they have been accepted that explains the type of aid and amounts for which they qualify.

In May, it is time for students to select the college they wish to attend and begin applying for such federal financial aid as Stafford loans and Parent Loans for Undergraduate Students (PLUS). Both types of aid are available through NextStudent and include a personally assigned Education Finance Advisor who will guide borrowers through the loan process from start to finish. To fill in the funding gap, private student loans also are available, with borrowing limits of up to $40,000 annually.

Online Tools Make Planning Easy

Another equally important avenue for students to explore is FREE money in the form of scholarships that can help cut the costs of financial aid that has to be repaid. NextStudent offers a FREE Scholarship Search Directory that has a total of 2.4 million scholarships from 42,000 funding sources with total awards of $3.4 billion.

There are many other resources that students may use to ensure that they quickly and easily navigate the financial aid process and receive the funds they need to achieve the education of their dreams.

First, students may want to review the following financial aid calendar to see where they are in the process so they can be sure they are on track for the upcoming school year:

Second, students may have specific questions regarding financial aid and their best options. To find these answers quickly and easily, visit the student resouces center. For an overview of college financial aid, where borrowers will receive a “guided tour” from a Financial Aid Advisor. Finally, once borrowers have assembled their entire financial aid package and know the types and amounts of aid for which they qualify, it is time to revisit their first-year college budget. NextStudent offers a FREE College Budget Calculator.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.

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NextStudent’s Commitment to Customer Education Seen in Student Loan Blog

2009-05-12T15:17:00.000-07:00

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The NextStudent Student Loan Blog celebrates its second anniversary this year, and with the recent political changes in Washington continually propelling the student loan industry to the forefront of political debate, its purpose as an excellent watchdog of student loan news and changes in federal student loan policy is more relevant than ever.

Originally created in December 2005 as an additional educational resource for NextStudent customers interested in how legislation and Department of Education developments affect their college loans and financial aid, the blog’s very first post, titled “Start Applying for Financial Aid as early as Jan. 1,” helped kick off NextStudent’s commitment to technology and the role the Web plays in consumer education and real-time information gathering. NextStudent is a Phoenix-based premier education funding company.

Be In-The-Know About Student Loans

The NextStudent Student Loan Blog reports on student loan industry changes, as well as changes in policy that affect other areas of student life, including early decisions, “College Decides to Nix Early Binding Admissions,” and sports, “College Sports to Be Taxed?” and on student life. On the following days the blog covers the following topics: Monday, “Student Loan News;” Tuesday, “This Week in Student Loans;” Wednesday, “Student Loan Legislation;” Thursday, “Student Loan Advice;” and Friday, “Campus Life.”

The NextStudent Blog references industry periodicals including the National Council of Higher Education Loan Programs’ (NCHELP), Daily Briefing. The financial aid process in the United States can sometimes become a tangle of changing interest rates, applications and deadlines. However, NextStudent’s Student Loan Blog can help students and parents contextualize certain industry practices because it highlights the federal regulation discussions and changes that make the student loan industry so dynamic.

Families Get More with NextStudent

NextStudent’s personalized service extends beyond the Web experience and into the offline experience as well. Every customer who contacts NextStudent is assigned a personal Education Finance Advisor to walk them through the financial aid process from beginning to end and answer any and/or all questions about financial aid.

Additionally, NextStudent got its start promoting higher education and the search for scholarships and holds steadfast to its roots by offering a free Scholarship Search Engine that houses more than 42,000 college funding sources for over 2.4 million individually awarded scholarships valued at more than $3.4 billion. NextStudent knows the financial aid process begins with the search for “Free Money” and that scholarship programs help millions of students fund their college education dreams.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple.

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Become Your Own College Funding Resource with NextStudent’s Scholarship Search Directory

2009-05-12T15:15:00.000-07:00

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There is no question that college costs are escalating beyond the ability to pay for even those of modest means without taking out student loans. New proposed student loan legislation is under consideration to lower interest rates but yet has not been enacted. In addition, individual schools from Ivy League universities to community colleges are implementing their own unique policies and programs to help students finance their college education so they avoid further debt.

