Bottleneck-oriented Business Management

Simple and effective Business Management In every enterprise there are, at every time, one or more bottlenecks, which have influence to the commercial situation. Bottleneck-oriented business management has the purpose to early track the bottlenecks and to remove them, to allow an optimum of commercial development. To know at any time, what a business lacks of and to be able to add the missing things, is today a determining competition advantage. Bottlenecks can be, e.g.: low sales proceeds high due or overdue accounts receivables low liquidity (Cash on Hand, etc.) high amount of liabilities low number of customers too many new customers too high capacity utilization defective administration or management and a lot more. These example show that bottlenecks not only concern negative circumstances, but also can apply to positive commercial development. If an enterprise takes up many new customers, this results in new orders, which lead to other circumstances, like a possible excess in capacity utilization. In case the excess of capacity utilization stays for a longer time, this may result in a lower employee motivation, because of a slump in working atmosphere within the company, which then could lead to less qualtiy of the work performed. Due to a TIMELY reporting system many companies take care of reaching the desired commercial development. However, a regular analysis of expenses or the annual reports are not enough to control a business today. In the today's dynamic markets these evaluations are too statical, too much oriented on the past commercial development, which had been achieved. Also cost accounting only shows what has happened in the past. The actual direction in which a business is running could not be seen. Imagine a business to be a car. If you sat down in a car, do you like to receive information from the instruments from the last year or month? Probably not. You would like to have actual information about fuel tank content, coolant temperature and a lot more. Bottleneck-oriented business management should exactly bring the most important and actual information about a business to you, including so-called early warning signals (Screenshot abenetis ERS-Diagram). Data oriented to the past for early-warning-systems? A working early-warning-system needs data which are not oriented to the past, like from cost accounting or year-/month-end-closeings. It needs data from so-called early indicators, which has to be gathered from different areas of an enterprise. Of course, figures from the finance and accounting department belong into an early-warning-system, but they only have a subordinated role, because they are oriented to the past. Nowadays the reporting must show the present situation of a business. In many businesses the expenditure of time for the reporting rose considerably, due to the today's flood of information. Aggravatingly added to this, is the selection of the really relevant business ratios, which allow an appropriate overview of the actual business situation. Too often reports are prepared, which are not perceived by anybody, due to the lack of necessary statements about the business development. There are already proven business-ratio-systems, that enterprises only need to take over. Get back into the car again, imagine you have only one instrument in front of you, which shows the value "35". What does this signify? It is not recognizable how many fuel exists, how the Temperature of the coolant is or how fast the car is driving, etc. At this example you could recognize the little expressiveness of only one business ratio. It shows the importance to use the right business ratios, which must have a connection to each other and which have a different temporal origin. Nevertheless, many business ratio systems are mostly based on data which originate from the past. This turns often to the problem, that immediate information are not available, to indicate the actual situation of a business. However, there is still the alternative, to reduce the period of the past. How would it be with one week instead of analysing business data every 4 weeks? This would lead to the fact that you could act a few weeks earlier, if something should run a little bit inclinedly. Only very few data are needed to receive an informative evaluation. This again is comparably with a car. If you are driving with your car, you only receive a small, well-chosen number of information and nevertheless, have an actual picture of the situation. This is also possible for businesses, as well! As a motorist we receive only one fraction of the data which is acquired by the system of the car, and just these fraction of information is enough for us to reach the desired destination. When traveling usually we are well prepared, but the principle of the preparations is often neglected in business operation. As it is with traveling, the final goal has to be clearly stated by the business management. This could be done by having planing data available. Only by target/actual comparison divergences of the commercial development will be recognized. Unfortunately, many small businesses renounce to use plan data. Besides, it is not about, to cut plan data into the smallest pieces, but only to get a rough picture, what the business is going to achieve. It is absolutely possible to run a business on the basis of the figures from the previous year, however, to use these figures, the past commercial development should be taken into consideration. So the figures from the previous year should be improved to fit with the new goals. And finished are the planning data and the basis for an operational risk management are laid. Still if it is most important to know the actual bottlenecks in business operation. Recognize problems and act! One of the most important factors in business management is the early recognition of problems and potentials. There are bottlenecks in every business, which could have serious results. Pecuniary difficulties could lead to bankruptcy for example. Therefore symptoms must be recognized early, in order to turn a possible crisis away and to secure the future of your business. Also to use available potentials, regular analyses should be done. Nowadays products and services could not be sold forever, because product cycles become shorter and shorter due to market dynamism. The recognition and development of potentials is exceptionally important, to avoid losing the already achieved basis of a business. About the author:Stephan Szugat is founder of abenetis a web-based service about Business Management Solutions focusing on the core needs of business management. This includes operational and strategic analysis especially Early-Recognition-Systems, Knowledge-Management and other Services for small and mid-sized businesses. He has approx. 15 years experience in the Finance and Accounting Area from companies of different size and from various industries. http://www.abenetis.com

Beware Of Bad Credit

Could bad credit payday loans be the answer consumers with low bank accounts have been looking for? Is there any harm in using these services? Aren't they better than using credit cards or going hungry? Have you seen the commercials? Cute characters promise financial prosperity. Happy, professional individuals appear to regularly visit their corner pay day loan shop as proudly as cashing a check at the bank. Customers at the grocery store all recommend pay day loans as the easy solution for a lack of funds. WHY USE A PAY DAY LOAN? Some individuals reason that paying a bill with borrowed money is better than receiving bad credit marks because of not paying the bill. This is understandable. However, some financial institutions are willing to make the occasional exception if contacted about the situation. Or there may be a small fee, but not a credit report made. Using it for groceries or other items? Consider the true cost before making a decision. Compare the cost of using a pay day (or cash advance) loan to the fees charged for taking a cash advance on your own credit card. Can family help? Often those who are forced to use pay day loans are not able to repay the loan by the next pay check and that can lead to a cycle of debt and stress. WHAT IS THE COST? Several sources, including a consumer report by the FTC (Federal Trade Commission) and the CFA (Consumer Federation of America) state that usual the usual APR is between 350 - 650% with some as high as 780%. A loan of $100 ranges in cost between $15 - $30. If the loan is not repaid by the pay date then it can be renewed with another fee due at each renewal. A loan of $100 can cost $60 in fees after 3 renewals. WHO BENEFITS? Based on the warnings issued by federal and consumer organizations it is clear that using pay day loans or cash advances from these businesses can often lead to more debt and problems. Some sites were reported to automatically roll over the loan and only withdraw the renewal fee on the pay date. Other sites surveyed by the CFA required customers to agree in contract to not participate in class action suits or to file for bankruptcy. For those who are having debt problems it is recommended to seek no- or low-cost credit counseling from a local non-profit organization. These organizations can help with reducing current interest charges and lowering monthly payments. If the problem is budget, you should look to a financial planner who can help you to manage the money you do have and avoid using credit at all. About the author:Team-Schuman.Com contains the best make money online and make money websites available today. If you want to make money check us out here: http://www.team-schuman.com/bad-credit-payday-loan.html

