May 02

Top 10 Tips and Hints related to student loans

Student loans are inevitable to manage the cost of education in the present social and economic conditions. Scholarships are the most appreciated tool for the student financial assistance. However every student will not be able to procure the scholarships. Student loans are the better alternative solutions to meet the education expenditure. The student loans are recommended as the education aid since they are structured especially to cater the specific needs of the students such as repayment has to be started only after the completion of education and a specific grace period and so on. Moreover the interest rates of the student loans are better, in comparison to any other loans including personal loans or secured personal loans. Anyway, the thorough understanding of the application procedure is essential to procure the best student loan as most of the loans are time bound. The following 10 hints will help you to have an idea about getting a student loan.

  • Student loan is available from federal governments as well as private lenders. The federal loans are preferred because of its unique advantages. However in many cases, it will not be satisfactory to meet all the living expenditures and the private student loan is used as a bridge to meet the additional requirements.
  • Federal loans are provided on the basis of the need of the student. The federal Stanford loan is available in subsidized and unsubsidized versions. In case of subsidized loans the government will repay the debits. To resource the complete benefits you must be able to prove the essentiality of the assistance.
  • To apply for the federal loan, the student must qualify the essential qualification such as a high school diploma or a General Education Development (GED) certificate. The application must include all the supporting documents to substantiate the need of the loan.
  • The character and conduct of the student is very important in the federal assistance approval and they insist that any charge of conviction about drug abuse is intolerable.
  • The federal loans can be applied electronically through the online submission of Free Application for Federal Student Aid (FAFSA) form. The most important thing regarding the federal loans is to apply it before the last date as late filing will lead to unnecessary confusions and delay in the loan approval.
  • In case of undergraduate students, parents can apply for the particular low interest rate Federal Parent Loan for Undergraduate Students, which is often called as PLUS.
  • The private loans are provided by the private lenders and most of them obviously have higher rates than federal rates. However, they act as unsecured personal loans, which can be used specifically for education.
  • The credit will be on the basis of the private loan approval. The availability of a co-signer, who has a good credit score, will help to gain the most competitive rates for the loan.
  • Irrespective of the type of loan, the student must be aware about the attributes of the loan such as the rates and repayment formalities before signing the agreement.
  • However do not be worried about the repayment of multiple loans. If you are unable to manage all the loans, you can opt for a low rate student debt consolidation at the beginning of the of the loan repayment, after the course completion and grace period.

 

May 01

How to create an Easy Budgeting Strategy

I don’t know about you, but when my best friend hears the word budgeting, all she can think of is cutting back on dire necessities. Don’t ask me, because I really don’t know where she conjures up weird ideas of going without meals whenever I mention budgeting to her.

I really hope none of you folks have a dangerous imagination like my dear friend, because I am gonna show you some easy budgeting strategies that definitely does not involve anyone going without 3 full meals a day.

Have a Budget Plan

I know it seems to be the most boring task on the face of Earth, but you really gotta do this folks. Sit down with a paper and pencil and preferably with someone who shares your budget like your spouse or partner.

Make a list of all the things that you need to spend money on for the entire month. Don’t forget to add any expense at this point, even if it seems quite trifle to you.

Categorize Your Expenses

Take a close look and separate the dire necessities from the luxuries and extravagancies. No, don’t be tempted to push ‘shopping for your 18th pair of shoes’ to your dire necessities category. What? I am just saying, that’s all, no ill feelings!

Okay by the time you are finished you should have a pretty good demarcation between the 3 categories of stuff. You will find that the majority of the dire necessities category is taken up by items like paying your rent / home loan EMI, car loan EMI, credit card bill payment, utilities bill payment etc. But that is expected.

Time to Check Your Expenditure Pattern

Now take a look at the other 2 categories. Now is the time when you need to refer to your credit card statements for the past 12 months. Is there a pattern emerging? Do you find yourself spending hundreds of dollars each month on clothes/ accessories or stuff like that?

Majority of the individuals, who analyze their credit card statements in this way, usually agree that they have had a major ‘revelation’. Cut back on the unnecessary expenses and if you cannot do it entirely, consider increasing the time duration between 2 such shopping sprees. Like for example, if you have a habit of buying clothes every month, try reducing such sprees to just 6 per year and from then to just 3 per year. Timing these shopping sprees to coincide with festival discount offers and clearance sales is another great way to easy budgeting.

Start a New Way to Earn Money Each Month

Getting a secondary source of income is a great idea, but that is not what I actually mean here. Have you ever considered paying yourself some money each month? Yeah, people call it by many other names like savings, investments etc, but I prefer calling it this way (it makes you want to do it at all costs)

Fix a certain amount of money that you need to pay yourself and make sure that you include it under the dire necessities category. Do what it takes to squeeze this money out of your monthly budget each month and that includes cutting back on entertainment, dining out less frequently or walking to work.

If you stick to all the easy budgeting strategies this month and then discipline yourself to repeat the success every month of the year after that, you will soon become a pro at budgeting!