When it comes to credit, many college students are usually at one extreme of the spectrum or the other as they near graduation. They either have no credit history or their credit score is in trouble due to high-interest student credit cards that credit card companies often hand out like candy on college campuses.
However, to build a credit score, which is vital seeing as how a good credit score is a valuable asset, a student credit card is a good way to go. However, avoid those “looks good up front offers” from many card companies on campus and seek out a low interest student credit card from a reputable lender who will not only give you a low interest rate, but also realizes that you, the student, want to build a credit history not start post-graduate life in debt.
Many lending institutions will offer credit cards to college students, but there is the matter of looking at the interest rates involved. With so many credit card companies looking to raise credit card interest rates right now due to pending legislation that will prevent them from doing so without warning, among other things, finding a low interest rate on a student credit card will require shopping around and research.
There are numerous lenders who advertise student credit cards and who will offer little or no interest, but unless that great deal has staying power, then keep looking. Most credit card companies will give students just enough time to become comfortable with their card and make a habit of using it, before they raise the interest to a point that is unaffordable.
Find a financial institution or credit card company who will give you a fixed, low interest student credit card that will allow you to afford the payments and thereby build a credit history and good credit score.
Again, key points to remember are research, read the fine print and look at advertised lenders who are going to give you a low interest student credit card for the benefit of your credit not their gain.
Source
Thursday, January 28, 2010
Friday, January 15, 2010
American Student Faces Murder Charges in Italy
Amanda Knox, a 22-year-old American college student, was charged with the murder of her British housemate in Perugia, Italy. According to The New York Times, Knox, a linguistics major from Seattle, has maintained her innocence in the murder case which has drawn relentless media attention, particularly in Italian and British tabloids. Knox has been held in jail since Nov. 2007, soon after Meredith Kercher, 21, was found with her throat slit, semi-naked and wrapped in a duvet, in the house the two students shared. Knox is accused of murdering Kercher with her boyfriend at the time, Rafaelle Sollecito, and a second man. In Oct. 2008, the second man, Rudy Guede, 21, received a 30-year sentence for the crime.    Â
According to CNN, Knox's photo hangs in the police plaza alongside Italy's most infamous mobsters and criminals. Prosecutors declared the case closed within weeks. However, all three of the accused say that they are innocent. Forensic experts say a knife found at Sollecito's house had Kercher's DNA on the tip, and Knox's on the handle. According to the prosecution, Kercher had never been to Sollecito's apartment, and thus would not have come in contact with the knife, showing the knife played a role in the murder. According to The New York Times, the prosecution also says they found DNA evidence of Knox's footprint in Kercher's blood, and several other traces of the two women's intermingled DNA. According to CNN, defense lawyers accuse investigators of "shoddy police work and tampering with the crime scene." Experts testifying for the defense say there is no way the knife could be the murder weapon. Dr. Carlo Torre, a leading forensics expert in Italy, testified that the knife "doesn't match the size or shape of the wounds[…] Sollecito's knife also doesn't match a bloody outline of a knife left on the bedding."According to CNN, Knox's murder trial is entering its final stages, with closing arguments beginning Nov. 20. The jury will begin deliberation on Dec. 4. Currently, there is still no agreement on the key pieces of evidence that prosecutors say convicts her and the defense says clears her.
Curt Knox, Amanda's father said his daughter has cooperated with police and never expected to be implicated. He and Amanda's mother, a Seattle schoolteacher, have taken turns living in Italy. According to Newsweek, Knox told an Italian television audience that his family is in "six-figure debt" in legal and travel bills. He lost his job when Macy's department store in Seattle downsized, and is currently looking for work. The Knox family says they have exercised every available financial resource and now rely on donations to stay afloat.
Furthermore, in the two years since losing their daughter, the Kercher family still has no closure. According to CNN, Kercher's father, John, a journalist who has written about the case for his British newspaper, is writing a book in order to help defray legal costs. The Kerchers have filed a civil suit for $33 million against anyone found guilty of their daughter's murder.
