Lawmakers target credit-card issuers that appeal to college students with gifts and prizes, but universities’ lucrative affinity deals evade regulation Citibank (C) pitched an offer at Ohio State University that few college students would refuse: free food.

A company hired by the bank plastered the Columbus campus with advertisements for free sandwiches at a local haunt, Potbelly, and free burritos from La Bamba restaurant. The only catch? Students had to submit a credit-card application before any free food crossed the counter.

The food-for-credit application scheme caught the attention of Ohio’s attorney general, Marc Dann, who sued Citibank on Sept. 19, alleging that the campus advertisements violated the state’s consumer-protection laws. Dann has partnered with students and professors at Ohio State’s Moritz College of Law to prosecute the suit, which accuses Citibank of using bait-and-switch advertising, failing to clearly state conditions of the offer, and tempting students with a prize without disclosing all the conditions. The suit seeks more accountability in credit-card marketing practices. “Citibank is starting out the marketing deceptively and banking on the fact that these kids won’t read the fine print,” Dann says. (more…)

The cost of university education continues to outpace the consumer inflation rate, putting an even greater burden upon the shoulders of financially squeezed families. With annual education costs exceeding $30,000 or more at some universities, the financial burden is particularly profound even when some sort of assistance is made available. Online education costs are on the rise as well.

Government student loans have long been an important way to help students complete their education with private student loans now gaining in importance too. Let’s take a look at the advantages and disadvantages of funding higher education through private student loans.

When it comes to college financing, often the sticker price is one thing, but the actual cost of education is something different. Depending on the aid offered, students can expect to receive anywhere from a full scholarship to not being offered any financial assistance. In most cases, the cost of education lies somewhere in the middle once family income, assets, and other factors have been taken into account.

The amount remaining after financial aid has been factored in is what must be paid to the school, an amount that can vary each academic year. This gap is what often prompts families to consider financing options, with government-backed student loans being one option and private student loans another one.

Private student loans have several advantages to them including:

* Quick approval process: (more…)

Like debt consolidation of all loans you too can go for student loan debt consolidation of your federal student loans. Though there are no deadlines in federal loan consolidation programs, there are certain things to keep in mind: • Your loans have to be fully disbursed to be eligible for Federal Consolidation Loan program. • You are no longer enrolled in school.

• You are actively repaying your loan (including deferment or forbearance), or are in your six-month post-graduate grace period.

• Your minimum consolidated loan amount is $10,000.

The best time to go for student loan debt consolidation of your federal student loans is when you still are in your grace period, because of the in-school lower rate of interest.

Every student has his or her reasons for going in for student loan debt consolidation, and so would you. Look at some of the reasons why you should go for student loan debt consolidation of your federal student loans: (more…)

Consolidating loans has become the most common way in which students are solving their educational indebtedness today. Student loan consolidations have become so common, in fact, that students do not pause to think what they are actually setting out to do. Let us objectively discuss what student loan consolidation is, and see in what manner it benefits students.

A student may have taken several federal and private loans in order to complete different courses in his/her educational life. When the student graduates, paying these loans back becomes a very tedious and burdensome process. This is when the student contemplates consolidating the loans. Consolidation is the process of blending all the loans into a single loan, with a single rate of interest. The rate of interest on a consolidated loan is generally lower than the rates of interest of all the original loans. After consolidating, the student will have to pay only one loan back, with just only payment to make every month. The biggest advantage is, that monthly payment would be significantly lesser than all the earlier payments combined. (more…)

Maintaining a debt free life can be easier to achieve if you avail yourself to using the detailed counseling and management advice offered by debt reduction services. Often people who are heavily in debt are looking two options. The first option is drastic and includes filing for bankruptcy protection which will either eliminate or drastically reduce your unsecured debt. The other option is to use a debt reduction or consolidation service to manage your debt and help you develop a plan to get out of debt.

You should try to do everything you can to avoid bankruptcy, as that will be reported on your credit report for up to 10 years. Using a debt reduction or consolidation service will allow you the time you need to pay off your debt while allowing you to meet your responsibilities to your creditors, which is looked at much more favorably than filing for bankruptcy, thus doing less damage to your credit report. (more…)

Student debt consolidation program is an easy way out for students and parents who are grappling with the multitudes of paperwork and due dates for each loan that has been taken for education. There are many types of loans, which the students can take for their education. Broadly speaking, they are Federal Loans and Private Loans. Let us discuss in details the basics of Federal Loan Consolidation.

An Overview OF Federal Loans

Federal loans are sanctioned by the U.S. education authorities and are usually approved easily. The different types of federal loans which are eligible for student debt consolidation are: (more…)

Rates on two major federal education-loan programs will not rise significantly this year, welcome news for students and parents needing help funding college tuition. Starting July 1, interest rates for older Stafford and PLUS loans will rise 0.08 percentage points. For borrowers of the need-based Stafford loans who are still in school, interest rates will rise to 6.62 percent, while PLUS loan rates will rise to 8.02 percent, according to student-loan provider Sallie Mae.

For those who have already begun paying back their Stafford loans, the interest rate will be 7.22 percent.

The rate changes are small, but parents can save some money by consolidating PLUS loans before July 1, Sallie Mae noted. (more…)

From saving money to improving your credit score, there are many benefits to consolidating student loans. Here are the top ten reasons why you should streamline these debts. 1. Lock in a low interest rate. By consolidating your Federal student loans before June 30th of this year, you can take advantage of the current low interest rate of 4.7 percent. As well, you will secure this interest rate for the life of the loan, so you won’t have to worry about a rate increase.

2. Peace of mind. Have you had sleepless nights worrying about whether or not you can afford to pay your bills? By consolidating your student loans, you can save up to 60% on monthly payments. (more…)