Lenders Step In With Student Debt Relief Offerings

For people saddled with federal student loans, the government might not be able to offer lower interest rates or simpler repayment systems – but banks and credit unions might.

Citizens Financial Group recently announced that it would start refinancing federal student loans. Borrowers with good credit can now secure variable rates as low as 2.31% and fixed rates as low as 4.74%, both on an annual basis. In a similar program for borrowers with private student loans, the Providence, Rhode Island-based parent of Citizens Bank says participants lowered the average annual percentage rate on their debt by 1.5 percentage points.

For people like Ali Goldberg, who graduated from Pennsylvania State University in May with a degree in English and is currently living with her parents in New Jersey, programs like these may provide some relief. Like seven out of 10 members of the class of 2013, Goldberg has federal student loans to pay off. She recently got a letter informing her that she’d have to start making payments in three months. While she doesn’t see her student loans as a huge burden, the debt has affected her life after graduation.

“I try not to let it affect my decisions, and my parents don’t pressure me in that way,” Goldberg says. “But there are certain things I would do if I didn’t have loans on the back of my mind.”

To an extent, it has narrowed her job search. After exploring jobs in Boston and other cities, she decided that the best financial option would be to live with her parents and commute from home, perhaps finding full-time employment in New York City. “I don’t mind living at home, so why not take advantage of New York, try to save money for a bit so I’m able to pay back my loans?” she says.

Like Goldberg, many recent graduates are finding that loans they took for school have limited their options. Currently, there is about $1.2 trillion of outstanding student debt in the U.S. The average borrower owes $29,400, according to the Institute for College Access & Success. Those who have several outstanding loans might find more freedom through refinancing programs that offer lower interest rates and reduced monthly payments on a debt-consolidation loan that pays off several smaller notes.

Citizens’ debt-consolidating refinancing plans aim to give students relief, Brendan Coughlin, the president of education finance for the bank, said in a statement announcing the new program.

“While a college education is one of the best investments a young adult can make, paying for it afterward while trying to achieve other financial milestones can be difficult,” Coughlin said.

In addition to Citizens, several other organizations have also started programs to help students cope with federal loans. CuStudentLoans connects users to a network of credit unions offering refinancing options. San Francisco-based peer-to-peer lender SoFi, which offers benefits such as unemployment protection to borrowers, also provide alternatives to college graduates looking for lower rates.

Graduates like Goldberg can also choose to refinance federal loans through the government. That may not save them a lot of money, but it will preserve the option to take advantage of benefits such as pay-as-you-earn systems and debt forgiveness. Through a Direct Consolidation Loan, students can combine multiple federal loans into one with a fixed interest rate based on a weighted average of the rates on the loans.

Other financial institutions are also offering more options to students dealing with debt. Boston-based First Trade Union Bank recently rolled out a debit card rewards program with Simple Tuition’s SmarterBucks unit. The program gives consumers rewards on all non-PIN purchases made with the debit card and converts the rewards points to cash that goes toward paying off the user’s student loans.

“We think we’re a little closer to millennials when it comes to providing them with financial solutions,” says Mike Butler, First Trade’s president and chief executive, in discussing the program with Simple Tuition and its initiatives. “This is a company that’s trying to help a very, very big problem in today’s society.”

Lawmakers in Washington have also grappled with the issue. Sen. Elizabeth Warren, D-Massachusetts, has introduced a bill that would allow students to refinance their school loans at rates as low as 4%. Republicans blocked the measure in June and again recently, on the same day that the Citizens and First Trade programs were announced. But privately financed relief isn’t necessarily for everyone.

In New Jersey, Goldberg says she’d have to consider her options when deciding whether to go with a private lender to consolidate her school debts.

“I feel like I would have to be really well-educated on what refinancing would mean,” she says. “I don’t know where I’ll be in the next two years. I might go to grad school. I might have even more loans.”

---

Student loan illustration via Shutterstock.

