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Student loans

Few areas of credit are as complicated today as that of student loans. There are many types, with lots of terms, complicated conditions, and fine print. But studying those options is important in order to make the best long-term choice for education funding.

One of the most common options is a Stafford loan. Hundreds of thousands of students have used these as a means of partially financing their education and they do have some positive aspects.

The Stafford loan has no pre-payment penalty - you can pay off any remaining balance any time. There's no credit check performed, so almost everyone will qualify. There are no payments required while the student is taking courses, provided they maintain at least a half-time status. And, after leaving school there's a six-month grace period during which no payments are required.

But there are limits on the amount that can be borrowed in one year. Also, though Stafford rates often look attractive relative to ordinary loans, they contain additional charges that can make the cost of borrowing higher. Up to 3% in fees (including a 2% Federal 'origination fee' and a 1% Federal default fee) can be applied.

Further, there are plans in which the repayment is made over a 10-year period. That may sound attractive given the relatively low monthly payment it typically entails ($116 per month in the following example). But the amount of interest accumulated on a 7% loan of $10,000 (and most students borrow more) over 10 years is: $3,933. That's over 39% of the original amount paid in interest. Definitely, not cheap money.

Though it may involve beginning repayment immediately, many parents attempting to help finance their son or daughter's education will find it worthwhile to investigate other alternatives. Even students should make an effort to look for other routes, including a combination of grants, scholarships, and conventional loans repaid with money earned from part-time work.

Savings plans, of course, are one of the best options to investigate and the sooner they're started in the child's life the better. The risk with all such plans is that inflation, financial crises, and other unpredictable elements can cause that investment to be worth very little by the time it is needed.

Investigate options - tax-free municipal bonds, inflation-adjusted hedge funds, and others, for example - that can help offset those effects.

Regrettably, there is no easy way to finance today's high cost of education. But doing the necessary homework to investigate all options will save all concerned time and headache in the long run.

Wall Street Fraud Watchdog Warns All Investors About Wall Street Brokers and ...

The Wall Street Fraud Watchdog is warning investors worldwide to be very careful of what Wall Street calls cash equivalents, such as failed, frozen, or devalued auction rate securities, products like Schwab Yield Plus and or a product sold by TD Ameritrade called Reverse Yield Plus. According to the group,"if you were sold one of these products, and your investment was devalued, or frozen, we want to hear from you. While we are on the topic, we are warning all investors to have your broker or bank investment advisor confirm in writing that your US tax free municipal bonds or VRDN's are 100% safe. We do think a US stock broker or bank investment advisor will put in writing that the US tax free Muni is 100% safe. We expect the US Municipal Market to crash in 2009, because of dramatic declines in US property tax & retail sales tax revenues." Investors or victims can contact Americas Watchdog's Wall Street Fraud Watchdog anytime at 866-714-6466, or visit their web site at Http://WallStreetFraudWatchdog.Com for more information. (PRWEB Nov 20, 2008)

Read the full story at http://www.emediawire.com/releases/2008/11/prweb1644314.htm

Personal bankruptcy figures for 2008 are approaching 1,000,000 according to statistics from the Administrative Office of the US Courts. The ongoing economic turmoil and collapse of the mortgage markets continue to pressurize household finances. (PRWEB Nov 20, 2008)

Read the full story at http://www.emediawire.com/releases/Bankruptcy_Information/Filing_Bankruptcy/prweb1632664.htm