Source
According to CNN, Knox's photo hangs in the police plaza alongside Italy's most infamous mobsters and criminals. Prosecutors declared the case closed within weeks. However, all three of the accused say that they are innocent. Forensic experts say a knife found at Sollecito's house had Kercher's DNA on the tip, and Knox's on the handle. According to the prosecution, Kercher had never been to Sollecito's apartment, and thus would not have come in contact with the knife, showing the knife played a role in the murder. According to The New York Times, the prosecution also says they found DNA evidence of Knox's footprint in Kercher's blood, and several other traces of the two women's intermingled DNA. According to CNN, defense lawyers accuse investigators of "shoddy police work and tampering with the crime scene." Experts testifying for the defense say there is no way the knife could be the murder weapon. Dr. Carlo Torre, a leading forensics expert in Italy, testified that the knife "doesn't match the size or shape of the wounds[…] Sollecito's knife also doesn't match a bloody outline of a knife left on the bedding."According to CNN, Knox's murder trial is entering its final stages, with closing arguments beginning Nov. 20. The jury will begin deliberation on Dec. 4. Currently, there is still no agreement on the key pieces of evidence that prosecutors say convicts her and the defense says clears her.
Curt Knox, Amanda's father said his daughter has cooperated with police and never expected to be implicated. He and Amanda's mother, a Seattle schoolteacher, have taken turns living in Italy. According to Newsweek, Knox told an Italian television audience that his family is in "six-figure debt" in legal and travel bills. He lost his job when Macy's department store in Seattle downsized, and is currently looking for work. The Knox family says they have exercised every available financial resource and now rely on donations to stay afloat.
Furthermore, in the two years since losing their daughter, the Kercher family still has no closure. According to CNN, Kercher's father, John, a journalist who has written about the case for his British newspaper, is writing a book in order to help defray legal costs. The Kerchers have filed a civil suit for $33 million against anyone found guilty of their daughter's murder.
Source
Monday, December 28, 2009
Student off the hook for $50k credit line
A former high-achieving Halifax university student who lost a big chunk of a $50,000 Royal Bank student line of credit by investing in stocks online won’t have to pay up.
Alfredo Jeremy Abdo, 23, has been given an absolute discharge from bankruptcy, said a written decision released Wednesday by a Nova Scotia bankruptcy court.
The Royal Bank was owed $58,200 with interest, on Mr. Abdo’s line of credit, and $2,613 on a separate loan when Mr. Abdo filed for bankruptcy. The bank argued that the former Dalhousie University engineering student should have to make a substantial payment as a condition of discharge from bankruptcy.
A court hearing was held Oct. 15.
Bankruptcy court registrar Richard Cregan disagreed with the Royal Bank and dismissed its argument that Mr. Abdo had filed for bankruptcy to avoid repaying his debt to the bank.
The bank increased Mr. Abdo’s line of credit when it was clear the money wasn’t being used to fund his education, Mr. Cregan said in his decision.
"Clearly, this was not an advance for the aid of Mr. Abdo’s education, but an advance to relieve him from investment difficulty," he said.
"It may also fairly be said that, at least in part, RBC is responsible for the situation. Furthermore, it does not necessarily follow that discharging (Mr. Abdo) absolutely would be an affront to the integrity of the insolvency system."
Mr. Abdo, who had a 4.06 grade point average during his first year studying engineering, later switched to commerce. He quit university after 2½ years.
Somewhere along the line, the scholarship student, who was also athletic and active in fundraising, "did not have the emotional resources to keep it all going," the decision said.
He withdrew into a "comfort zone" and has no gainful employment. He suffers from dizziness and is living with his mother, who supports him, Mr. Cregan said.
"Having observed him, I think it is fair for me to say that he has very serious health problems, and I mean that in the widest sense, the most serious aspect of which is that he does not see that he should seek help."
Mr. Abdo was 19 and had finished his first year at university when he arranged a $20,000 line of credit with the bank. The line of credit, arranged in Aug. 31 2005, is made available to students in professional courses like law, dentistry and engineering who are expected to find well-paying jobs at graduation, said the decision.
