In order for you to have access to quality higher education, you have to be financially stable. Of course, you need to pay for your…
In order for you to have access to quality higher education, you have to be financially stable. Of course, you need to pay for your…View More Types of Federal Student Loan and How to be Qualified
The number of credit repair companies has been increasing over the last couple of years especially with the increase in the number of people who are…View More Sky Blue Credit Voted Best Credit Repair Companies of 2015
Is your credit card debt in one chaotic mess? You’ll want to fix it quickly and with little effort. However being desperate for the solution…View More Different Ways To Spot Credit Repair Scams
When unpaid and overwhelming credit card debt completely obliterated your credit score and make it impossible for you to get a mortgage, or even a…View More Can Credit Repair Really Raise Your Score?
In order for you to have access to quality higher education, you have to be financially stable. Of course, you need to pay for your tuition, miscellaneous fees, learning materials and other fees. However, most families cannot support the education of their children, that’s why they resort to student loans.
Student loans are convenient ways to help students afford education. It is a form of a good debt, as an investment for the future. According to the latest statistics of student loan debts in 2017, there are more than 44 million borrowers in the United States, amounting to over $1.45 trillion student loan debt. That’s huge!
This just means that more and more students are taking advantage of student loans to support their education. There are two sources of student loans – the government and private lenders. In 2017, about 42.3 million borrowers or almost 97% of the total population of student borrowers apply for a federal loan.
Federal Student Loan
The federal student loan is probably the most convenient student loan. As long as you meet all the basic eligibility requirements, then you are qualified for a federal student loan. They also come with lower interest rates than private student loans and have a more flexible payment terms. The federal government also provides at least a 6-month grace period for graduates before they start paying their student loan debts.
In the United States, a total of $1,331.7 billion has been borrowed by students in the second quarter of 2017.
Types of Federal Student Loans
If you are thinking of getting a federal student loan, you should consider knowing the types of student loan programs offered by the government.
Perkins loan is one of the best choices for students. They feature a low, fixed interest rate and are available for student borrowers regardless of credit score. For undergraduate students, they can receive at least $5,500 per year cap, with a cumulative limit of $27,500. For graduate students, they can enjoy an $8,000 per year cap. The current interest rate is 5%. It also has a longer grace period of nine months.
However, the Perkins loan program will shut down on September 30, 2017. Nevertheless, all students who applied for Perkins loans for the school year 2017-2018 will continue to receive disbursements for the remainder of the academic year.
Stafford loan is considered to be the most popular government loan program since they can be used to pay for college education whether or not you are financially unstable. It also available for both undergraduate and graduate students.
Subsidized Stafford Loans
For the subsidized level, you will make payments after you graduate. For the meantime, the government pays your interest while you are still studying. For the academic year 2017-2018, the interest rate is 3.76%. Subsidized Stafford loans are provided to those who have real financial needs.
Unsubsidized Stafford Loans
In the unsubsidized level, you are responsible for paying off the interest. Similar to subsidized Stafford loan, they have a fixed interest rate of 3.76%. The limit of its loan ranges from $5,500 to $12,500. If you are more financially stable, you are eligible for a higher student loan.
PLUS loans are designed for both parents and graduate students. PLUS loan is being offered to parents of dependent undergraduate students while a GradPLUS loan is provided to graduate students who wish to support further their education.
PLUS loans are being funded by the federal government. For 2017, they have a fixed rate of 6.31%. Moreover, mostly they require a good credit score and are less flexible in their payment terms.
A consolidation loan is basically a combination of multiple student loan programs. Instead of paying for multiple loans, the payment is single. It also comes with a fixed interest rate and more flexible repayment terms, depending on the financial capability. There is no charge in consolidating loans. In fact, consolidation loans can lower your monthly payments, however, it can extend the time needed to pay off your loan. Further, there is a possibility that you can lose the benefits of a single loan program once consolidated.
Criteria to Qualify for a Federal Student Loan
Before you can be eligible for a federal student loan, there are standards requirements that you should accomplish.
Social Security number
You should have a valid Social Security number. SSN is a 9-digit number issued to (1) US citizens (2) permanent residents and (3) eligible nonimmigrant workers in the United States. You may obtain this by applying on Form SS-5 or the Application for A Social Security Number Card. For non-US citizens, you may read this government document.
Be a citizen
Immigrants who are undocumented are not allowed to receive federal or state aid. Permanent residents who have acquired green cards can apply for federal student loan. If you wish to be naturalized, you should apply for naturalization (Form N-400). To know more about how to become an eligible citizen, read this.
High School diploma
In case you do not have a high school diploma, you can present a General Educational Diploma (GED) or a certificate issued from a homeschooling program or institution.
Enrolled in an eligible school
You should also be enrolled in a school that is accredited by the federal government to receive student financial aid. There are some schools that are either unaccredited or do not want to receive federal aid.
A FAFSA or Free Application for Federal Student Aid is a form that should be completed by prospective college students (undergraduate and graduate students) to determine if they are eligible to receive a federal financial aid.
Good Federal Loan Standing
It is also a requirement that you do not have a bad history with any federal government programs. Students, and sometimes their parents cannot be in default on other federal loans.
2.0 Cumulative GPA
Students should maintain a 2.0 cumulative GPA. If they cannot maintain this grade requirement, they may lose their financial aid until their grades improve.
For male students between 18 to 25 years old, they should register with the selective service to be eligible for student loans. On the other hand, students must also be considered on a part-time status for them to receive federal aid. Each college institution will determine what part-time and full-time are. You can visit your financial aid office and ask how many credits you’ll need to take.
