Student mistakes in business and what you can do differently. The big student loan debate is perhaps one of the most contentious in the country. While most students agree that borrowing money through student loans is the only way they can afford to pay for college, many find it quite a burden to repay those loans upon graduation.
Although New York State is testing its unique solutions for free tuition at public 2-year and 4-year colleges in exchange for academic progress and post-graduate residency, students in other states must deal with the current lending situation.
Unless the Department of Education comes up with new guidelines for student lending and repayment, here are some student loan mistakes that can get students and cities in trouble, and some recommendations for what you can do differently:
Error: Assuming you have to accept the student loan offer as outlined in your school's financial aid package.
Solution: Stop assuming and understanding exactly what you are investing in in the future. Understand your financial aid offers, carefully compare colleges, and do not borrow what is stated in your letter.
You and your parents will commit to 10 to 30 years of repayment, so use the federal student loan repayment estimate to find out exactly what that entails. If you can find money through other sources, do it first, then borrow less than what is offered.
Mistake: Looking at student loan money as a kind of “refrigerator” to use at a random college expense.
Solution: After making the first mistake and over-borrowing, students then reduce this mistake by recklessly spending the money they receive. While it is a good investment to use these funds on tuition, room and water, and appropriate college-related expenses, many opt for a poor investment and use them for daily living and entertainment expenses.
They don't realize that interest in all that money is being raised and that the seemingly innocent $ 100 spent on a night of fun now ends up costing hundreds of dollars in the future. Make a tight budget, stick to it and find other ways to get money for those various expenses out of your pocket.
Solution: After four to six years, or more, of a carefree life, students finally graduate and continue to seek life's rewards. They may take the gifts they received and buy a nice car or enjoy a vacation before you really fit into the business of finding a job.
After about six months they get a rude awakening when payment notices start to come in and have no payment plan. One of the first tasks after graduation is to handle student loan debt.
Find out exactly how much money you have borrowed, who your loan services are, and what your monthly payments will be. Save some of that cash while looking for a job after college. Once you have projected your income and living expenses, compare them with the amount you owe.
If you have more money than you have come, contact your lending officers immediately to discuss alternative repayment plans or eventual loan consolidation.
It's too late to wait for the bills to start appearing, as your debt will continue to rise, along with late fees and additional interest, as you try to come up with a payment solution.
The biggest mistake is waiting too long for any post-graduation action. Young adults in their first months of handling their own financial situation may not realize how quickly they become a deep financial hole.
They are missing payments or two, realizing that it is no big deal and they are not taking any action to resolve the situation. Then things really start to get out of hand and end up facing a situation where they are owed more money than they can realistically expect to pay off. Student loans are great support, but think before you borrow.
New guidelines for student lending and repayment
Unless the Department of Education comes up with new guidelines for student lending and repayment, here are some student loan mistakes that can get students and cities in trouble, and some recommendations for what you can do differently:
Error: Assuming you have to accept the student loan offer as outlined in your school's financial aid package.
Solution: Stop assuming and understanding exactly what you are investing in in the future. Understand your financial aid offers, carefully compare colleges, and do not borrow what is stated in your letter.
You and your parents will commit to 10 to 30 years of repayment, so use the federal student loan repayment estimate to find out exactly what that entails. If you can find money through other sources, do it first, then borrow less than what is offered.
Mistake: Looking at student loan money as a kind of “refrigerator” to use at a random college expense.
Solution: After making the first mistake and over-borrowing, students then reduce this mistake by recklessly spending the money they receive. While it is a good investment to use these funds on tuition, room and water, and appropriate college-related expenses, many opt for a poor investment and use them for daily living and entertainment expenses.
They don't realize that interest in all that money is being raised and that the seemingly innocent $ 100 spent on a night of fun now ends up costing hundreds of dollars in the future. Make a tight budget, stick to it and find other ways to get money for those various expenses out of your pocket.
Mistake: Keep your head in the student loan after graduation.
Solution: After four to six years, or more, of a carefree life, students finally graduate and continue to seek life's rewards. They may take the gifts they received and buy a nice car or enjoy a vacation before you really fit into the business of finding a job.
After about six months they get a rude awakening when payment notices start to come in and have no payment plan. One of the first tasks after graduation is to handle student loan debt.
