Consolidate or Refinance: Which One to Choose?

You may realize that you need to take care of your student loan payments, yet knowing precise what to do is the issue. There are two fundamental alternatives with regards to private student loans (federal loans won’t be secured in this article since you need to consider a couple of new terms when working to lower government loan payments).

The choices that you’ll discover incorporate renegotiating or union. The two sound the same, yet they are diverse.

Knowing the distinction between these two alternatives will help you choose which choice is a good fit for you.

Student loan refinance

Renegotiating implies that you will take out another loan to pay off the current loan(s). Once you’ve refinanced, the two loans will be consolidated into one loan with a lower regularly scheduled payment. Ordinarily, renegotiating permits you to pick better financing costs and repayment terms, however, as a rule, you do need great credit (and a decent reputation with regards to making regularly scheduled payments) to refinance.

You can student loan refinance both federal and private loans, yet renegotiating a federal loan implies that you will surrender individual rights that you most likely would prefer not to forfeit.

Student loan consolidation

When you solidify a loan, you don’t take out another loan. Rather, you join different loans into a single loan. The advantage of solidification is that it’s simpler to make one single payment as opposed to making separate payments for numerous loans. While a debt may be brought down on the off chance that you merge a loan, there’s a decent risk that the financing cost will be much higher – this is something that you’ll need to be exceptionally watchful about.

It doesn’t bode well to combine a loan for sheer straightforwardness and pay higher financing costs. If combination entices you, take a gander at different choices before settling on this decision. Renegotiating may be a preferred course to go if you can refinance your student loans.

What the Future Holds?

Honestly, the future doesn’t look that encouraging. Each academic year, the interest rate on student loans is skyrocketing, causing more worries for borrowers and those who are contemplating taking out education loans.

In July of 2016, student loans interest rates for 2015-2016 have increased yet again. It’s an increase of 20% compared to the previous academic year.

The changes in the interest rates are listed below:

  • New interest rates for direct subsidized and unsubsidized Stafford loans will be 4.66%.
  • Direct unsubsidized Stafford loans will have interest rates of 6.21%.
  • Interest rates for Direct Graduate PLUS loans will be 7.21%.
  • The direct Graduate PLUS Loans and Direct Parent PLUS loans interest rates have gone up to 7.21%.

These changes in the interest rates might leave an impact on the number of enrollments as many would hesitate considering the high education cost. To meet the costs, they will invariably take out student loans, which is likely to create an additional financial burden for them.

The Difficulty

The issue with bringing down most month to month student loan payments is that you truly need great credit to get an incredible rate. It’s hazardous (and typically is), following most graduates with large student loans a) might not have a substantial employment yet b) may have missed a payment or defaulted as of now.

The difficulty was making your loan payments; it’s an excellent opportunity to get money related help. In spite of the fact that bankruptcy is a final resort, a bankruptcy lawyer might have the capacity to help you choose on the off chance that it is the right choice for you. All same hope the above tips on student loan refinance and consolidation will work for you.

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Don’t Lose Money by Trying to Get Money

Unfortunately, scholarships have become so desired that there are scams out there. It’s inevitable to come across a scam, so here are warning signs that a scholarship may be a hoax. Check this post for more common misconceptions about scholarships.

First and foremost, never give cash up front. This is one of the most used scams. They want money to “process” the application. Scholarships don’t work that way. When a scholarship is legitimate, you won’t need to spend money to get money. If an offer comes across saying that they need a hefty processing or application fee, this is most likely a scam. Very, very rarely are there ever fees attached to getting a scholarship. Scholarships are meant to be charitable money to put towards your tuition and they shouldn’t ask to take away more money from you. In addition, don’t immediately dismiss a scholarship just because it seems fake. There are tons of weird scholarships that are actually real!

A second popular scam is having a webpage say false claims. One example is, “You will get this scholarship or your money back.” Usually they want a fee and will claim that you’ll get it back, but it’s a scam. You won’t see the money again. Another claim is that “You can’t get this scholarship anywhere else.” If it’s not on popular, free college scholarship sites, it’s probably not real. Be wary about applying. Here is a link to my recommended scholarship search site. If a scholarship is real, usually you can find it in their database. Granted, this is not always the case, but 99 times out of 100, you can.