Bankruptcy 101

Bankruptcy’ the term that can raise the goose bumps of almost every individual who hears it and even a nervous breakdown to those who confront it. Bankruptcy stands for the situation when a person runs into huge debts and there is hardly any money left with him to repay those debts. The clouds of bankrupt situation can hover over anybody’s life be it a successful business man who has never ever fathomed it or any greenhorn entrepreneur who had thought of going a long way ahead. There are several reasons behind this insolvency- Indebtedness-people usually take big loans from the banks and private companies in order to run successfully their business or company. However, since the economy is constantly fluctuating, one might not be able to incur expected results or profits. So, the loan debt with interest rates gets piling on. The loan can also be taken to pay off a bill that you missed paying. The loan is taken instantly in this case without an assessment of the interest rates. This can be cause snags later. The credit card bills are also a source of trouble. They are charged with good interest and at the end of the month when the expenditure has chewed your month’s income; the credit card bill can make you bite the dust. In the world today where fraud and betrayals are considered to be the bets virtues, any partner or shareholder or director might connive to pitch the company or business to bankruptcy. Here the reasons can be mutual squabbles and vengeance. Gradual denouncement from the market- the commodity you sell today at price X, may be sold tomorrow by some other company at a much cheaper price Y. This can oust or eject your product from the market replacing it with a relatively cheaper one. However, where there is a will, there is definitely a way. Just as there are two sides of a coin, there are two aspects attached to everything. When you glare at the negative side of the situation, its positive aspect is lurking behind according to which bankruptcy can be seen a situation that provides you a golden chance to start things afresh. This is done by filing your application for bankruptcy, in a way seeking help from the government to help you overcome the disaster. Once you forward your application and it is accepted, the government repays most of your debts. This becomes possible by taking hold of your assets and dividing them amongst the creditors in an organized manner. But the debts that are associated with embezzlement or those huge ones that cannot be covered up via one’s assets can be problematic. In case of businesses filing for bankruptcy, certain procedure has to be followed up. Besides this there are a few debt consolidation services that advertise themselves through television, print media etc. Debt consolidation signifies using a loan provided by that service to repay other debts. This loan is comparatively at a lower rate of interest and it often becomes easier for many to repay one loan instead of five to six ones. In any case, if you are seeking financial aid from the government, banks, services etc., there stands the barrier of qualification. It is that you should be able to prove the service or the bank that your case is authentic and not a fraud. In order to escape future troubles, the government has formulated strict laws and eligibility criterion in this area. However, in any case it is better to seek the advice of an advisor before seeking help to make up your crisis. This will not just educate you about all the related terms and conditions but also the possible legal and financial consequences. Just keep in mind that help always comes to those who are look for it with a true heart

Applying for a Loan

The process of applying for a business loan is a stringent one as compared to the standard procedures in obtaining a home mortgage loan or a personal loan. This is probably due to the fact that business loans contain a greater risk element as compared to other loans. Therefore, lenders need to exercise greater caution and emphasis when evaluating business loan applications in order to minimize their risk exposure. With that, lenders evaluate their applicants based on the information that are provided as well as their judgment of the viability and profitability of the business being financed. Thus, business loan applicants will be required to submit a loan proposal along with their applications with the purpose of creating a positive impression upon the lender. The first element of a loan proposal is an executive summary, providing short descriptions of the type of business and the industry, the purpose and usage of the loan, the proposed repayment conditions as well as the intended loan period. After that, the company information is provided, enriching the reader with the nature of the business, the location of the business, company history, the products or services provided, key differentiation factors of the company or the product, the general growth of the industry, competitive information, growth potential and target customers. It would help if you could include your company marketing strategy, detailed product information, historical information as well as projected growth plans for the company. Apart from that, if you plan to incorporate product or service extensions in the future, you should provide these descriptions within your loan proposal. If possible, geographical expansion plans will help in the proposal. The next area that needs to be showcased in the proposal would be the credentials and experience of each member of the management team. Impressive credentials will provide assurance to the lender that the company is managed by individuals who are responsible and capable. This is important as having the wrong people managing the company could be detrimental for the business. In any loan application, historical records are essential to be used in evaluating the performance of a company. As new companies do not yet have these records, the financial records of the owners will be used as the basis of evaluation. Income tax returns forms are also required by lenders. All of these records provided should be the latest copies less than 90 days old, with the exception of the income tax returns form. If the loan is applied for an existing company in active operations, company financial statements, including profit and loss accounts, balance sheets and the net worth reconciliation record should be included in the loan proposal. Again, all of this information should also be the latest and less than 90 days old. Additionally, a listing of accounts receivables and other short term and long term debt should be attached. On the other hand, if the loan application is submitted for a new business, a pro-forma balance sheet and profit and loss account should be provided. Apart from that, a cash flow projection for the upcoming year is drafted to indicate the possibility of recovering the debt. This also means that projected revenue, profits, costs incurred and expenditure should be listed out with definite explanations provided as well as a list of assumptions. If you possess assets that you wish to use as collateral for your loan, details for this should be provided to the lender as well. It is often common for lenders to request for dual sources of repayment in the event that one source is defaulted. This means that if the business owner defaults on his repayments, the collateral can be sold in order to recover debt. Finally, other documents normally required for a loan application would be items like the article of incorporation, lease agreements, partnership agreements, license, references, etc. As the list of required documentation, information and attachments differs between lenders, it is best to check with the individual lender on their specific information and documents required to be attached with the loan proposal. About the author:Matt Bacak became "##1 Best Selling Author" in just a few short hours. Recent Entrepreneur Magazine’s e-Biz radio show host is turning Authors, Speakers, and Experts into Overnight Success Stories. Discover The Secrets http://promotingtips.com

Applying for a Business Loan

by: Matt Bacak
Copyright 2005 The Powerful PromoterThe process of applying for a business loan is a stringent one as compared to the standard procedures in obtaining a home mortgage loan or a personal loan. This is probably due to the fact that business loans contain a greater risk element as compared to other loans. Therefore, lenders need to exercise greater caution and emphasis when evaluating business loan applications in order to minimize their risk exposure.With that, lenders evaluate their applicants based on the information that are provided as well as their judgment of the viability and profitability of the business being financed. Thus, business loan applicants will be required to submit a loan proposal along with their applications with the purpose of creating a positive impression upon the lender.The first element of a loan proposal is an executive summary, providing short descriptions of the type of business and the industry, the purpose and usage of the loan, the proposed repayment conditions as well as the intended loan period. After that, the company information is provided, enriching the reader with the nature of the business, the location of the business, company history, the products or services provided, key differentiation factors of the company or the product, the general growth of the industry, competitive information, growth potential and target customers.It would help if you could include your company marketing strategy, detailed product information, historical information as well as projected growth plans for the company. Apart from that, if you plan to incorporate product or service extensions in the future, you should provide these descriptions within your loan proposal. If possible, geographical expansion plans will help in the proposal.The next area that needs to be showcased in the proposal would be the credentials and experience of each member of the management team. Impressive credentials will provide assurance to the lender that the company is managed by individuals who are responsible and capable. This is important as having the wrong people managing the company could be detrimental for the business.In any loan application, historical records are essential to be used in evaluating the performance of a company. As new companies do not yet have these records, the financial records of the owners will be used as the basis of evaluation. Income tax returns forms are also required by lenders. All of these records provided should be the latest copies less than 90 days old, with the exception of the income tax returns form.If the loan is applied for an existing company in active operations, company financial statements, including profit and loss accounts, balance sheets and the net worth reconciliation record should be included in the loan proposal. Again, all of this information should also be the latest and less than 90 days old. Additionally, a listing of accounts receivables and other short term and long term debt should be attached.On the other hand, if the loan application is submitted for a new business, a pro-forma balance sheet and profit and loss account should be provided. Apart from that, a cash flow projection for the upcoming year is drafted to indicate the possibility of recovering the debt. This also means that projected revenue, profits, costs incurred and expenditure should be listed out with definite explanations provided as well as a list of assumptions.If you possess assets that you wish to use as collateral for your loan, details for this should be provided to the lender as well. It is often common for lenders to request for dual sources of repayment in the event that one source is defaulted. This means that if the business owner defaults on his repayments, the collateral can be sold in order to recover debt.Finally, other documents normally required for a loan application would be items like the article of incorporation, lease agreements, partnership agreements, license, references, etc. As the list of required documentation, information and attachments differs between lenders, it is best to check with the individual lender on their specific information and documents required to be attached with the loan proposal.About the author:Matt Bacak, The Powerful Promoter and Entrepreneur Magazine e-Biz radio show host, became a "##1 Best Selling Author" in just a few short hours. He has helped a number of clients target his specialty, opt-in email direct marketing systems. The Powerful Promoter is not only a sought-after internet marketer but has also marketed for some of the world's top experts whose reputations would shrivel if their followers ever found out someone else coached them on their online marketing strategies. For more information, visit Bacak's site at http://www.powerfulpromoter.comor sign up for his Powerful Promoting Tips at http://www.promotingtips.com