The number of credit repair companies has been increasing over the last couple of years especially with the increase in the number of people who are in search of the best credit repair services. However, many companies have today stood out to the best when offering these credit repair services to clients. Here is a review of the three best credit repair companies today:
Sky Blue Credit Repair
Sky Blue Credit Repair is a company offering clean up the errors services on the credit reports for many customers. When you hire them, they will always help you improve your credit scores. With their exceptional and simple program, you will always learn on the simple tricks that will help you understand modern credit repair issues better.
What are the benefits of choosing Sky Blue Credit?
The following are the benefits that you would enjoy when you choose Sky Blue Credit:
1. A Pace, which Delivers
They start fast while working smart to deliver you the best value in your industry.
2 The Pro Advantage
Unlike many other companies that offer no help choosing items to dispute, they will identify all subtle dispute candidates for the customers.
3. Intelligent Guidance
They offer you help on how to improve your credit scores easily. When they review your report, they will pinpoint on the specific actions you must take when optimizing your scores.
4. Easy Cost Structure
They will never charge your review/setup fee for six days. They will never start your monthly fees until a month later, and you do not need no confusing upgrades.
5. A Clear Guarantee
They are so sure customers will be thrilled with experience they offer a 90-day money-back guarantee. This means you will always get the best results when making your decision on what you would need especially when understanding credit repair.
Lexington Law Firm is a company that has helped millions of clients who want take action and repair personal credit, since it was founded close to 30 years ago. Lexington Law has offered expert credit repair services as well as experienced support to many customers. The firm is a vast credit repair professionals and attorneys network in the U.S. They work together to make sure customers get the highest credit repair service standards.
What services do they offer?
- Help you understand your credit score
- Know your credit report
CreditRepair.com is a company that will offer you professional credit repair services whenever you need the services. The company has a wide range of credit repair services that you would amaze you. With their services, you will be able to understand your credit score well.
It is very easy because:
- Super easy to fill online signup form since it will take you only 2 minutes
- All major credit cards and debit cards accepted
- You can cancel anytime with no pre-set obligation
- The cost is only $39/month
- Disputes are professionally managed by credit bureau
- Personal FICO score recommendations
- Special couples pricing are $69 for review per month!
In conclusion, despite all these amazing credit repair companies, sky blue credit repair was voted as the best credit repair companies October 2015.
Is your credit card debt in one chaotic mess? You’ll want to fix it quickly and with little effort. However being desperate for the solution can easily leave you susceptible to the, now all too common, credit repair scams. To make sure you aren’t be taken advantage of, follow these signs and be wary. Being asked to build a different credit identity. lf your credit repair organization tells you to make up a credit identity, this should be a huge red warning sign.
What you should NOT Do..
Do not agree to their request as it is an act of fraud, which can then be reported to the Federal Trade Commission. These type of scams typically involves you switching your Social Security Number to an Employer Identification Number. While this may temporarily “fix” your debt, it now presents a new problem, namely it being illegal. Also if the company request you to pay before they do the service, watch out As the Federal Law states that credit repair companies and organizations can’t demand money before doing the work.
Are there hefty upfront fee’s?
Another big warning sign, is if the company charges you without the option to cancel out within three business days. As mention above it is illegal to charge fees before the service is rendered if you are a credit repair company. Also having a choice to cancel out within three business days is required by law. This is so because you shouldn’t be locked in a contract without a choice to withdraw. Tells You It Can Remove Any Negative Information.
Information can only be removed if it is incorrect. If the information is negative, but is still accurate then the information cannot be removed. If any of the credit repair companies tells you that they can remove unwanted information, stay away as they are not being truthful or are breaking the law. If you have been scammed don’t let the credit repair organizations get away. You can take action by reporting the organization to your state attorney general.
You can also send a complaint to the Federal Trade Commission and the Better Business Bureau. Also remember that a credit repair company cannot do anything to improve your credit that you yourself can’t do. So next time before you ask for help from the credit repair companies, do some research first with the BBB, FTC and your state attorney general to see if there are any existing complaints about the organizations.
When unpaid and overwhelming credit card debt completely obliterated your credit score and make it impossible for you to get a mortgage, or even a car loan, the possibility of repairing a bad credit score can be an attractive promise. But can credit repair really raise your score?
Credit repair firms are thought to be a legitimate way to help improve a credit score. However, this is not entirely true. Credit repair firms can improve your credit score for a short period of time, by raising your credit score by a substantial number of points. But eventually, your score will plunge back downs, leaving you in the same or worse situation
“This however does not mean you cannot improve your credit score.”
Listed below are some slower, but sure ways to improve your credit score.
1. Pay back credit cards on time.
Putting away your credit card bills under the pile of mail, does nothing to help your score. Pull them out, and pay them up. Paying your bills on time and for full value, accounts to about 35 percent of your credit score. It singularly the most important rule of repairing your credit score.
2. Pay off all debt fully.
Small unpaid balances on many credit cards do more harm than good to your score. Repair your score by clearing these small balances, then selecting one or two cards and using them to make payments for everything. In this way, you are ensuring your credit report is not adulterated by many small credit balances.
Don’t apply for new credit.
If you already have more credit than you can afford to pay, applying for more credit will simply put a dent in your score. If you apply for more credit when you have not paid off your current debt, you will make the task of repairing your score more daunting than is necessary.
3. Keep your credit utilization low
If you have a card with a limit of $5000, but you only spend 1700 per month, you are only using about 34 percent of your credit limit. If however, your credit is suddenly reduced to $2000, then you will be using more than 80% of the total credit available to you. It is hence important to pay back your debt as fast as possible to avoid having your credit limit drastically reduced.
So can credit repair really raise your score? The answer is yes. It is a slow and rather arduous task, but yes, credit repair can help to raise your score. Contact us for more information on how to repair your credit.