A Breakdown of How Student Loans Work
Federal student loans are often the first step for students looking for help paying for college.While theyre not the only type of loan available for college students, theyre the most common. It’s also important to note that they’re different than private student loans. Here are some of the main differences:Federal loans offer lower interest rates and have more flexible repayment terms than private student loans.Private loans usually require a credit check and collateral, while federal loans dont. Some federal loans may only require proof of need.Interest rates are fixed on federal loans, while private loans can have variable interest rates, some greater than 18 percent.Interest paid on federal student loans may be tax deductible, but not on private loans.Many private student loans require payments while youre in school, while repayment of federal student loans don’t begin until you graduate, leave school or change your enrollment status to less than half-time.Following are the four types of student loans offered by the federal government:Perkins Loan. Eligibility depends on financial need and availability of funds at the college. The college is the lender. Undergraduate students can borrow up to $5,500 annually and graduate and professional students can borrow up to $8,000. The total loan amount cant exceed $27,500 for undergrads and $60,000 for grad students.Direct Subsidized Loan. This federal loan is for undergrads who are enrolled at least half-time and demonstrate financial need. The lender is the U.S. Department of Education. Students arent usually charged interest on the loan during certain periods, with the federal government paying the interest while the student is in school. The loan can be anywhere from $3,500 to $5,500 per year, depending on grade level.Direct Unsubsidized Loan. These loans are for students who are enrolled at least half-time. Financial need isnt required. Borrowers pay interest during the length of the loan to the Department of Education. Loans can be anywhere from $5,500 to $20,500, depending on grade level and dependency status.Direct PLUS Loan. This loan is for parents of dependent undergraduate students and for graduate or professional students. Proof of financial need isnt required. This is the only federal student loan where a credit check is needed. A borrower cant have a negative credit history, and must pay interest throughout the loan to the Department of Education.Published with permission from RISMedia.
5 Improvements That Can Increase Your Home's Value
Implement these improvements that can increase your homes value…Updated KitchenUpgrading your appliances and replacing dated countertops can transform your cooking space.Outdoor LivingAdd a fire pit or barbecue area to your patio where people can envision themselves hanging out.Eco-Friendly FeaturesEnergy-efficient windows and appliances have major appeal to those looking to lower their impact on the environment.Well-Appointed BathroomsNew tiles and countertops will make the bathroom feel fresh and luxurious.Increased Curb AppealFirst impressions matter. A new front porch or walkway can pay off when its time to sell your home.Published with permission from RISMedia.
How Seniors Can Save on Car Insurance
Auto insurance rates typically rise for senior citizens, who can be more accident-prone than they were in middle age with slower reflexes, changes in hearing or vision, and health conditions that can make driving difficult.Older drivers are also more likely to die or suffer worse injuries in auto accidents than younger people, requiring expensive treatment. That can lead to higher costs for insurers, which are passed on to drivers.Senior drivers can lower their auto insurance costs in a few ways:Take a class: Many states require discounts for completing a driver safety course. AARP offers many of these classes, which can reduce premiums by 5-15 percent.Pay as you go: Seniors can save up to 40 percent by using pay-as-you-go insurance programs where a device is installed on their car to record mileage and driving habits. Speed, braking tendencies and acceleration are collected and people who drive safely can have lower insurance premiums.Drive less: Chances are youre no longer commuting if youre a senior driver, so be sure to alert your insurance company to your annual mileage change. Driving about 7,500 miles per year or so can save about 10 percent on insurance. A device tracking your mileage can tell your insurer how few miles youre driving.Less coverage: If you go to a second home for the winter and leave your car at your primary home, ask your insurance company if it offers parked vehicle or snowbird coverage during the months youre not using your car.Get a safer car: If youre thinking of buying a new car, you can save on insurance if it has the latest safety features. Rearview cameras, lane drift warnings, collision warning systems, parking assist, among others that arent even on the market yet, can lower insurance rates.Group discounts: Groups such as AARP have promotional pricing, called an affinity discount. If youre a retired teacher or government worker, for example, your union may have a group discount for members.Stop driving: This is an extreme way to save money, but if your auto insurance rates are high because you have a poor driving record, it may be time to stop driving entirely.AARP says that some of the signs that youre having difficulty driving include frequent close calls, dents or scrapes on your car, getting lost in familiar locations, trouble seeing or following traffic signals or signs, confusing the gas and brake pedals, misjudging gaps in traffic at intersections, and having difficulty turning around to check the rear-view mirror while back up or changing lanes.Hope these tips proved useful! Feel free to contact me for more information.Published with permission from RISMedia.
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