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Posts Tagged ‘Student Aid, Loans’

Free Credit Reports Aren’t Always Free

August 1st, 2008 by Matthew C. Keegan | 3 Comments | Filed in Consumer Financing, Credit Reports

Free credit reports. You’ve seen these types of ads before: if you use XYZ’s service, then you can get copies of your credit reports for free. Well, in reality what they are saying isn’t wrong, but you don’t need this type of service to get your copies for free.

free credit reportYour personal credit reports are available to you for free from each of the Big 3 credit reporting bureaus. Beginning in 2005, Equifax, Trans Union, and Experian were instructed by the U.S. Congress to supply one copy of your credit report to you for free annually on demand. If you choose to order more than one copy from the same bureau within that year you will pay for your report. Moreover, if you want your credit score, you’ll have to pay a fee for this service, generally costing you between $4 and $7 per reporting bureau.

Credit Reports, Credit Scores, Credit Monitoring

On the other hand, there are companies who market free credit scores as part of their package of selling to you copies of your credit reports and credit scores. In these situations you are paying for what is already for free elsewhere while getting your credit score included with that price. Essentially you are getting your credit reports and the free credit score as part of a package which usually includes a credit monitoring service as well. Regardless, you will probably pay more for the combined service than if you were to do the work yourself. Again, since it is a service that you are buying, expect to put out some cash if you choose to go with the free credit score with credit report package angle.

Congressional Mandated Credit Reports

For consumers wanting to bypass these types of offers, a visit to AnnualCreditReport.com is a must. Once again, with this scenario your credit report will be free but don’t look for a free credit score. The previously mentioned $4 to $7 fee will be charged to your credit card, but only if you choose to get your score.

Like so many ads you would do best to shop around and read the legal print. Yes, companies do provide a service by offering reports and scores to you. For some consumers this is a great way to have someone remind them to get copies of their reports and scores along with the added benefit of monitoring your credit for you.

Get Your Credit Reports ASAP

Regardless of what method you choose to obtain this vital information, make certain that you obtain a copy of your credit report and scores today. If you are getting ready to make a major purchase (house, vehicle, college tuition) and expect to borrow money, then obtaining this information in advance of applying for a loan is important. Most credit reports contain errors, mistakes which when corrected can lower your interest rates while increasing the odds that you’ll be approved for a loan.


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Federal Student Loan Aid Falls Short For Many American Families

October 15th, 2007 by Matthew C. Keegan | 3 Comments | Filed in Student Aid, Loans

We have some good news and some bad news for you. First the good news: President Bush signed legislation that has recently gone into effect to help families cope with rising college costs. In a nutshell, aid amounts have been increased while Stafford federal student loan rates have dropped. Now for the bad news: The new law only goes so far as many American families will still have to borrow money to pay for their student’s higher education.

Federal Financial Aid or Private Student Loans?

Although the news is both good and bad, families still have some strong options at their disposal. Financial aid is widely available in the form of both federal student loans and private student loans. Is there a difference between these two college loan choices? Yes, so let’s take a look at how these options work and what they can offer for you:

Stafford Loans – Named for Senator Robert Stafford of Vermont in honor for his work in higher education, Stafford loans is the federal guaranteed student loan program managed by the U.S. government. College loans are backed by the federal government and, therefore, carry a lower rate than private loans. Strict eligibility requirements and borrowing limits are two important attributes of these types of loans.

Private Student Loans – As the name implies, these loans are offered by private financial institutions, such as banks. Private student loans can be used in place of Stafford loans or as a supplemental loan. Undergraduate and graduate students can borrow as much as $40,000 annually or up to the full cost of annual tuition and expenses less financial aid received, whichever is less. Because this type of college loans is unsecured, rates are usually set much higher than federal student loans.

A Two-Tier Student Lending Plan

Both private student loans and Stafford loans allow students to wait until after graduation before repayment on the loan(s) is required. Many students take a look at federal financial aid first and use private student loans to fill in the gap between what they can borrow and their actual expenses. This two-tier financing approach allows borrowers to secure low rate federal student loan aid while limiting what they will need to borrow from banks or other private student loan providers.

Shop and Compare Private Student Loans

Worth noting is that when it comes to private student loans, each lender sets their own terms, rates, and qualifications. Therefore it pays to shop and compare before choosing private financing.

Higher Education Is Within Your Reach

Although the borrowing aspect of financing your education can seem daunting, it does provide options that allow you to get a college education in the first place. Carefully examine your choices to come up with the best financial aid package that is right for you. Please visit the SayStudent website for aid information and free, downloadable tools.


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