Student Loans With Low Interest Rates
Student loans with low interest rates are available to those that cannot afford the tuition costs for a higher education and have exhausted other forms of financial aid. Some people may not qualify for other forms of aid because of income restrictions. Scholars that wish to begin or continue their education are guaranteed to be approved to borrow a certain amount of money each year to help pay for tuition, books and room and board at an institution of higher education. There are also low student loan interest rates available for children in grades 12 and below attending a private school where tuition costs exceed a parent's ability to pay. Most school financing is backed by a federal government guaranty, but there are funding sources that are private in nature and offer a scholar or the parents a viable option when the federal funding has been used and expenses still need to be paid. Private funding for children in grades 12 and below does not follow the same repayment schedule and does not allow for an in-school deferment period or a graduation grace period before repayment begins. In essence a private K-12 financing program enters repayment status the month after funds are distributed to either the parent or the educational facility directly.
Many scholars, once using the financing to pay tuition costs, will find themselves in a deferred status with regards to repayment until 6 months after graduation. Each lending company will send a payment coupon book for each promissory note that was signed. In some cases scholars have received 10 or more payment coupon books. The most common way of paying back this financing is through the consolidation of student loans with low interest rates. Consolidating all of the borrowed funds into one federally guaranteed loan is by far the most common approach to repayment. Federal consolidation student loan interest rates are lower than the original financing and give the scholar an excellent way to manage debt. The scholar can save thousands of dollars, not to mention postage costs by only sending one check and envelope per month. Scholars also have the option of having the payments directly withdrawn from their bank accounts for an additional discount on interest. With a consolidation come many benefits not limited to: low index charge, flexible repayment schedules, one lender with one payment, no fees or credit checks, and tax deductible. The restart of deferment and forbearance time frames is also included. This benefit allows the borrower additional time without having to make payments if experiencing financial hardship or in case they are earning an inadequate income.
Most lenders base fees charged to borrowers on the national treasury bills. These bills rise and fall in cycles. Lenders offer student loans with low interest rates when the national index falls below a certain value. If the national index is on the rise, student loan interest rates will also rise rapidly. There are some lenders that offer the borrower a fixed repayment plan which means that the scholar will pay the same amount each month until the balance is paid in full. Other lenders have what is known as a variable financing program. This variable index charge will typically start out lower, then as the national index rises, it will rise also, causing the borrower to make higher monthly payments. With this type of repayment schedule, the borrower is not guaranteed a specified payment amount throughout the life of the loan. This can cause problems, especially if the borrower has taken out more funding than is affordable with the income of a new job. Graduating college does not guarantee a high enough salary to pay off all debt. This fact should be heavily considered before making application and using borrowed funds to finance an education.
A Christian should trust in the Lord when it comes to paying off debt. As long as the heart is obedient and repentance occurs for any wrongs that have been done, God is faithful and will bring a struggling debtor to a place of relief. "Though I walk in the midst of trouble, thou wilt revive me: thou shalt stretch forth thine hand against the wrath of mine enemies, and thy right hand shall save me" (Psalm 138:7). Before taking out student loans with low interest rates, a scholar should make every attempt to find scholarships or grants to help pay the tuition. This type of funding is a gift and does not need to be repaid. There are scholarships and grants for all types of people through a myriad of organizations. Even though student loan interest rates are lower than other forms of borrowed debt, they should still only be used if absolutely necessary and as a last resort, if at all. Many people are opting to attend an inexpensive community college for the first two years of their educational career. This saves a tremendous amount of money and also provides more time for the scholar to begin saving for the remainder of the educational program. With a little research, most types of lending programs can be avoided and in the long run will help the scholar afford the high demands life and a family can put on the bank account.
Student Checking AccountsStudent checking accounts and the accompanying services they provide are fundamentally important for college students who may be away from home for the first time. Many students will probably only need ATM or debit cards to get money out of their home banks' resources, but others who have a job on campus or off will need a local bank from which to conduct their financial affairs. It may be quite financially prudent to have local student checking accounts and their nearby ATMs so that three dollar fees are not extracted from one's checking each time a non-member card is used. Without the convenience of checking accounts, students are forced to keep money under mattresses, and maybe even in the toilet tank, none of which are real good ideas. But there are some issues to iron out with the lending institution to use and whether or not to remain with the bank from home.
Every fall, banks from all over the city or area in which the college resides will go after students for their business. Giveaways, prizes and incentives to open student checking accounts and apply for credit cards are routine. The campaign can get quite glitzy sometimes with the gifts of I-Pods, or as benign as giving away a Frisbee, but the banks know that the students represent a prime financial target, especially after they graduate. In the attempt to secure the students' business, the banks offer free checking and high interest credit cards in many cases. Of course, there is a big downside to the business of free checking accounts and the gifts. When a student graduates, the bank begins its fee schedules with the account and many are in for a sticker shock to see how much money a bank can charge for once free services.
In many cases, the freshman year is the first time a young person handles a checking account responsibility. There are some high schools that offer or require classes on keeping and balancing an account, but for those who are unprepared the reality hits when the first notice of an overdraft comes by email or phone call, etc. and the cost of the overdraft is fifty or more dollars. The lure of the free student checking accounts mantra from the competing banks usually includes free checking, free debit card, free checks, no minimum balances, and direct deposit. They do not include freedom from overdraft fees unless there is overdraft protection in the checking package.
For students who do work a job as well as attend school, the need for student checking accounts is crucial. If students do not have direct deposit, meaning that they can have their payroll checks automatically deposited into their bank account, there is a very urgent need to have a place to go that will cash that check for free. But the advice is to have direct deposit for payroll checks because if a bank holiday falls on a payday, the deposit will still be made, which is unlikely with a paper check protocol. So many people want to marginalize Jesus, making Him just a good teacher or philosopher or community organizer, but one prophet looked hundreds of years into the future and recognized the reason and the power of Jesus' death. "But he was wounded for our transgressions, he was bruised for our iniquities; the chastisement of our peace was upon Him and with His striped we are healed."
It is advisable to pay extra for overdraft protection on student checking accounts. This offers the peace of mind that when a student does spend more than what he has in his check writing account, money from a savings account, a credit card or debit account or a bank line of credit will cover it. Without that protection, overdraft fees have been known to be more than fifty dollars per check bounced and that is a big ouch! on a student's budget. Online services may or may not be available for those who have student checking accounts, but they can fit right into the lifestyle of a busy student who doesn't have time to be visiting a financial institution regularly. Paying bills, seeing all transactions, and moving money from savings to checking and vice versa are a few of the conveniences of having online capabilities.
There is no shame in admitting that student checking accounts or any banking account for that matter actually frustrates the pom-poms out of a person. Plenty of very smart people will freely admit that keeping and maintaining a bank account is too tedious and time consuming for them. So if this particular accounting responsibility seems to need a mentoring system with it, most financial institutions that offer free student services will be happy to sit down and work out those gremlins in the old accounting ability. Perhaps even more care should be taken in terms of handling the credit card that usually accompanies most student lending institution's accounts services. Few students are taught from a young age about the power, both helpful and possibly destructive in offered credit and the convenience of that plastic weasel in one's wallet or purse. The card can tempt, the card can lure, the card can promise, the car can even cover the cost of a broken windshield on your car, but the card will not pay for the over two thousand dollar balance the average student has on that card at graduation.