There has been a sharp rise in the tuition fees. Nonetheless, in order to protect students’ interests, the government has also increased the federal grant stridently. This news has been released by the College Board operating on no profit and no loss basis. This report has also unearthed the fact that total sum of students loan has been declined in the current year owing to increase in Federal aid.

Current Year Increase in Tuition Expenses

This report has disclosed that the regular cost of these charges is amplified for various kinds of educational institutions. Following are few of the details from report:

ü  The students who are enrolled in four year public educational program have to pay US$7,605 this year. It is an increase of 7.9% as compared to last year.

ü  The regular cost of private universities and colleges (operated on nonprofit basis) is US$27,293. It signifies 4.5% raise then that of last year.

ü  The increase in two-year state college is 6% as compared to last year, and students need to pay an amount of US$2,713.

Because of this increase, a large number of students find it intricate to continue with their education, but the Federal government has increased grant to help these students.

The Enhanced sum or Federal Grant Can be Disbursed Amongst More Students

In order to reduce the impact of rise in tuition expenses, the government allocated an amount of US$28.2 billion for 2009-10 in Pell Grants. It is more than US$10 billion than last year. The details for the school enrollment for this year are not accessible, but there will be a probable increase in number of students.

Read the full story

If you have a lower credit score that you would like, odds are that the score is caused by some small financial mistake or oversight you have made in the past. Not every person with bad credit has a low credit score caused by something they did, though. Sometimes, other people’s criminal activity can affect your credit score. There are a few tips that can keep you and your credit safe form online and financial predators:

Look out for identity theft.

Many people who are careful about paying bills on time and having minimal debts are shocked each year to find that they have low credit scores. In many cases, this happens as a result of identity theft. Identity theft is a type of crime in which people take your personal information and steal that information to pose as you in order to get access to your accounts or identity.

For example, someone with your PIN numbers can remove small amounts of money from your bank account each month or someone can use your name and personal information to get credit cards in your name and use those credit cards with no intention of paying back the money. You are stuck with the large debts and the poor credit score.

To prevent identity theft, always check your account statements carefully each month. Report any suspicious activity or any charges you don’t recognize at once. Also check your credit report regularly and immediately investigate any new credit accounts you do not recognize – this is the best way of detecting and acting on identity theft.

If you have been the victim of identity theft, report to the police at once and get a police statement. Send copies of this to your bank and credit bureaus. Better yet, get the credit bureaus to attach the report to your credit report, if you can. Close all your accounts and reopen new ones. You should not have to pay for someone else’s illegal activity.

Practice safe banking, safe computing, and safe business practices.

To stay safe from identity theft, always follow safe banking and financial practices:

1) Keep account numbers and PIN numbers safe. Cover your account and PIN numbers when using debit at the store and refuse to give your PIN number to anyone. Avoid writing down your PIN and account numbers – you never know when this information could fall into the wrong hands.

2) Only do business with businesses you trust.

3)If you get applications for credit cards in the mail that are “pre-approved” rip up the applications and enclosed letters before discarding them. No, this is not paranoid. Identity thieves sometimes go through garbage in order to find these forms so that they can fill them out and steal your identity.

4) If you use a computer, install good firewall and antivirus protection system and update it religiously. Better yet, take a course in safe computing at your local college or community center. You will learn many good tips for keeping all your information safe while you are online.

5) Never buy anything online from a company you do not trust of from a company that does not have encryption technology and a good privacy policy.

Read the full story

It had not been long since we expected that mortgage rates will go up in next few months. The prediction for mortgage rates to go up was made because investors were sidelined and inflation was likely to rise. The downward spiral in home prices and the global financial crisis scared the already shaking investors a bit more. But all is not bad news. If you are planning to buy a home during this crisis, you might strike a deal of your life if the rate for mortgage finance and refinance go down in 2009.All investment pundits are predicting that home finance rates will go down in 2009 compared to 2008. Let’s analyze the main factors or fundamentals of mortgage rates movement. Economic outlook, inflation trend and Government policy… all these factors are signaling that we have lower interest rates ahead of us.

Already the mortgage rates being offered are very very attractive. National average for 30-year Fixed Mortgage has fallen to below 5.6% in December 2008. It is way down from 6.6 percent just 7 weeks before that. following are the main factors that in my opinion will influence the 30-year fixed rate mortgage and 15-year variable rate mortgage. If you act as a wise consumer, you can get great benefits from this knowledge and use it to protect your depleting wealth and equity in your house.