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Lenders Step In With Student Debt Relief Offerings

For people saddled with federal student loans, the government might not be able to offer lower interest rates or simpler repayment systems – but banks and credit unions might.

Citizens Financial Group recently announced that it would start refinancing federal student loans. Borrowers with good credit can now secure variable rates as low as 2.31% and fixed rates as low as 4.74%, both on an annual basis. In a similar program for borrowers with private student loans, the Providence, Rhode Island-based parent of Citizens Bank says participants lowered the average annual percentage rate on their debt by 1.5 percentage points.

For people like Ali Goldberg, who graduated from Pennsylvania State University in May with a degree in English and is currently living with her parents in New Jersey, programs like these may provide some relief. Like seven out of 10 members of the class of 2013, Goldberg has federal student loans to pay off. She recently got a letter informing her that she’d have to start making payments in three months. While she doesn’t see her student loans as a huge burden, the debt has affected her life after graduation.

“I try not to let it affect my decisions, and my parents don’t pressure me in that way,” Goldberg says. “But there are certain things I would do if I didn’t have loans on the back of my mind.”

To an extent, it has narrowed her job search. After exploring jobs in Boston and other cities, she decided that the best financial option would be to live with her parents and commute from home, perhaps finding full-time employment in New York City. “I don’t mind living at home, so why not take advantage of New York, try to save money for a bit so I’m able to pay back my loans?” she says.

Like Goldberg, many recent graduates are finding that loans they took for school have limited their options. Currently, there is about $1.2 trillion of outstanding student debt in the U.S. The average borrower owes $29,400, according to the Institute for College Access & Success. Those who have several outstanding loans might find more freedom through refinancing programs that offer lower interest rates and reduced monthly payments on a debt-consolidation loan that pays off several smaller notes.

Citizens’ debt-consolidating refinancing plans aim to give students relief, Brendan Coughlin, the president of education finance for the bank, said in a statement announcing the new program.

“While a college education is one of the best investments a young adult can make, paying for it afterward while trying to achieve other financial milestones can be difficult,” Coughlin said.

In addition to Citizens, several other organizations have also started programs to help students cope with federal loans. CuStudentLoans connects users to a network of credit unions offering refinancing options. San Francisco-based peer-to-peer lender SoFi, which offers benefits such as unemployment protection to borrowers, also provide alternatives to college graduates looking for lower rates.

Graduates like Goldberg can also choose to refinance federal loans through the government. That may not save them a lot of money, but it will preserve the option to take advantage of benefits such as pay-as-you-earn systems and debt forgiveness. Through a Direct Consolidation Loan, students can combine multiple federal loans into one with a fixed interest rate based on a weighted average of the rates on the loans.

Other financial institutions are also offering more options to students dealing with debt. Boston-based First Trade Union Bank recently rolled out a debit card rewards program with Simple Tuition’s SmarterBucks unit. The program gives consumers rewards on all non-PIN purchases made with the debit card and converts the rewards points to cash that goes toward paying off the user’s student loans.

“We think we’re a little closer to millennials when it comes to providing them with financial solutions,” says Mike Butler, First Trade’s president and chief executive, in discussing the program with Simple Tuition and its initiatives. “This is a company that’s trying to help a very, very big problem in today’s society.”

Lawmakers in Washington have also grappled with the issue. Sen. Elizabeth Warren, D-Massachusetts, has introduced a bill that would allow students to refinance their school loans at rates as low as 4%. Republicans blocked the measure in June and again recently, on the same day that the Citizens and First Trade programs were announced. But privately financed relief isn’t necessarily for everyone.

In New Jersey, Goldberg says she’d have to consider her options when deciding whether to go with a private lender to consolidate her school debts.

“I feel like I would have to be really well-educated on what refinancing would mean,” she says. “I don’t know where I’ll be in the next two years. I might go to grad school. I might have even more loans.”

---

Student loan illustration via Shutterstock.

