UNDERSTAND HOW LOANS WORK
Over the years as a financial professional, I’ve literally had hundreds of meetings over the years with clients and prospects. There is one that took place about 7 years ago that is crystal clear to me to this day. A young girl came into my office to discuss her financial situation. I quickly realized that she was trying to pay back $85,000 worth of student loan debt with a $30,000 per year salary! My stomach literally became queasy just by looking at numbers!
I wondered how on earth could this happen? Who would allow a 17 year old to sign up for so much debt? And, most importantly, was any time taken to compare the amount of debt to the amount of money should would be making?
The previous sentence contains one of the most important concepts when dealing with student loans. Let’s assume someone makes $30,000 per year and their take home pay is $2,000 a month. Now let’s also assume that they are making payments on a 10 year student loan of $85,000 with a 7.25% interest rate. Their payments would be about $1,000 per month. After making the payment on the student loan, this person would have $1,000 left for monthly expenses. So in essence this person has the same take home pay as a person making $15,000 after making their loan payment! Now you understand why there are so many 25 year old college grads living with mom and dad! This is insanity and it happens everyday!
Of course the counter argument is that over the long term the college tuition costs that created loan payments above will have been worthy investment via a salary that is higher than a non college grad. Overall this way of thinking is correct, but what if we can find a way to reduce tuition costs and the amount needed to borrow to cover them? Wouldn’t life be easier if they payment was $250 per month or lower?
Just reading the example above you now more informed than half of the parents and students partaking in the college planning process. You will think before blindly signing onto loan after loan, only to wiped out by a payment tsunami in the future.
Unfortunately though, your work is not over. If you go the student loan route you will need to learn about the different types of loans available, repayment options etc. Luckily Gary Lucas provides great information regarding all of this as part of our FREE VIDEO SERIES
GETTING FREE FINANCIAL AID
At CollegeAidNow.com we constantly experience an amazing phenomenon. We have noticed over the years in our live seminars that if you mention the word “Scholarships” parents and students like up like Christmas trees. They scramble to find pens and paper to write notes down. It is like we are giving away the day’s lottery numbers. What concerns us is that while making a mad dash for scholarship money, people are completely missing out another incredible funding source for college, financial aid from the school itself.
To understand the Financial Aid distribution process you have to begin with the mindset that colleges want the best students possible and are willing to go through great lengths to acheive this. You may think a child that gets decent grades, does some after school activities, and stays out of trouble is a normal kid because their friends and siblings are the same way. This simply isn’t true. What you may consider to be an “Average” student is more capable of receiving FREE aid from many colleges.
In our experience the three biggest blocks to students receiving more aid are as follows; ignorance by parents as far as knowing negotiating is possible, a reluctance to negotiate since it does come natural to many people, and the ability to communicate with the Financial Aid office in an effective way.
Luckily by reading this page of our website you have rid yourself of obstacle number one. Wonderful!
As far as negotiating, don’t worry, you are not dealing with Donald Trump. For the most part Financial Aid Officers are nice, professional people. The problem is that they do not speak the same language as most people. They are usually “Numbers” people!
Our goal at CollegeAidNow.com is to teach you how to communicate with the Financial Aid office to receive just as much if not more FREE money than you would via scholarships. Scholarships are an outstanding way to pay for college, but they are not the only way!
We talk about this much more in our FREE VIDEO SERIES. Sign up and learn how, for FREE
GET A SCHOLARSHIP
HOW TO GET A SCHOLARSHIP NOW
“Hopefully he will get a scholarship!”
”Do you know of any scholarships she could receive?”
“I wish I could find some scholarship money!”
How many times have you heard college bound students or their parents utter these phrases?
Scholarships have always been highly coveted in American Society, but with today’s record high tuition costs and sluggish economy, they are more important than ever. The sad fact is that millions of dollars in scholarship money goes unused each year. Think of all of the part time jobs and student loan payments that could be avoided if parents and students were able get their hands on the abundance of scholarship money that is available!
So where does one begin in the in the murky and confusing world of scholarships? Well for one, we can tell you where no t to begin; Barnes and Noble, Amazon.com, or any other source of “Do It Yourself” books and information. You will dive into an overwhelming information labyrinth that will leave you confused and frustrated. The best first step when trying to obtain scholarships is to know the different types of scholarships available. Many people think scholarships need to come community, civic ,government organizations etc. Did you know the college your child wants to attend may give it out scholarships itself? Such scholarships are known as private college scholarships.
In our Free Video we go into much more detail regarding specific techniques that have PROVEN to provide THOUSANDS of scholarships to students around the country. To access our Free Video Series enter the required information to the right. We also have some great videos below!