Why Student Loans are Better Than Credit Cards - Answering Service Resources

Home
>
Loan
>
Why Student Loans are Better Than Credit Cards

Why Student Loans are Better Than Credit Cards

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options ?

-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.

-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.

-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-

-Pay your balance each month to avoid interest charges

-Pay your bill on time to avoid late charges

-Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on how Student loans are better than credit cards at http://www.NextStudent.com .

My goal is to help every student succeed - education is one of hte most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.

http://www.nextstudent.com/

In The News:

WNCT
Fed lays out details for bank loans
The Associated Press - 21 hours ago
WASHINGTON (AP) — The Federal Reserve is providing more details about when it will make billions of dollars in short-term loans available to squeezed banks. ...
Glossary: Translating the financial crisis International Herald Tribune
What else the US can do CNNMoney.com
A scramble to unlock bank lending Christian Science Monitor
NewsHour - The Associated Pressall 1,517 news articles

1010 Wins
Rell Asks Banks To Help Create Loan Pool For Businesses
Hartford Courant, United States - 14 hours ago
M. Jodi Rell met with the leaders of 48 Connecticut banks Thursday to unveil a five-point plan to make it easier for small businesses here to obtain loans. ...
UPDATE 1-Connecticut spurs local banks to make loans Reuters
Rell Proposes Lending Pool To Ensure State Businesses, Homebuyers ... TheDay
Rell bank plan would help small businesses Journal Inquirer
NBC30.com - Hartford Businessall 32 news articles

Baltimore Sun
Rescue Part II: Feds Announce More Help for Student Loans
Baltimore Sun, United States - 3 hours ago
As we all know, the credit crunch isn't just affecting mortgages, auto loans and credit cards. It's also hurt student loans. ...
Bush administration pledges help for student loans Reuters
all 9 news articles

Boston Globe
UPDATE 1-Japan suggests crisis loans tap global FX reserves
Reuters - 21 hours ago
By Linda Sieg TOKYO, Oct 10 (Reuters) - Japan will propose an IMF loan scheme to give countries facing financial crisis access to the trillions of dollars ...
Nakagawa to propose IMF loans plan at G-7 The Daily Yomiuri
Japan to table emergency IMF loan scheme for emerging nations Zee News
Japan to propose loans fund TeleText
MarketWatch - guardian.co.ukall 244 news articles

The Associated Press
Vultures circle Wall Street, but hesitate to feed
The Associated Press - 3 hours ago
"There are investors who have pools of loans, and they don't know where the assets are," said Harvey Green, chief executive and president of Marcus ...

Wall Street Journal
Battered GM, Ford Call For Quick Issuing Of Government Loans
CNNMoney.com - 6 hours ago
WASHINGTON -(Dow Jones)- US auto makers are ratcheting up pressure on the government to quickly implement a $25 billion loan program approved this fall, ...
Video: Money Minute: GM, GE, Oil AssociatedPress
Car loan fears clobber US auto stocks Detroit Free Press
Car companies cop congressional loans Insight News
MLive.com - NPRall 697 news articles

KATU
Banks borrow record amount from Fed
The Associated Press - 21 hours ago
This category was broadened last week to include any loans that were made to the US and London-based broker-dealer subsidiaries of Goldman Sachs, ...
Investors, bankers have lost their faith USA Today
The Street Is Paved With Bonds Forbes
Michigan voters to decide ballot questions on medical marijuana ... MLive.com
all 237 news articles

Boston Globe
McCain Wants US to Buy Bad Home Loans; Obama Pushes for Tax Cuts
Voice of America - 56 minutes ago
Senator McCain announced that as president, he would order the Treasury secretary to buy up bad home loan mortgages. He says the government would ...
Video: Ohio voters give views on McCain-Obama debate - 08 0ct 08 AlJazeeraEnglish
all 1,752 news articles

Fitch Affirms Cobalt 2007-C3; Assigns Outlooks
MarketWatch - 2 hours ago
Classes G through O have been assigned negative outlooks due to the high concentration of Fitch Loans of Concern. Rating outlooks reflect likely rating ...
Fitch Affirms CD 2007-CD5 Commercial Mortgage Trust MarketWatch
Fitch Affirms BACM 2007-3; Assigns Outlooks MarketWatch
Fitch Downgrades 1 Class of BACM 2007-2; Assigns Outlooks MarketWatch
MarketWatch - MarketWatchall 27 news articles

2 schools turn to Bergen County for loans
Newsday, NY - 11 hours ago
Two Bergen County schools turned to the county government for $11.5 million after they could not find any traditional lenders to give them short-term loans ...

loans - Google News

Answering Service ResourceAnswering Service Resource