This scam is an odd concept, but believable to the untrained eye. Many scams will pop up with a message such as, “Congrats! You won a 20,000 dollar scholarship to college!” This sounds like something to be excited about, but it’s not. If you didn’t submit an application for a scholarship you couldn’t have won one. You don’t win scholarships by going to websites, you need to enter your information and apply first. If it’s saying that you’ve won before you even apply, it’s a scam. Nothing comes without effort. Getting $20,000 for simply clicking an ad constitutes as doing nothing.

Once you get a scholarship, you are often eager to receive the funds. Some scams depend on this. If you submit a scholarship and they reply that they need your financial information, it’s not a real scholarship. Follow the general rule of thumb and note that a scholarship won’t need your credit card or bank account number. They can write a check to you or your school. Do not give out your financial information in any circumstances. It may even be presented in an official, believable way, but it is still a scam. This is putting your monetary safety at risk as it can easily wipe out your bank account.

The last scam is when scholarships will claim that you “pre-qualify”. Scholarships are not like credit cards – you should not pre-qualify. Legitimate scholarships have so many people applying that they aren’t going to extend offers for more people to apply. If the scholarship is desired, they expect you to do your research. If a scholarship reaches out to you by saying that you qualify for their scholarship based on income, merit, race, etc., it is a scam.

To find out that what was a potential scholarship is a scam can be disappointing, but there are thousands of real scholarships out there. Being sure to apply to the right ones and not the scams will save you money and ensure your safety. Try scholarship searching sites if you’re stuck. Doing this, make sure the site is reputable and realistic. There are scholarships for you out there, but they’re not as easy to get as 1, 2, 3.

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The Constant Increase in Student Loan Debt in the U.S.

It’s a well-known fact that student debt is high, but the average debt upon graduating may surprise many Americans. 43.3 million people have student debt. Of this, the average 2016 graduate has $37,172 dollars in loans. That’s 6% more debt than the class of 2015.

Direct Loans take up the most money. 29.9 million Americans have direct loans that total to 840.7 billion dollars. In addition, there are 3.3 million Americans using the Parent PLUS Loan. These loans total to 71.1 billion dollars.

During the recession in the late 2000’s, most debts decreased. Other household debts decreased, but student debt continued to increase steadily. Tuition prices continued to rise. This left a greater need for loans. In return, it also leads to more borrowers. In addition, the average balances of student debt began increasing as well.

In 2014, there were 89% more borrowers than there were in 2004. In these ten years, there was also a 77% increase in the average balance per borrower. One reason for these sudden increases may be because more people decided to go to college. Between 2005 and 2010, college enrollment had a 20% increase. That’s faster than any time period in the past 50 years.

Likewise, college tuition has been increasing faster than any other period in time. In 2015-2016, the average yearly tuition of a public school was $9,410 dollars. Thirty years ago, in 1986, the average yearly tuition for a 4-year public university was $2,918. This is over a 300% increase in the cost of tuition over a 30 year period.

To go along with this increase, debt has been rising too. In the last quarter of 2014, there were 32.8% of borrowers that had $50k or more of student debt. The number of borrowers now are overwhelmingly millennial aged people, or people under the age of 25.

On the up side, a slightly smaller share is beginning to take out loans. Since 2010 there has been a slight decline in loans from their upward trend from 2005 to 2010. This doesn’t put it in the clear, though. Student loans are lifelong debts for some students. For borrowers aged 20-30, the average payment for a student loan is $351 per month. The average salary for a college graduate is $45,000. This is means that $4,212 of the average $45,000 salary is being used on paying student loans.

Furthermore, 66% of graduates had loans for a public college. That 66% had debt averaging $25,550. As if that wasn’t a big price on its own, 88% of graduates from for-profit universities took out loans. This average left $39,950 towards their student debt. And this is only the numbers for undergraduate studies.

However, graduate loan debt is a problem as well. 40% of the 1.2 trillion-dollar loan was spent on financing graduate or professional degrees. Common master’s degree such as Master of Education or Master of Science will leave a debt of $50k or more (including both undergraduate and graduate school debt). Out of graduate degrees, Master of Education or Science are most sought out (34% of people go for one of the two).

On the other hand, a graduate degree could cost much more. If a profession such as a Lawyer is chosen, there is an average combined debt of $140,616. A medical school loan will total to even more money. It averages to be $161,772. This being said 4% of graduate degrees are in law, and 5% of graduate degrees are in medicine or health sciences.

