Before we even look at the difference between these two types of loans, let's set the record straight: federal loans (which come from, or are guaranteed by the government) are your best option when it comes to student loans. Private loans - known as "alternative" loans (which come from private lenders or banks that are not guaranteed by the government) should absolutely be your last resort!

Wondering why?

The basic answer shows up in dollars and cents: federal loans generally have lower interest rates than private ones and have a fixed rate rather than variable. This means you will likely pay less for the same loan amount when you pay it back. Nice right? Another reason federal loans are a better option is that they have a lot more built-in protections for you (the borrower) than private loans do. (For example, a check the government sends you is less likely to bounce!) Continue reading ...

Article by, Athlon and courtesy of Student Loan Consolidation Rebate

Article by, Athlon and courtesy of Student Loan Consolidation Rebate

Recent college graduates who are planning to start their own businesses could probably make good use of the business credit card. For college students who have good credit and steady employment, the low interest credit card might work well. But for those who have poor credit or no credit at all, the prepaid debit card is the best bet. You can't spend money you don't have. It's perfect for cash strapped college students. And they can't get into debt because once the money they put on the card is spent, they're done.

Credit cards aren't the enemy. In fact, when used responsibly, they're great friends to have around.

1. Measure all your debt. It's important to map out all your loans and other areas of debt before you start making repayments. If you have credit card debt that is accruing interest at a rate of 17 percent versus a student loan that carries a 7 percent interest rate then it's important that you knock off as much from your credit card debt as you can. While you're dealing with your credit card debt it's wise to pay the minimum on your student loans.
2. Tack on a little bit each month. If you can add even $20 to your monthly loan payments you'll be much better off in the long run versus consolidating your loans. Prepaying will help limit the amount of interest you'll wind up paying over the life of your loan.
3. Open up the competition. With recent legislation passed that no longer requires you to consolidate your loans from the same lender that originally serviced your loans; you can shop around for the best deals out there. This allows you more freedom in finding a company that will make your payments lower.
4. Is the grace period a friend or a foe? The six-month grace period where you don't have to make any payments until six months after you graduate can be awfully enticing. However, if you have a chance to lock in a lower interest rate while you're still in school you should jump all over the opportunity even though it means you'll lose the six-month grace period and will have to start making your payments right after graduation.
5. Look around for discounts. There are repayment discounts out there for the taking. Some companies will set up a plan where if you meet your first so and so payments on time you'll receive a discount. Other companies will knock off some of the interest rate if you make your payments online versus mailing in a check each month.

Article by Heather Johnson, who writes on the subject of teaching certificate. She invites your feedback at heatherjohnson2323 at gmail dot com.

This article by Lisa Orrell just had to be shared. The message is great.

HI All,

There was a great, inspiring story on The Today Show this morning. 3 years ago they had a Millennial on, (then) 15 year old, Katelyn Wilbanks, who was born with spina bifida, a horrible disease that has resulted in over 56 surgeries during her life, including a leg amputation, horrible back surgeries, etc. Doctor's said she wouldn't live past infancy but through her spirit and determination, she's beating the odds...in a big way!

Anyway, 3 years ago they did their "Christmas in July" segment where the President of the University of Oklahoma, David Boren, presented her with a full-ride scholarship: tuition, room, board, everything. Her dream was to join the Sooner Nation but her family didn't have the money, so you can imagine how great this was for them.

And as a result of the university doing this, and millions seeing it on The Today Show, within a week of it airing, they received more than $10 million for their university's scholarship fund. But it didn't stop there! Over the past 3 years since that segment aired, many more people made contributions so that others like Wilbanks could go to college at Sooner Nation and it now totals over $130 million! AS a result, their school's program, Campaign for Scholarships, now has thousands of new scholarships available to Millennials interested in going to school there.

"Through the Campaign for Scholarships, we wanted to make sure that no qualified, hard-working student is ever turned away from our university because of financial need," Boren said, noting that the fundraising drive will continue for two more years.

How amazing is THAT?? One young girl with a dream of going to the University of Oklahoma, overcoming health odds beyond belief, becomes the driving force for people all over to send them $130 million for scholarships. I love that!

Fast forward to today: They had her on the show again to see how she is doing, now 18 years old, and getting ready to start college in the fall. She just had another back surgery but is doing okay and is very excited about moving into the dorms and starting college life.

She also scored her dream job at school! She is going to be one of the equipment managers for their football team! Katelyn is a total football fan and can't believe that she'll be a part of the Sooners squad.

The Today Show also gave her another "Christmas in July" today by having the mega huge country band, Rascal Flatts, present her with back stage passes to their sold out concert in Oklahoma this September.

Good luck to Katelyn! I'm sure she'll pay this forward and continue to make a difference in our world. Another great Millennial doing wonderful things!

Article by Lisa Orrell, Millennial & Generation Relations Expert and courtesy of Lisa's Generation Relations Blog

It's almost Independence Day. Thoughts about the fall are probably in the backs of a lot of students' and parents' minds right now, but only in the back. Actually, now is a good time to start exploring financial aid options. The following is a list of what's out there, in addition to grants, scholarships, and work study programs. The first step, of course, once you've decided where you want to go to school is to fill out a Free Application for Federal Student Aid (FAFSA) form. It doesn't matter how much your family earns, fill out the form anyway because you may be eligible for assistance if you should need it.

