Joe Szczepaniak pays a 3.5 percent interest rate on the mortgage for his house in a Chicago suburb. His car loan is 1.79 percent. The federal education loans he took out to send his four sons to college? They’re all above 7 percent.
Why Your Student Loan Interest Rate Is So High – Bloomberg Businessweek
Oftentimes, the decision to take If you are paying back Federal Student Loans (or about to), you may wonder why your interest rate is higher than rates for new Cars and Homes. At 7 percent, the rates are a few percentage points higher than those types of loans. That amounts to hundreds more in interest payments over the life of the loan. Why?
In the article written by Bloomberg Businessweek, the reason why interest rates are so high is because those rates are set by Congress, not the market. If you’re having trouble making payments, there are a few options you can take to help you:
- Because taking out a student loan is usually the first major financial decision a young adult takes, The Consumer Financial Protection Bureau (http://www.consumerfinance.gov/)has created a section titled “Repay Student Debt” as a part of the “Know before you Owe” Project. The site can help you estimate your education costs, as well as help you understand College Financing. Click here to go to the page.
- The Federal Student Aid Office has a number of links to explore, related to paying back loans and programs that may forgive your loans. (Repay Your Loans | Federal Student Aid)
- Because Federal Loans rates are set by Congress, a way to make your voice heard about Federal Student Loans is to Call your Representative. Use the “Find Your Representative” Page from the U.S. House of Representatives to find your elected congresswoman/man and the “U.S. Senate” Page to find your Senator. Their contact information will be listed for you to write or call them.
While this may not seem entirely Career Related, don’t forget, that a missed payment or default will negatively affect your credit score. Because a majority of Employers check an applicant’s Credit Score, a negative score could affect your chances of getting the job. It’s best to make sure you have spoken to your lenders to work out a repayment plan, rather than have a missed payment affect your ability to get a job.
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A Nursing education comes in two parts: in the school and at work. Learning day by day is a challenge that most professions face, and nursing requires a large amount of on the job training to get used the the pacing and environment. For new nurses, it may take up to two years before a Nurse is comfortable with procedures and the general culture. If you’ve passed your NCLEX and are currently working as a new nurse, check out the article written by Donna Cardillo, RN and MA at Nurses.com. Written by a nurse with more than 30 years of experience, Donna is writing to new nurses and letting them know what type of issues will come up, along with how to deal with them. While there are many great tips in the article, nurses should make sure to focus on the positives, making sure you are patient with yourself, continuing to learn and to manage your stress.
The Brentwood library has over 200 books on nursing available. One book that continues the advice that Donna gives is the Everything New Nurse Book: gain confidence, manage your schedule, and deal with the unexpected. (Link to Catalog). It helps prospective and new nurses a guide to becoming a nurse or adjusting to the new career. Come to the library and pick up a copy today.
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Tagged assistant, brentwood, career, careers, county, employment, guide, Healthcare, how-to, island, jobs, long, lpn, MA, medical, NCLEX, new york, nurses, Nursing, PCLEX, practical, registered, rn, stress, tips, training
“I should have seen all the signs. [The campus tour guide] had a used car salesman answer for everything,” Keith recalls.
The magic answer was always ’99 percent’–whether Keith asked how many enrolled students graduated or how many graduates scored jobs afterward.
Student Loan Debt has now overcome Credit Debt with the average student holding $28,000 of student debt. Beware of schools with “too good to be true” promises and private loans. Click on the link to see how one man was inundated in debt because of unscrupulous for-profit schools.
Nick Keith’s Student Loan Horror Story.