Source Article :http://bit.ly/XVo2Pw

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5 Credit Score Questions Every College Kid Should Ask

Let’s face facts: When you’re a college student, thinking about life after campus is kind of a drag. Who wants to worry about “real” adulthood when there’s an exam to cram for and a party this weekend?

But the reality is that there’s one post-college concern you should already be thinking about – your credit score. Not sure why it’s important? Here are 5 credit score questions you should be asking right now:

1. What is a credit score?

First and foremost, it’s essential to understand what your credit score actually is. Essentially, it’s a three-digit number that represents your past history with handling borrowed money. Credit scores range from 300-850 – the higher your score, the better.

It’s also worth mentioning that your credit score is scrutinized frequently. You’ll need a good score to rent your first apartment, set up utilities and get nearly any type of loan. This is why it’s critical to start building good credit as soon as you can.

2. What’s the difference between my credit report and my credit score?

Your credit report is a document that lists important details about all of the credit accounts open in your name – past and present. Every month, your lenders send information to the three major credit bureaus about how you’re doing with the money you’ve borrowed from them. For instance, if you’ve made a late payment, this will be communicated to the bureaus and will be noted on your credit report.

Your credit reports (you’ll have one for each of the three credit bureaus) are then used to create your credit scores (again, one for each bureau, although they should be pretty similar). This is why it’s essential that the information on your credit reports is accurate. You should review all three at least once per year.

3. How is my credit score determined?

It’s important to know how different financial behaviors influence the final calculation of your score. The FICO credit score, which is the most widely used in the United States, uses five broad factors to determine your score. Again, all of this information is derived from your credit report:

• Payment history (35%) – Do you pay your bills on time?


• Amounts owed (30%) – Do you keep the balances on your credit cards low?


• Length of credit history (15%) – How long have you been using credit?


• Mix of accounts (10%) – Do you have a good variety of credit accounts on your report?


• New credit inquires (10%) – Are you applying for too much credit at once?

4. How long will a mistake affect my credit score?

If you’re looking over the information above and are concerned that you’ve already made some money mistakes that could affect your score, don’t panic. Negative marks won’t say on your credit report forever; most drop off after seven years, and they start to have less of an impact on your score as time passes. The important thing is to correct bad credit habits and stick with good ones from here on out.

5. What can I do to start building good credit now?

The easiest way to start building good credit while you’re still in college is to get a student credit card and use it responsibly. This means paying your bills on time and in full, every month, without exception. Over time, this should add up to a great score (assuming that you’re not defaulting on other bills, like rent or utilities).

It’s worth noting that it’s not as easy as it used to be for college students to get credit cards; you’ll probably need a co-signer to do so. If you can’t find one, consider opting for a secured credit card. You’ll have to put down an up-front deposit, but because you’re accessing a credit line when you use the card, your score will start climbing with responsible use.

The takeaway: College students should start getting educated about their credit scores well before graduation. Start with the five questions above – and keep them coming!

College students image via Shutterstock

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5 Credit Score Questions Every College Kid Should Ask

Let’s face facts: When you’re a college student, thinking about life after campus is kind of a drag. Who wants to worry about “real” adulthood when there’s an exam to cram for and a party this weekend?

But the reality is that there’s one post-college concern you should already be thinking about – your credit score. Not sure why it’s important? Here are 5 credit score questions you should be asking right now:

1. What is a credit score?

First and foremost, it’s essential to understand what your credit score actually is. Essentially, it’s a three-digit number that represents your past history with handling borrowed money. Credit scores range from 300-850 – the higher your score, the better.

It’s also worth mentioning that your credit score is scrutinized frequently. You’ll need a good score to rent your first apartment, set up utilities and get nearly any type of loan. This is why it’s critical to start building good credit as soon as you can.

