I was looking back through my baby book a couple days ago.
My mom kept it all these 56 years.

She wrote down the names of who gave a baby gift
when I was born and what the gift was.

Most people gave money. Guess how much?
Remember, this is 1954 I’m talking about.
The answer…

One dollar. Most people gave a buck (probably a silver dollar).
That was big money back in those days.
Her dad the big spender, gave ten dollars.

My, how times have changed.
College loans have also changed just as dramatically.

I remember graduating college with my bachelors degree in 1976…
a whopping $8,000 in debt in student loans.

My 2 kids have to borrow that much now… Each Semester!… Each!
Or should I say yeeeeeech!

My daughter graduated and is now only $80,000 in debt in student loans.
Her payments are about $500 dollars a month… Yeeeeeeech!

That’s freakin’ ridiculous!

Add in the cost of her rent (about $800 a month) here in New York City
and she’s paying $1,300/month just for rent and student loans.

And that doesn’t include FOOD or other expenses. 

That’s $325 bucks a week… net. $400 and change gross per week. 
She has to earn about $20,000 per year just for rent and student loans.
And this is rather typical for many of our kids in todays economy.

What can we do about this untenable situation?
Keep checking back here on a regular basis and I’ll get into
the nitty gritty details about student loans and debt consolidation.

The New York Yankees beat the defending Philadelphia Phillies 7-3.
The win is their 27th World Series title.

It’s the first time since New York was attacked on 9/11 they’ve been champions.
And it is fitting they won the World Series Chanpionship in their new ballpark.

Hideki Matsui was the man of the hour with a 2 run home run, a 2 run single,
and a 2 run double for a total of 6 RBI’s out of the scored 7 Yankee Runs.

And he doesn’t even speak English (at least not on camera).

It just goes to show you that anyone with the drive and determination can
“make it” because the USA is the land of opportunity.

Interestingly enough, most of the Yankee players were recruited from college.
It seems if you want to make it in professional sports, you need to make a
name for youself while playing college sports, otherwise the recruiters
will never find you.

But with the US economy in turmoil, college is becoming less affordable
for many families. In addition to the affordability problem to get into and
remain in University comes one of the unexpected and most difficult challenges…

PAYING YOUR STUDENT LOAN’S BACK!

Amanda, a communications major who graduated from a major University this year,
was fortunate enough to land a decent entry level job at the Rachael Raye show.
However, after she pays her rent, electricity, cable, phone, etc etc  bills,
the $600 per month for student loans she has to pay back is unaffordable.

What should she do?
The answer may surprise you.

If anyone has read the book “The Secret” or seen the movie or watched Oprah
when she was talking “The Secret” or has the DVD, then you know that the
secret to getting whatever you want in life is to “focus on what you want.”

Huh?

You see, you have to stay focused on exactly what you want.
So the first thing that needs to be done is to…

Figure out EXACTLY what you want.

Most people Never do this and it is the secret to success.
Consequently and unconsciously, people focus on what they don’t want.

For example, when I asked Amanda what she wanted, she said…
she wanted the bill collectors to stop calling and harassing her.

That’s not really what she wants.

She is focusing on what she doesn’t want. She DOESN’T want the bill collectors
to call her. So by not focusing on what she wants, she’s automatically focusing
on what she doesn’t want and manifest MORE of that into her life.
Hence, more bill collector calls.

I’ll get deeper into the law of attraction at another time.
But for now here is some practical advice…

Paying off college loans can seem like a next to impossible task.
Each year, more people graduate with increasing levels of debt.
This is largely due to the fact that college is expensive.

It doesn’t matter if you’ve graduated from a state school, private college,
or community college. Most people have some level of debt associated
with getting a degree. Now the trick is how you’re going to pay for it.

Depending on the type of loan you have, repayment options are many.
Some people are so overwhelmed by the total amount of the debt,
that they rarely see the various types of repayment options that are available.

A good suggestion is to stay focused on the monthly payment versus the total sum
of what you owe. This should make the idea of repayment more manageable.

If you are a recent grad and you’re wondering exactly how you are going to pay off
your loans, don’t despair. There are a variety of methods you can use.

