Tuesday, November 20, 2007

Undergraduates Reap Benefits of Parent PLUS Loans
From sticker shock at escalating tuition costs to federal financial aid making less of a dent in the college bill, parents of college students need a fighting chance when it comes to financing their student’s college education. Oftentimes, a parent’s contribution plus grants, scholarships and subsidized government aid no longer go as far as it once did.
According to NextStudent, the Phoenix-based premier education funding company, the PLUS loan or Parent Loan for Undergraduate Students, is not only a smart move financially but a great solution to their funding dilemma, one that many parents are depending upon in increasing numbers. Due to the fact that a college education is no longer truly an option but a necessity if students want to succeed in the real world, PLUS loans are an important tool that can give students that extra edge.
Easy Application
With NextStudent’s PLUS student loans for parents, students need to fill out the FAFSA each year in order to qualify for this non need-based student loan. In addition, the borrower is required to complete a Master Promissory Note, which is good for up to 10 years, providing the student attends the same school, completes the FAFSA yearly and is credit approved.
At this time of year, when many students and their parents are analyzing their college funding picture and realize that they may need more money to cover unanticipated expenses, the PLUS student loan is a welcome answer.  Available year-round, parents of college students attending at least half-time can borrow up to the total cost of attendance. The NextStudent PLUS student loans enables borrowers to determine eligibility within minutes when applying online through the NextStudent easy e-application.
NextStudent Offers PLUS Loan Incentives
Since these student loans are federally funded, the government sets the interest rates and lenders must meet stringent qualifications in order to become an approved lender. The main difference with respect to lenders offering the same PLUS student loans products are the unique incentives and benefits each lender offers.
NextStudent provides generous incentives for borrowers, including: a .25 percent reduction in interest for selecting the Auto-Debit option; after 12 months of consecutive on-time payments, a 3 percent cash rebate which applies to their remaining principle balance; and after 48 months of consecutive on-time payments, a 2 percent interest rate reduction.
Credit Resolution Program Gets Results
Though most applications for PLUS loans are approved, some borrowers are initially denied due to credit issues that have not been resolved. NextStudent’s PLUS Loan Credit Resolution Team provides a second opportunity for borrowers if they were initially denied due to credit issues . NextStudent has been able to qualify 87% of its PLUS loan applicants.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loans at http://www.nextstudent.com/.


Abuse of Bank Charges, is this Legalised Robbery?
I have a client who at this time of year has financial problems. There is nothing new in that, if the truth be told, the majority of us are all slightly short at this time of year. Christmas after all is the one time of the year where the majority of us are driven to heights of financial excess that very few of us can afford and the more than a few of us find difficult to get out of.
Enter stage left, the Finance Houses and Banks, offering us deals left right and centre to help us smooth our way out of debt into even more debt (if the truth and the small print be known).
My particular client had problems with his mortgage and had been trying to get some sense out of the client’s services dept of his Mortgage Company when he reviewed his own monthly bank statement. His Mortgage payment had defaulted this month and he had spoken to his Mortgage Company and explained that he would be forwarding this months instalment by way of cheque once the transfer of some other funds had been completed.
This was accepted and everything seemed fine until a few days later he received several letters reminding that the Finance House would be attempting to collect his mortgage payment ten days later. Could he also make sure that there were sufficient funds in his account to facilitate this (despite having been told several days previous to this of his proposed methods for clearing his arrears and having accepted these proposals) as if there weren’t he would incur late payment charges and also charges from his own bank as well.
So at the end of the day when this attempt at collection had failed my client was now left with double the set of his own bank charges being debited to his account but also a double set of charges being levied by his Mortgage Company. There is something rather sick and perverted in a Society and Industry that makes the majority of its profits from those who are least able to afford them. My client had very little in the way of funds at the outset of the incident and through no fault of his own he has even less available to his disposal now!
The moral of the story? Read carefully, the fine print of any agreement before you sign it (usually hidden deep in pages eleven or thirteen of most documents in the smallest font size that the printers can get away with) and if you feel that you will have problems meeting any of your payments you are obligated to meet, get in touch with your creditors as soon as possible and make sure that you have “crystal clear” agreements (preferably confirmed in writing) as to how you propose to deal with any rescheduling of any of your debts.
This will help you avoid the “debt spiralling” occurring that some find difficult to avoid and making an already difficult situation worse.

Stephen Morgan is the principle Editor for Debt Collection Services and more details about the above article can be found at
http://www.debt-consolidation-services.ws/features/abuse_of_bank_charges_is_this_legalised_robbery.html
.and also has just launched the associate site
http://www.livingwithhighbloodpressure.net.