If you need a loan for college, there is no question that federal loans are the way to go. The interest rates are low and fixed, fees are small and the government pays the interest for students while they are still in school and sometimes even after graduation if they become unemployed or face other economic hardships. Federal student loans are offered to all students, regardless of background, class or credit history. So it was a surprise to find out that some community college students cannot get any form of federal loans. Instead they are forced to go with more expensive private loans or find other alternatives to pay for their education.

While almost all four-year colleges and universities in the country participate in the federal loan program, a large number of community colleges do not. The students who attend these community college cannot get a federal student loan. As a result they are forced to resort to credit cards and costly private loans to fill the gaps in their finances.

So what’s the reason for not supporting federal loans? As summed up in an issue brief from The Project on Student Debt, colleges sometimes think that students should not borrow for a community college education to prevent student debt from ballooning for individuals. As the brief also points out, this is not realistic when students must still cope with the ever-growing costs of tuition and other costs. Even a bigger slap in the face is when colleges try to guide students to other, riskier borrowing options like private student loans. Read more…

Tired of trying to write essay upon essay for scholarships and grants? Maybe applying for student loans turns your stomach? Or do your parents tell you “get a job” when you ask them how to pay for college? If this sounds like you, don’t worry. Today there are many alternative ways to pay for college apart from loans, scholarships and finding a job. Here are a few ideas that can get you started on the path to funding your college education.

Start your own blog or website. Blogging is not only for housewifes and techies. This blog actually came from the idea of starting a website to help me pay my loans. Start writing about your experiences. Ask businesses if they would like to sponsor your website. Luke Livingston had this idea too. His site, SponsorMyLoans.com every month features a sponsor’s ad, which in turn pays his student loan payment for the month.

Another site, Milliondollarhomepage.com, was started by Alex Tew. The idea:

to try and make $1 million by selling 1,000,000 pixels for $1 each. Hence, “The Million Dollar Homepage.” The main motivation for doing this is to pay for my degree studies, because I don’t like the idea of graduating with a huge student debt.

The best thing to do here is to have a really good idea. If you have an idea, try it. A cheap and easy way to start your own blog without spending a lot of time with the setup is Wordpress. Read more…

Charity For Debt is a startup nonprofit group (with a very nice logo) dedicated to helping students and alumni with debt pay off their student loans by providing paid volunteer opportunities by working with local charity organizations. The nonprofit was launched just this year but already has had many sign ups from potential volunteers. So if you’ve ever thought about giving back to your community, this is the perfect time. Not only will you be giving back but you will also be paying off your debt.

Charity For Debt depends on 3 groups to work: the student and alumni volunteers who want to pay off their debt, donors who are looking for innovative ways to donate to the local community and see the direct results of their dollars, and nonprofit or charity groups that need volunteers to keep their organizations running. Read more…

Its no secret that the debt of the average American citizen is rising. Wages are being outpaced by growing inflation and with the possibility of a recession, things aren’t looking any better. Among the people affected the most are students. Below are statistics about student debt and loans that everyone should know, whether they’ve been to college or not.

Today, more than ever before, more students are borrowing to cover their college expenses. By the time they graduate, nearly two-thirds of students at four-year colleges and universities have student loan debt (66% in 2004). In 1993, less than one-half of four-year graduates had student loans, compare that to 2004 when over 60% of graduates from public universities had student loans. Read more…

Congratulations, you just graduated from college! If money is tight after the best years of your life and that dream job seems to be a little too elusive, you may have to think about student loan deferment and forbearance.
Warning: you should only use deferment and forbearance as a last resort. With that in mind, here is your guide to student loan deferment and forbearance.

If you’ve exhausted your options and can’t get relief, you may be able to suspend your payments temporarily. A deferment is when the lender/servicer grants a temporary suspension of a borrower’s monthly payments. To defer your loan repayment, you must meet certain specific conditions. Read more…

There are many ways to reduce to your debt load, and the most common way to do this is through (drum roll please) consolidation. The idea of student loan consolidation, as the name suggests, is to combine all of your students loans into one giant super loan. It sounds bad but it’s really an ideal situation, trust me. Here are 6 important points you should know when consolidating your student loans.

By consolidating you will reduce your monthly payments; maybe by as much as 50%. But your payment is heavily dependent on what financial organization you select and your individual financial and credit situation at graduation time. Did you remember to pay off your credit cards every month? Well, here’s where that will help you. Read more…

How much debt do you have? Five, ten, twenty thousand? Let’s assume that you have a $10 k student loan debt. Now lets also say you happen across $10k. Should you pay off your loan or should you invest the money? Could you make more money on an investment than what your debt costs you? If so, then invest. If not, then pay off your debt. Its simple economics.

The USA Today article, Pay Off Debt or Invest? That is the Question, sums it up best: Imagine you are paying 16% interest on a credit card. The same high interest rate won’t apply safely and consistently on an investment. In this situation you should pay off the debt. Sometimes, the best investment is avoiding the interest on a loan. Read more…

College, for most, is that special time in life that will never be forgotten. New people, new experiences and being exposed to new ideas is what college is all about. But unfortunately college usually gives way to a huge burden of debt upon graduation. Books, food and all the other things taken for granted in the past can add up fast to put a strain on a student’s bank account. But fear not! It is true that college may be the single most expensive time in someone’s life, but that doesn’t mean that students have to leave college with huge debt or any debt at all. Here are the 5 easiest things a person can do to save money while attending college.

Manage your money the smart way. As soon as you can start a checking and savings account and if possible start a high-yield savings account. This will not only help you to save money but it will also let you put money aside for an emergency. But watch out: always keep track of your bank accounts to avoid costly overdraft fees. Signing up for Upromise is an easy way to earn money toward college tuition. By making everyday purchases, a percentage can be put toward paying your students loans which means less you’ll have to pay back later.

Rent or borrow books instead of buying. Let’s face it, books maybe the highest expense you will face during college besides tuition. A Department of Education study found that since 1986, textbook prices have risen almost 186 percent, or 6 percent a year. Compare this to other products in the same market which rose only 3 percent during the same time frame. Here is a tip: never buy books from your college’s bookstore. On average they have higher prices than outside bookstores and online stores like Amazon.com and Half.com. Check out Chegg.com if you are interested in renting books. And keep on the lookout for frineds that have had the class you need to take next semester. Its likely they will let you borrow his or her old book. Read more…