Student Education Loan

Student Financial Aid

Student Loans

Shifting gears here, I will be going over the cruel and Future-Warren-Buffett-Wealth-Dream-Crusher that is – Student Loans. Digging yourself more and more into debt is not something that people ever want to do. With most college students however, it has to be done. College education is becoming increasingly more and more expensive nowadays. Many families cannot afford the $20,000+ a year tuition that most large universities charge. This is where student loans come into play. First lets layout your options…

Their are two main types of student financial aid loans: Federal and Private. Federal student loans are handed out directly from the government, generally have lower interest rates, and are given to those more “in-need” first. Federal loans come in different categories, as well: Perkins, Direct Subsidized & Unsubsidized, and Direct PLUS.

Perkins Loans carry an interest of 5% and are given to those with HIGH financial need. Those that are able to receive Perkins loan funds can borrow a maximum of $5,500 per undergraduate year of study (4 years = $22,000).
Direct Subsidized and Unsubsidized loans are different in the fact that a student has to demonstrate NEED to receive the subsidized loan, whereas anyone can receive the unsubsidized version of the loan. The other main difference is that subsidized loans DO NOT accrue interest while enrolled at least half-time in school. Unsubsidized loans accrue interest while in school which the borrower can pay off in-school or after graduation. For both of these loans, the university is the deciding factor as to how much money each student receives.
Direct PLUS loans are taken our directly by the parents. Since the parents generally have better credit than the students, more money can be borrowed by utilizing this type of loan. ONLY DEPENDENT students are allowed to receive funds from a Direct PLUS loan.

Private loans on the other hand, carry HIGH interest rates but, more money can be borrowed. Financial need is not a determining factor with private loans however, your cost-of-attendance cannot be exceeded. During my freshman year, I did not know about federal loans and I took out a $20,000 loan with a 20% APR. Now, that may not sound like a lot to many of you however, one year into school, I had already accumulated an additional $1,000 in interest. My take home message about private loans – use them as a final resort.

Cosigning
For many young adults, cosigning is just another term that mom and dad throw around when talking about finances. When college comes around however, students will know hassle of for cosigning on a loan. Let me start of by saying, federal loans DO NOT require a cosigner. Private loans on the other hand, do require a cosigner. For example, no-credit Timmy goes off to college, takes out a $20,000 loan from a private lender, and needs a cosigner. Well, when mom or dad signs onto that loan, it sticks with their credit report until that loan is paid off. With a $20,000 debt on their credit, this could limit their ability to take out future loans for themselves. Student loans are not generally paid off until years and years AFTER graduation therefore, this loan could stick with them for a long time. This is another reason that I strongly suggest federal loans over private loans.

Financial Aid Eligibility
EVERY student wanting federal financial aid, has to fill out the FAFSA. FAFSA stands for Free Application for Student Aid. What this does is it determines each borrower’s financial “need” in order to give out appropriate amounts of money… and no, you cannot lie on it. The government hands out money on a need-only basis. Without them knowing a borrower’s need, they are not able to determine how much money to lend to that student. The FAFSA takes into account family income, wealth, cost-of-attendance, location, and many other financial factors. Generally, students who have wealthy parents, receive less financial aid. Plain and simple. After a student fills out the FAFSA, it gets processed, and then an EFC is given. The EFC stands for Estimated Family Contribution, in other words, how much mommy and daddy are willing to pay. Now, this is not how much money THEY are willing to pay, this is how much money the government thinks they should pay out of pocket. In order to determine how much money a student may receive, the university subtracts the COA by the EFC which equals your D-E-B-T. For example, if the COA of a university is approximately $10,500 per semester and the EFC of a family is $4,500 per semester, the loan amount per semester will be roughly $6,000. If mom and dad do not plan on paying the $4,500, the difference can be made up by taking out a Parent PLUS loan or by a private student loan. The government and their selfishness…

Financial Aid Refunds
Yes, some good can come out of student loans and that is – REFUNDS! Refunds occur when the amount lent by the government exceeds your tuition for a particular semester. For example, if a student is eligible for $10,000 per semester, but only needs $6,000 for tuition, the refund comes out to be $4,000. This $4,000 is normally deposited directly into the student’s or parent’s bank account. The refund is supposed to be used for books, housing, food, etc. What college student is going to buy books before beer? It’s not everyday that you get a ton of money just handed right to you, unless of course you are a stripper.

