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Tag Archives: student loans

Breaking Down Student Loan Options

Student loan options

The cost of education has increased dramatically over the past few decades, often forcing students and parents to consider taking out loans to pay for tuition, fees and room and board. While grants and scholarships are available, they may not cover the cost of a student’s final bill. Fortunately, there are several different types of student loan programs available. The eligibility for these programs, as well as loan terms, differ by program, so it’s important that students, and their families, do some research before making the decision to borrow. Student Loan Types Federal Direct Loans Previously known as “Stafford Loans,” the Direct Loans program provides loans to students based on need. There is no credit check required to apply for a direct loan There are two subtypes of direct loans available: Subsidized and unsubsidized. The government pays the accruing interests on a subsidized loan while the student is still in school. Unsubsidized loans begin to accrue interest as soon as they are disbursed. One major advantage to choosing federal direct loans is that there are several programs that can help borrowers manage repayment, particularly if the borrower is unemployed or doesn’t make a lot of money. These include the ability ...

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The Different Types of Installment Loans

types of loans

An installment loan is a loan that allows you to pay back the loan with a number of scheduled payments over an agreed amount of time. Today, we are discussing the different types of installment loans so you can see which one is ideal for you. Keep in mind credit cards work in a similar manner but they are not considered installment loans. Unsecured Installment Loans Unsecured installment loans are usually for a small amount of money and have higher interest rates. However, they happen to be the most common type of loan found online. With this specific loan, you receive the money from the financial institution and pay back the loan over an agreed amount of time. You can utilize this loan when you need money only for a short period – 5 years or less. Lastly, when you make your payments on time it can help you rebuild your credit. Student Loans Student loans are another type of installment loan. With student loans, you receive a set amount of money for your educational costs and then once out of school you pay back the loans by paying a set amount each month. Student loans also allow you the ...

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The Dangerous Student to Doctor Transformation

financing an expensive luxury car

This post is from fellow optometrist and personal finance blogger, Syed at The Broke Professional. Thanks for helping me out while I navigate the no wifi land of rural Kentucky! When I was in school, nothing else mattered.  Life was all about doing well on the next test, and then doing well on the one after that.  This was true both during undergrad and optometry school, and it seemed like no end was in sight.  Though I knew it would end at some point, it was always “how do I get ready for the next test or practical?” Many of my classmates in optometry school felt the same way.  Professional school is similar to undergrad in that you want to get good grades and do the best you can, but it’s different because you and every other student in your class is there for one reason and one reason alone.  And you attend classes and take board exams with the same group of people for four years.  This can build a lot of camaraderie and produce a sort of “us against the world” mentality over time. A Whole New World But then after four years, it’s finally over.  We dealt ...

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Mistakes That Keep People in Debt

why people stay in debt

I have certainly made my share of financial mistakes from running up credit card debt to spending student loan money on an iguana, but I think after all those mistakes, I’ve finally learned how to stay out of debt. However, I see people every day who are still struggling with the same money problems we used to. There are some key mistakes that can sneak upon anyone trying to beat the cycle of debt. Taking Out Loans After Paying Off Large Amounts of Debt We knew another family that were going through some of the issues we were during our massive credit card debt payoff. We used to all hang out and play musical credit cards, charging whatever and whenever we liked. Jim and I had our wake up call after seeing family really struggle after losing a house to foreclosure. Our friends lost a job during the great recession. The husband worked in a sales job while the wife stayed home with the kids. Since they had no emergency fund, things got pretty tight. Eventually, they made some tough decisions, which included selling a really nice house that was keeping them house poor. They moved into a small rental. ...

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Costs of a College Education

College is a time we experience a lot of firsts in our culture. The first time we live on our own, take care of ourselves, and keep track of our own money. It comes with many new challenges that start from the minute we start applying to schools. However, now more than ever college is the birthplace of another first for many students: debt. Student load debt is at an all high in America, in fact the average student loan debt in 2012 was $25,000 and at the current rate it will only get higher. As a disclaimer, the value of a college degree is still worth having, even with today’s costs but it’s good to be aware of the costs for this and the next generation. The best thing to do is to only use student loans as a last resort. Research the possibilities for scholarships and financial aid before accumulating loan debt for yourself or your kids. The best way to start with the loan process is to fill out a Free Application for Federal Student Aid, or FAFSA. This form is used to determine your financial need, so you can be certain that you will end up with ...

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