End Of The Year So Let's Talk About Those Loans And That Business You Were Going To Start After You Got Your Degree Except Now - Well Just Read This.

Here's One for the end of the calendar year. Loan help. This is from the Small Business Administration's web site. The Small Business administration is a federal agency which is dedicated to helping - and I bet you saw this coming - small business. Below is part of what they said about you starting your own business. IBR means income based repayment. It's for students who have a large loan obligation and a small income. That means just about every one and certainly you. You can read more about it here.

Student Startup Plan

Is student loan debt stopping you from starting your own business? The Income-Based Repayment (IBR) Plan can help.

Income-Based Repayment is an existing payment option for Federal student loans. The Income-Based Repayment Plan supports young college grads, including those looking to start a business, join a startup, or work in a public service job by making Federal student loan repayment manageable. It can help you keep your loan payments affordable by using a sliding scale to determine how much you can afford to pay on your Federal loans—empowering you to take risks with new opportunities.

Make That Payment, IBR

Recent statistics from a group which monitors student debt have shown that more former students are defaulting on their now due loans. They fail to make payments. Failing to make any loan payments affects an adult's financial life for quite some time. The consequences are almost uniformly negative.

When a student agreed to accept a loan he or she also agreed to return the money, almost always with interest, in the form of payments, usually on a monthly basis. Lately some graduates faced with what appears to be a mountain of debt and their meager monthly earnings from that 'great' job they got after graduation have chosen to forego these payments.

If you are a former student and you managed to remain awake during the exit interview the last semester before you graduated you probably heard a lengthy explanation of your obligations regarding any student loans you have outstanding. During that presentation the presentor emphasized that you really did have to pay that money back no matter what.

Faced with virtual plague of non-payment lenders are devising methods to allow students to address their obligations practically. One method is called Income Based Repayment, IBR.
This method is exactly as it says; your schedule of payments is based on your income. Just that simple.

If you are currently stuck along with so many others in a low income or no income situation it is prudent for you to now look at your loan situation. If you haven't been making scheduled payments you may be in danger of or already in default. This situation can be remedied but first it must be addressed.

Your lender or lenders no doubt have on-line sites as well as eight hundred numbers. Promptly contacting them to discuss your status can do much to ease troubles down the road. During this discussion ask if they provide IBR, income based repayment. This program may be the means for you to remain in somewhat healthy financial status while you sort out your position.

IBR, call and ask. Might help.

The Paycheck Loan Wheel Really Continues.

After having used and paid the paycheck service a few times some students realize they are consistenly coming up short. One solution often employed is to get another loan from another service. This short term but convenient solution soon compunds the initial problem, a funds shortage. At times some students have applied for and recieved several "payday" loans simultaneously. At Planet College the record we've heard of is eight. Maybe you've heard of more. Maybe you've had more.
There is one primary tactic to this costly downward spiral. Stop. Stop getting those expensive short term loans. Especially if you are using one to pay another.
This may seem far far easier said than done. Especialy if the lenders can call you at work or at home reminding you your payment is past due.

If you are in this frustrating position you probably need some help. Help beyond just don't do it.

The Paycheck Loan Wheel Continues.

This is the paycheck wheel continuing story. Now that the student has the hundred dollars from the pay day enterprise they may freely and happily spend it on anything they want. Often though this money is for and emergency like a car payment, cell phone bill or credit card payment. Whatever. It is promptly spent. Gone.
Now time goes by. Usually until the student's next payday. ( This is usually when such payday advances are due.) The student is paid, the business deposits the post-dated check and zoom that money is gone from that student's account. The student's account is now minus one hundred and sixteen dollars.
This might be a simple and even helpful, albeit expensive, transaction if it weren't for a few Planet College Basics. First new costs for students are constantly ocurring. Second most student workers think in terms of their entire pay being available. Thirdly, a significant amount of money disappearing from your checking account is really discouraging.
These effects from this seemingly simple and convenient transaction sometime lead a student to repeat the transaction in order to make up for the shortfall from their current earnings. This is part two of The Paycheck Wheel.

The Paycheck Loan Wheel.

Most students on Planet College are employed. Mostly part-time but employed nonetheless. Some times more than one employer. And the end result, the idea, the purpose is a paycheck. This check is supposed to cover at least most of the ongoing expenses related to life and school. It seems it almost never does.
And that is where the paycheck wheel begins.
Nationally for some times businesses have been flourishing which offer payday loans. The are usually storefronts and they often provide additional financial "services" such as cashing checks, sell money orders.
The pay day loans are usually in the form of a post-dated check. This is the procedure. The customer writes a check for a certain amount. They then date it for sometime in the future. Usually this date is on or after the customer's next payday. The total amount of the check includes a fee.
Practically it works this way. A student needs some quick funds, say $100.00. They then got to the payday loan company and there usually fill out some paperwork. The paper work includes their employer and other personal financial information. Once this paperwork is processed they can write the postdated check. The check will include the check cashing fee. In the state in which this is being written the fee is commonly $16.00. Thus the total of the check is $116.00.
The student then leaves the business with $100.00. Some time later, usually after the students next payday, the business cashes the check.

That is how the paycheck wheel starts.

Interest, Subsidised or Unsubsidised

Planet College is virtually awash in new to most students terms. Just the language of Financial Aid is significant and extensive. Financial Aid contains several terms which might be new to a student on Planet College. Two of these terms have to do with interest. Interest is the money you pay to borrow money. On most college loans there are two types of interest. Subsidised and Unsubsidised. When you take out a loan for most purposes, like a car for example, you usually begin paying it back immediately. This is not true for loans for school. Most of these loans are structured so you do not have to start making payments on your loan(s) until after you have finished school. In order to help students keep their debt total down the government initiated a system some time a go to allow students to defer the accumulation of interest on their loan while they are attending school. The federal government subsidises this interest until the student has graduated or discontinued attending school. This type of loan is called a Subsidised loan. There are also loans available under some circumstances which are called Unsubsidised loans. With this type of loan the interest begins accumulating as soon as the student receives the funds from the loan. When a student begins paying this type of loan, Unsubsidised, interest will already have been added to the total of the loan due. When a student begins paying back the Subsidised loan the interest will begin accumulating only then. This means that a "subsidised" loan will be cheaper than an "unsubsidised" loan.
Remember. Either way, subsidised or unsubsidised, loans are loans and they must be paid back. That is the word from Planet College

Loan Management

On Sunday, July First, 2007 in a finance column a student asked about a loan to finish school. The student explained that he (or she) had already taken a small loan for their eduction. They were currently working full time as they had been for most of their college life. This student said that at this point they were finding it difficult to concentrate on school. This was mostly due to their work hours. Thus they were considering a small loan to lighten the load and free up some time to concentrate on graduation. Yet they felt anxious about any more loans which would come due after college. The advisor in the column advised them to take the loan. This exchange brings up a few points about Planet College that are worth noting. First, it was wise of this student to even ask someone about this loan possibility. Often an outside source can cast a light on your situation. This applies to many things but money is so critical that it is almost always a good idea to talk to someone about what is on your mind. Second, this student is following a basic rule of successfully completing your time on Planet College. Keep your loans low. You don't want to return to Planet Earth with too much debt. But in this case this student is aware of the toll that stress working full time is taking. The columnist advised the student to strongly consider the loan. I agree. In this student's situation the loan will help. It will also not add considerably to the students eventual debt.

Something to consider while your on Planet College.