2. What’s the difference between my credit report and my credit score?

Your credit report is a document that lists important details about all of the credit accounts open in your name – past and present. Every month, your lenders send information to the three major credit bureaus about how you’re doing with the money you’ve borrowed from them. For instance, if you’ve made a late payment, this will be communicated to the bureaus and will be noted on your credit report.

Your credit reports (you’ll have one for each of the three credit bureaus) are then used to create your credit scores (again, one for each bureau, although they should be pretty similar). This is why it’s essential that the information on your credit reports is accurate. You should review all three at least once per year.

3. How is my credit score determined?

It’s important to know how different financial behaviors influence the final calculation of your score. The FICO credit score, which is the most widely used in the United States, uses five broad factors to determine your score. Again, all of this information is derived from your credit report:

• Payment history (35%) – Do you pay your bills on time?


• Amounts owed (30%) – Do you keep the balances on your credit cards low?


• Length of credit history (15%) – How long have you been using credit?


• Mix of accounts (10%) – Do you have a good variety of credit accounts on your report?


• New credit inquires (10%) – Are you applying for too much credit at once?

4. How long will a mistake affect my credit score?

If you’re looking over the information above and are concerned that you’ve already made some money mistakes that could affect your score, don’t panic. Negative marks won’t say on your credit report forever; most drop off after seven years, and they start to have less of an impact on your score as time passes. The important thing is to correct bad credit habits and stick with good ones from here on out.

5. What can I do to start building good credit now?

The easiest way to start building good credit while you’re still in college is to get a student credit card and use it responsibly. This means paying your bills on time and in full, every month, without exception. Over time, this should add up to a great score (assuming that you’re not defaulting on other bills, like rent or utilities).

It’s worth noting that it’s not as easy as it used to be for college students to get credit cards; you’ll probably need a co-signer to do so. If you can’t find one, consider opting for a secured credit card. You’ll have to put down an up-front deposit, but because you’re accessing a credit line when you use the card, your score will start climbing with responsible use.

The takeaway: College students should start getting educated about their credit scores well before graduation. Start with the five questions above – and keep them coming!

College students image via Shutterstock

Source Article :http://bit.ly/1r3XyIs

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Small Business Third Party Tools

Starting your business is a feat in its own right, but you don’t have to do it all on your own; there are numerous third-party tools that can help you. Here are just a few of the hundreds of resources that can help improve your website, communicate with customers and streamline your daily business operations.

Website

Olark: Add a live-chat feature to your website and connect with users as they navigate your page. Learn information and analytics about who your customers are and how they interact with your site.

Key features: See who’s on your site, what they’re looking at and how long they’ve been there.

Intercom: Connect with your website’s users through in-app messages and optimized emails. Learn about your customers through a live database.

Key features: Collaborate with your colleagues using a team inbox that lets multiple people in your company respond to customers.

Hello Bar: Create banners for your company’s website to draw users’ attention to various campaigns or features on your site. Use the banner to promote sales, newsletters, blog posts, social media profiles and more.

Key features: Customize the banners to fit your site’s unique aesthetic.

Communication

MailChimp: Manage your email contacts and send targeted messages to thousands of customers at optimized times. Review each email campaign with reports of open and click rates, and track trends over time.

Key features: See profiles of your email subscribers, send automated emails and get recommendations about the best times to send emails.

Cloud Phone: Conduct company calling through your smartphone. Connect multiple devices to local or toll-free phone numbers so everyone in your business can access the platform.

Key features: Get transcribed voicemails sent to your email inbox, use the auto attendant feature to greet customers and direct them to various lines.

Rapportive: A Gmail plug-in that lets you see information about your email contacts including their photo, company, location, LinkedIn profile and shared connections.

Key features: Make LinkedIn connections through your Gmail window.

Social media

Buffer: Schedule posts for your company’s Facebook, Twitter, LinkedIn and Google+ accounts. Analyze your posts to see how many clicks, retweets or likes they got, and track the growth of your followers over time.

Key features: Use it directly from Facebook and Twitter with special Buffer buttons built into those networks.

