The Dangers of Parent College Loan

College costs are high, and students often find that their grant and loan money doesn’t go far enough.  So many parents take out PLUS loans to make up the difference.  At the time it seems like a good investment in the future.  But there are serious downsides to PLUS loans that parents should be aware of.

What Is A PLUS Loan?

A PLUS loan (Parent Loan for Undergraduate Students) is a loan made by the U.S. Department of Education to the parents of a student, to cover part or all of the cost of college.  The loan is in the parents’ name, and the parents are responsible for repaying it, not the student.

Why Do People Take Out PLUS Loans?

PLUS loans look good on the surface.  They’re easy to qualify for, the interest rate is fixed (right now it’s 7.9%), and there are a number of repayment plans.  Besides, for many people, PLUS loans are the only way their child will get through college.  Grants are declining; the last time Pell grants were increased was 2003-2004.  And college costs are ballooning; from 2003 to 2013, college tuition had an average annual growth rate of 5.2%.  PLUS loans make college accessible.

No Limit On The Amount Loaned

According to the Department of Education website, “The maximum PLUS loan amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance received.”  So if the PLUS loan is covering the whole cost of college, it could be more than $200,000.  In addition, PLUS loans are often made to people with poor credit and little chance of repaying such a big loan.  All that’s needed is for someone with good credit to vouch for the borrowers.

Large Monthly Payments

One couple told msn.com that they’re paying $3000 a month on a $200,000 PLUS loan.  That’s 26% of their $11,250 monthly income.  Things are even worse for PLUS loan borrowers with low incomes.  Department of Education data shows that for people in the lowest 10% of earners, PLUS loan payments take up 38% of their monthly income.  As well as interest and principal, there’s a 4% loan origination fee that’s deducted from every payment.

 Changes In Financial Situation

Many people take out large PLUS loans, and then suffer financial reverses due to illness, layoffs or other circumstances.  They can apply for a deferment, which delays payments up to 3 years, or a forbearance, which delays payments for 12 months.  But during this time, interest on the debt accumulates, and it has to be paid eventually.  Even if nothing else goes wrong, many parents who get PLUS loans are reaching retirement age, but can’t even consider retiring.

Garnishing of Wages and Social Security

If you default on your PLUS loan, there are dire consequences.  The Department of Education will garnish your wages, take your Social Security and pensions, and charge you collection fees and court costs.  You can also lose professional licenses and eligibility for any federal benefits, and be reported to the credit bureaus.

Parents want the best for their children, so it’s easy to sign a PLUS loan promissory note to get that child a college education.  But it may be better to weigh all the factors first.  When you make a leap of faith with college financing, you don’t want a hard landing.

James Pirch is a blogger with two sons in college and thus knows the importance of understanding college loans. In addition to furthering that understanding to keep his family finances stable, he spends some time learning about business bankruptcy to keep his business finances separate from his family’s.

Managing Your Money with Ease

Following a strict budget and managing your money as best as you can is important to having a stable future.  If you can place your savings and checking accounts along with credit cards and other expenditures under one umbrella, you’ll be able to see where your money is going and make the needed adjustments to keep your family financially sound.  If you’re interested in making the most of your money and if you love visual aids to assist you, then finding the right software will make managing your money an easy and successful task.  Providing a secure future for your family is part of the job of being a responsible adult.

What to Expect From Effective Software

Seeing exactly where you income is going can help you to take back control of your budget by altering your spending habits and changing your savings routine.  When you use effective software, you can plan, track, and view how your income is being distributed; you’ll learn where you can make needed changes to improve your financial stability and your credit standings.  You should search for a reliable type of software that can give you the results that you need without incurring a fee or charge for the trial.  Reaching goals and dreams can only be possible if you maintain a safe balance between your income and expenditures.

Points to Consider

When you are looking for a reliable software program that will help you to ease your financial crises and provide you with measureable means to make this happen, you should consider what features you will need.  If you’re a visually motivated person, colourful charts and graphs can demonstrate what you spend or save each week from your pay check.  You can see areas that need improvement and those expenses that are being controlled effectively.  Look for software that will be able to predict your spending habits based on current data so that you can make changes that will impact your accounts favourably.  After carefully studying the plan that is laid out before you, you and your family can work to reach your goals and be confident in the progress that you make each month.

Review the Company’s Website

To prevent financial stress and undue frustration you should visit the website of a company that can provide you with an effective way to manage your money.  The professionals at money management with Money Dashboard have designed their software package with the goal of making you financially sound as you pay attention to your spending habits and impulse shopping sprees.  Look for the frequently asked questions section that will instruct you about how to get started, a detailed description of their software, and how it can help you manage your household budget more effectively.  Financial freedom is a goal that every family should strive to attain so that their current and future spending and savings habits will be productive for whatever need arises.