Yes! Mortgage rates will go down in 2009

30-year fixed mortgage rates will start from 5.5% and keep dropping till June 2009. from there as economic conditions in overall economy will start to improve the mortgage rates will move up again and might hit 6.5% by end of 2009.

Still at these rates, getting a home finance loan is not a bad deal. It’s still very attractive loan rate. There is no evidence available to suggest that home finance loan rates are likely to go up as the market is stalling. plenty of inventory is already out there. The economic conditions never change quickly and there will always be a window available to get the best deal on home loans. My prediction is that this window is already open and will remain open till June 2009.

I see 6 Factors that support my 30-year fixed rate mortgage outlook as i predicted above.

1. Deflationary Pressure

2. Global Recession

3. US Government Policy

4. Housing Market Mess

5. Poor Credit Scores

6. Wait and See Attitude

Deflationary Pressure:

With announcement from world bank, world is officially in the worst recession since World War II. Inflation is a thing of past. we are facing worst of deflation in our country. Core consumer price index has fallen sharply (mainly due to lower oil prices). Yields on Govt. securities like bonds and treasury notes in hitting bottom. It is interesting to note that 30-year Fixed Mortgage rates mostly follow 10-year Treasury Notes. Deflation will rule most of 2009. this will help keep the loan rates down.Recession

Recession:

The National Bureau of Economic Research recently announced that the United States did indeed enter a recession in December 2008. While predictions as to the duration and depth of the recession vary, economists at Goldman Sachs recently revised their original forecast in the face of deteriorating economic news. “This deepens and extends the expected recession, bringing the drop in GDP close to the decline seen in 1982 (2.3% in our forecast versus 2.7% then),” the economists said in the report.

Government Policy:

The massive bailout initiatives that governments around the world are now undertaking will undoubtedly lead to renewed inflationary pressures but as we can read the fine print of these spending plans, we are unlikely to see any material effect before first quarter of 2010.

The Mess in Housing Market:

The drop in home prices, mixed with rising mortgage delinquencies and foreclosures, has forced investors to demand higher rate of interest on their investments especially in securities that are backed by home loans. Resulting in increasing spreads — you can clearly see that difference between 10-year Treasury Bond yields and 30-year fixed mortgage rates has increased significantly. Home prices are expected to continue the downward spiral, at least till June, 2009 — and mortgage delinquencies increasing at alarming pace — this “risk premium” would remain High. “We’re not going to get back to the same tight relationship between the 10-year [Treasury] bond and fixed mortgage rates any time soon,” says Bill Cox , a mortgage lender from Illinois.

Poor Credit Scores :

Even if the mortgage rates will remain low in most part of 2009, a large number of people will not be able to benefit from these.(May be this is another reason for rates to be down). People’s credit scores are hitting rock bottom due to increased borrowing and Job situations. 1 in every 15 American is jobless.People who already have adjustable rate mortgage and want to take advantage of lower interest rates are unable to do so. The decrease in housing prices have eroded the home owner’s equity and most of them have negative equity. They are unable to refinance home mortgage loans due to negative equity, meaning they owe more on their mortgage than their home is worth. As a result, they will not be eligible for refinancing. There not a great number of  potential home buyers in the market these days.

Wait and See Attitude:

Even though, the loan rates are attractive today, people are in no hurry. They understand the economy better than year ago and know that 30-year mortgage rates are not likely to go away if they don’t hurry. they know they have enough time. Blogs like ours are helping in spreading the message. People are convinced that home loan rates are low and will remain low for considerable period of time and they can get their sheet together before taking another debt obligation.

We all have to consider the option of taking a loan at some point in our life. All of us make some purchases in life that are once in life time decisions for most of us. Good collage and school education, a nice auto-mobile, a decent place to live and call home. Most of these carry a price tag which is well beyond the reach of an average person who has just started his independent life. Unless your parents are filthy rich or you have just inherited a fortune, you can not buy any of above items by paying cash. A normal person simply does not have this kind of ready cash early in his life. To lead a decent life, you need good school and collage education, a good ride and a home. These needs are  immediate and we normally don’t have any choice but to seek loan from financial institutions and banks to fulfill those. We take school loans, collage loans, auto loans and seek home equity finance or mortgage to start our life.

Read the full story