Alternative Venture Finance

While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs). An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates. In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse. Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund. Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs. In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need

Achieving Financial Security

Financial Security is a false concept that developed in American society based on the idea that security comes from the perceived reliability of a regular or planned paycheck. Many people, believing in the commitment of their corporations to their well-being, have found themselves downsized, layed-off, outsourced, transferred, or, in some cases, even fired. The immediate reality becomes harshly apparent and sadly disappointing.The bottom line is that Corporate America will always be focused on the bottom line. As a dependent corporate employee, you are subject to the whims of the corporation. You have absolutely no control over how much you earn, where you work, the longevity and reliability of your income, or your position. You are simply a number. At any given moment, some nameless pencil-pushing number-cruncher, can deem that you are no longer an asset to the company and, rather, have become a liability. At any given moment, it can be deemed that you no longer factor into the profitability of the corporation - and your OUT. They don't care if you have a mortgage to pay, 3 kids in college or a new shiny car with a hefty payment. They don't care that you've come in early for the last 9 years or given 20 years of your life to them. The bottom line is that you don't effect the bottom line in a positive way...so you're OUT.Corporations no longer hold value in employee commitment or dedication. Each day, companies are choosing to cut costs by outsourcing to less expensive countries with cheaper labor, downsize, and reduce costs by eliminating cost of living increases, benefits and retirement guarantees. Recently, the media has been focusing on the deliberate actions of corporations that cost employees each year. The Christian Science Monitor, on November 7th, 2005, featured an article, “Workers Face Paycheck Pinch”. In the article, the author, Mark Trumbell, details the lag of Corporate America to maintain pay increases with inflation:"For all its strength, the current economic expansion is not boosting the American worker's paycheck. Wages have been rising nominally: Average pay rose 8 cents last month to $16.27 an hour, according to a government report Friday. That's not fast enough to counter inflation.By one common measure, average pay for an hour's work has less purchasing power than it had four years ago - when the current growth cycle began. It's a pattern of weak wage growth that's now several years old, but the trend has worsened in recent months. Wages for the most recent quarter were 2.3 percent lower, after inflation, than workers received a year before"Time Magazine recently featured an article entitled “Broken Promises”"It was part of the American Dream, a pledge made by corporations to their workers: for your decades of toil, you will be assured retirement benefits like a pension and health care. Now more and more companies are walking away from that promise, leaving millions of Americans at risk of an impoverished retirement.""Corporate promises are often not worth the paper they're printed on. Businesses in one industry after another are revoking long-standing commitments to workers." (Bartlett and Steele, October 31, 2005, p. 32-33)So, how do you achieve Financial Security in this changing global economy? Employers aren't even keeping up with inflation and are doing everything in their power to reduce benefits and retirement income. The days of being rewarded for loyalty to corporations are long gone – it’s now every person for themselves. In addition, loop holes in corporate law enable companies to restructure, file bankruptcy and maneuver their way out of promises to employers to provide benefits.In reality, true Financial Security is belief in yourself and your ability to instinctively create income for yourself at any time, anywhere. Entrepreneurs understand true Financial Security. They’re self-reliant, creative, independent and solution focused. We know that at any given time, regardless of the economy, trends, timing, etc. that we have the skills, know-how, and guts to create our life. Entrepreneurs refuse to be dependent on or subject to the whims or decisions of corporate America, rather establishing themselves as corporations, producing their own incomes through commitment, service and sheer motivation. We are responsible for our own retirements and count on the promises of no one. Entrepreneurs ARE financial security and as such we reap the rewards.There are many opportunities for people to become successful entrepreneurs. Thousands of people have made fortunes on the internet alone. Decide what type of business you want, what your ultimate goal is (time, money, leisure, etc) and go from there. A common misconception is that businesses take thousands of dollars to start. It is true of some, but there are many lucrative opportunities available for nominal start-up costs. Once you make the decision to be self-employed, do your research, find the right business for you and move forward from there

9 things you must do to maximize your chances

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information: 1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each. 2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly). 3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It” 4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they? 5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc. 6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor. 7. Latest Set of Management accounts. Again produced from your accounting software. 8. Accounts receivables (debtors) and payables (creditors) ageing reports. 9. Principals financial statements. – Particularly required if some form of security is necessary. If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan. You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!) Good luck! About the author:Neil Best is an accountant with over 15 years experience in business finance. This article and other useful business finance information such as making effective business plans and sourcing and applying for business grants can be found at http://www.smallbusinessfinancetips.com/small-business-loans.html

7 Financial Strategies for Transitioning

40’s something woman was talking to me the other day about her growing sense of frustration with “working for someone else” and her longing to “do my own thing, drive my own wagon”. But, she said with consternation, “I have family counting on me and a standard of living I don’t want to sacrifice.” Everyone has to decide for themselves what level of sacrifice and risk they’re willing to undertake in order to enjoy the satisfactions of working independently. Knowing some strategies for managing the risk will allow you to make a well-informed decision.Of the seven strategies included below, the first two suggest ways to gradually transition from salaried to solo, instead of diving off the edge. The second two are ways to stretch the dollar; and the final three are ideas for getting started without stopping.1. Continue to draw a (reduced) salaryLeaving your current employment in order to develop your new business may look like the only option, based on an assumption that you won’t get approval for reducing your hours. While this may prove to be the case, asking yourself why and how your company will profit from retaining your skills and experience for a transitional period can provide the basis for approaching your employer. Be sure to do your homework first, however, and be able to back up your request with a solid rationale. Also consider the issue of timing. You want to weigh informing your employer of your wish to leave with being prepared to leave if the answer to your request is no.2. Develop another income stream If you need to leave your present employment, is there a skill in your toolbag that you can resuscitate and put to work without a significant expenditure of time or energy? Is moonlighting or freelance work an option? Virtual e-lancing websites (such as eWork.com, Guru.com, and e-lance.com) may be worth looking into for short-term professional services opportunities.Examples: A community mental health worker transitioning to private practice used his conflict resolution experience to sell a training package to public schools. A woman transitioning out of an insurance brokerage created and sold seminars on long term care financing at local retirement centers.3. Reduce expensesApart from fixed expenses - mortgage, taxes, insurance, etc. –are discretionary expenses that make up the larger part of budgets. Doing a careful analysis of these expenses and choosing what you can forego for awhile can often save thousands per year.Carefully analyzing hidden expenses – credit card interest rates, bank charges, late fees, auto debits, phone plans – or “lost money” from low interest rates on savings may generate several thousand more per year.4. BorrowIt isn’t necessary to wait to borrow for start-up costs until you have a well-documented idea to submit for a business loan. Refinancing a home or taking a line of credit are relatively low-cost ways of generating capital. Depending on your credit rating, you can also get time-limited low-interest loans from credit card companies. If you choose this option, applying for loans or refinancing packages while you’re still employed is strongly advised. Your rating as a borrower declines quickly once the regular paychecks stop.You don’t have to wait! Get started on your new business idea while you’re still employed. Several of the all-important first steps (below) can be started while standing in the grocery line or running on the treadmill. They involve asking yourself some questions and doing some informal research to get crystal clear about your idea. This can take weeks off your actual start-up time. 5. Identify your niche. Think about the services you’re uniquely qualified to provide, as well as the ones you most enjoy providing. Be specific! Write them down! Then think about what group of people would get benefit from those services and have the ability to pay for them. Again, be specific: age, where they congregate, habits and values, how they define the problem your services are going to solve. If you don’t know, ask. Find someone who fits your “ideal client” profile (s/he may be on the treadmill next to yours at the gym) and get permission to ask some questions. People generally love to be helpful.6. Create your marketing plan.Don’t be intimidated by the term “marketing plan”. While what you need from a marketing plan will get more sophisticated as your business develops, for now it simply means answering the question, How is my business going to make money? What is the product or service you’re going to sell? How will you describe it so people quickly recognize the value? How will you package it? (fee for service? by the project? on retainer?) How will you price it? (What’s being charged for comparable services? What “feels right” to you?) 7. Manage fear!For most people, anything involving money involves some level of fear. It’s important to acknowledge to yourself and to others that you are taking a risk, and you’ve decided it’s a risk you want to take. So consider the fear natural, and find ways to manage it. Getting support from people who believe in you and in what you’re embarking on is #1 in fear-management tactics. Don’t assume that you’ll get it from the people closest to you, or that if you don’t have it you shouldn’t proceed. They’re probably the ones most impacted by your decision and so may be least ready to offer support. Their consent – a willingness to go along with your plan – is helpful, but support may have to come later.It’s also helpful to set a goal (and a date for completion) that’s key to your new venture – arrange financing by a particular date, or sign a lease – and announce it to at least one person. You’ll find that making that commitment, saying it out loud, and following through will in turn generate more confidence and more forward momentum. To all of you who are tired of marching to someone else’s drum and are eager to go solo, these strategies should help you take prudent but positive steps toward realizing your goal. Good luck!About the author:Nina Ham is an internationally certified women’s business coach and a licensed psychotherapist. Her company, Success from the Inside Out, provides programs and services essential for anyone making the salaried-to-solo transition, including niche identification, marketing fundamentals, and self management for solo professionals. Go to her site, http://www.SuccessfromtheInsideOut.comand take her free quiz, Is Going Solo for You?