Attending college is becoming more expensive and, due to that, loans are becoming more common. With tuition skyrocketing, it means loans are starting to be necessary for college to be attainable. Many students don’t have the average $9,410 per year to put towards their tuition. They’d need to save for years, so the opportunities of loans are helpful, but they’re also a money maker for the lenders – the most common lender being the government.

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Voting to Lower Interest Rates

In 2004 there were 23 million Americans with loans. Today there are over 43.3 million Americans. This is a colossal growth rate, so it makes sense why loans are such a huge deal in politics right now. America currently has over 1.2 trillion dollars of student debt. This is the highest it’s ever been and it is continuing to increase.

In politics, the debate of student loans and funding of higher education has been a hot topic lately. Senator Bernie Sanders, a self-proclaimed democratic socialist, kept it as a front issue in his presidential campaign, arguing that there should be free education for all Americans. This is the only candidate suggesting a free higher education platform, but many other congressmen are suggesting lowering interest rates to cut costs.

It cannot be argued that student loan interest rates are still quite high. Right now they’re declining, but ten years ago the interest rates were nearly 8%. This is something that some politicians would like to focus on.

In speeches, Hillary Clinton, a contender in the presidential election, said that she would like to lower interest rates on both current loans, but also allow past loans to refinance their debt. This would effect many, but it doesn’t help the people who need it most.

Basic math will show that decreasing interest rates will have the biggest payoff with bigger loans. If you have a $20,000 loan and the interest drops from 5% to 3%, that’s $400 to be saved. If you have this same decrease in interest rates for $10,000, only $200 is being saved.

This being said, that 2% cut would help out someone with over $100,000 or more in debt the most. Thinking about it, most of the people in that sort of debt are in professions such as doctors or lawyers. They make more money than someone with a $20,000 loan, yet they’re getting the most help out of everyone.

Many times, loans are defaulted, or left un-paid, when there is a minimal loan balance left. The majority of loans are defaulted when there is less than $10,000 left to pay off. Being defaulted means it destroys credit scores and the entire amount is suddenly due. It hurts chances of getting loans in the future and is a monetary fiasco.

This being said, it would be thought that if this is a problem area, this would be the place to fix it. That is being proven untrue, because, as math showed earlier, lowering the interest rate gives more leeway to higher loans, not these loans that are under $10k.

Refinancing loans seems great, but it’s hard to see why other approaches may be better to refinance loans. If Hillary Clinton applied this plan, it would cost around 350 billion dollars over a ten-year period. This is a lot of money, so it’s being debated if there is a better way to distribute the money that would help struggling borrowers the most.

Hillary isn’t the only one with a plan. Her conservative opponent, Donald Trump, is looking for the best way to decrease student debt also. He states, “[Education] is probably one of the only things the government shouldn’t make money off.”

Both conservative and liberal politicians agree that something needs to be done to reduce student debt, but the question is the method of fixing it. Many government officials are still debating the best way to approach this issue. It’s a noticeable problem, and the politician’s plans will effect a lot of voters. For example, a good plan to take care of student debt will bring in the voters that are effected by it. Those 43.3 million Americans are looking for ways to minimize their remaining debt, so the best approach to deal with student loans can sway voters to choose them.

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Working Through College: Then vs. Now

It’s common for young millennials to hear about their grandparent’s college experiences. I know plenty who will go on about how they worked through college. Some call the younger generation lazy, but statistics show otherwise.

To start, let’s go back to 1986. That’s 30 years ago, a time when the previous generations worked through college. Minimum wage was $3.35. This seems so little compared to today. But numerically, it’s not so little.

On average, a public college’s tuition would cost $1,459 per semester. Figuring that the average college student takes 15 credit hours per term, this equates to $97.20 per credit hour at a public school.

Comparing that to today’s economy, a public college’s tuition, on average, is $4,705 per semester. This would equate to $313.33 per credit hour if there were a standard 15 credits being taken at a time.

If you put the $97.20 from 1986’s tuition and apply it to todays world, the computed equivalent (with inflation) would be 213.06 now. This is a large difference from the actual cost of $313.13 listed above. In fact, that’s a barely shy of a third more than college was in 1986 respectively.