Before the end of the year, Mr. Abdo had financial difficulty as a result of money lost on investments and called on his Royal Bank loans officer for advice.
"It appears that, along with his studies, he was seriously involved in online investing and quickly was in over his head."
To solve the problem, the loans officer offered to advance him a further $30,000 on his line of credit, the decision said.
Mr. Cregan questioned if Royal Bank’s actions were prudent.
During the course of his studies, Mr. Abdo had also received two $8,000 scholarships.
"He had a scholarship, which would have covered his tuition. It appears that his lifestyle is modest. He lived at home. I question whether advancing all that money at one time was prudent banking on the part of RBC."
Source
Alfredo Jeremy Abdo, 23, has been given an absolute discharge from bankruptcy, said a written decision released Wednesday by a Nova Scotia bankruptcy court.
The Royal Bank was owed $58,200 with interest, on Mr. Abdo’s line of credit, and $2,613 on a separate loan when Mr. Abdo filed for bankruptcy. The bank argued that the former Dalhousie University engineering student should have to make a substantial payment as a condition of discharge from bankruptcy.
A court hearing was held Oct. 15.
Bankruptcy court registrar Richard Cregan disagreed with the Royal Bank and dismissed its argument that Mr. Abdo had filed for bankruptcy to avoid repaying his debt to the bank.
The bank increased Mr. Abdo’s line of credit when it was clear the money wasn’t being used to fund his education, Mr. Cregan said in his decision.
"Clearly, this was not an advance for the aid of Mr. Abdo’s education, but an advance to relieve him from investment difficulty," he said.
"It may also fairly be said that, at least in part, RBC is responsible for the situation. Furthermore, it does not necessarily follow that discharging (Mr. Abdo) absolutely would be an affront to the integrity of the insolvency system."
Mr. Abdo, who had a 4.06 grade point average during his first year studying engineering, later switched to commerce. He quit university after 2½ years.
Somewhere along the line, the scholarship student, who was also athletic and active in fundraising, "did not have the emotional resources to keep it all going," the decision said.
He withdrew into a "comfort zone" and has no gainful employment. He suffers from dizziness and is living with his mother, who supports him, Mr. Cregan said.
"Having observed him, I think it is fair for me to say that he has very serious health problems, and I mean that in the widest sense, the most serious aspect of which is that he does not see that he should seek help."
Mr. Abdo was 19 and had finished his first year at university when he arranged a $20,000 line of credit with the bank. The line of credit, arranged in Aug. 31 2005, is made available to students in professional courses like law, dentistry and engineering who are expected to find well-paying jobs at graduation, said the decision.
Before the end of the year, Mr. Abdo had financial difficulty as a result of money lost on investments and called on his Royal Bank loans officer for advice.
"It appears that, along with his studies, he was seriously involved in online investing and quickly was in over his head."
To solve the problem, the loans officer offered to advance him a further $30,000 on his line of credit, the decision said.
Mr. Cregan questioned if Royal Bank’s actions were prudent.
During the course of his studies, Mr. Abdo had also received two $8,000 scholarships.
"He had a scholarship, which would have covered his tuition. It appears that his lifestyle is modest. He lived at home. I question whether advancing all that money at one time was prudent banking on the part of RBC."
Source
Tuesday, December 15, 2009
UC regents approve fee hike amid loud student protests
Amid loud student protests that roiled the UCLA campus, the UC Board of Regents this afternoon approved a 32% increase in student fees.
The fee hike of $2,500, or 32%, will come in two steps by next fall. That would bring the basic UC education fees to about $10,300, plus about another $1,000 for campus-based charges, for a total that would be about triple the UC cost a decade ago. Room, board and books can add another $16,000.
Only student regent Jesse Bernal voted against the undergraduate fees.
The noise of protesters came through the window as the regents voted. It was only lightly discussed, with UC President Mark G. Yudof urging that students explore all the financial-aid possibilities so they don’t get scared away or drop out.