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A national college admission examination, the ACT consists of subject area tests in English, mathematics, reading, and science plus an optional writing exam. Originally, "ACT" stood for American College Testing. However, in 1996 the official name of the organization was shortened to simply "ACT" to better reflect the broad array of programs and services offered beyond college entrance testing. There are three good reasons to take the ACT: 1. The ACT tests are universally accepted for college admission. 2. The ACT is not an aptitude or an IQ test. Instead, the questions on the ACT are directly related to high school courses in English, mathematics, and science. 3. In addition to the tests, the ACT also provides test takers with a unique interest inventory that provides valuable information for career and educational planning and a student profile section that provides a comprehensive profile of high school work and future plans. In the U.S., the ACT is administered on five national test dates in October, December, February, April, and June. In selected states, the ACT is also offered in late September. The ACT tests are prepared according to the Standards for Educational and Psychological Testing, American Educational Research Association, American Psychological Association, & National Council on Measurement in Education (1985); Code of Professional Responsibilities in Educational Measurement, National Council on Measurement in Education (1995); and Code of Fair Testing Practices in Education, Joint Committee on Testing Practices (1988). People of all ages and grade levels are eligible to take the ACT. This includes junior high or middle school students and those who have already graduated from high school. The test includes 215 multiple-choice questions in four subject areas: English- 75 questions; Math-60 questions; Reading-40 questions; and Science-40 questions. Plus, one writing prompt in the optional writing portion. There are no limitations on how many times you can take the ACT, although there are restrictions on how frequently you can do so. For example, you can test only once per national or state test date, or if you test through non-national testing such as special testing, you must wait a minimum of 60 days between retests. Many students take the test twice, once as a junior and again as a senior. You should definitely consider retesting if you had any problems during the test, such as misunderstanding the directions or not feeling well. You may also want to consider retesting if you aren't satisfied that your scores accurately represent your abilities. Retesting may be a good idea if you see a discrepancy between your ACT scores and your high school grades, or if you have completed coursework or an intensive review in the subject areas included in the ACT since you were tested. Research shows that of the students who took the ACT more than once 55% increased their composite score on the retest. If you take the test more than once, you control which scores are sent to colleges or scholarship programs. You can learn more about the ACT from the ACT corporation, college admission offices, and high school guidance departments

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Study Skills: Top 10 Revising Mistakes (part I)

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Getting a College Degree From a Distant Learning School

Distance education usually rises to the occasion above most typical universities offering this type of international educationDistant learning classes are available to many sections of the world and a wide course is offered for many who strive for a high quality upper education. Distance education lets you to prepare for university admissions and also offers many other degree courses that can assist people in attaining degrees for upcoming employment.Climbing the ladder of success from having low quality careers to the white collared work assignments needs distance education and this can be quickly done on your own time, without any deadlines to meet.The choice is yours and can be fitted within a convenient education period so that the training is well imbibed and you gain the most learning for that future career path. Even if you have very little time on your hands, it will be beneficial to take a couple of minutes and follow the classes to get desired results that will lead to a better job in the future.Enrolling in a distant learning college is the way you can acquire university degrees by studying for a bachelor, masters, fellowship or associate degrees and you don't even need to move from your home Distance education makes all this very easy for you since one does not have to spend waste time in going to a school complaining about the normal day routine required for full time courses. Neither is it necessary to work for your education or make too many changes in the usual life pattern. Tutorials are available online making the entire education process very convenientThe best feature of distance education is the time span that suits your convenience. One can begin the process without many complications, form filling or other details generally required for obtaining admission. The cost of distant learning is just as good as conventional schools except when makes it easy with their pay as you go plans. Distance education is the doorway to success and a bright career where Distance education excels in providing many courses of interest to the students who can choose their package and complete the studies in comfortable and convenient way.General Information about Distance education:Distance education, or distance learning, is a field of education that focuses on the technology, and instructional systems design that aim to deliver education to students who are not physically "on site". Rather than attending courses in person, teachers and students may communicate at times of their own choosing by exchanging printed or electronic media, or through technology that allows them to communicate in real time. Distance education courses that require a physical on-site presence for any reason including the taking of examinations is considered to be a hybrid or blended course or program.More about the types of Distant Education: Communication is usually conducted via regular mail. Internet conducted either synchronously or asynchronously. Courses are delivered through audio, television or the internet. CD-ROM where the student interacts with computer content stored on a CD-ROM. PocketPC/Mobile Learning where the student accesses course content stored on a mobile device or through a wireless server

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Be Happier And Healthier With A College Education

Be Happier and Healthier With A College Education
It has always been clear that a college graduate could make more money than a high school graduate but new research is showing that college degree holders and their families are generally more happy and healthy than those with just a high school diploma.
The money equation has never been simpler math. A college graduate will make on average twice as much per year than a high school graduate. Over an average working lifetime that will add up to a million dollar gap in earning power. A person with a masters degree can make triple the money and a doctorate will bring in as much as four times the income as a high school diploma.
But the intangible value of a college education have long been in doubt and debated widely. Now studies are showing a remarkable list of quality of life benefits that accrue to college graduates versus their high school only counterparts.
That list includes longer life spans, better access to health care, and better dietary and health practices. In other words, better overall health. But the list also includes things that make people happier. Things like greater Internet access, greater attendance at live performances, greater participation in leisure and artistic activities and more book purchases.
A college education makes better citizens as well. College graduates have less dependency on government assistance, lower levels of criminal activity and incarceration, greater community service and leadership, and more volunteer work. Who would you rather have living next to you, a high school graduate or someone with a university degree?
Knowledge is indeed power and not every college graduate is a saint and not every person with only a high school education is a sinner. But it appears that those who have more knowledge do less damage to their society on average and contribute a great deal more. One only need look at societies where education was banned to see the result.
The other intangible but real impact of a college education is on the children of those who complete a college degree program. Once the door has been opened they gladly follow through. They end up improving their own lives and their children's lives as well. Just as welfare pulls children under, education lifts them higher.
Not everyone can attend university or college for a wide range or reasons that are almost all related to finances. But every year more of those barriers get knocked down and more and more students walk through. Knowing what we know now, wouldn't this be an even greater country if everybody who wanted to could have a college education

http://www.articlesbase.com/careers-articles/be-happier-and-healthier-with-a-college-education-650.html

