Federal vs. Private Student Loans

For many students and their parents figuring out how to pay for college is a huge and stressful part of the college selection process. Planet Nutshell recently released two videos that can help students and their parents understand student loans. Those videos are embedded below. Learn more about student loans at Borrow Wisely.


Understanding Federal Student Loans in a Nutshell from Planet Nutshell on Vimeo.



Federal vs. Private Student Loans in a Nutshell from Planet Nutshell on Vimeo.

4 Videos That Help Students & Parents Understand Financial Aid

The FAFSA and financial aid packages offered by universities can be difficult for the first-time college student to navigate. And if you're a first generation college student it can be even more difficult because you may not know who to turn to for advice. Fortunately, a lot of high school guidance departments are doing more than ever to help students understand the FAFSA and financial aid. Planet Nutshell produced two good videos that will also help students and parents understand the FAFSA and financial aid. The videos are embedded below.


Choosing Financial Aid in a Nutshell from Planet Nutshell on Vimeo.



Borrow Wisely: FAFSA in a Nutshell from Planet Nutshell on Vimeo.

Understanding how federal student loans are different from private student loans can help students and their parents choose the best financial aid package. The following two videos, also from Planet Nutshell, do a nice job of explaining private vs. federal student loans.



Understanding Federal Student Loans in a Nutshell from Planet Nutshell on Vimeo.



Federal vs. Private Student Loans in a Nutshell from Planet Nutshell on Vimeo.

These videos were produced by Planet Nutshell with funding from the U.S. Depart of Education, the Utah Higher Education Assistance Authority, and the Utah Education Network.

Student Loan Repayment Calculator

The Undergraduate Student Loan Calculator is a free offering from the Hamilton Project (a project sponsored by the Brookings Institute). The calculator provides rough estimates of how long it will take to repay student loans. The calculator can be adjusted for academic major, earnings range (to account for location and other variables in earnings across a field), initial debt, interest rates, and loan length. You can use the Undergraduate Student Loan Calculator compare debt repayment plans across academic majors. For example, the repayment plan of a teacher is quite different from that of an engineer.

Applications for Education
Choosing an academic major shouldn't be based entirely on finances, but students should be aware of the potential long-term implications of their choices. The Undergraduate Student Loan Calculator could be a good tool for high school guidance counselors to share with students as they evaluate their college and career choices.

H/T to Lifehacker. 

Understanding Federal vs. Private Student Loans

Getting into their colleges of choice is just the beginning of the process students and their parents go through to go to college. Figuring out how to pay for college is a huge and stressful part of that process too. Planet Nutshell recently released two videos that can help students and their parents understand student loans. Those videos are embedded below. Learn more about student loans at Borrow Wisely.


Understanding Federal Student Loans in a Nutshell from Planet Nutshell on Vimeo.



Federal vs. Private Student Loans in a Nutshell from Planet Nutshell on Vimeo.

Infographic - The Student Loan Scheme

Yesterday, on Man vs. Debt I saw the following infographic about student loans. Produced by CollegeScholarships.org the infographic features a flowchart that explains how student loans can burden people for years. As someone who, after ten years, relatively recently paid off his relatively modest student loans, I can tell you that I am happy my student loans were not any bigger. This infographic presents some good information for students and parents to consider before signing-on for tens of thousands of dollars in debt.

Infographic by College Scholarships.org

Peer to Peer Lending For Micro Student Loans

Green Note is a company specializing in peer to peer lending for student aid. (Peer to peer lending is also known as social lending). Green Note, like the Fynanz service reviewed earlier this year, is designed to help students bridge the gap between financial need and the financial aid packages they receive from their college or university. Green Note facilitates loans between members of social networks. Loans can come from friends and relatives or from private investors looking to make low-risk loans. In their words, "get student loans from people who believe in you." Loan amounts are flexible and can be larger than $10,000 or as small as $100. For students the benefits are a low fixed interest rate and no co-signer requirement. For lenders the benefit is a low-risk investment opportunity.

Free Technology For Teachers: Fynanz - Social Lending for Student Loans

Fynanz is a new social lending program designed for student loans. Students and parents can request a loan and lenders will make loan offers covering all or part of the loan request. Unlike a typical student loan from a bank, the money lent through Fynanz comes from private individuals.

One benefit of Fynanz for borrowers is that the typical loan received through Fynanz has an interest rate that is 1% to 1.5% lower than typical bank rates. Another benefit of Fynanz is that it rewards good students by offering lower interest rates to students with outstanding grades. Finally, Fynanz lowers the interest rate on your loan by 1%for every 10% of principal repaid.

For individuals interested in lending money through Fynanz, Fynanz provides loan guarantees up to 100% of the value of a loan. Fynanz's lender program should eliminate many of the typical worries associated with social lending.