In addition, from 1986 to 2016, college tuition would be $6,396.06 economically speaking. This means that with inflation, a full public college’s tuition would be $6,396 per year. In reality, the college tuition skyrocketed past that to $9,410 per year.

These statistics are saying that there is a reason more loans are being taken out. College is notably more expensive when compared to what it was decades ago. Loans are needed more now because college tuition has gone up so drastically. As the cost of college goes up, the minimum wage cannot keep up. Once upon a time, a college credit was able to be paid with working a minimum wage job for a few shifts per week. It would take weeks to months to pay off a college credit in this generation.

Today, the student debt is the highest it’s ever been. 54% of baby boomers reported that they didn’t even take out any loans while they were in college. Millennials, on the other hand, had 1-in-8 say that they had borrowed $50,000 or more to fund their education. This means that throughout their lives they’re stuck with paying more than $50,000 back to private and federal institutions. That money they finally earn with the degree they worked for is deducted because college is so expensive.

Loans today are almost essential to the lower and middle class. It’s also becoming more essential to have a college degree in order to even find a full time job that will pay enough to live on. Without a degree, there’s a bigger risk of needing to live a life in poverty.

Despite this, 25% of millennials say that the benefit of their degree wasn’t worth the loans needed to fund it. This is a perfect example of why it’s important to get the best loan. No one likes loans, and no one wants to pay their loans, but sadly, if you want to go to college in 2016 you will most likely need loans. Two ways to become less wary about a loan is thinking about the payment plans or carefully looking at the terms and conditions before signing a loan.

Unfortunately, it isn’t the day in age where working part-time can fund a full-time education. In most cases, even working full-time can’t guarantee an education – especially if you’re working without a college degree. Having a college degree brings in over $23,000 more income, on average, so it’s imperative to decide if a college education is worth the money.


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Student Loans – Enriching the Country’s Future

Student loans have vastly become the biggest financing tool for almost every student. However, it isn’t difficult to see why loans play an important part of a student. The cost of higher education is certainly expensive even for those with a good paying job. Sometimes, young and even the more mature students want to learn but can’t afford to without some financial help and that does mean student loans.

Student Loans Are Necessary

To be honest, a lot of people don’t always have the chance to study once they have left high school and it is a pity. There are thousands – millions even – of people with a lot of potential, but unfortunately, they just can’t continue their education because of lack of funds. Parents who save for years still aren’t able to help pay for the entire college or university years so that does mean student loans are necessary. Of course, they are very useful because they can help many who are struggling to pay for school and for those who don’t have scholarships loans are available.

They Can Help Put You through College

Money is extremely tight and there is no guarantee a smart student will manage to get a full scholarship. However, a student loan can help avoid the stresses because they will help put you through college. This is something you absolutely want to remember when it comes to studying because while you might think loans are a little dangerous to take out at such a young age, they are useful to put you through education. The education you receive can potentially allow you to get a good job and a promising career. Student loans really can be useful, checkout this blog post at

Learning At Its Best

The great thing about taking out student loans is that those who wish to learn can do so. They can repay the loans back whenever they have completed their college courses and are working their way to a good paying job. It is enriching the future because the kids of today make the future and if they are well educated they can go onto succeeding.

The potential is there and yet so many people think loans are too risky. Yes, they can be but when it comes to your education, student loans are worth the risk. That is why they have been designed for, to allow people, even those who don’t go to college when out of high school, the ability to get back into education and learn.

We Can’t All Rely On Scholarships

Unfortunately, while every student would love the idea of getting a full scholarship, it doesn’t always happen. Scholarships aren’t awarded that often and you have to be very lucky to be chosen for one. However, when you look at investing into your future and the country’s future, you have the ability to use a student loan to help you. This is really something you want to consider.

Student Loans

Take the Plunge

If you are ready to get back into learning then why not consider a student loan? Yes, they are a loan but they might actually be worth it because you use them to invest in your future. You can learn a trade and get a good job and hopefully get a career you have always wanted. Student loans might seem risky but they may be the only option available to you.

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Discover 3 Common Misconceptions about Scholarships

Every student believes scholarships are the very best tool to help them get to college. However, while scholarships can be fantastic they aren’t as clear as they appear to be. There aren’t many full scholarships available and many people do find they really don’t know anything about them. The following are just three simple but common misconceptions about scholarships and scholarship programs.visit this website for additional information.

