Tag Archives: students
Why do credit card companies target college students?
Many credit card companies see the marketing potential in college students. Credit card companies use promotional offers and free gifts like t-shirts, coffee mugs, or CDs to entice students on signing up for their company.
Have you ever asked why? Loyalty is a good reason. Credit card companies are competing to be the first credit card that the student will own. By being their first credit card, it is very likely that even when they graduate from college and enter the corporate world, students will be upgrading their credit cards with the same credit card company.
Students are Big Spenders
Aside from this, college students are great spenders. Lets face it, credit card companies love customers who spend much using their credit cards. The more a person uses his credit card, the better it is for the business. And students are usually prone to over spending or using their credit cards excessively not just for their school necessities but on luxuries as well.
Despite the fact that college students are still in school and most do not have stable jobs to finance them, credit card companies are still doing everything to encourage these students on obtaining a student credit card. Furthermore, credit card companies are encouraging students to use their credit cards as often as they can.
Regardless of whether a student can afford to pay it or not, credit cards are willing to take the risk. Why? Because they can simply charge additional costs on the customers account if they fail to make their payments on time. For instance, credit card companies profit from charging interest rates and penalty fees on their customers. Obviously, customers who fail to pay their balances promptly pay more even if it takes them some time to repay their bill. In the end, the credit card company is still the one who benefits.
Students Need Credit
It is also interesting to know that students will do everything in order to repay their credit card debts. Although, students may fall behind on their payments, they will still find some way to pay off their debts especially as they are about to graduate and find employment. Students may get a part-time job, get a student loan, or borrow from their parents or relatives the money to get off their credit card debts.
Students need to clean up their credit report from any unimpressive records. They need to boost their credit rating so that future employers and creditors can find them worthy of their approval. Thus, credit card companies know that whatever happens, students will find a way to settle their credit card debts sooner or later.
In view of this, it is up to the students on how they will use their student credit cards to their advantage. Credit card companies do not have to be the only ones to profit. A student credit card can provide great help and support during a students college years as long as the student knows how to manage his finances responsibly.
College Student Loans
A Helping Hand: College Student Loans
College students come in different shapes, sizes and backgrounds. There are those who have rich or well-to-do parents who pay for their childrens education. Some already live away from their parents and pay for their education themselves. Some others though, arent fortunate enough to have this financial capability but are very eager to continue their college education. But college tuition fees are huge investments which require large sums to be paid regularly. How can a financially handicapped individual cope with this?
Fortunately, there are a lot of colleges which offer college student loans to help out these individuals. College student loans are loans offered to students to assist in payment of the costs of professional education. Unlike scholarships, a college student loan is a form of financial aid that must be repaid, with interest, but usually has lower interest rates than other loans and are also usually issued by the government.
A good example of a government issued college student loan is the Canadian Student Loan. Canadian students are normally eligible for loans provided by the federal government, in addition to loans provided by their province of residence. But in this case, canadian college student loans are normally interest-free until one graduates, and are sometimes supplemented with grants, depending on need. Students who wish to apply for the Canadian and provincial college student loans must do so through their province of residence. The province of residence is normally the province where you lived before you were a student.
In the United States, the Federal financial aid programs offer students a lot of options regarding college student loans. Federal education college student loan programs provide lower interest rates and more flexible repayment plans than most consumer loans, making them a viable way to finance college education. The largest and most familiar federal student aid programs are:
Federal Pell Grants: Pell Grants are only awarded to undergraduate students who have not earned a bachelor’s or professional degree. Pell Grant college student loan applicants must submit a Free Application for Federal Student Aid. Awards depend on program funding. Each student can receive only one Pell Grant in an award year.
Federal Supplemental Educational Opportunity Grants: This college student loan program provides grants to undergraduates with exceptional financial need (students with the lowest expected family contributions) and gives priority to students who receive federal Pell Grants. Students are automatically considered when they submit a Free Application for Federal Student Aid.
Federal Stafford Loans: Stafford college student loans are low-interest loans available to undergraduate and graduate students enrolled at least half-time, without regard to financial need. Students are allowed to borrow money for educational expenses directly from commercial lenders such as banks, credit unions, savings and loan associations, and other lending institutions, or, for colleges participating in the Federal Direct Student Loan Program, from the U.S. government.
Federal Parent Loan for Undergraduate Students Loans: This college student loan program allows parents of undergraduate students to borrow up to the full cost of their children’s education, less any other financial aid for which the student is eligible.
Federal Perkins Loans : Another low-interest fixed rate college student loan for undergraduate and graduate students with exceptional financial need. These loans also offer generous repayment conditions. One doesn’t have to start repaying the loan, or interest on the loan, until schooling is finished or dropped below half-time status. A 9-month grace period is also given before the start of repayments.
Federal Work-Study Program : A college student loan that provides jobs for undergraduate and graduate students with demonstrated need who are enrolled on at least a half-time basis. Students are generally paid at least the prevailing federal minimum wage and may work as many as 40 hours a week.
In other countries, similar college student loan programs are also carried out in order to entice people to get into college.