Use #1 – Consolidate Debt

Probably the most common way to use a home equity loan is for debt consolidation. Most of the time, these loans have lower interest rates than other types of debt. For example, the average credit card interest rate is around 16%. If you are struggling to pay back all of those smaller examples of debt, you can use the funds from home equity loans to pay them all off and free up some cash. You’ll end up with a lower interest rate and a better debt to income ratio in some cases.

The biggest problem with taking this route is that if you’re the type of person who runs up a lot of debt, you may end up repeating the process once your credit cards are freed up thanks to the home equity loan. These actions could lead you down a financially disastrous road.

Use #2 – Children’s Education

If you have kids going to college, you may also consider using a home equity loan to pay for that education. College costs are increasing every year so this could be a wise choice and could help prevent your child from starting out in life with too much debt. While this is an idea worth considering, there are some drawbacks.

First, you also have to consider whether or not you’ll need to access your home’s equity during your own retirement. These two life milestones tend to go hand in hand and this might be a good time to put your own needs first, especially if your child has other funding options. Be sure that he or she explores all options, including federal grants, federal student loans, and scholarships. Another idea is for you to take out a federal PLUS loan using your home as collateral.

Use #3 – Fixing Up the Home

The second most common use for a home equity loan is repairs and improvements to the property. The basic idea is that the changes will actually improve the value of the home which means more equity. Plus, if there are major repairs needed and you can’t afford them in any other way, this is definitely a resort you can choose.

Be aware though that not all of the changes you add are going to boost the value of your home. You also need to realize that your home’s value is also closely tied to the neighborhood in which you live. If you are going to do repairs, consider focusing on the kitchens and bathrooms because these changes are the most likely to increase value.

Do you need additional good ideas on how to use the funds from a Home Equity Loan? You’ll find more ideas by visiting http://www.homemortgageloan-refinance.com/Home-Equity-Loan-Best-Deals.php.

FAFSA is your only entry into the world of federal student loans. You can also find yourself the recipient of a federal grant and work study programs to boot. Without a Student Aid Report (SAR), your chances of getting the best student loans are almost nil.

FAFSA, stands for Free Application for Federal Student Aid. The feds are your best place to get a college loan because they have the money to lend at a decent interest rate and the government will actually make your interest payment on some of the loans.

The application usually is completed online (spanish version as well) but we recommend downloading a copy and printing it out. It will take you time to research and find the answers to their questions.

First you need to create an account with FAFSA. This pin number will allow you to proceed with filling out the application. You will then continue to use that pin number as long as you are applying for federal student loans. Basically it is a virtual account system.

CRITICAL NEWSFLASH

* Many institutions use the report to help them determine what type of student loan you are eligible for. It is not strictly used for federal purposes.
* Money or loans are awarded on a first come first served basis.
* January is the start date that you can apply through FAFSA to get student loans for the following fall quarters.
* Last year we completed our FAFSA in February and still received our student loans for 2 family members.
* Seek help from your high school counselor or a college admissions advisor like we did.

When you receive your SAR, you will find a lot of information but the two most important aspects you need to be concerned with are:

* EFC
* Eligible Loans

EFC stands for Expected Family Contributions. In your report they will tell you how much they expect you and your family to contribute to your college education. The remainder of the monies needed for college will come from your student loans.

Eligible loans are basically that. You’ll receive a list of federal unsubsidized and subsidized student loans that you qualify for. These loans will usually be a Stafford, Perkins Loans or Pell Grants.

Keep a couple of things in mind:

1. The colleges you chose on your report will also receive your SAR report and if you receive federal monies, they will take money out of the loan for tuition and then send you the rest of the money to use on school related expense.

2. You can choose to accept the total loan, partial loan or no loan at all. And you can choose which loan institutions you want to go through.

The first time you fill out the FAFSA you will probably say to yourself: “this is the last time I’m doing this”, but trust me, it is easier the second time around. Just don’t forget to fill it out early in the calendar year so there will be money for you.

Discover some of the secrets we learned that helped us secure student loans for a graduate and undergraduate student last year. These secrets helped us get our loans quickly:

Student Loans Secrets Don’t forget to stop by and learn specific details on the 8 different types of student loans and many other strategies including FAFSA Student Loans

First, understand that there are actually three different types of federal financial aid. Grants are money that are given by the government and do not require repayment. The Perkins Loan Program and the Federal Family Education Loan Program are loans that do require repayment. Some federal college loans are subsidized and others are not, but all of them allow you to wait until after college to start making payments. The most important thing to remember is that the federal government doesn’t actually loan money.

Subsidized federal college loans are loans that you do not pay interest on until you graduate college. The government pays the interest on these loans instead. Unsubsidized loans accrue interest while you’re attending school, even though no payment is necessary.

Applying for federal college loans is rather simple. Subsidized loans typically do not require a credit check, because they are based on need rather than creditworthiness. All financial aid will require that you submit a Free Application for Federal Student Aid, or FAFSA, which you can now file online fairly easily.

Subsidized Loans

The Perkins Loan is borrowed directly from your school. Funds are given to the school by the government for this purpose. The loan is given based on severe financial need, as well as the availability of funds. You can only borrow up to $4,000 per year in this type of loan.

Subsidized Federal Stafford Loans are borrowed from a private lender. These loans are higher, and the caps are varied based on where you are in your education. Again, the interest is paid by the federal government as long as you are in school, and in some cases beyond.

Unsubsidized Loans

Unsubsidized Stafford Loans are borrowed from a private lender. They are not based on financial need, but a credit check is rarely required. However, there are caps on how much you can borrow per year, based on where you are in your education.

The PLUS loan is an unsubsidized loan that may be taken by parents to help pay for their dependent child’s college education. These type of federal college loans are not capped, but do require that the borrower has good credit

Joe Eitel is an accomplished freelance writer who is an expert in the student loan consolidation field. If you’d like to learn more about federal college loans or how student loan consolidation works, visit: Consolidating Student Loans