One of the most popular and effective is student loan consolidation.
Using student loan consolidation, you group your loans into a single loan
which often reduces your monthly payment amount.

Keep checking back at this site for updates. For a ton of information
about scholarships, grants, FASFA, college and paying student loans:

College Scholarships, Grants, FASFA, Paying Student Loans

In the last post you heard the horror story about how much college costs now.
Imagine what it will cost in 10 or 20 years. Regardless, it’s not too late to find a way
to make paying for college manageable — not easy, but manageable.

Parents and students have to work together to make college affordable.
The earlier you start, the easier it will be.

There are three basic ways to pay for a college education.

* You can pay for it before your child enrolls by saving.
* You can pay for it while he or she is enrolled in college by working.
* You can pay for it after graduation by paying back student loans.

Many people use a combination of the three strategies.
Think of the best approaches that fit your family’s payment strategy.

Most people will use college financial aid…
- scholarships and grants
- work/study jobs
- student loans

Start planning NOW!

In the next post we’ll start diving into the specifics.

Gain the favor of scholarship committees…Win More Scholarships!
http://ScholarshipMoneyInformation.com

I thought I’d do something different today and
NOT talk about student loans, financial aid and borrowing money.

I don’t know what you would really call this video.
I’ll call it a video essay.

It’s about Your Future and the future of web technology.

It’s a very cool combination of screen capture and video
which makes some really fascinating points about the future
of web technology and the effects it will have on
how we will interact with others and express ourselves.

The Future is TODAY!

Plenty of food for thought here.
Enjoy!

MoneyPlus2000

While I’m on the subject of “what NOT to write in your
scholarship essay, let me mention a couple more things…

1) Don’t talk about religion. It’s fine to have religious
convictions and many of the scholarship judges will
appreciate that, but it’s also one of the quickest ways
to offend that one judge who doesn’t agree with you.

2) Don’t talk about sensitive political issues.
The same reasoning applies as to #1 above.
Many of the judges may agree with your political stand.
But many may not. It’s just not worth the risk.

3) Don’t use slang. Most judges are from an older generation
than the college applicant. They may not understand
your use of a slang term and it’s very easy for them
to just “file your application in the circular basket”.

Out of thousands of applicants, only one will get the scholarship.
If you are THE ONE chosen, Scholarships are an excellent way
to finance your higher education. However, for the rest of us…

Up to this point we’ve talked about scholarships, grants, credit,
work-study, debt consolidation, student loans and parent plus loans.
One way to finance your college education which has not been
discussed is… Making Money online and paying your way
through college DEBT FREE!

Check out:

www.MoneyPlus2000.com

As I noted in the last post, the cost of attendance
for the 2007-2008 Academic Aid Year at St Johns University
will be:

Books and Supplies…………….. $1,000.00
Fees…………………………..…      $640.00
Home Maintenance……………….   $2,700.00
Personal Expenses……………….   $1,800.00
Transportation…………………….    $1,100.00
Tuition……………………………….  $26,200.00

Total: ……………… A Whopping $33,440.00

Multiply that by 4 years and you get $133,760.

$133,760 for a 4 year college degree. WOW!!!

And that doesn’t take into account inflation and
the increasing cost of higher education each and every year.

Most students (and their parents) will end up
taking out student loans to help pay for these cost.

However, if you can get some scholarship money,
that is money you don’t have to pay back.

Unfortunately, many students and parents don’t
know how or where to apply for scholarships.

Since ALL schools are inundated with too many applications
for scholarship money, a very emphasis is placed on the
scholarship essay to determine who will get the available
scholarship monies.

Here are a few tips on writing your essay.

1) Heavy emphasis is placed on “work ethic”.
Whether you work hard in the home with “family responsibilities”
or are involved in student organizations or are on the varsity
sport field, you have to “Tell Your Story“.

Otherwise, the scholarship committee doesn’t know.

And if you are facing hardships, the key to winning the
scholarship is the part where you turn it around and talk about
how you are overcoming the hurdles to achieving your goals,
not by telling a sob story.

2) Scholarship committees like it when you’ve helped people.
Most scholarships go to those students who spend time by
helping other people, whether through a job, work outside
the classroom or volunteer work.

