Prestige Monetary Solutions Recognizes Back to School Expenses are Rising
Whether or not you are a student returning to school or a parent sending your youngsters to school, there are costs linked with furthering one’s education. Tuition, books, supplies, housing, etc… all add up and can cause a major strain on a family’s finances. A lot of students and parents of students have turned to using credit cards to cover educational costs when conventional student financing does not suffice. Below are some typical methods of paying for your education, a list of consequences one might incur if you default on your student loans, and some guidelines from Prestige Monetary Solutions on how to take control of any credit card debt.
Resources for students
1. FAFSA, Cost-free Application for Federal Student Aid, to help determine if you qualify for government-funded loans or grants. Parents may possibly also qualify for the Parent Plus loan from the government.
2. Apply for “private student loans” by way of Sallie Mae or other banks.
3. Ask your student adviser or your school’s financial adviser for alternate scholarships.
4. Save, save, save to pay cash for school.
Do not default on your student loans! Repercussions of defaulting include, but are not limited to:
1. Wage garnishment with out a court order.
2. Suspension of state professional licenses.
3. Garnishment of social security/disability income.
4. Withholding of IRS tax refunds.
If your debt to income ratio is too high, here are some tips to assist you obtain debt relief:
1. Create a monthly budget by reviewing income and expenses to determine how much you can afford to pay toward your credit card bills. You can use the a debt calculator on various internet sites, or on our website.
2. Once your budget has been determined, you can decide amongst your options:
- Pay creditors more than the minimum amounts.
- Get a consolidation loan to pay off all your student credit cards.
- Explore credit card counseling programs to see if they can reduce your principle while maintaining an affordable monthly payment.
- Research debt relief programs – specifically programs that do not charge upfront fees and reduce your principle balance in 36 months or less.
- Declare bankruptcy a last resort due to length and cost of the method and the effect it will have on your long-term credit rating.
Prestige Financial Solutions strongly recommends that students consult with a debt adviser to help assess their scenario and further explain alternatives. To locate trustworthy businesses who may be able to aid you, check out the Better Business Bureau’s, Angie’s List or other sources for recommendations. Consumers should be well-informed and ask questions, as there are pros and cons to each and every solution.
“Anxiety triggered by credit card debt can be a highly emotional scenario and folks need to have to be sure they’re working with a trustworthy, established organization that has their ideal interests in mind,” said Amy Thompson, a founder of Prestige Monetary Solutions.