Listed below are the different types of loans available:

Stafford Loans

These loans are available at most colleges and universities and are the easiest to obtain. They are both subsidized and unsubsidized.

FFELP Loans

These loans aren't so easily acquired as Stafford Loans. They are often denied to students attending community colleges or lesser known colleges and universities. They are distributed by private organizations like Citibank, JP Morgan Chase and SunTrust, at their discretion.

Plus Loans

These loans are only made available to parents of dependent ungraduate or graduate students who have "stellar credit and stay on top of their mortgage payments," says Mark Kantrowitz, publisher of FinAid.

Peer-to-Peer Lenders

These loans are risky. A student in need of assistance goes to a Web site like greennote.com of fynanz.com and fill out a form in which they include the school they're attending, their major, and the amount they'd like to borrow. Afterward, family and friends visit the site and decide whether or not to lend the student the money. If they agree to give the student a loan, the site generates a legally binding contract and then the two parties go from there. Note: These are not interest-free loans and the rates aren't fixed. Kantrowitz says federal loans would end up being cheaper in the long run.

Private Lenders

These loans are the toughest to obtain. According to Kantrowitz, a borowwer needs a credit score of at least 650 in order to qualify. Most students, he says, can't meet that demand because they "tend to have very limited credit, or if they have a credit score, it's low." He recommends that the student ask their parents to co-sign on the loan.

There are many loan options available, but if they can be avoided, so much the better.

Although modernmarvel doesn't knock it, she does have some things to say about UPromise that aren't too promising (no pun intended).

Her first caveat comes in the form of a condition that must be met by all members who hope to retrieve the money they've saved ... they must have "529 Plans" for their children. The 529 Plans - from section 529 of the IRS tax code authorizing them - are much like 401(k) plans. They are sponsored by states, state agencies, or educational institutions and come in two forms, prepaid and paid.

The prepaid 529 plans allow parents to lock in today's tuition prices at a particular college or university. "They purchase credits or units at participating colleges and universities for future tuition and sometimes room and board," according to the U. S. Securities and Exchange Commission. The paid 529 plans don't allow tuition prices to be locked in. Parents simply invest in stocks and /or bonds with participating investment firms like Vanguard, Smith Barney, and T Rowe Price.

The need for a 529 Plan wasn't a hindrance for modernmarvel because she already had them for two of her children. Unfortunately for her, UPromise discontinued its relationship with Fidelity, so modernmarvel will have to switch to another investment firm or risk forfeiting the $500 she's already saved.

Modernmarvel's next warning is about the lack of speed on the UPromise site. Pages take much too long to load, she said. It also takes several days for information to be processed when establishing a new account, and it can take anywhere from several weeks to several months or even a year for savings to be deposited into an account. If such delays aren't perturbing, then going to UPromise to help save for future college tuition might be worth it.

There are many ways to save with UPromise like registering credit cards so rewards go to a member's account every time the registered card(s) is used. This is where friends and family can really be a help. By creating UPromise accounts and registering their credit cards, they help the member earn additional rebates. Modernmarvel's friends and family contributed $200 of the overall $500 she has saved.

Online shopping, especially at participating online companies like ebay or travelocity, purchasing a meal in certain restaurants, during certain times of the day, and using a registered credit card, can earn a saver a 10% rebate. Grocery shopping in a participating store and using the store's customer card, or purchasing certain products like Coke or Kellogg's cereals can help a UPromise member earn rebates, modest though they may be. For those who like giving MacDonald's gift certificates, 3% rebates can be earned on each purchase.

Sometimes local stores can be registered with UPromise and rebates can be earned through credit card purchases. Modernmarvel cautions against using the UPromise Citibank Card, which deposits 1% of a saver's total spending into his account, because she had a miserable experience with Citicard.

On the plus side of UPromise, modernmarvel said the site is user-friendly and they keep goog records; however, because of the 529 Plan requirement, she said she wouldn't recommend UPromise to anyone who didn't feel a 529 college savings plan was a good fit for her.

"Physical therapists (PTs) who choose to work with children, adolescents or veterans would be eligible to apply for student loan forgiveness under legislation approved Thursday, February 7, by the US House of Representatives. Rep Joe Sestak's (D-PA) amendment to the College Opportunity and Affordability Act of 2007 (HR 4137) authorizes the US Secretary of Education to forgive a portion of qualifying student loan debt to PTs practicing in areas of national need."

Now that the PT profession has successfully become included in the above mentioned bill, Occupational Therapists are now pushing for inclusion. The AOTA has quickly banded its members together and are taking action to get their profession incorporated into the final bill. Now they wait on the Senate's decision.

Article courtesy of RehabCare Student blog. RehabCare provides college recruiting for Physical Therapists, Physical Therapy Assistants, Occupational Therapists, Occupational Therapy Assistants and Speech Language Pathologists.