The first step - Finding out about college loan consolidation

We might think that for a regular college student the main concern is to attend classes, study for exams and turn in the papers before the deadlines. However, this is not the case in North America. The students in the United States and Canada have to deal with quite complicated financial decisions throughout their years of higher education. The reason is that higher education in these countries is provided by private institutions, which offer quality education but at quite spicy costs. In these conditions, students and their families have to face tough financial decisions when they choose a college to attend. For most of them, the fees are too expensive so the first step is to try obtaining a full scholarship or partial financial aid. For the rest of the expenses, there is the widespread option of contracting a college loan.
Students can contract more than one college loan during their four years of college. If they also pursue graduate studies, it is likely that they will end up with a collection of college loans that they end up paying back for many years after graduation. It thus turns out that a college loan is not something you leave behind at graduation, along with all the other college stories, but it is a life-long commitment. The practice of contracting a college loan is so common that an entire business has developed around it covering financial and legal services for the loan contractors.
A college loan can be offered by either a governmental agency or by a private company that takes care of such financial services. If the student contracts all his student loans from the government, than he can use the option of college loan consolidation. College loan consolidation is extremely advantageous because it actually means replacing a whole set of different loans with various interest rates with just one loan having a unique rate. The main benefit of college loan consolidation is that it gives the chance to lock in the interest rate at its current value (the value at the time when the consolidation is made) thus offsetting changes in interest rates taking place over the next years, when the loan is being repaid. Nowadays, all recent graduates are advised to pursue college loan consolidation as soon as they can because rates for college loans are at an all time low and they will not remain so for too lone. Doing college loan consolidation now means that the student makes sure he or she will pay the same low rate for the following ten or more years, although interest rates for college loans may increase by 10% or more in this period.
College loan consolidation is most commonly done by recent graduates, who are starting to face the difficulties of starting to pay back the loans. Usually, during the college years, the government will subsidize the payment of the rates for students. During the first six months after graduation, young people can still be saved the trouble of having to think about college loan consolidation because they are given a grace period during which no payments should be made. The wisest of them start thinking about college loan consolidation in this time though. They consider alternative options and decide which scheme for college loan consolidation is most beneficial for them. College loan consolidation may be a tough decision to make, the financial packages offered include details that may be tedious to follow and understand. That is why recent graduates may end up postponing thinking about it. However, they are being pressured more and more to become responsible and do college loan consolidation now because of the low interest rates they should be taking advantage of.
While it is most common for recent graduates to worry about loan consolidation, for better informed students there is also the option of in-school consolidation loan. School consolidation loan means exactly that students can put their loans together during the college years. School consolidation loan has become more of an issue nowadays precisely because of the current low interest rates. Current college students also wanted to have the option of locking in these low rates (by graduation time, the rates will already have increased). That is how the option of school consolidation loan became more and more widespread. It is interesting to see how many of the present college students will be able to collect enough information and dedicate their time to get into a school consolidation loan program. Many colleges have started coming up with the option of offering counseling for school consolidation loans because they are aware of the difficulty of the task and of the tendency of college students to procrastinate on such issues. In many cases, it is the parents who take over the task of dealing with the school consolidation loan, which makes sense too especially because in many cases it is still the parents who help college students deal with their financial burdens.
The intricacies of school consolidation loan force college students to face the financial and legal difficulties of adult life in the US earlier on. Perhaps the colleges should start thinking about offering an introductory class on these issues... It is very important that teenagers of all ages, including college students, receive an education regarding the financial reality and how a college loan consolidation could help them. After all, it is not fair to take advantage of the young and inexperienced

http://www.articlesbase.com/loans-articles/the-first-step-finding-out-about-college-loan-consolidation-30882.html

درس 2
http://rapidshare.de/files/39205182/b_-_Box_Lesson_02.avi.html

Lesson_01

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Student Loan Tips

Student Loan Tips
Brooke Heath12/20/06
Meet with your financial aid or guidance counselor to get a better understanding of the student loan process.
Do not assume that you will not qualify for financial aid - there are many options available. (Some loans such as unsubsidized Stafford Loans and PLUS Loans are granted regardless of need.)
Start planning early! You can fill out the Free Application for Federal Student Aid (FAFSA) (after January 1st) even before you graduate from high school. If you have graduated already, start it ASAP!
Make sure that the FAFSA form you are filling out is the correct form for the school year in which you are seeking financial aid for.
Have all income, asset, tax information, etc. information available and ready to go before starting to fill out the FAFSA form.
Include your parents or guardians in on the whole process to help you with any questions that you might have about your expected family contribution (EFC), income, etc.
If filling out a paper copy of the FAFSA form, make a photocopy beforehand to practice on, to avoid making any mistakes on the original.
Consider completing the FAFSA form on the web at www.fafsa.ed.gov.
Always read the instructions before starting to fill out the FAFSA form, and follow them exactly.
Make sure that your FAFSA form is filled out completely and accurately to avoid delays.
Be honest and precise when filling out your FAFSA – do not lie about incomes, etc.
Do not leave any spaces on your FAFSA form blank. Put a zero in the space instead.
Do your research – not all loans are created equal!
Shop around! Compare lenders and see who will give you the best deal.
Look for a lender who will offer a variety of flexible programs to choose from.
Look for a loan that does not have prepayment penalties – paying all or part of your loan off early will save on interest!
Look for a lender who will guide you through the student loan process and answer any questions that you might have.
Educate yourself on the types of loans and see which one fits your needs the best.
Understand the benefits and differences between federal loans and private loans.
Understand that private loans require a credit check.
Consider using a co-signer on private loans.
Understand the difference between subsidized federal loans and unsubsidized federal loans.
Always read the fine print on your loans, so that you know exactly what terms you are agreeing to.
Do not borrow more than is necessary – remember that you will eventually be paying this money back
Sign and return all award letters and/or Master Promissory Notes ASAP!
If you are not satisfied with the amount of financial aid you receive, negotiate with your school’s financial aid officers, or your lenders.
Find out about forgiveness options. Some fields of study offer to compensate part or all of your loans if you will work in that field for a number of years
Watch your mail for important information regarding your loan before, during and after your schooling.
Pay interest on unsubsidized loans while you are still in school, if possible.
Maintain half-time student status. This will keep your loans in deferment, meaning that you will not have to pay the monthly payment yet. If you do drop below a half-time status, you will enter the repayment period of the loan.
Stay within your budget to avoid using all of your loan money too soon.
Use student loans only for educational purposes. Using this money for other reasons is fraudulent and a criminal offense.
If you are filing taxes, meet with your CPA to discuss your options for deductions regarding your financial aid.
Attend all of the required Entrance and Exit Loan Counseling Sessions. This will give you important information pertaining to your loan.
Make your lender aware of any name or address changes to avoid any unnecessary problems.
Consolidate your loans – this could save you thousands of dollars
Consolidate your loans while you are still in your grace period! This will allow you to lock-in at a lower rate than after your grace period is over.
Look for a company to consolidate with who will offer the best rates and incentives.
Look for a company to consolidate with who will guide you through the process and answer any questions that you might have.
Consolidate with a company who will offer different payment plans and options that will accommodate you and your income.
Take advantage of borrower benefits. EdFed offers a borrower benefit of saving .25% off of your interest rate by paying with auto-debit, as well as an additional 1% rate deduction after 36 consecutive payments.
Create a realistic budget to help with paying your monthly loan payments.
Stay organized! Keep copies of your applications and other forms on file.
Make your monthly payments on time! Failing to do so can lead to default.
Make your monthly payments, regardless of whether or not you receive a bill. You are obligated to make the payments each month, even if you do not receive a reminder.
If you are unable to make your payments, contact your lender immediately. There are deferment or forbearance options that could temporarily postpone your monthly payments.
If you are granted forbearance, do not drag it out longer than necessary. The interest that accrues while you are in forbearance will be added to your loan balance.
If forbearance is necessary, consider it only for your federal loans, and continue making the monthly payments on your private loans. Private loans tend to have a higher interest rate, so this will save you money in the long run.
Round your monthly payments up. Paying a little extra each month, can save you a lot of money in the long run.
Stay informed about your loans. Always be aware of the balance, interest rates, etc.

private loans

Are you an incoming freshman or a returning student in need of additional help with tuition and living expenses? We designed our Private Tuition Loan specifically with your needs in mind. It's the answer you've been looking for. EligibilityAny incoming freshman or returning students can apply for our Private Tuition Loan. You must be enrolled. How Much Can I Borrow?The total amount you can borrower is determined by a variety of factors. Contact one of our expert Loan Counselors to find out how much you can borrow. How Do I Apply?It's easy! You can apply anytime, even after a semester has started! We can pre approve you over the phone in as little as three minutes. Or you can apply online. Interest Rate and FeesThe interest rate on our Private Tuition Loan is determined by a credit evaluation.