You Pay Nothing When You Win Scholarships

Unfortunately when it comes to being awarded a scholarship, almost 90% of them are small or part scholarships. This really means you are going to be awarded a few thousand dollars in financial aid but aren’t going to be enough to see you through your entire college course.

It is a big misconception and one that needs to be cleared up. Yes, there are a few different scholarships which are fully going to give a student the chance to pay nothing throughout college, though these are few and far between. There aren’t many students who have a full scholarship and that’s the reason why student loans are unfortunately a necessity.

You Have To Be Smart To Win A Scholarship

Surprisingly it isn’t always the smartest students who end up with a scholarship. Most people believe that if you are top of the class and extremely smart, then you’ll somehow automatically be put forward for a scholarship. In reality that isn’t always the case. There are a lot of scholarships available today which essentially means anyone and everyone can apply for one.

You don’t have to rank in the top ten in your class; of course, if you are a hard worker and want to learn then this absolutely goes in your favor. However, don’t think you shouldn’t apply for a scholarship because you don’t have the best grades; scholarships are all about helping those who want to learn and who deserve that little extra help.Learn more detailed updates at

Free Money

Most people don’t realize that scholarships are very much like student loans. It is technically aid given out to students and not, in fact, ‘free’ money. However, it does seem as though most students and even some parents aren’t fully aware of this fact. Yes, you probably won’t pay the amount back right away, sometimes, it might not be until you have graduated college and have a good steady job but you’ll probably have to repay at some point. It isn’t free money but it is there to help you through college. The money can be awarded and can be put towards buying books and school supplies.

Scholarships Can Be Useful


The one thing that most can agree on when it comes to scholarship is that they are very useful and can be great. Students who wouldn’t normally get the help they required to go to college can find they are now able to just because they have been awarded a scholarship. This is absolutely something every student should look into even if they don’t believe they are eligible for a scholarship. Scholarships are there for a reason – they can help.

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Top 5 Strangest Scholarships

Across the world there are thousands of amazing scholarships though many of them aren’t regular scholarships. Really, there are quite a few unusual and somewhat strange scholarships available today and while many might not think too much about them they can be great. So, what are the top five strangest scholarships of today?

The Sophie Major Memorial Duck Calling Contest

For those who love ducks then this is the contest for you! Here, applicants have to create a duck call which works. The prize money is two thousand dollars for the scholarship and that can be really good. Of course, this does seem pretty strange but let’s be honest, there are a lot of people who love ducks so why not have a duck calling scholarship contest? They can help avoid more student loans since you are getting a fairly decent prize.

The Tall Clubs International Scholarship

Scholarships like these are very strange but aren’t as uncommon as you would believe. Those who wish to apply for the scholarship will need to be five foot ten inches for females and six foot two inches for males. Applicants will need to write an essay about being tall and the winner will get a one thousand dollar scholarship. This is really quite impressive because since there are a lot of children who are quite tall this can give them a voice in a sense.We can Help you getting more facts on scholarships at

American Welding Society Scholarships

Students who have a passion or talent for welding might find this scholarship to be perfect for them. If you are looking to further your education and work in the welding industry then this scholarship can help. The scholarships from the society can allow you the opportunity to learn the trade and get into welding.

National Marbles Tournament Scholarship

The requirements for this scholarship are very simple. All applicants must be aged eight to fourteen and must have good skills in the game marbles. This can be quite wacky it seems but it does offer a lot of younger marble players the chance to win a few thousand dollars which can always prove to be useful. Not a lot of people have heard about these types of scholarships but they can unique.

The Vegetarian Resource Group Scholarship

This scholarship really has to be in the top five strangest scholarship programs today! Now, those who are granted a scholarship here find they get five thousand dollars which can be put towards their college expenses. However, to be eligible for this, you have to be a high school student and a vegetarian and you must also be actively promoting the subject. Yes, you did hear it right and while this can be quite a strange scholarship it can be one way to avoid high student loans with five thousand dollars in rewards!

Strange, but True

Strangest Scholarships

Most of the above scholarships can appear to be very strange indeed though they are real and they can give many students the chance to continue their education. Yes, a lot of people will say they are just too stupid, but many are actually really good and offer good opportunities. Why not look into strange scholarships. You never know, you might find one which is suitable for you.

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