Tag Archives: students
Student loan advise for inexperienced (Page 1 of 2)
After college graduation, some remains of the years of study come in the shape of debt and obligations of monthly payments. As beginners salaries rarely are satisfactory, a good planning of the loan settlement is imperative. The web hosts a lot of sites which offer student loan advise on repayment based on the monthly budget to saving for later payments. Paying attention to financial details might save the student a lot of money in the future.
Student loan advise says that if the loan is paid by the student, the sum should not exceed 10-15 percent of his monthly income or if the parents handle payment, the monthly cost should not be over 37 percent of gross income. Sites with special calculators were made particularly for this purpose. The decision on the type of payment should be taken with maximum precision.
Student loan advise says that saving starts from the very beginning and, in time, it becomes one of the most important lessons a student can learn. The fact that he has to deal with financial problems ever since college will help him appreciate the value of money and of work. This particular piece of advise is also studied online, on web-sites, where students can find all sorts of information regarding this particular problem.
The student loan advise is clear and very carefully documented on the web. Students and parents alike can find estimated figures on what the costs of living in a campus may be and on all of the additional expenses in student years. The procedure is simple. The web page displays a list of estimated costs based on the average costs. On this basis, the student can add-up his or her own costs finding ways of reducing the total amount as they correctly examine personal needs.
As the search continues, one can go from one student loan advise to another. Student loan advise touches all the known important aspects. For example, a person who has studied what student loan advise recommends, knows that knowledge about weekly budget and of how much money he needs to be spent on items like food, clothes and going out is necessary. Student loan advise also say that keeping a list of standing orders or direct debits can be helpful. To go and see the manager of the bank for solutions in case of problems that may occur is part of student loan advise. Finally, student loan advise says to check for any possible tuition or grants as they are very helpful in later payments.
In addition to student loan advise offered on savings, student loan interest rates, which have made their drop to a new low, will surely be of interest to the reader. The unexpected high drops of student loan interest rates are understandable as education is an investment in the future and many students make efforts to pay their debts after graduation. Student loan interest rates are calculated each year on July 1st, so there is no telling what will happen in the years to come.
Considering that student loan interest rates are variable in time, borrowers should contact their lender or loan services to evaluate their options, financially speaking. Paying loans is not only about taking the student loan interest rate into consideration. It is about paying attention to a variety of details knowing that personal finance is at stake. Repaying is about understanding the grace period, locking-in the lower grace rate, paying on time without delaying payments and having the paperwork done within the time limit. Solving this last detail earlier may come in very handy sometimes. To take care of all these aspects, a student has to be very responsible and aware of the implications his mistakes will have on his future. This means having to grow up faster than he would like perhaps.
Student Credit Cards – An Introduction (Page 1 of 2)
Just as the term itself suggests, student credit cards are credit cards meant exclusively for students, many of whom are yet to earn a documented income with employment. Credit card issuers are mindful of students and their credit challenges so they make accommodations for students when building student credit card offers specifically. Typically, the only constraint when applying for a student credit card is the age of the student, and as mandated by the law of the country, which is typically 18 years old and above at the time of application. In many ways, a student credit card is very similar to traditional, run-of-the-mill credit cards. But the major difference, is the standard APR, or interest rate, levied for card purchases, which is relatively higher than a traditional credit card APR.
Credit Card Use & Credit Score
Student credit cards provide more financial flexibility for young students. But, while it may come in handy when paying the rent, paying tuition, purchasing books, and other necessary items like food and clothing, unbridled card swiping can sometimes lead to financial trouble, especially in the form of poor credit scores and damaged credit histories. To a certain extent, this can be blamed on a lack of education or awareness as young people, often times, will not think too much about the concept of credit scoring or the idea of building a good credit history. As a result of this lack of awareness, they will typically not restrain themselves from using the credit card freely either.
The danger of poor credit scores will not become readily apparent, but will certainly become apparent when the student approaches a bank for credit at a later point in time. Credit profiling or credit scores, as determined by any of the three credit bureaus, represent an individual’s credit life history, and black marks on credit histories, however they are acquired, will make it difficult, at worst, and more expensive, at best, to secure the lowest possible interest rate on the loan or financing. So, consequently, even if one manages to get the home loan or car loan, for instance, the interest rate, in order to accommodate the increased credit risk perceived by the bank, will be higher than normal, and in turn, much more expensive for the borrower. The bottom line is that student credit cards represent a potential risk to future economic standing if the cards are not used judiciously.
Using Student Credit Cards
As previously mentioned, it is clear that uncontrolled use of a student credit card can easily damage an individuals budding credit scoring and credit history profile. But on the flip side, intelligent spending and timely payback can go a long way toward building a solid credit history and credit score. Using the card for necessary purchases that are well within his/her payback capabilities and making the payments well within the due date can improve ones credit rating tremendously.
Credit Bureau Reporting