3) When possibe, go into detail. Most scholarship essays have
word limits of some kind. Don’t summarize the most telling
parts of your story. Describe it passionately and give as
much detail as space permits.

Next time I’ll tell you where to apply for some scholarships
and most importantly, what not to say in your essay.

For more detail on how to win scholarships,
check out the following resource:

www.ScholarshipMoneyInformation.com

My daughter is a Junior at St John’s University in New York City.
I just checked her financial aid record and discovered that so far,
it has cost over $82,000 to attend.

$82,000 THOUSAND DOLLARS.

$82,012.36 to be exact. And she still has at least one more to go.
The tuition is $24,400 per year (and increasing).

That adds up to about $72,000 over 3 years
- according to my calculations.
So where did the other $10,000 go?

FEES…

New Student Fee, University General Fee, Student Activity Fee,
Late Payment Fee, ID Card Replacement Fee,
A/R Interest (what’s that?).

And this doesn’t even include books (which average about
a hundred bucks each), food, transportation or room and board.
She doesn’t even live on campus.

According to St John’s University - the cost of attendance
for the 2007-2008 Academic Aid Year will be:

Books and Supplies…………….. $1,000.00
Fees…………………………………    $640.00
Home Maintenance………………. $2,700.00
Personal Expenses………………. $1,800.00
Transportation……………………. $1,100.00
Tuition……………………………… $26,200.00

Total: ……………… A Whopping $33,440.00 

Damn!

Her grades are pretty good… All A’s and a couple B’s.
You’d think she could get some grants and scholarship money 
since she’s a good student. Well, she can.

But not $33,440.00 worth.

Which means the balance will have to come from loans.
By the time she graduates, she AND I, will be up to our eyeballs
in student loans and debt.

Now I don’t know about you, but it took me years and years
to pay off my own student loans. Now I have to start all over again
by taking out Parent Plus Loans to help pay for my daughter’s education.

So, what’s the solution?
The solution is MORE SCHOLARSHIPS.

More Scholarships = Less Loans.
   
College is more expensive than ever.
The scholarships you win can change your life forever.

Example… If you can pull off a $5,000 scholarship,
that’s $5,000 less in student loans you have to take out.

A $5,000 student loan means 10 YEARS of paying 
about $100 a month… EVERY MONTH!

Instead of paying that money to the government in the form
of student loan repayment, you could save about $12,000
or so for your retirement. 

Assuming a modest 8 percent rate of appreciation,
that $12,000 can easily grow to over $120,000 in 30 years.

In 40 years, it’ll grow to over $260,000!

That’s a serious life style change. And that’s just for a small
$5,000 scholarship. Just imagine what a $10,000, $20,000
or more in scholarships can do for your lifestyle.

Billion$ of dollars are available in scholarship money.

But the irony is that most students (and their parents)
don’t know where, and more importantly, HOW to apply
for scholarship money.

There are a couple books that are available that list
a couple thousand scholarships that you can apply
for such as Petersons.

But they don’t tell you HOW to win them.
I have finally found such a resource.

www.ScholarshipMoneyInformation.com

This is the story of what happened to an Architecture student (me)
who defaulted on his student loans and credit cards.
It is an eye opening exposure of what the banks can do to you.

Let this serve as a good example of what a bad example looks like.
…………………………………………………………………………………..

Student life, I know for a fact is one of the most exciting parts of
life that most of us may wish to relive. The fun, the independence,
the sudden shouldering of responsibility, the freedom, the parties…

Studying up to late hours and hard work put in to build a promising
future are all part of the same game. Students living away from
home especially, have great experiences to go through.

But along with this new found freedom comes responsibility and
that’s something you cannot opt out of (unless you’re like me).

I dropped out of college in my junior year and got a job working on
a ship traveling around the world… Italy, France, Spain, Holland,
Beirut…

The adventure was intoxicating.

But after working 8-10 hours/day, 7 days a week on a ship mostly
out at sea, doing hard, manual labor (with no women on board)
gets old faster than one might imagine.

No family, no friends - just a bunch of drunken sailors,
…no television, and no land because you’re far out at sea
in rocky waters most of the time.

After you’ve seen the new cities several times each and hung out
at the same bars over and over, some of the magic disappears.