Hootsuite: Manage your accounts from social networks including Facebook, Twitter, Google +, Instagram, YouTube and LinkedIn. Schedule posts, monitor conversations about trending topics that you care about, and get real-time analytics about your social media activity.

Key features: Give multiple team members access so you can collaborate to manage your social media presence.

Finances

Freshbooks: Take care of your business accounting with this cloud-based tool. Create and send custom invoices, track expenses, record time spent and get reports about your earnings.

Key features: Accept credit card, PayPal, cash or check payments from your customers.

Wave: Do your company’s payroll, invoices and bookkeeping in one place with this cloud-based tool. Keep track of your personal budget and investments too.

Key features: Accept credit card payments from your clients and send invoices using your mobile device

Recruiting

Greenhouse: Recruiting software helps you find talent, get referrals, create interview plans, communicate with candidates, evaluate potential employees and make a final decision.

Key features: An application review tool helps with screening. Analyze your hiring campaigns to determine what works and what doesn’t.

ZipRecruiter: Write a job description once and post it to dozens of job boards to spread the word about openings at your company. Access a free résumé database to screen thousands of candidates.

Key feature: Add a job page to your own website with a simple widget; no coding required.

---

Business owner image via Shutterstock.

Source Article http://ift.tt/1y39EC7

Read More

Small Business Third Party Tools

Starting your business is a feat in its own right, but you don’t have to do it all on your own; there are numerous third-party tools that can help you. Here are just a few of the hundreds of resources that can help improve your website, communicate with customers and streamline your daily business operations.

Website

Olark: Add a live-chat feature to your website and connect with users as they navigate your page. Learn information and analytics about who your customers are and how they interact with your site.

Key features: See who’s on your site, what they’re looking at and how long they’ve been there.

Intercom: Connect with your website’s users through in-app messages and optimized emails. Learn about your customers through a live database.

Key features: Collaborate with your colleagues using a team inbox that lets multiple people in your company respond to customers.

Hello Bar: Create banners for your company’s website to draw users’ attention to various campaigns or features on your site. Use the banner to promote sales, newsletters, blog posts, social media profiles and more.

Key features: Customize the banners to fit your site’s unique aesthetic.

Communication

MailChimp: Manage your email contacts and send targeted messages to thousands of customers at optimized times. Review each email campaign with reports of open and click rates, and track trends over time.

Key features: See profiles of your email subscribers, send automated emails and get recommendations about the best times to send emails.

Cloud Phone: Conduct company calling through your smartphone. Connect multiple devices to local or toll-free phone numbers so everyone in your business can access the platform.

Key features: Get transcribed voicemails sent to your email inbox, use the auto attendant feature to greet customers and direct them to various lines.

Rapportive: A Gmail plug-in that lets you see information about your email contacts including their photo, company, location, LinkedIn profile and shared connections.

Key features: Make LinkedIn connections through your Gmail window.

Social media

Buffer: Schedule posts for your company’s Facebook, Twitter, LinkedIn and Google+ accounts. Analyze your posts to see how many clicks, retweets or likes they got, and track the growth of your followers over time.

Key features: Use it directly from Facebook and Twitter with special Buffer buttons built into those networks.

Hootsuite: Manage your accounts from social networks including Facebook, Twitter, Google +, Instagram, YouTube and LinkedIn. Schedule posts, monitor conversations about trending topics that you care about, and get real-time analytics about your social media activity.

Key features: Give multiple team members access so you can collaborate to manage your social media presence.

Finances

Freshbooks: Take care of your business accounting with this cloud-based tool. Create and send custom invoices, track expenses, record time spent and get reports about your earnings.

Key features: Accept credit card, PayPal, cash or check payments from your customers.

Wave: Do your company’s payroll, invoices and bookkeeping in one place with this cloud-based tool. Keep track of your personal budget and investments too.