For those individuals who are thinking about attending college or graduate school, there are many things to consider. From which school to attend to deadlines, one must devote lot of time and energy to this endeavor. The price tag of course weighs heavily on one’s decision to attend this or that school and even whether to attend at all. With the average cost of tuition, fees, room and board being $29,026 at four-year private colleges and universities, and $12,127 at four-year public colleges and universities,1 the cost of attendance is sure to cause a moment of pause and even dissuade one from attending. Graduate or professional school can cost even more. However, the cost of attendance is not the only thing to consider. Rather than focusing on the present or even immediate future, that is, paying the costs of college or graduate school tuition, one should bear in mind the benefits of investing so much into higher education. Many individuals are aware of the fact that higher education greatly increases career and financial opportunities. A college or graduate degree vastly improves one’s chances of achieving goals than a high school diploma. In fact, merely having a high school diploma significantly limits one’s prospects. A college or graduate degree will open doors and provide you with the tools necessary to make your dreams of upward mobility a reality. Aside from the social leverage one can wield by holding a college diploma or advanced degree, the monetary potentials far outweigh the initial investment. The graph below demonstrates this point. Listed are the median annual incomes according to level of education. Another piece of insightful information is the percentage of individuals holding each type of degree who are unemployed

As you can see, the benefits of a higher education are twofold. First, the higher the level of education an individual has, the higher the annual income she or he earns. Second, an individual lowers their risk of unemployment by obtaining a higher education degree. So think of it this way: Even if you end up with a high amount of debt after you graduate, you’ll earn that back in just a couple of years. Remember, anything you invest in higher education now will give you a huge return in more ways than one

The Availability of Federal Student Loans

The National Association of Student Financial Aid Administrators (NASFAA) is confident that federal student loans will be available to families and students this coming academic year. Alarming reports about disruptions in the credit markets that are affecting student loans have many families worried that student loans won't be available this fall. However, financial aid administrators, schools, federal lawmakers, the U.S. Department of Education, and student loan providers are all working together to ensure that no student is denied access to federal student loans.
Despite some troubling reports, low-cost federal student loans are still available. To date, NASFAA is not aware of any student being denied a federal student loan due to market conditions. Even in instances where student loan providers have suspended participation in the federal loan programs, other loan providers have stepped in to fill in. Should conditions worsen to the point where they could affect the availability of federal student loans, NASFAA has received assurances that federal lawmakers, the U.S. Department of Education, and other federal agencies will take appropriate actions to ensure an uninterrupted supply of low-cost federal student loans to students and families.
News reports often blur the line between federal and private student loans, but understanding the difference between the two is crucial. The vast majority of student borrowers use federal student loans. Federal student loans - like Perkins, Stafford, and PLUS loans - are backed by the federal government. Federal student loans are not dependent on borrowers' credit scores; the repayment terms and conditions are specified by federal law, and are usually better than private loans. Interest rates and fees on federal student loans will not increase.
A far smaller group of students rely on private student loans or other forms of consumer financing like home equity loans. These students turn to private loans if they cannot cover their cost of attendance with federal, state, and institutional financial aid - including federal loans. Like other consumer loans affected by the subprime mortgage meltdown, private student loans will be costlier for some borrowers at some institutions this academic year. However, students and parents should only use private education loans as a last resort. Before borrowing private loans, students should exhaust all the federal, state and institutional financial aid available to them.
To ensure a smooth financial transition into college this next academic year, NASFAA advises students and families to apply for financial aid early by using the Free Application for Federal Student Aid (FAFSA). Students should work closely with their school's financial aid office to complete the financial aid process - including applying for federal student loans - as early as possible. Students and parents with any questions or doubts about the availability of student loans or other forms of financial aid should always contact their financial aid office for specific information.
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 13,000 financial aid professionals at nearly 3,000 colleges and universities and career schools across the country. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis

A Student Loan Credit Crunch — But for Whom

A Student Loan Credit Crunch — But for WhomThe phrases “credit crunch” and “student loans” are blaring with increasing frequency from newspaper headlines and TV news broadcasts. With growing numbers of banks and other loan providers announcing layoffs or plans to leave or limit participation in the student loan market, it is clear that the general problems in the financial markets have created a credit crunch crisis for student loan providers. But is there a loan crisis for student borrowers themselves?

That depends in large part on what kind of loans — and what kind of students — you’re talking aboutTo date, the impact has been largely limited to private, or alternative loans, the higher-cost loans, held by fewer than 10 percent of student loan borrowers, that students typically take out to cover the difference between the total value of their federal, state and institutional grants and loans and the full price of attending the college of their choice. Parties including Education Secretary Margaret Spellings, the National Association of Student Financial Aid Administrators, and (even) the Consumer Bankers Association have taken pains in recent days to make clear that federal loans remain available to all students who seek them

And, to this point, the impact has been felt most heavily by far by students at for-profit colleges, which tend to be relatively high cost and to serve a disproportionate number of low-income, first-generation college students.
Those facts — that the credit squeeze has so far been relegated to private loans and to career colleges — have created a situation in which the credit crunch has become a major cause of concern for the loan industry and for the for-profit higher education sector (which are pressuring Congress and the Education Department to act to ease it) but largely played down by many traditional college officials, advocates for students, and the generally Democratic politicians with whom they are traditionally aligned