You get lonely. You get homesick.

And then reality sinks in… 30 more years of this crap!
So I decided to go back to school and finish college.

But this time without the financial support of my parents.
They took advantage of my situation declaring me independent
and cut off my financial (fun)ding… I was on my own!

So I did as most other students do, took out student loans and
credit card loans. I worked part time and funded the shortfalls
with my credit cards.

I rented an apartment paying basic electricity, gas and store bills.
I had to pay my credit card bills and had several other regular
expenses that were necessities and some simple enjoyments.

I finally graduated, got a decent job as a computer programmer
in Boston, Mass and started living as a responsible adult.

All was going well until I left my job as a computer programmer
in snowy, freezing ice-cold Boston, and decided to
relocate to the Grand Bahama Island in the Bahamas.

My bachelor degree was in Architecture and I found work with
a fellow classmate in sunny Nassau, Bahamas…
Ah - The good life… Sun and Fun.

I rented a beachfront bungalow and found work on
Paradise Island. Life was good…

Until one day I found out that I needed working papers
to continue working and could not apply for them
while I was living in the Bahamas.

The Bahamians know how to take care of their own.

To get accepted for the working papers, I would have to
fly back home to New York City and apply for the
working papers from there.

Once they receive my application, The Bahamians would
then run an ad in the local newspaper for the job.

If they could not find any qualified Bahamiams for the position,
only then would they grant me the working papers.

Thus began my saga of my living off credit cards, defaulting on
student loans, credit cards and other financial disasters
which have haunted me my entire adult life.

And that is why I am writing this story of w(owes).

So that you can avoid the mistakes that I have made and
have taken me decades to correct.

When I was unable to secure working papers to continue
working in the Bahamas, the work quickly dried up and my
cash flow was abruptly interrupted.

I did what many red-blooded Americans do…
Started Living on credit cards.

I was living near the beach, beautiful weather, beautiful
women, fresh air, peace and quiet. It was a good life…

I was a Master at MasterCard…
Borrowing from one card to pay the bill on the next card.

…Until I maxed out all my credit cards and the cash dried up.
Then I graduated from the School of Hard Knocks.
I got a Master of Financial Disaster Degree.

I remember when the gas stove (which ran off of a gas tank)
ran out of gas. It was $60 (which I didn’t have) to refill the tank
- so I just stopped cooking and only ate raw foods.

If you want to lose weight, just eat raw foods for months.
Taste like crap but works like a charm. I lost lots of weight.
I was skinny. Mainly because I ran out of money for food.

I remember one day only having one dollar to my name
which bought me a small bag of potato chips and a soda.
That was my meal for the day.

At about this same time my student loans were coming due.
STUDENT LOANS? …You gotta be kidding me.

I couldn’t even afford food - The student loans would have to wait.

Well, guess what happens when you don’t pay your student loans?
Borrowers who fail to make a payment on time are considered
delinquent on their loans. Deliquent student loans are trouble.

Student Loan Borrowers who don’t make payments for 270 days
are in default. Defaulting has severe and long-lasting consequences:

The Department of Education can immediately demand
repayment of the total loan amount due.

The Department of Eduction will attempt to collect the debt and
may/will charge collection costs.

And by the way, The Department of Education reports defaulted
loans to national credit bureaus, damaging the borrowers’ credit
ratings and making it difficult for borrowers to make purchases
such as cars, get a home mortgage or even rent an apartment.

- Borrowers with loans in default are ineligible for Title IV
student aid.

- Borrowers with loans in default are ineligible for deferments.

- The State can withhold borrowers’ income tax refund,
including your spouses’.

- Borrowers’ wages may be garnished up to 15% of the gross.

- Borrowers with defaulted FFEL or Direct Loan Program loans
may be liable for collection costs incurred to collect the loans.

If the holder of the defaulted loan, which may be either the
U.S. Department of Education or a guaranty agency, retains a
collection agency to collect defaulted loans, charges imposed by
the collection agency may be added to the amount borrowers owe.

This means that the amount of the Student Loans may include
collection costs of up to 18.5% of the principal and interest
outstanding on the defaulted loan.

ALL OF THESE THINGS HAPPENED TO ME!

