Personal Finance and Investing

If you have read this book by Robert Kiyosaki, “Rich dad, Poor Dad”, you will realize that getting a college education, securing a 9-5 job and then climbing the corporate ladder is not the most effective way to get rich.

However, this doesn’t mean college education is getting cheaper, just because the rat race is no longer in vogue among the younger generation. In fact, it cost a decent amount of money which requires financial planning right from the child’s birth.

Between the costs of tuition, books, room and board and school service fees, the total bill can add up fast. However there are ways to get reduced or even free tuition for your college education.

Aim For Scholarships

This is obvious but you will be surprised that many students don’t apply for scholarships. There are many scholarships available and while good grades are a must, you don’t need to be the valedictorian of your class. Check with your high school counselor or college academic adviser for application criteria.

Get Free Tuition

Some states offer free tuition for bright students from lower income families so that they can attend college. In New Jersey, you may be eligible for free tuition at your community college if you are in the top twenty percent of your high school class. Just do some research online and see what is available.

As of 2008, Stanford University will no longer charge tuition fees to students whose parents earn less than $100,000 a year. In addition, all room and board fees will be waived for students whose families earn less than $60,000 a year. The program also eliminates the need for student loans.

In 2008, MIT also announced plans to offer free tuition for those whose families are earning less than $75,000 a year.

Other ways to get free tuition include:

1. Employee Benefits

Human resource is one of the most important assets in a company, hence, a lot of employers are focused on retraining and upgrading the skills of their workers to become more productive and gain a competitive edge.

If you want to advance your education, there are usually partial to full reimbursement, especially for tuition classes related to your job description.

To qualify, you will usually need to get a passing grade of no less than a “C”. Check with your employer for the terms regarding any tuition reimbursement policy.

For school employees (in colleges and universities), there are usually perks like reduced or free tuition. In some cases this extends to immediate family members. This could be one more incentive for working as a college volunteer helper for the sake of your children.

2. GI Veterans

If you are a veteran of the United States military, you may be eligible for free tuition which includes college courses, job training, certification tests, and much more.

3. Test Out of A Class

This means you take a test out of the class which is usually cheaper (about one-third) than paying for the full class. However, you have to possess in-depth knowledge of the subject and it is up to the college discretion. You have to convince them with your resume and reasons.

Obtaining free tuition is not an impossible task. There are options available, but it is a matter of getting creative, pro-active and persevering. For saving the exorbitant cost of between $25,000 to $80,000, I think it is well the effort though.

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If you are a college student looking for a personal loan, the best place to start is at the bank your parents use. Most student personal loans will need a co-signor. If your parents are in good standing credit wise, they may be able to co-sign a loan for you at their bank. Not all banks will make this type of loan though. If their bank does not make this type of loan, you may need to have them help you through another bank, however they may be in a much better position to help you get the loan, rather than you applying completely on your own.

Before, you even consider getting a student personal loan though, check to see if you can get your loan through the FAFSA program. This is the federal government’s student loan program. If you have not used up all your funds from this program, this is a much better program to get a student loan from. Typically, you will not need a co-signor, but if you do, your interest rates are likely going to be much lower with this program. If you are maxed out on this plan though, getting a student personal loan will be your next option.

You should prepare a monthly budget of tuition expenses, books, other school related expenses, room and board expenses and transportation expenses. When you go to the bank to apply for the loan, you will need to have this information. If you are working part time while attending school, this is likely to help you get a positive decision. If you are an older student and are going back to school after working for a while, your credit history will be important. If you own a home, this is be helpful in getting the loan. Obviously, the lender simply wants to be sure they will be repaid.

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Gaining a university degree is not easy. Firstly, there is the competition involved. Then there are the financial arrangements to be sorted out since everyone knows that a university degree is not cheap. A good university education helps students land a good job with brighter career prospects. This in turn leads to better lives and hopefully more financially secure futures as well.

Now, in order to fund for one’s college or university degree, it is necessary to take student loans. Of course, these student loans need to be repaid. But the key is to know how much and when to repay. A good financial management tool helps students make informed decisions about the loans they are taking from financial institutions.

