To Buy or Rent For Your College Student – Mortgage
To Buy or Rent For Your College Student
Dan The Roommate Man
September always means Back To School, and for thousands of families it also signals Off To College. In addition, more and more young people are opting to continue their education with post-graduate studies.
Once a student is past the Mandatory - Freshman - Year - In - The - Dorm Policy that many colleges have, parents face an interesting dilemma: should they continue to shell out rent, or considering buying a property for their children to occupy while attending school
Here is a TRUE Story.
In 1994, A young man decided to attend North Carolina State University. He enrolled in a combination Master/Ph.D. program. This meant he would be in Raleigh, NC for the next four -six years. After investigating the rental options in the area, his parents decided to help him purchase a townhouse.
This was the deal. A 3 bedroom, 2
Student Home Purchase Plan – Mortgage
Student Home Purchase Plan
John Carle & Sharon Gregresh
Tuition costs are climbing, housing costs are climbing, it seems like all the costs for students are climbing these days. Students can afford cost increases less than any other demographic in Canada. Because of this, parents and students alike are looking for new ways to offset the costs of education.
Student loans can be used to defer these costs to some extent, but they need to be repaid after graduation. Its difficult to climb the corporate ladder or get ahead in life when you have $30,000 worth of debt before your first job is even found!
Bursaries, grants, and scholarships are another great source of funding for a student. However, the amount of money available is thinning, and the competition is growing stiffer for this money each year.
The average student, over a 4 year degree, pays over $16,000 in tuition and books. Housing costs approximately $38,000 for a 4 year degree. This is based on rent of $800 per month for 48 months.
This means the total cost of education for a student is over $54,000 before paying for any clothes, food, or recreational expenses. Given that the average student doesnt qualify for more than about $9000/year in student loans, this means an average student needs to find over $18,000 during their 4 year education career to be able to go to school. Not to mention the cost of food and clothes.
So how does a student get ahead in life, avoid massive student loans, and still get an education
Many parents have been turning to Real Estate as a solution for a solution. Let me explain what theyre doing
What Students and Parents MUST Know about Student Loans – Tax Deduction
What Students and Parents MUST Know about Student Loans
John Williams
A student loan helps you get through college. Then you come out into a high-paying career. Its a great investment in your or your sons/daughters future.
Student loans generally give you a good deal. You get below-market interest rates, and you get a $2500 federal tax credit on interest paid over any period of time previously first 60 months only
It doesnt matter if the student, or parent takes out the loan; tax deduction remains the same.
* Did you know the federal government has a $50 billion student loan program
Not surprisingly, the federal government provides the largest percentage of student loans. Other student loans may come direct from colleges, private lenders or state governments.
One of the key advantages to a federal guaranteed loan is exactly that - its guaranteed. That means you dont need collateral. It also means the terms are kinder than a typical lender might offer. Of course, your educational program has to be approved by the government.
Types of student loans
* Federal Stafford Loan - for undergraduate or graduate students
A popular and cost-effective source of a student loan. Stafford loans provide low-interest, government guaranteed funds.
Stafford Loans come in two types, subsidized or unsubsidized. Whether or not youre eligible for subsidized depends on household income. The school ought to advise on this.
For subsidized, the government covers the interest right up to start of repayment i.e. they pay interest incurred during the course, in deferment and during the grace period before repayment begins. If you qualify for subsidized, its a great deal
For unsubsidized, the student must pay all interest incurred at all times, though they dont start repaying until after grace period.
* Federal PLUS Loan - for parents of undergraduates
Parent Loan for Undergraduate Students PLUS allows parents to take a loan on their Childs behalf. They can contribute to their Childs future, and get a great low- interest loan with continuing future tax relief.
PLUS actually allows parents to borrow the total cost of their childs education, minus any grants or other financial aid awarded. All tuition fees, meals, books, transport etc. can be included in the loan.
This really is a great deal, and has no income or asset requirements. Even poor credit history may be overcome. Repayment is flexible, and can include zero payments for up to 4 years.
Only one drawback to the Federal Stafford and Federal Plus loan - your school must be approved to participate in these programs. If your school isnt approved, then youve got some other options...
* Banks
Many banks offer unsubsidized Stafford loans. You still get the money, which you must have to attend college, but repayment options are more limited. Some deals offer you an interest rate reduction if you make payments on time.
* State Loans
Most states offer guaranteed student loans. Apply direct to Banks, wholl administer the State program. Its usually a more expensive way to borrow than Stafford.
* College Board Extra Credit Loan
Administered by your college. Can be expensive, and best used only in an emergency e.g. your aid is withdrawn.
* Other Loan Sources
A number of other sources may be worth trying if you get a problem with your first choice lenders. Academic Management Services affiliates with approx. 2000 schools. AMS pay your tuition fees if you repay them in less than a year. College Resource Center also has loans available.
If your parent served in the military, then a military loan should be investigated.
College can be the experience of a lifetime. A child starts college as a high school kid, and emerges a full grown adult with high-earning potential