I started getting letters asking me to pay the loans in full.
When I ignored them, I start getting more letters.
At first the letters are kind of friendly.

“In case you’ve forgotten or didn’t receive the last letter”…
Then they get stronger. “Warning: You are late with your payment”…
Then they get threatening. Legal Action Pending”…

Then, One day a letter comes saying - This is your FINAL notice.

I thought “Good, at least I won’t have to hear from them anymore”
- WRONG! - More letters keep coming.
I ignored these letters for a very long time.

And then one day THE letter comes telling me…
They are keeping my State Income Tax Refund Money to pay a debt.
Oh Crap!… I was counting on that money.

Oh well, let me just get on with my life.

Time passes, I forget about it. Life is good.
And then one day I go to the bank to withdraw some cash
out of the ATM machine.

“Sorry, that transaction is not available at this time”.

“Stupid ATM machines” I think.
I call customer service to tell them off and complain,
and I’m informed that there is a “Freeze” on my account.

A “freeze” on your account is like a banking Black Hole.
NOTHING can escape, Not even light.
You can put money in, but can’t take it out.
Nothing comes out…No money.

The account is now dead and the money in the account
stays there until the matter is cleared up.

Or so I thought…

Meanwhile, the automatic deductions that I had
previously set up and which had worked just fine for a
long time, no longer go through or get paid.

So, what does the bank do?

They charge you with a $30 insufficient fund charge…
…each occurance.

“But the money is in the account” I protest.
“Not anymore, deadbeat” is what the banker was
probably thinking.

What they actually say to you is that you have to take the
matter up with the company that froze the account.
I’m thinking, “But I don’t even know who froze the account”
They offer no help.

But Meanwhile, the bank is happy to keep charging you
$30 everytime an auto debit-attempts…
until ALL the money is sucked out the account.

So, why not just close the account, you’re thinking.
Because YOU CAN’T. It’s frozen.

And that’s not the end of it! Oh no…

Until you stop the auto-debits, they keep charging you.
You had money in the account, the bank takes
ALL OF IT and keeps charging you.

And now you owe the bank money!

And your creditors, which are NOT getting paid,
start slamming you with late fees and start calling you
on the phone with some “not-so friendly” reminders that
you still owe them money.

And it doesn’t stop there… No, No, No…

All right I think - “Screw Citibank”.
I’ll just open an account elsewhere.
And so I did.

The thing is… Now I’m afraid to leave any money in the
account, wondering when “Big Brother” will find
the account and seize and freeze the money.

And you start wondering if they will “freeze” your
credit cards (if you are lucky enough to have any left).

So I started operating strictly with cash.
I’ll get the last laugh yet.

Or so I thought…

I ignored my student loan for years - many years.
Nothing much happened.

OK, so one day years later, they found my bank account
and froze it. Cost me a few hundred dollars.
I’ll survive.

All right, they started taking my income tax return
money. Damn, that hurt. But Life goes on.
Life is still good, All is well!

But then one day, years later
“Big Brother” - NY State Higher Education Services Returns!

He blind sided me…

I had learned not to keep too much money in
the bank (didn’t have much anyway).

And I learned not to expect any money back
from income taxes. I was OK with that.

But I was totally unprepared for what HE did next.

One day I go to cash my paycheck, and I noticed
“Hey, my check is mighty light this week”
What happened?

I look closely at my pay stub.
The number of hours are correct, the rate is correct.
Hey, what’s this…

Wage Attachment. 10% of the gross.
10% OF THE GROSS, not net (currently 15%).

10% of the freakin’ gross!
Damn!
10% of the gross taken off the top.
Before you get your check.

10% of the gross gone… Every Week… Poof!

No explaination, no one to complain to.
No supervisor to override. Your money is gone.

10% GONE. It doesn’t matter that you were
barely scrapping by every week, living check to check.
Now you live with 10% less. Every week. It sucks!

PLUS, they still take your income tax refund.

No wonder they call it a re fund becaues they are Re Funding
their own pockets with your money (interest and penalties).

There’s nothing you can do about it.
So I learned to live on 10% less for many years.

One day I finally had the good fortune to get a
better paying job. Better job, better pay and…
Best of all - the wage attachment stopped. Hurray!