Key features: Accept credit card payments from your clients and send invoices using your mobile device

Recruiting

Greenhouse: Recruiting software helps you find talent, get referrals, create interview plans, communicate with candidates, evaluate potential employees and make a final decision.

Key features: An application review tool helps with screening. Analyze your hiring campaigns to determine what works and what doesn’t.

ZipRecruiter: Write a job description once and post it to dozens of job boards to spread the word about openings at your company. Access a free résumé database to screen thousands of candidates.

Key feature: Add a job page to your own website with a simple widget; no coding required.

---

Business owner image via Shutterstock.

Source Article :http://bit.ly/1x67u6E

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How to Build Credit If You Have a Small Income

Building and maintaining a good credit score is one of the best moves you can make for your financial health.

It might seem intimidating at first – our credit scoring system is definitely complex – but when it comes time to apply for a mortgage, you’ll be happy you made building a solid score a priority.

But how does the picture change if you make a small income? As it turns out, not much. You don’t need to be a Rockefeller to achieve good credit. Take a look at the details below to learn how to build a great score, no matter how large or small your paycheck is.

First, know what makes a good score

Before digging into specific recommendations, it’s important to understand the factors that affect your credit score. The FICO scoring model – which is the most widely used credit scoring system in the United States today – takes a lot of variables into account to create your score. These include:

• Payment history


• Amounts owed


• Length of credit history


• Mix of credit accounts


• Recent credit inquiries

You’ll notice that income is not one of the factors used to determine your FICO score. This means that earning a big salary doesn’t equate to earning a high credit score. Even if you have a small income, you can succeed at scoring high, as long as you’re using the right strategies.

Obtaining credit is an important first step

It’s empowering to know that the steps to good credit are about financial behaviors, not the size of your bank balance. But what exactly should you be doing to get there?

Above all, it’s important to start using a credit account responsibly as soon as you can. Proving to potential lenders that you can be trusted with borrowed money is the best way to start building your credit momentum. One of the easiest ways to do this is with a credit card.

If you’re not earning much money, you might be shying away from plastic to avoid the temptation to overspend. But this will only stall your efforts to build good credit.

However, if your earnings are limited, you might run into an obstacle: According to the CARD Act of 2009, credit card issuers must verify a customer’s ability to pay before approving his or her application. If you’re having a hard time qualifying for an unsecured card because of your income, consider a secured credit card instead. You’ll have to make a deposit to get the card, but every time you use it, you’re tapping a credit line.

This means that your issuer is likely reporting your payment history to the credit bureaus. Assuming you’re responsible, this will help build your credit over time. If you’re not interested in getting a credit card, obtaining another type of loan to establish a credit history is a good idea.

Again, you might have trouble getting approved if your income falls below the lender’s requirements. In this case, offering a big down payment or securing a cosigner might help you qualify.

Keep up with good habits

Once you’ve gained access to credit, keeping up with good habits is essential to building your score further. Specifically, you should focus on a few important behaviors.

Anthony Sprauve, a senior consumer credit specialist at FICO, emphasized that: “The two most important factors it [the FICO score] looks at are:

• Payment history – Is the consumer making the minimum payment required on time every time? This accounts for 35 percent of the FICO Score.


• Credit Utilization – Is the consumer keeping the balances on their revolving credit (typically credit cards) below 30 percent of their available credit? This accounts for 30 percent of the FICO Score.

“A consumer can have … a high FICO Score if they are following these two guidelines closely.”

In short, paying your bills on time and in full are the two most powerful things you can do to create and hold onto a good credit score. If you follow through with both of these guidelines throughout your life as a credit user, you’re likely going to wind up with a great score.

And just to be clear: Neither requires a big income. Spend and borrow within your means, and it will be a piece of cake to manage your payments properly. This, in turn, will put you on the path to a stellar score.

The takeaway: Folks with small incomes have the same opportunity as their high-earning counterparts to build good credit. Use the tips above to get started today!

Woman with small piggy bank image via Shutterstock

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