Tidbits® - July 2008
Credit insight from Credit.com
Welcome to the Credit.com newsletter!
In this issue, we're helping you find ways to pay for college,
helping you protect your children from identity theft and
explaining how certain credit card purchases can impact your
credit score.
We'd love to hear from you! Send an email with your questions or
comments to tidbits@credit.com anytime!
Quick Tip
Identity theft is one of the fastest growing crimes in America. As many as 500,000 children are victims of ID theft each year.
Protect yourself, your spouse and your children with this new comprehensive credit monitoring program from Experian.
Protect your family from identity theft:
http://www.credit.com/r/experian-familysecure
5 Tips to Help Pay for College
Whether you're helping the teen in your life pack up for
freshman year or thinking about going back to school yourself,
there are some important financial considerations to make this
summer. The cost of attending college keeps rising. Today, a
four-year college education costs an average of $6,185 at a
public school and $23,712 at a private school.
Most students rely on a mix of savings, scholarships and loans
to make ends meet. Here are five tips to help you finance an
education:
Step 1: Fill out the FAFSA
All types of students should fill out the Free Application for
Federal Student Aid each year. The deadline for the upcoming
school year just passed at the end of June. If you didn't make
that deadline, you can still apply online now for the next
school year. The FAFSA form will connect you to federal,
state, and school loans, as well as grants and work-study
programs. Fill our the FAFSA online here:
http://www.fafsa.ed.gov
Step 2: Research Scholarships
There are thousands of sources around the country that
offer college scholarship opportunities. Search tools like
the one available at CollegeBoard.com make it easy to search
for scholarships tied to your major, residence, interests,
ethnic background, and more. You can also look locally for
clubs and groups that offer scholarships.
Step 3: Consider Federal Loans
Federal student loans are an affordable way to pay for
college expenses that your scholarships, grants and
savings don't cover. Stafford loans are the most common
and allow you to borrow up to $23,000. Stafford loans don't
have to be repaid until 6 months after you leave school.
Parents can also borrow money with a federal PLUS loan. You
can apply for both types of federal student loans through
the FAFSA.
Step 4: Bridge the Gap
Private student loans are sometimes called "gap loans"
because they're designed to help you pay for any remaining
expenses beyond your financial aid and federal loans. You
can borrow up to $40,000 a year for tuition, books, room
and board, study abroad and other school expenses. Like
the federal loans, you don't have to repay a private student
loan until you finish school. You can apply for a private
student loan online here:
http://www.credit.com/ufg/credit.com/student_loan
Step 5: Weigh Your Options
If you're still not able to cover all your college expenses,
there are a few more things to consider. You should talk
to the financial aid office at your university to see if
they can help you find additional scholarships or work-study
programs. You can also investigate working a part-time job
while you're in school. Or, you might want to consider
starting at a less expensive community college and then
transferring to the college of your dreams after a couple years.
However you decided to finance college, be sure you have a
good plan for paying it back after graduation. You don't want
to start your post-college career burdened with too much debt.
If you have questions about paying for college or want to share
your own story, email us at tidbits@credit.com.
Ask John
The news that certain credit card purchases can impact your
credit score is making headlines across the country.
What does it mean? Does using your credit card at a marriage
counselor or tattoo parlor hurt your credit?
Get the real story from John Ulzheimer:
http://www.credit.com/rs/vol34.jsp
On the Blog
When you apply for a new credit card or loan, does being
approved impact your credit score differently than being
denied? Read more how credit inquiries work.
Read how inquiries impact your credit:
http://www.creditbloggers.com/2008/06/is-a-credit-inq.html
Quote of the Month
"A man who has never gone to school may steal from a freight
car; but if he has a university education, he may steal
the whole railroad."
- Theodore Roosevelt
Tidbits® - July 2008
About this newsletter
This information has been compiled and provided by Credit.com as
a service to the public. While our goal is to provide information
that will help consumers to manage their credit and debt, this
information should not be considered legal advice. Such advice
must be specific to the various circumstances of each person's
situation, and the general information provided on these pages
should not be used as a substitute for the advice of competent
legal counsel.
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