“Students with poor credit ratings, particularly those at trade schools whose graduates have poor repayment track records, might be unable to find a willing private student loan provider,” the New America Foundation’s Education Policy program wrote on its blog this month. “All students, however, who apply for a private student loan with a creditworthy co-signer should be able to obtain a loan and obtain it at a lower interest rate than they otherwise would receive. Private student loan borrowers who don’t have a creditworthy co-signer and who are pursuing academic programs at schools with dubious job placement and loan repayment track records should consider lower cost education options
The idea suggested in the New America post — that the credit crunch isn’t a major problem because it is affecting mostly students at for-profit colleges, and should actually prod students who take out costly private loans at for-profit schools to enroll instead in community colleges or other lower-cost institutions — has been a subtext of some of the discussion surrounding the credit crunch, and reveal just how differently the crisis is perceived in various quarters.
The divisions were on full display Tuesday as representatives from Congress and the Education Department spoke to the Career College Association’s annual policy forum in Washington. As a panel of Congressional aides addressed the presidents, government relations officers and other leaders of for-profit technical and career-oriented institutions for what was supposed to be a general discussion of the Washington scene, most of the conversation revolved around the group’s concerns about the availability of loans for their students were palpable, and on their hopes that politicians might act to ease the crunch, perhaps by increasing limits on how much a student can borrow in federal loans.
J.D. LaRock, a top education aide to Sen. Edward M. Kennedy (D-Mass.), chairman of the Senate Health, Education, Labor and Pensions Committee, said Congressional leaders were paying close attention to the developing situation in the loan market (a view echoed by aides to Sen. Michael B. Enzi and Rep. Howard P. McKeon) but played down the impact so far. “We have to deal with the facts at hand,” he said. While there “have been some changes in the federal loan arena,” he said, noting decisions by the College Loan Corp. and Pennsylvania’s student loan guarantor to stop making federal loans, “there remain well over 2,000 players in the [Family Federal Education Loan Program] market place.... The credit crunch has affected private loans most of all.”
When Arthur Keiser, president of Keiser Collegiate System, characterized the credit crunch as a “meltdown” of the student loan market place, and another audience member suggested that Congress should be “proactive rather than reactive,” LaRock bristled.
He noted that Kennedy was working closely with the Senate Banking Committee to monitor the burgeoning instability in the credit markets and that the House education panel plans a hearing on the loan situation this Friday, and he announced that Kennedy would hold a hearing of his panel in Boston on March 17. He also acknowledged that Kennedy and his aides had begun discussing steps that Congress might take if the situation grew worse, including “expanding federal loan eligibility if [students] can’t get private loans.” (Although that tidbit of news intrigued the crowd, LaRock said he could provide no additional details about the possible legislative proposal, such as to what kind of loans — unsubsidized, a new form of parent loans for independent students — access might be expanded.)
“It’s being proactive to think about expanding loan eligibility and to work with the Banking Committee,” LaRock said. “But it’s also important to be very careful about recognizing the realities of the situation we find ourselves in, which sometimes departs from the rhetoric we find ourselves hearing.”
When it was her turn to speak to the career college meeting, Diane Auer Jones, assistant U.S. secretary for postsecondary education, also characterized the credit crunch as a potential rather than existing crisis. While emphasizing that department officials are “monitoring it very carefully — we’re reading the same newspapers, hearing the same concerns,” she said that at this point in time, we haven’t had a single institution say, ‘No, we don’t have a lender.’ We haven’t had a single student say, ‘No, I don’t have a [federal] loan.’ “
Comments like that did not resonate with many of the career college officials and their supporters, who believe they and their students have been hurt, but they veered between noting the powerful impact their institutions were feeling and warning that it would be a mistake to characterize the credit crunch as limited to their sector.
“One reason why this credit crisis is so huge for us is because we’re dealing with a lot of nontraditional students, independent students,” many of whom have already been extended credit for their homes or other purposes, said Mark Dreyfus, president of ECPI College of Technology, in Virginia. “On top of the fact that federal financial aid is skewed to traditional students, now they cannot get credit” to pay for their educations, either.
“Is it an acceptable policy outcome for Sen. Ted Kennedy for students attending career colleges to have their educational plans disrupted, often in mid-program, because of the lack of availability of student loans?” John Dean, a lawyer who represents the Consumer Bankers Association, asked rhetorically (LaRock had already left the meeting).
Dean warned that just because the impact of the credit crunch on federal loans (and therefore on many traditional nonprofit colleges) had been mild so far, that could change in a snap. Barring a major turnaround in the credit markets (which the Federal Reserve took steps Tuesday to try to bring about), he predicted “dramatic announcements in the next month” in which lenders might announce that they were, for instance, toughening their criteria for awarding federal loans (in ways that could affect other institutions with large numbers of low-income students more prone to default on loans, such as historically black and community colleges). Perhaps only when those institutions start to have their students affected, Dean said, will a “broader array of voices” be raised to urge Congress and the Bush administration to take steps to bolster the loan programs.
Mark L. Pelesh, executive vice president for legislative and regulatory affairs at Corinthian Colleges Inc., said that many institutions face a problem with financing the “gap” between what federal student aid covers and a student’s college payments. As available loan capital shrinks, he said, “I believe it will affect all institutions, all types, sizes, missions. Elite institutions may be able to manage this, but I believe the problem of financing this gap, coupled with the collapse of the lending market for lower-income students ... is not just a for-profit or proprietary school issue. There are HBCU’s, private not-for-profit institutions that have a more substantial gap than many proprietary schools do. All of them will be facing this problem.”
And yet, Dean asked, “Have you heard from the other sectors of higher ed? ... You don’t have independent colleges knocking on the doors of Congress saying you need to do something. But I can tell you that their anxiety is very high.”
Nonprofit colleges may have been publicly quiet, but Dean is right that for some of them, especially tuition-dependent private institutions without huge endowments, concern is indeed growing.
The National Association of Independent Colleges and Universities is surveying its members now about “if they do or don’t have a problem” with loan availability, said Sarah A. Flanagan, vice president for government relations and policy development at the private college group. “It is serious enough that people are responding; there’s definitely a lot of nervousness, because we’re all reading the same papers.”
David B. Laird, president of the Minnesota Private College Council, said the credit crunch is beginning to have an impact for families with college students in the Midwest. “We’re just beginning to see students that aren’t making the credit score thresholds and are not able to use any kind of co-signer within the family, mostly with private loans but also with unsubsidized federal loans,” he said.
The big crush for Minnesota’s private colleges, he fears, could come “when the FFEL lenders run out of capital later this spring” if they are unable to find investors to finance a new round of loans for the fall. Anticipating that eventuality, Laird said, some colleges are “signaling to families, ‘Get your loan applications in now during the spring, while [the lenders] still have their capital

Right now, many institutions aren’t quite sure what to expect, and they’re not necessarily getting good information from the lenders they work with, Laird said. “Put yourself in the position of being a lender marketing rep. Until you know you’re running out of capital, you’re not going to tell anybody the bad newsLaird said he understood that career college officials might be frustrated that their nonprofit peers were not joining them in sounding an alarm about the credit crunch. But “most responsible people [in the traditional college sectors] are waiting until they see pretty significant signs of problems before they put the red flag up,” he said. “I think they’re actually being responsible. No doubt they’re anxious and on edge, but I give them credit for the fact that they’re not standing on the top of the hill and yipping about it” to Congress or the Education Department.
“For everybody except the proprietary sector, the need is not well enough defined for us to expect them to act yet

Top Credit Card Debt Consolidation Loans

If you are struggling with rising credit card bills, you are not alone. Millions of Americans are over their head in credit card debt, hopelessly stuck in an endless cycle of high interest bills. If this sounds like your situation, debt consolidation may be the solution to your financial woes. Read on to learn about all of your consolidation options.
How Does Credit Card Consolidation Work?
A credit card debt consolidation loan eliminates all of your high interest bills, and replaces them with one lower interest loan, with one easily manageable monthly payment. The money you save on interest each month can then be applied towards completely eliminating your loan. Your consolidation company will also work with your credit card companies to lower your balances, further reducing your debt and bringing you closer to becoming financially independent.
Another benefit is the simplification of your finances. Instead of having to worry about organizing all of your bills each month, setting aside money for each of those high interest payments, you will only have to worry about one consistent payment. No surprises, no stress.
How Do I Find the Best Debt Consolidation Loan?
With so many Americas struggling with their finances, it is no surprise that these types of loans are more popular than ever before. There are several banks and lenders to consider, but who will save you the most money and help you reach financial independence the fastest?
The best way to find out is to request some free online quotes and compare the results. Not only will you be able to find out how much consolidation will save you each month, you see which lender will save you the most. Online quotes are free, fast, and have no obligation, so be sure to request several. The more you compare, the more confident you will feel that you have found the best service for your unique needs

Student Loan Consolidation With Unsecured Loans

After graduation, many students do not realize the total amount of student loan payments they will be responsible for every month. Several smaller loan payments can add up to a substantial amount of money each month. While the interest rates for student loans are great, and the education received as a result of the loans is worth

the inconvenience of loan payments, many students will still need to research ways to make their student loan payments more manageable
Fortunately, there are several worthwhile options for borrowers who find that they need some help in adjusting their student loan payments to fit their income. One such option is student loan consolidation, which is simply combining all of your student loans into one lender, and therefore making one monthly payment
Should You Consolidate
If you find that you are having trouble meeting all of your payment obligations every month, you may want to consider consolidating all of your student loans into one monthly payment. The payment is usually smaller under consolidation, which is beneficial if you want to reduce the percentage of your income that is used to pay your student loans. Another reason to consolidate, especially if you have an adjustable interest rate loan, is that you can often lock in an interest rate under consolidation. You will want to be very careful, however, not to mix private and federal student loans together when you decide to consolidate; because when you do so, you will lose all of the tax benefits available to you with your federal loans (such as the tax deduction for interest paid).
Another factor to consider with student loan consolidation is that by reducing your payments and lengthening the term of your loan repayment, you will be adding to the total amount of money you will be repaying; so be sure to pay any extra amount on your payment that you can, if possible
Beginning the Consolidation Process
Once you have decided to begin the consolidation process, the most logical option is to contact one of your current lenders. Most of the lenders for federal student loans will be happy to buy out the loans from your other lenders and consolidate them for you. Be sure that you ask about the difference between private and federal student loans; because many lenders treat them very differently during consolidation. You may also need to specify that you are interested in locking in the lowest interest rate possible for the life of the loan. If you are a married borrower and your spouse also has student loans, the lender may suggest that the two of you consolidate all of your loans together, for one lower monthly payment. Be extremely wary of this option: by combining all of your loans into one, you are taking joint responsibility for the debt. This means if one of you dies, the other spouse continues to be responsible for the loan; it also means that, in cases of divorce, you must go through the process of attempting to divide the debt.
There are many companies that will help walk you through the process of student loan consolidation; however, make sure that you are well-informed of the actual process before you sign on with any one lender. Student loan debt does not have to severely affect your finances, and consolidation is a great method of managing this type of debt. As long as you have researched all of the options of consolidation, and you have also well-researched your lender options, you can go through the process of student loan consolidation assured that you are making a very wise financial decision

