Posted on 24 July 2009
Tags: airline tickets, budgeting, Checking accounts with debit cards, co-sign, college student loans, credit card, credit history, Debt, emergency, financial planning, low credit limit, Mortgage, motels, online purchases, prepaid credit card
Having a credit card has its own advantages and disadvantages. Most of the students are not well aware of the problems that may arise if they don’t handle their cards sensibly. There are some very valid concerns about college students and credit cards, which are discussed later in this article, but there are also many good reasons to motivate parents to help their children obtain a credit card before heading off to college. Here is a list of some of these reasons.
They’re going to get one anyways
According to a recent survey, almost 92% of college student have at least one credit card by their sophomore year. Out of these 92%, most of the students got their cards by just applying for an offer that they received in the mail, even without comparing the options available to them.
Thus by taking action early, you have a chance to help them find the best credit card with lower rates and a more reasonable spending limit. This will also provide you the opportunity to educate them on the risks of having a credit card.
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Posted on 13 July 2009
Tags: affortable college loan, college student loans, federal student loan repayment, forgive, forgiven debt as taxable income, how pell gransts work, interest rate, Internal Revenue Service, loan payment plan, loans for higher education, maximum grant, Michigan, minimal interest rate, Obama Administration, obama administration student loan plan, Obama's student loan plan, Office of Federal Student Aid, Pell Grants, Perkin loanns, perkins loans, Personal Finance, publish service industry, smallest payment plan, student loan, student loan deferments, student loan forbearance, student loan forgiveness law, student loan forgiveness law student loan 2009, Student loans in the United States, student plus loans, student stafford loans, united states
The Obama administration is paying special attention towards students and in order to promote college education, new plans have been introduced to help college students. According to this plan, paying accumulated debt throughout college will be more affordable—including smaller payment requirements at a minimal interest rate.
The new administration realizes that more than 65 percent of college students are getting loans to pay for their higher education. Therefore in order to help them, it has been decided that they will be given the opportunity to repay loans at a rate dictated by income and family size.
Although students will have to wait until July 1, 2010, the good news is that there are potential plans that include canceling the remaining balance on the loan after 25 years and forgive loans for people who work in public service after 10 years.
But along with the good news, there is some bad too. Before students consider the smallest payment plan or switch majors to enter the public service industry, such forgiveness will result in accumulated interest and may draw attention from the Internal Revenue Service. Michigan students, in conjunction with peers nationwide, will not be exempted from the IRS as forgiven debts are generally considered taxable income.
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