A huge burdensome loan is the difference between taking the help of a good online financial management tool and doing it by one’s own limited knowledge. If you have access to good financial advice, by all means go ahead. But if you cannot, then your next best bet is to get a good online finance management tool. This tool will help you figure out your monthly budget, calculate how much your are borrowing, how much you need to save per month to repay the loan on an assumed salary once you graduate.

The one issue with a student loan is that it needs to be repaid no matter what your circumstances. Unlike credit card debt which can be wiped clean if you are declared bankrupt, a student loan is there forever or until you repay it.

A personal finance tool is of great help as it will manage your budget, advice on maximum spending limits and suggested savings so that you can plan for a secure future.

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It might happen that you or any other member of your family is planning to join a college and you don’t have enough money to pay tuition fee and other expenses. Then what do you do? The first solution to your problem is scholarships or grants provided by the government but if you are not enough poor and intelligent to grab a federal grant, then the only solution is student loans.

But most of us don’t know how to choose a better option of college loans.

Here are some tips to follow before applying for college loans:

Make a list of colleges that interest you (Stanford, Johns Hopkins, Harward or others of your choice.)

Also make a list of college, which you are likely to get into.

After making both the lists decide how much money you would like to borrow as a student loan, which can be obtained by adding the given data:

Fees, Tuition, Campus expenses, if you wish to live in hostel provided by college, Food, transportation, lab fees and other relevant expenses.

Now it’s turn to search for a better lender, who will finance you. Most of the colleges or universities have their own list of lenders who can provide you suitable college loan. If you are unable to find any suitable lender in their list then you are recommended to visit financial institutions located in your area. Almost all the lenders have their websites so, check their norms and terms.

Some lenders offer attractive offers like interest reduction, discounts and rebate programs. So spend a little time to search lender with beneficial offers.

The most popular type of student loans are:

1. Stafford Loans

Stafford loans are suitable for both undergraduates and graduates. Both unsubsidized as well as subsidized options are available.

2. Plus Loans

Suitable for parents of undergraduates.

3. Private college loans or student loans: Private student loan or private college loan is meant for additional funds.

Before applying for a student loan or private student loan you should try your best to get any grant or scholarship just to minimize the burden of loan.

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Finding a great job and advancing in that career have something in common. You need a good education. The more you have, the better it will be for you in the future. You may have been putting off continuing your education until later. The rising costs of attending a college or university is enough to stop a lot of people. However, there are options. Online education is a great program for those needing the flexibility in their schedule as well as help on the financial side. You can afford the online degree you really want.

There is now a program that is designed especially for veterans. The Yellow Ribbon GI Bill is available for those who served for thirty-six months (3 years) or more after September 1, 2001, or have service-related disabilities with an honorable discharge. Contact the Department of Veterans Affairs to make sure you qualify for the program and for more information. It is also necessary to contact the school to be sure they participate in this program. The Yellow Ribbon GI Bill will make continuing your education much easier and more affordable for you.

There is also a new Federal Stimulus Legislation that will help make continuing education affordable. The programs are designed to assist public colleges and universities. Be sure to check with the school you have chosen to ensure they are participating in the program.

There are a variety of other options available for financial aid. Some of these are based on the student’s own personal circumstances. Single mothers, for example, are eligible for financial assistance. If you find you are not eligible for student loans, there are several government grants available.

If you are not eligible for the Yellow Ribbon GI Bill program, the financial aid department of your school is a good place to begin. They can help in assessing your needs and qualifications, and inform you about which types of financial aid you are qualified to receive. The good news is that no matter what your personal or financial situation may be, continuing education is now within your reach. This wide range of financial aid for adult continuing education students makes earning your online degree an easy, affordable, and positive experience.

Don’t allow your fear of the unknown stop your aspirations of continuing your education. Make sure to research all your options before making a decision. Use the Internet, your local library, or the school’s admissions office as resources. Make sure to weigh all the possibilities before turning away from an opportunity to help your future.

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