Student loans – or simply Bounty binding? How to save thousands of your cost of college education

If you are in college, about to go to college or have children who will soon be in colleges, student loans should be on your mind. You can go to school without borrowing money, it is still possible?

It is estimated that two thirds of students borrow money during their four years degree programs in public schools – with an estimated average debt of $ 23,000. One in ten has more than $ 44,000. Many private schools are obviously higher. I would say that the attempt to avoid> A student debt in times of financial instability would be worth the sacrifice. How can you do? Here are three secrets to saving the college almost painless:

1. Planning: should not be complicated, even a savings account with monthly deposits can work. Much better instead to use the tax savings benefits, that plans for 529-B and its many variants – which can vary state by state.

2. Consistency: Use the power of compound interest. For$ 25,000 dollars in the bank, from when the baby is born requires a $ 60 per month compounded interest rate of 7%. If you wait until the child in junior high start saving – which requires to obtain the same $ 350 per month and $ 25,000.

3. Grandfather to: the obligations and the anniversary, as the holiday offers or putting money into a college fund, it makes more sense than buying a toy or game that will be destroyed and forgotten by the end of the day.

In addition to parents saving for college, I think childrensave for their own college costs increase with the current economic challenges. Working part time at school and during college, full-time during summer and Christmas, can go a long way toward their college costs each year. It will also reduce the downward trend and the party. If it's your money this time, the risk of you concentrate on your studies is much higher. No, it is your birthright to participate in celebrations of beer soaked Frat.

Another common problem ismisallocation of funds. No, I do not mean that someone steals your money, but rather that priorities screwed up. Junior drive a car because it is $ 25,000 dollars from parents pay the monthly car with a boat, jet ski or four wheels in the yard, but the parents' complaint: "I have no money at the end of the month to save for college. If at the end of the day, however, the college rolls around and there are limited funds in the bank, what are you doing?

• Take every opportunity to identifyFree money. Scholarships, scholarships, military engagements, are available with a little digging. " Check fastweb.com

• Once free, the money is used or is not an option, then fill out a FAFSA (www.fafsa.ed.gov) to the financial aid office of the College and discuss options with them is the next step.

• Make sure you learn the difference between direct federal loans such as Perkins, which have interest rates extremely low, and Stafford. With Stafford, whether youqualify for subsidized loans, meaning that the federal government will pay all interest charges while you're at school and during the deferral period.

• Officials of the financial assistance of the school is your best friend – Suck them, take them candy, and mow their yard (just kidding, but I think you see the picture).

• Make sure you understand the credit limits each year, and have a plan for what makes the difference.

• Understand your rights associated with illness and financialhardship during your loan repayment period.

• Remember, you must be in school at least ½ time to full time to qualify for federal loans. Don’t drop too many classes.

• Keep all your paperwork in organized files, because the piper will have to be paid at the end of your education-trying to find what and who you owe may be difficult after moving from dorm to apartment to frat house, or back to Mom and Dad’s, because you don’t have a job.

Repayment options are beyond the scope of this article, and Congress is considering major changes in the lending arena this year, a college, so keep your eyes and ears open. An excellent site for information on student loans is www.finaid.org/loans/. Just keep in mind that the government bailout may be high due to lower interest rates and more lenient payment plans. But the government also has an enormous power when it comes to collecting on its loans student debt. Consider entering your statementreimbursements, denial of new loans, the garnishment of wages without going to court, taking part of your Social Security check and the cost of collecting large as some of their instruments. In addition, there is no limitation, if found to Tahiti 15 years, hard, back is theirs, as they say ….

Private loans are still available, but much harder to find with the current credit limit increases every day. Your FICO score is better to be good (> 700) and must be consistent withall payments. So, in summary, the best loan for college is with a zero balance. If you must borrow, plan wisely. You do not want to pay Sallie Mae last college loan payment when you prepare this initial failure of social security.