Or so I thought…

Life is good. Life goes on. I pay my bills.
Years later, on Friday the 13th, it happened.

“Big Brother Returned Again”.

One miserable deja vu day the check was light.
I check the paystub. Number of hours are correct,
the rate is correct…

There it was on the pay stub again…
Wage attachment. 10% of the gross.
‘Son of a bitch’ found me again.
Damn it, damn it, damn it!

You can’t win! You can’t hide!

Big Brother will find you.
It might take weeks. It might take months.
In my case it took many, many years… Decades!

But Big Brother will hunt you down and find you.
You can’t hide forever! And guess what?

I just received a letter informing me that
Big Brother is now approved to Increase the
wage attachment withholdings to 15% of the gross.

How much does that hurt?

As an example, let’s say you were grossing $1,000 per
week. You would pay about $350 in taxes and Social Security
leaving you with about $650.

They will take 15% of the $1,000 which is $150
leaving you with only $500.

HALF of your paycheck is GONE!

You just took a $150 a week pay cut.
And if you make less than $1,000 it hurts even more.

AND they still take your income tax return!

Trust me on this.
You DON’T want this to happen to YOU!
Pay your student loans and credit cards on time.

THE END

Carl Willoughby has worked as a Licensed Registered Representaive
for the Prudential Insurance Company, as a Computer Programmer
for the New England Telephone Company, as a Computer Sales Associate
for SEARS and is self-employed as an Internet Marketing Consultant
and Musician.

Q. My parents make over $65,000 per year.
Should I apply for Financial Aid?

A. Yes. Many students and families fail to apply for financial aid
simply because they don’t think they qualify. Many different factors
are taken into consideration when awarding financial aid packages.
The only way to be sure is to apply.

Q. How difficult is it and How do I apply for financial aid?
A. It’s easy to apply. Complete a Free Application for Federal
Student Aid (FAFSA).

Applications are available from the U.S. Department of Education at:
1(800)4FED-AID

or online at
http://www.fafsa.ed.gov.

You may also pick up an application at your school’s financial aid office
or at your local library.

Cut your monthly student loan payment by up to 60%

Q. When is the best time to apply for Financial Aid?
A. You can apply for financial aid any time after January 1st for the
upcoming academic year. You are encouraged to submit your FAFSA
as soon as possible after January 1st.

Q. How often do I need to apply for financial aid?
A. Because financial situations can vary from year to year,
the government requires you to reapply each year.

Q. Can a part-time student receive financial aid?
A. Most financial aid programs are available to students if they
attend school on at least a half-time basis.

Q. Can I get financial aid if I have defaulted on my prior student loans?
A. You must make payment arrangements with the holder of your defaulted
loans to regain eligibility for additional financial aid.
Contact your lender or servicer to find out more about their requirements.

Q. If I receive a schlorship do I need to report it to my schools’s
financial aid office?
A. Yes, because it will affect your eligible aid amount.

Q. What are Private Loans?
A. Private loans are credit-based alternative loans for students who
require education funding beyond the amounts allowed under the federal
loan programs, or for students who do not qualify for federal program loans.

Q. When should I apply for a private loan?
You should apply for a private loan after you have completed the FAFSA
and received financial aid award information from your school.

Q. Do I need to apply for a Private Loan with a co-borrower?
A. Adding a co-borrower can save you money. The co-borrower’s good
credit history may positively affect your interest rate and any fees you pay.
Parents, grandparents, or legal guardians typically have more established credit
histories that can help lower your interest rate and fees, which
typically results in a lower monthly repayment amount.

Democrats, who won the House and Senate in the November elections,
say they will move quickly to slash interest rates on need-based
college loans…

They plan on cutting then In half — from 6.8 percent to 3.4 percent.

California Democratic Rep. George Miller, the incoming
Chairman of the House Education Committee, said in an interview
that it will be done almost immediately.

In addition, Pell grants — which do not have to be paid back
and go to only low-income students — will likely get an increase.
Party leaders say they want to…

Raise the maximum Pell award from $4,050 to $5,100.

This will be a much welcome blessing for the students who qualify.
Let’s hope these promises are more than just empty words.
Democrats haven’t spelled out how they’ll pay for these promises.