One simple but often overlooked method for making college more affordable regardless of the institution of choice is for students to become their own college funding resource by locating scholarships for school, according to NextStudent, the leading Phoenix-based education funding company.
Commitment to Research Results in Rewards

Students and their parents who make a commitment to perform exhaustive searches to find the funds they need for school may be surprised at how much FREE money they uncover, even though finding it may take some time. However, the investment may prove to be well worth it, as it will facilitate having to borrow fewer funds for college. A key resource to locate scholarships is NextStudent’s free, online Scholarship Search Directory.
Ample Resources for Funding College Education

Locating the perfect scholarship portfolio to help finance college is a simple, easy process when using the Scholarship Search Directory. With more than 2.4 million scholarships valued at over $3.4 billion from 42,000 sources, college students have innumerable choices when applying for awards.
Planning Reaps Results

While there certainly is no right or wrong way to go about it, if students search the directory in a systematic, thorough manner they will have a better chance of receiving the scholarships that best fit their needs. Here is a suggested process to follow:

* Start by searching for the college of attendance and the year of attendance by clicking on the “College(s)” and “Year of Study” links, respectively.
* Next, students may search according to their “State of residency” and then their parents’ “Corporate Employer(s).”
* Third, sort through the scholarships by “Academic Major.”
* Lastly, students may explore the remaining categories that apply to their particular situation. Examples here include: “Artistic Skill(s)” or “Athletic Skill(s),” “Honor(s),” “Ethnic Background(s)” or “Racial Background(s),” “Military or Veteran Affiliation(s),” “Religious Affiliation(s)” and “Other Affiliation(s).”

Specific Awards for Specific Situations

In addition, there are other individual categories suited for students who have specific needs. These include scholarships for those who fall under such categories as “Impairments” which include chronic medical conditions and other ailments, and even a category called “Unique Situation.” This particular category is one that often is overlooked by scholarship applicants. It includes awards to former students of a particular county school, awards for exchange students, or those with part-time or full-time jobs, and such unique awards for those who have been home-schooled or are Amateur Radio (Ham) Operators.

No matter what circumstances students are in or where their background, interests and talents lie, there are many opportunities for FREE money to be found through NextStudent’s Scholarship Search Directory. By dedicating a generous amount of time to find these awards, students may avoid having to borrow a significant amount of money to fund their college education.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about student loans.

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Federal Consolidation through NextStudent Simplifies Repayment of Student Loans

2009-05-12T15:14:00.000-07:00

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This time of year is rife with high school seniors deciding which colleges they will attend the following year. Additionally, many other students are awaiting the approach of July 1, 2007, the date when new rates for existing variable rate student loans may take effect.

NextStudent, a leading Phoenix-based education funding company, recommends that borrowers begin to consider their student loan consolidation options as early as possible to lock in the best rates and terms. When students with multiple student loans consolidate their student loans with NextStudent, they are simplifying their lives with only a single payment required for their student loan portfolio. By consolidating, it is possible to reduce monthly payments by up to 60 percent and eliminate the hassle of dealing with multiple payments to different lenders.

Do Your Homework When Selecting a Consolidation Lender

Many borrowers use their colleges’ recommended lenders, more commonly referred to as the Preferred Lenders List, to select their consolidating lender. Instead, it is wise to check out ALL options, starting with a college’s financial aid office. Ask the financial aid administrator for a list of lenders in addition to the preferred or recommended lender list, and then research each company. In other words, do your homework, and do it well.

Since there are many significant differences with respect to the character, ethics and quality of a lender, borrowers must be selective and carefully choose their lender. They may want to consider and compare the reputation and integrity of the company, level of customer service provided, and the individual student loan consolidation incentives offered.

Students Benefit with NextStudent’s LOCKED Discount

Since the federal government sets the base interest rate on student loans, the only differences with consolidation loans are the incentives offered by each individual company. NextStudent is committed to providing outstanding customer service and the best incentives in the industry. In its efforts to extend significant savings to borrowers, NextStudent offers a 1 percent LOCKED interest rate reduction after 36 consecutive on-time payments.

Guaranteed for life. NextStudent borrowers retain their 1 percent LOCKED benefit for the life of the loan, while other lenders may revoke their benefits for a single late payment.

Easy to qualify. With NextStudent, borrowers maintain eligibility for the 1 percent LOCKED interest rate reduction even if they go into deferment or forbearance. Other lenders may disqualify borrowers for their benefits under these circumstances.

The following are two of NextStudent’s consolidation benefit packages from which students may choose to fit their particular circumstances and preferences.

NextStudent’s Federal Consolidation Loan Benefit Packages:

Package #1

* .25 percent interest rate discount for Auto-Debit payments
* 1 percent LOCKED RATE reduction after 36 on-time payments

Package #2

* .25 percent interest rate discount for Auto-Debit payments
* 2 percent interest rate discount after 36 on-time payments (not locked)

Qualifying over the phone takes just a few minutes with the assistance of a borrower’s personally assigned Education Finance Advisor, who is there to answer any questions and guide the student through the entire student loan consolidation process.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans.

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