Should you get Financial Aid For Students? 

If you have finished you high school and looking for college to join or having plans to join a college or if you looking for a career change or a single mom or dad struggling with low wages and want to make a decent living for betterment of life Everyone knows that working towards a college degree is very time consuming and expensive, but does it really pay off? Most of the jobs created now-a-days require education beyond high school. Job promotions are based on many factors out of which college degree is also important. The federal government estimates that the average college graduate will earn $900,000 more in their career than the average person without a degree. Looking at all these paying for college now is for you future betterment. Question here is how are you going to pay for your college? Since paying for college is expensive, most of the students would not be able to pay without financial assistance, that’s were the Financial Aid kicks in. First Step is filing the Free Application for Federal financial aid for Students,to get help from government for paying the college. Students are considered dependent of their parents while married folks are treat in a different way, then citizen information is gathered, if you not a citizen your resident status must be given, also your W2 status must be given based on your dependency. With all the information fill out the FAFSA form carefully and sign and mail the application to the given address, also you can fill this online (PIN will be required). 

Once the application reviewed and the loan amount is set based on the information you have given, your school will contact you regarding your loan information that is being offered to you by the government.

 
 
 
 
 
 
 

Should you get Home Equity Loan?

 

 

 

 

 

At difficult times when there is a need for money to run the family or to pay of a huge debt or any other financial needs, it is always tempting to borrow money by pledging your valuable asset, house as collateral, mostly people with bad credit line or those you want huge amount of money would go for Home Equity Loan. Home Equity Loan is second type of mortgage, money lenders are more attracted towards this type of mortgage as safe as home can’t disappear anywhere and the lenders consider this as collateral to get their money back.  You also get lump sum money with fixed interest rate over a limited period of time usually 10 to 15 years.

Home Equity Loan Line Of Credit

Home equity lines of credits or HELOC, are revolving credit accounts that are protected by a home’s equity. Home Equity Loan line of credit on the other hand works like a credit card, the borrower is assigned a credit line, you pay back only what you use plus interest, when you get your loan you usually get a check book or credit card and you pay estimated monthly payments on you outstanding balance.

Drawbacks of Home Equity Loans

Getting home equity loans as it is more appealing it also comes with drawbacks, first thing is that if you are not able to pay the debt you are going to lose your most valuable asset your home for fore-closure.

Next thing is be sure that the parties you are working with are legitimate otherwise you can be cheated.

Drawbacks of Home Equity Loan Line of credit

The Primary drawback of Home Equity line of credit is the increased risk from rising interest rates, all the home equity line of credit has adjustable interest rates not like the ARM’s, Market plays an important role in the rate changes.

Home Equity Loan – Additional TIPS

Before making a deal be sure that which one suits your needs either going for Home Equity loans or Home Equity Loan Line of credit. Plan budget accordingly, and the loan amount should not be overburden to you. Most importantly think of taking a insurance or include it in the program.

if your reason for taking out a loan or line of credit is to help pay for years of living above your limit and you haven’t taken steps to control your spending, you are putting your home at risk.

Also if you consider taking a loan or HELOC for tax break reasons, bare in mind that the tax interest deduction is not calculated for dollar to dollar but just a percentage.