I think this pretty much sums up the debt building process. All in all, student loans are not that bad if you are going to have a way to pay them back after school. Not to sound harsh but, if you are planning on becoming a citrus fruit farmer and take out $40,000 in loans, I doubt you will be able to pay them back.

If you just started a new business, you may be wondering “What are the most powerful first steps I can take to market your services?” I know it’s overwhelming because there are so many exciting marketing opportunities. However, there are three particular methods that you can count on to jumpstart your business and get the traction you need to begin building.

1. Meet new people through networking

In order to find new clients, you want to meet lots of new people! That’s where networking comes into play. Do a search online to find the networking groups in your area and look for BNI which is also a referral group. Don’t forget about associations as well, which can be a rich source for potential clients. There are also philanthropic groups such as the Lions Club and Rotary Club that work together to help the community or chosen charities.

2. Start speaking to groups

Decide what your signature talk is and then find places to present it. The more groups you can speak to, the more you are seen as an expert in your field. Many of the networking groups, associations and clubs that you visit are looking for speakers. So, while you may visit at first to meet people, your second objective is to ask if they are looking for speakers.

One thing that can help is to write up a one-page document that pitches your signature talk. Come up with a snappy headline, keeping the problem you are solving in mind. Then include a list of benefits attendees gain from hearing what you have to say.

3. Start building your ezine list

Writing and distributing an ezine is a powerful marketing tool for any business. Once you start networking and speaking, it will be easy to build a list of people to market your services to. The ezine becomes your way to:

- Stay in touch

- Keep yourself top-of-mind

- Share tips and advice

- Set yourself up as an expert

- Offer products and services

Weekly or bi-weekly emails work best to get your readers engaged and in the habit of expecting your ezine. As you grow, you can add other emails to announce special offers or events. Shorter emails are more likely to be read. A catchy subject line will be the hardest working piece of the email to get people to open and read it.

I recommend using AWeber to manage your database and send out emails if you’re starting out. This service is easy to use, inexpensive to start and allows you to send professional looking emails that get through spam filters.

Your Client Attraction Assignment

Start by brainstorming topics to write about for your ezine. Think about all the subjects your ideal clients want to know about and how to solve their problems. Then you can start writing articles and create a stock pile for future use. It can be easier to sit down and write a few articles at a time to get a flow going.

Fabienne Fredrickson is founder of ClientAttraction.com, ranked on the Inc. 500/5000 List of America’s Fastest Growing Private Companies in 2011. ClientAttraction.com is devoted to teaching entrepreneurs around the world how to consistently attract ideal, high-paying clients, put their marketing on autopilot, shift their mindset towards abundance and take a no-excuses approach to creating a highly successful and meaningful business, while working less. Through her workshops, courses, coaching programs, and products, Fabienne shows her students how to go from 5-figures to 6-figures in their business and then from 6-figures to 7-figures, while experiencing freedom and creating an abundant life they love.

As a college student you no doubt need extra money. Therefore, starting a business is probably something you have considered. I personally thought about and looked into various business opportunities for nearly five years before I finally started one just before my last two years as a student. Starting and running a successful business as a college student can be challenging. Learn from my experiences and mistakes and start your own successful business while still a student.

1. Take the time to plan and carefully consider which business you are going to start. This is crucial to your success. Chose a business you can run successfully not only while you are a student as well as later after you have graduated. You also need to choose a product or service you are passionate about. This will make running your business much easier.

2. Think about your talents and resources. For most college students it will probably make more sense to start a home business such as with a network marketing company or a service business such as web design or courier services. Make a list of all of the possibilities you can create plus the advantages and disadvantages of each one. If you can, try and talk with other college students who have their own businesses or with other successful business owners who started their businesses while they were in college.

3. Take advantage of special discounts and resources available to you only as a student. For example, you can get discounts on printing flyers, air plane tickets, tickets to events and more.

4. Network with other students as well as other business professionals. Take the time to join your local chamber of commerce and attend the meetings and events regularly. This will not only grow your client base and your contact base but it will also make you more known in your community and people will see that you are serious and professional about your business.

5. Avoid too much debt but we willing to spend the money you need to spend to get the results you are seeking. You may have to take out a loan for this and in many cases it will pay off but just be certain you absolutely need the money to run your business and that you have a specific plan for using the money.

6. Have goals for both the short term and the long term. What do you plan to accomplish with your business not only while you are still a college student but later on after you have graduated as well? Write down your goals and read them daily. This will help you to remain focused on your ultimate goal of running a successful and profitable business.