Managing your income is an extremely important part of running an efficient household.  If you need reliable assistance, take the time to find software that can help you to regain control of your money so that your future will be secure.

A Healthy staff is a Productive Staff

The challenge of working abroad has many facets; language and culture, work conditions, schooling if taking a family, and health personal and for family members. A  UK resident usually has all the various policies in place to cover life in general but the situation changes for anyone spending periods abroad even if it does not involve residence overseas.

Someone with a family has many things to consider; it is not just a personal issue. Children’s schooling will certainly be high on the list of priorities and sometimes it is difficult to imagine what to expect. There are more identifiable issues and one of them is most certainly health; effective job productivity can depend on it.

Variable medical facilities

While the UK has advanced medical care that is not always the case abroad, and certainly some assignments that may be in countries regarded as ‘Third World’ especially in the field will pose problems.

Budapest; enjoy the scenery with peace of mind having expat health insurance

insurance

Image Credit Wikimedia Commons Ian Pitchford

There is only one way to tackle the problem of living and working abroad and that is to seek advice about all the things that UK residents take for granted when living at home. It is possible that there is expertise within a company sending an employee abroad so that everything is organised properly. It may be that this is an independent venture in which case research needs to be done to ensure everything is covered.

Research and find

The best way to research for things like expat health insurance is to go online to the search engines and find a company that has experience throughout the world. Such expertise will have handled the issues of overseas workers many times before. The knowledge can be invaluable to someone venturing forth for the first time.

A UK private policy will not apply to overseas work but a policy taken out specifically for someone going abroad can provide for the best care in the new home or even a return to the UK if that is practical for the treatment.  Accidents happen and even the healthiest of families need proper protection. Using an independent UK broker means that the policy is subject to supervision by the Financial Services Authority (FSA).  That provides peace of mind that is valuable when so many new experiences may be on the immediate horizon.

Too complex a subject to leave to chance

Healthcare can be costly in many parts of the world. It is unrealistic to cover the cost of expert treatment. In some instances an overseas worker may have rights to treatment from state hospitals in the countries where they reside but that treatment may be limited and not sufficient to sort out a serious problem.

The use of an independent broker specialising in providing for ex pat life should be an easy decision to make. No one with health problems can operate effectively. The cost of cover is more than worthwhile to ensure a worker is productive. Personal peace of mind about all the family is essential in order to get the job done properly.

Professional Solicitors Effectively Handle Employment Disputes

The days of simple employee-employer regulations have changed dramatically over the last few years.  Laws are now more complex and carry significant costs and risks for noncompliance.  In today’s business world you must get advice from a professional who is well-versed in the law and who can help you to negotiate disputes effectively for a satisfactory outcome.  It’s imperative that you locate an agency with which to partner that takes pride in its work and has extensive legal knowledge from which they can handle your situation.

The Agency That You Choose

Services That They ProvideThe agency with which your partner to represent you must have the ability to deliver high-calibre advice and counsel that’s affordable and within your budget.  They should have on staff a multi-disciplined team of solicitors with expertise in compromise agreements and mediation; it will also be helpful if they have experience with race, age, and sex discrimination issues.  They should be able to handle all employment-related legal issues with confidence effectively and efficiently for you.  It is also very important that they explain all of the processes and procedures to you in a language that is easy to understand.

Look for an agency that provides high quality service, personal assistance, and representation that is tailored to your specific needs.  The strategies that they use should be tried and tested to produce the best outcome for you; you want to partner with a team of professionals that are experienced, listen attentively, and work diligently on your behalf.  The team that you choose should be honest and work from a mantra of integrity; they should conduct themselves with professionalism as they work with you, their colleagues, and adversaries across the aisle.

Review Their Website

Before you decide if the ThomasMansfield solicitors for compromise agreements team will work best for you, take time to review their website to ascertain the types of services that they provide and the cost of retaining their professional assistance.  Look to see if they have a retainer schemes plan that offers you excellent value for your money.  They must have in-depth knowledge of best practices that work effectively and risk management strategies for your specific sector.  It’s important to read testimonials that furnish you with evidence of their work ethic, the practicality of their solutions, and the level of customer service that you can expect.  A reputable agency will have a powerful website that provides you with contact information and their locations for your convenience.