Find out exactly how much money you have borrowed, who your loan services are, and what your monthly payments will be. Save some of that cash while looking for a job after college. Once you have projected your income and living expenses, compare them with the amount you owe.
Eventual loan consolidation
If you have more money than you have come, contact your lending officers immediately to discuss alternative repayment plans or eventual loan consolidation.
It's too late to wait for the bills to start appearing, as your debt will continue to rise, along with late fees and additional interest, as you try to come up with a payment solution.
The biggest mistake is waiting too long for any post-graduation action. Young adults in their first months of handling their own financial situation may not realize how quickly they become a deep financial hole.
They are missing payments or two, realizing that it is no big deal and they are not taking any action to resolve the situation. Then things really start to get out of hand and end up facing a situation where they are owed more money than they can realistically expect to pay off. Student loans are great support, but think before you borrow. 
The origination fee is the fee you pay the lender to process your loan application. Depending on your lender, costs can be linked into one line item, or they can be line items.
Typical origination fee names include application fees, insurance fees, and processing costs. Lender fees can also include "points," which are optional payments that allow you to get a lower interest rate.
The term “processing fee” doesn't tell you much, but lenders charge these fees for all the tasks required to close your loan. Some of these features include:
If you are hesitant to pay thousands of dollars in tax credit, you have several options.
Shop around: With every significant credit, it is essential to get quotes from at least three different sources.
Compare the lender's interest rate and total costs to find the best solution. The specific names used for origin taxes are less important than the total dollar amount.
Just pay: The simplest approach is to pay upfront fees. This is also the best approach, but at least you will know how much you are spending and you have the opportunity to get lower rates when paying up front. Advertisers can promote credits at no charge, but no one works for free. The less you pay, the higher your rate will be.
Get Loans: You can choose to take a higher interest rate using negative points if it makes sense to do so. By accepting a higher rate, your lender will make funds available (known as loan lenders) to pay for closing costs. But it's best to do it with a transparent lender that shows you a few options - with and without credit facilities. At a higher rate, you will pay more interest over the life of your loan, so the negative points make the most sense when you keep the loan short.
Negotiate: Ask your lender to waive the origination fee without changing the interest rate. You may fail, but you never know unless you ask. You have the best chance of saving money if you have great loans, an uncomplicated source of income and a relatively large loan.
Get Gifts: If you have generous relatives, ask your lender about paying gift tax fees with gifted funds. The money may need to come from a family member who is willing and able to help you document it in writing.
Seller concessions: If you are buying property (as opposed to refinancing), the seller will be able to pay some closing costs for you - as long as the purchase agreement allows it. Even in the seller's market, this might be an option if you adjust your bid price to reflect the concession.
Origin costs depend on several factors. You might expect to pay only 0.5 percent for processing costs, or somewhere around 2 percent at the higher end. However, the devil is always in the details, and you have to weigh the fees with other factors - such as your interest rate - in mind.
For larger loans, fees should be at the lower end of that range. However, small loans do a similar job, so lenders can pay relatively high tax rates.
What about points? Remember origin and discount costs pay for different things. The discount point lowers your interest rate, and origination fees reimburse your lender for closing the loan. However, the term “credits” is used informally to refer to one percent of your loan amount, whether you are talking about processing fees or discounts. He always asks for clarification if you are not sure what to borrow.
This type of loan is intended to help households. It is intended to finance purchases and services. The money can finance the purchase of a state-of-the-art household appliance, automobile, computer. It can be used in repair, renovation and fitting out of premises. The money can finance a wedding, a trip or medical expenses. It can constitute a small cash for unforeseen expenses.
The personal loan ranges from 500 dollars to 75,000 dollars. The amount depends on the borrowing capacity of the borrower. The repayment period ranges from four months to 60 months. The borrower must have a stable job and regular income. His banking education is excellent because he is not on file.
In the contract, the lender indicates all the fees, the total cost of the credit, the APR and the cost of the insurance which is optional.
To get the right offers, you have to carry out a credit request simulation and go to a specialized site. The simulator is free and without obligation. The borrower will know his debt capacity, the amount that suits him, the duration, the best APR and the monthly payments. The borrower compares the offers. He chooses the best offer.
The practicality of the personal loan is explained by the possibility of negotiating it entirely online. In case of agreement, the funds will be released, in their entirety, by transfer. 
