Parent Loans or Student Loans – what is going to be best for my child?Written by Vanessa McHooley
Parent Loans or Student Loans – what is going to be best for my child?At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is better option – student loans or parent loans? Each has distinct advantages and uses. Federal student loans Federal student loans have lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation. Federal parent loans PLUS Loans (Parent Loan for Undergraduate Students) are another loan option that comes with low interest rates. If you are a parent with dependent students attending college at least part-time and you have a good credit history, you are eligible to receive a PLUS Loan. These loans are not needs-based. You can borrow up to total cost of undergraduate education expenses, minus other financial aid already received. Unlike federal student loans, payment is not deferred until after graduation; instead, your first loan payment will be due about 60 days after loan is disbursed. Also unlike federal student loans, PLUS Loans require an application fee.
| | How to Shop for a Credit CardWritten by David Medlock
With so many credit card offers available to nearly anyone who wants one, it can be difficult to find a reasonable offer that fits your personal needs. Here are some things to look for when shopping for cards:•Interest Rate: This is one of most obvious, yet important, things to look for when shopping for a card. Interest rates can often be as high as 24% and sometimes as low as 0% for introductory rates. Make sure that you know what rate is before signing up. Also, if it is an introductory rate, find out how long that rate lasts and what it will go up to after introductory period is over. •Annual Fees: You can often obtain a credit card without having to pay an annual maintenance or membership fee. If you can find a deal that allows you to avoid annual fees, it is highly recommended that you do so. •Rewards: One of most requested features for credit cards is to receive rewards for using card. If a credit card company is willing to offer you a cash-back incentive, free gasoline rebates or frequent flier miles, it may be worth looking into. Some creditors have even begun offering mortgage rebates, where they will pay a certain amount of principle on your mortgage if you use their card.
|