When work-related disputes arise, you want an experienced hand that is calm and professional to guide you through the processes and paperwork that you will encounter.  They should be confident in their knowledge of your situation and the laws that impact your case, professional in their conduct and presentation of the facts, and diligent in their preparation of information that determines the outcome of your proceedings.  It’s wise to partner with a team of professionals that offers first class service to all of their clients and has a proven track record of successful representation for work-related issues.  Experts that have used tried and trusted methods can provide you with peace of mind as you work your way through the situation at hand with their leadership and guidance

Relevant Life Policy: More about its benefits

As an owner of a small business you must have heard about the Relevant Life Policy from most of your acquaintances in your field. It is a new kind of policy (only around a year since it has become popular with the employers). You must have an idea that investing in a Relevant Life Policy implies that you will be entitled to certain tax advantages. But do you know about these advantages in detail? If not, then this article will aid you in acquiring due knowledge in this regard.

What is a Relevant Life Policy? 

Before going in to the details of the kinds of advantages that you will be entitled to once you avail the Relevant Life Cover, you should have to acquire solid know how of the dynamics that rule the workings of this policy. Let us learn more on that:

  • A Relevant Life Insurance is a single life stand alone cover that is availed by the employer of a small company when he wants to establish a death in service benefit for his employee
  • The company must have at least 5 employees to take the scheme. But the the number of workers should not be large enough to justify a group life scheme.
  • The protection cover expires after the 75th birthday of the client

The advantages that can be availed with this kind of insurance are listed below: 

  • The premiums paid out for this cover are tax free as they are not something that are paid in kind
  • The high earning employees can keep it separate from their pension funds and annual allowances
  • The employers can receive substantial tax benefits by availing this policy as they are considered to be trade expenses
  • There are no P11D charges involved, thus the employer ends up saving substantial costs
  •  As the benefits are payable through a discretionary trust, it ensures that the money reaches  the right person and at the right time thus alleviating fears regarding the pay outs falling in wrong hands.
  • The benefits that are paid out are free of inheritance tax as well
  • It is not subject to the National Insurance purposes

Conclusion

Investing in a relevant life policy might find

You save up a lot than what you would have done, in case you had taken a personal life cover. Here you might as well would have paid from your post tax income or from your company’s account. But the Relevant Life Policy is paid through the discretionary trust, with several tax benefits mentioned above. 

Author Bio: Sam Payn’s informative blogs and articles mainly center on the varied financial matters including home loans and bad credit loans. Recently he has diversified to writing about insurance.

Find The Best Mortgage Advice

You must be equipped with a lot of information about available mortgage products to make up your mind as to what will suit your purpose and pocket. Need advice? Where to locate a good advisor? And how much do you have to pay for getting advice on a mortgage product?  This article throws focus on how you will find the best mortgage advice when so many financial advisors are all around to extend their help.
How to Start?
With too many offers available at a time, making a choice will be tough. What will you do? Will you walk along the highway and drop in every financial house to seek their advice? Though it is less likely that you will do so, still even if you do so, there is a little chance of getting unbiased advice. They are doing business and so will want you as a marginal addition to the list of their clients. Even if they claim to have a separate advisory body which works independently, an unbiased approach is least expected. A few of us are aware of the fact that all mortgage products are not be presented to the prospective borrowers as some reserved choices are only made available through the agents’ network.
Internet surfing is the best course of action to learn the rates and quotes as offered by different companies. Most of the companies have opted for online advertising by providing details about their products on the World Wide Web. Browse through their website to get the best rate and conditions pertaining to a particular product. Conditions are important but may not appear in publicly advertised material of the lender. However, you have to pay a fee for placing your business. Generally, normal service fee is within 1% of the total amount borrowed but may differ depending on how much effort has been put in.
Hiring an advisor for searching on your behalf and making necessary comparison between the available offers won’t be a bad idea, especially when you can afford to pay for the service. The mortgage advisors can be divided under two heads – Independent Mortgage Advisor and Independent Financial Advisor.
Independent Mortgage Advisor
Till date, the independent mortgage advisors are not guided by any statutory regulation. However, majority of them subscribe to Mortgage Code. It puts them under obligation to conform to certain procedures in regards to conduct and advice. Many lenders prefer introduced business from the advisors who are registered on the Mortgage Code Register of Intermediaries. For registration, an adviser must own a current credit license issued by the Office of Fair Trading. All these set a standard guideline for both the mortgage lenders and intermediaries as well as protect the borrowers’ interest too.
Independent Financial Adviser
These advisors are regulated by the Financial Services Act, 1986 and Conduct Rules of 1987. They have the legal authority to offer advice on the regulated products and sell the same. These regulated products include investments, pensions, endowments, mortgages etc. These advisors must be registered on the Mortgage Code.