Student Loan Service

Student loan services are designed to help scholars go to college even if they don't have the money upfront to pay the high tuition costs. Finding the best organization to help with lending institutions can be difficult because there are so many options out there. Sometimes it is just best to find a student loan service that works for right now and keep researching. A borrower doesn't need to stay with the same organization throughout the entire education program. Researching organizations should include looking at interest rates, lending requirements, deferment options, and extra fees. Ideally a borrower should find a funding source that has a low interest rate, does not require a scholar to take a certain amount of credits in order to be considered a student, and no extra fees. This may sound impossible to find, but it is not. Student loan services want to help students as best as they can and also tend to be more lenient than other financial institutions when negotiating payments and a payment schedule.After finding an organization that meets the borrower's requirements, it is important to keep a good relationship with them. A good studet loan service will be able to help find other sources of financing if they don't offer the funding themselves. Staying current with payments may also open the opportunity for referrals to other financial institutions for funding in the future. Student loan services record a payment history and report it to credit bureaus. Even if a borrower does not have any other credit, keeping a good relationship with the organization can be the beginning of financial discipline and a great credit history. If a borrower wants to create a good credit history before they graduate making payments early can be beneficial. Most organizations don't require the borrower to pay on loans until graduation so whatever amount a scholar is able to pay on the balances will be the 'minimum payment' and there won't be any interest incurred. Whatever is decided, know that there are specific instructions in the Bible about how to handle money and what to do about debt. "There is that maketh himself rich, yet hath nothing: there is that maketh himself poor, yet hath great riches" (Proverbs 13:7). A student services loan may make one seem like they have riches at the time, but once interest is paid in addition to the money needed for basic living expenses, the debtor will soon find themselves poor. Basically it says to be honest about what a debtor can send to creditors, never live beyond one's means, and remember that a student loan service allows the spending of money that God has entrusted each person. These are all principles that are important to learn and live by

Student Loan Rate

Student loan rates are the farthest thing from a scholar's mind when excited about starting a college education, but they do play a part in the available income stream once a career has begun. After a few years of school, most realize how much they are going to owe upon graduation. A student loan rate should be carefully reviewed and any contracts signed should be carefully entered into before a borrower is locked into an extended debt that must be repaid. As wonderful as it is to be able to get the money that is needed for a higher education, interest charges must be considered. The most popular form of lending program is the Stafford financing plan. It is available for both undergraduate and graduate students and requires no credit check or collateral. The popularity and ease of acquiring precludes much thought on the interest charge it requires.The government has set the Stafford plan at a variable interest rate, meaning that a scholar's student loan rate, while in school, will differ from the interest charge when out of school and ready to repay the balance. While in school and during the six month grace period, the current interest charge is slightly higher than the national interest index. After the grace period, the charge increases by at least 1.5 percentage points. Most importantly to know about the interest charge is that it changes every year on July first. This is based on the 91 day T-bill rate and is capped at a predetermined percent. Being bogged down with several loans and higher student loan rates need not be the disaster it may sound like though. "Then shalt thou call, and the Lord shall answer; thou shalt cry, and he shall say, Here I am." (Isaiah 58:9).If a scholar is inundated with several forms of borrowed financing at varying student rates, there is always the option to consolidate in order to get a lower interest charge and adjust the length of the repayment terms. Federal State Loan Consolidation is a fixed percentage, government guaranteed, no collateral type of financing. The student loan rate on a consolidated source will be the average of accumulated interest percentage points that are being consolidated, rounded off to the nearest 1/8 percent. It's almost impossible to avoid borrowing college money. A higher education is almost mandatory to be able to make an income that can support a family and the costs of tuition far exceed most people's extra income. So if a scholar never gave much thought to their interest charge on the borrowed college money, they can still thoroughly enjoy the fact that they are able to get the education desired, knowing consolidation is an option to lower payments if necessary in the future

Student Loan Companies

student loan company provides financing for people wishing to receive an education from a college or university. Student loan companies are in business to make money, but like any company they are willing to work with an individual to create a payment that will at least ensure that payments are made each month. The students goal should not be to deceptively get out of paying the balance owed, but rather to work with lenders so they will receive the money they provided and the individual will have a good credit score for making timely payments.

Lenders vary in rates, loan packages, and general ways of doing business. It is important to research many student loan companies before deciding which provides the best services for the individuals need. It is important to look at the interest rate, rules about taking classes, and deferment options. Often, a student loan company will require the individual to take 12 credit hours per semester in order for to receive assistance. Others may only require the individual to take one class. The individual must make sure they are involved with a lender that will work with their needs.

The chosen lender should be one that can be easily contacted if there are problems with funding or any further issues or questions that need to be discussed. If a person is unhappy with the service or funding they receive from a student loan company, they have the option to switch to other lenders that may offer better programs or services. It is important to talk with the various student loan companies to learn about the different programs that are offered. The individual might find programs that offer discounts based on high grades, educational fields, or other details. Financial assistance can be found from many places other than the traditional companies that most people use. A local bank might offer options that are more appealing for the individual.

"Give instruction to a wise man, and he will be yet wiser: teach a just man, and he will increase in learning" (Proverbs 9:9). Financial aid programs and packages for college education provide opportunities to people who may not be able to pursue a degree otherwise. Student loan companies offer a great service to society by offering the funds to put individuals through college. As a student, it is important to take advantage of financial aid, but understand the interest rates and other fees that might accrue over time. Gaining knowledge on repayment, budgeting, and a variety of financial aspects will allow the student to make wise choices when it comes time to repay these debts and obligations

Why Get Federal Loans, Financial Aid, Private Student Loans?

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Student Loan Consolidation

Federal Consolidation Loan is a federally-backed loan that allows parents and former students to consolidate qualifying federal education loans into a single loan, reduce monthly payments, choose a flexible repayment plan, and lock in today's low rates for the rest of their term. It's free to apply for consolidation and does not require any credit checks.
Student Loan Solutions offers many options when it comes to consolidating your student loans. Contact us today to speak with one of our Student Loan Consolidation specialists.
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Eligibility Requirements
Federal Consolidation Loans are available to parents and former students who meet the following eligibility requirements:
At least $20,000 in federal education loans
Not previously consolidated or have a new loan to add (Example: You consolidated your undergraduate loans, but you have new graduate loans to add.)
Loans are in active repayment, deferment, forbearance or a six-month post-graduation grace period
Loans not "in-school" (Example: If you are a parent with loans, you can consolidate 91

days after disbursement. If you are student, you can consolidate after graduation.) Type of loans eligible for consolidation
DSS- Direct Subsidized Stafford Loans
DUS- Direct Unsubsidized Stafford Loans
DPLUS- Direct PLUS Loans
DUCON- Direct Unsubsidized Consolidation Loan, including Direct PLUS Consolidation Loans
SS-Subsidized Federal Stafford Loans, formerly Guaranteed
Student Loans (GSL)
US - Unsubsidized and Nonsubsidized Federal Stafford Loans
NSL-Federal Nursing Loans
PERK- Federal Perkins Loans, formerly Nations Defense/National
Direct Student Loans (NDSL)
PLUS- Federal PLUS (Parent) Loans
SCON- Subsidized Federal Consolidation Loans
UCON- Unsubsidized Federal Consolidation Loans
SLS- Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students (ALAS) and Student PLUS Loans