Is the tassle worth the hassle?

A graduation display at a local campus bookstore features a banner reading The Tassel Is Worth The Hassle. Which provokes a question in many students minds, students not quite ready for graduation in particular. Is the The Tassel worth The Hassle?

Seriously.

The only reply available now is "Who knows?"

You wont know until when? Your own graduation day? Your first hiring because you are eligible now that you have a degree? That long distant day when you have finally paid off your student loans?

Like completing the requirements for your degree the realization of the value of your hard work is incremental. It may take some time before you can finally say, Yes, it was definitely worth it.

Until then you have a choice to make that distant day come sooner. Just keep showing up, turning in assignments and generally plugging away. You're time is coming.

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: The Solution Starts

The solution to the frustrating paycheck wheel habit starts with stop. Don't do it. No matter how desperate you are - and especially if you have several of these working at once- don't do another one.

Next step, remain in communication with those from whom you have borrowed money. There is nothing more annoying to a lender, and that is what these places are really, than not being able to contact people who owe them money. Going to them first when you can't make the payment will demonstrate your good faith in eventually paying the money back. It often helps to tell them your are a student, that you are working as well as going to school. If you have already missed a payment or even several it is wise to prepare a plan to repay the past due money. It is also helpful to bring a friend with you for support.

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.

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.