Student Loans: What You Should Know
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Student loans are something that absolutely must be dealt with no matter what. There is no responsibility that is greater, as the consequences for not repaying a federal direct student loan are great. Not even the IRS can compete with the possible outcomes of letting a student loan fall into the abyss in fact, most people who are educated on the subject would much rather owe the IRS money than be in trouble with a student loan. Defaulting on such a loan is something that no one should ever let happen, and here is why.
To draw a comparison, the IRS will only require money based on what you are making, income-wise. Many people find themselves with hundreds of thousands of dollars’ worth of student debt, which will have nothing to do with how much you make after college. And with the economy being in down in the dumps, it is that much harder to land a job in which a former student can readily pay off such a huge debt. Students may find themselves working two jobs just to keep up with bills. Law school graduates are among those who have paid the most for their educations, only to find that law firms are not paying those who have just passed the bar what they used to. A legal position which used to pay $200,000 a year may be down to about $50,000 a year.
These are the times we live in, and unfortunately society expects those with professional career goals to attend pricey university institutions. Former students in the US now owe more money in student loan debt than ever before they owe more money in student loans than they do in credit card debt. Student loans will never go away until they have been paid. A student loan must be paid even if a former student declares bankruptcy. There is absolutely no way to escape a student loan, and the government will take the money out of a retiree’s social security benefits if a loan has yet to be paid.
Student Loans: What You Should Know
Because students tend to be young and inexperienced with money, loans can be an abstract thing. These students believe that when they take out huge sums, the will one day easily be able to pay them back. Unfortunately, students can’t see into the future to see what kind of a job they will end up with. Students may not be able to understand that they will be paying off these loans for decades to come. They may even be paying them when their own kids have gone off to college. As you can see, student loans will have quite an impact on the future and shouldn’t be taken lightly.
If you are in college, it is important to pick a student loan carefully each semester. Instead of going with the same lender every time, carefully look over the options and decide which lender is offering the best deal. Because you may not earn six figures straight out of college, you will want to spend as little money as possible on APR.
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Credit card advice for a college student?
For all you financially successful people and/or financial failures could you please give me like 5 tips on staying afloat financially while still building a good credit score? I just received my first credit card today and would like to strategize correctly so I don’t end up like my family…..not being able to do anything in life because they are in so much CC debt.
Student credit card advice?
I am thinking of applying for a student credit card but not sure what the best one would be. Anyone have/had a student credit card that worked well for them? I’ve received applications in the mail for the Discover student credit card but want to know if anyone thinks there’s a better card out there for students. Thanks
Well I don’t recommend a credit card. lol. It’s very easy to build up debt with a credit card. For college students banks offer a lot of programs so shop around. My bank offeres paperless checking account, e-saving account for students, and offeres a credit card for students. I would research this card b/c it should have some safe-guards so you don’t have too much debt.
Anyways I should answer your question!
Tip 1: Pay yourself first! Take money out of your account to save FIRST before making the rest of your budget….
Tip 2: Make a budget. Record and track all your expenses.
Tip 3: Prioritize your goals and save for them. I shall provide a link.
Tip 4: Store cards is how I built my credit. However, this is also risky. Open your store card, make 1 purchase, pay in full, then close the card. Or keep your card open and make rare purchases….I have often found myself building some debt and then saving up and paying it off and not having as much entertainment and budgeting on food to be very careful w/ the debt.
Tip 5: Big credit builders are utlilies, car loans, student loans, and home loans are big credit builders. If you’re in the market a small car loan is good…if you have income!! Also, if you’re in an apartment that will help…even cell bill could be a way to build a little credit. So, it maybe a while before you get a “good” credit score…simply b/c you’re not there yet.
Some debt is okay but, too much is not good. Here are some helpful links! In the first link you can learn to prioritize.
Second link is about credit card debt! and how to use your credit card the best!!!
Add–> If you don’t have the money don’t loan anyone anything. Your goals are important. Don’t take cash loan from a credit card (so bad!!) and don’t pay for things w/ a credit card for your family if you can’t pay off the payment that month yourself (your family may say they’ll do it that month but, better safe than sorry). I assume this also happened to your family and could have helped put them in the hole.
Good luck!
Should I cancel my Student Credit Card ? Need Advice !?
Hi all, I have VISA student credit card that I had since my sophmore year in college which is 7 years ago. They started me out with $500 initially and now my credit line slowly increased over the years to $8500. I dont have a balance on it as i only charge my $35 monthly gym membership on it and pay off when bill comes.
I have another Credit card which is another VISA but it is a platinum with $20,000 credit line with $800 a balance. I only have 2 credit cards and they both are VISA, Im thinking about applying for a Master Card and cancel my VISA Student credit card. Will canceling the student credit card hurt me or not canceling it will help my credit as I ahve had this card for 7 years and NEVER once late payment. My credit score is 776 and I’m just trying to do my best to keep it in good shape. Please let me know if I should keep the Student Credit Card or Cancel Iit. Thanks for all your advice in advance.
PS: i heard it is good to have a Visa and a MasterCard for your credit?
Where can I get financial consultation or advice on student loans, consolidation, credit scores and mortgages?
I am a graduate student nearing graduation and have a heafty student loan around 160k. In addition, my credit score is poor because of a few missed payments. I would like to talk with someone who can give me unbiased advice on how to tackle my student loans as well as provide insight on possibly buying a house, consolidating my debt and raising my credit score.
Whatever you do, DON’T cancel the card. It will automatically drop your credit history. Some say it’s okay, but it isn’t.
What happens is it “un-ages” your history file. Since you never had a late payment, you always want that on your file.
Most people should have 2-3 cards. One with a high limit for emergencies and business expenses on trips. One with a low limit for normal monthly expenditures which they pay off easily every month. And a third for whatever they deem appropriate as long as they can manage it in a responsible way.
From what you’ve said, you have no problem with the responsibility, so don’t ruin a perfectly good credit rating by killing your history, which is what creditors look at more than anything else.
College Student need understanding and advice on first credit card!?
I am a college student and I want to start establishing credit. I just need some information and advice. Things that I should look out for, terms that I should know, etc. What APR’s are, what cards and or companys I should consider.
These question haunt many of us and if you can get it together and get over this in the short of it let us all know!
there are a couple of ways you could start building credit, you could get a small personal loan which you might need a cosigner or the best way will be getting a credit cards, you could get a credit card and use it for your every day expenses but make sure you pay in full at the end of the month that way it will show pay in full everytime the credit card company reports to the credit beuros. At the begining you will only be approved for the lower end credit cards but once you build credit in about 6-9 months you should be able to apply for a better card with better benefits such as free miles or cash back. Check out http://www.fastcreditcardapprovals.com and go under bad or no credit section and you will find a few choices. But if you are a student apply of a student credit card these cards have no annual fees and low rates