Groups of UC students from several other campuses arrived in Westwood to join a demonstration against the fee hike, and a group of protesters was occupying a UCLA classroom building.
UCLA officials declared Campbell Hall, where the sit-in continued, closed for the day. Inside, about 40 to 50 students who had chained the doors shut shortly after midnight were issuing e-mail statements.
“We choose to fight back, to resist, where we find ourselves, the place where we live and work, our university,” their statement said. Campus police surrounded the classroom building, but no arrests were made.
Meanwhile, across campus, a crowd of several hundred gathered outside Covel Commons, where the regents were meeting. Students and UC employees chanted such slogans as “Whose university? Our university!”
Among them was Tommy Le, a fourth-year student at UC Santa Cruz, who left his campus at 3 a.m. today in a convoy of two buses headed south. Le, 21, an American studies major from El Monte, said he was worried about how he being able to afford the higher charges, starting with an additional $585 for the rest of the school year.
“It’s adding more stress and more burden,” said Le, who said he works two part-time jobs and sends money home to help his family. The fee increase, he said, would be “a lose-lose situation.”
Source
The fee hike of $2,500, or 32%, will come in two steps by next fall. That would bring the basic UC education fees to about $10,300, plus about another $1,000 for campus-based charges, for a total that would be about triple the UC cost a decade ago. Room, board and books can add another $16,000.
Only student regent Jesse Bernal voted against the undergraduate fees.
The noise of protesters came through the window as the regents voted. It was only lightly discussed, with UC President Mark G. Yudof urging that students explore all the financial-aid possibilities so they don’t get scared away or drop out.
Groups of UC students from several other campuses arrived in Westwood to join a demonstration against the fee hike, and a group of protesters was occupying a UCLA classroom building.
UCLA officials declared Campbell Hall, where the sit-in continued, closed for the day. Inside, about 40 to 50 students who had chained the doors shut shortly after midnight were issuing e-mail statements.
“We choose to fight back, to resist, where we find ourselves, the place where we live and work, our university,” their statement said. Campus police surrounded the classroom building, but no arrests were made.
Meanwhile, across campus, a crowd of several hundred gathered outside Covel Commons, where the regents were meeting. Students and UC employees chanted such slogans as “Whose university? Our university!”
Among them was Tommy Le, a fourth-year student at UC Santa Cruz, who left his campus at 3 a.m. today in a convoy of two buses headed south. Le, 21, an American studies major from El Monte, said he was worried about how he being able to afford the higher charges, starting with an additional $585 for the rest of the school year.
“It’s adding more stress and more burden,” said Le, who said he works two part-time jobs and sends money home to help his family. The fee increase, he said, would be “a lose-lose situation.”
Source
Sunday, November 15, 2009
Students face £4,000 debt for every extra year of study
STUDENTS in Wales are graduating with an average debt of more than £12,000, new figures showed today.
Welsh undergraduates now owe an average of £4,021 for each year of study, according to the research into students’ finances.
The breakdown of national figures also revealed that amounts owed varied drastically between students attending further education institutes in Wales, England, Scotland and Northern Ireland.
The average debt per year of study in England is £5,271, while students in Scotland and Northern Ireland owe £2,194 and £4,324 per academic year respectively.
The findings – part of the annual Push Student Debt Survey – come as A-level pupils await results that will determine whether or not they will be among the next batch of university students this autumn.
Worryingly, the report also revealed that debt is creeping up year on year, with undergraduates coming to the end of their first year of study expecting to owe £21,200 by the time they leave, compared to the £13,874 owed by those about to complete their third year of study.
Johnny Rich, editor of university information site Push.co.uk, said: “With the economy in recession, students are even more concerned about debt than they have been in recent years.
“Finding part-time work has got harder and many students are facing real financial hardship and are worrying about what lies ahead. Even so, the advantages of having a degree still vastly outweigh the costs and the Push survey shows that – with high quality advice and information – students can keep their debts down while still enjoying the benefits of university.
“These figures will give next year’s review of student funding a real headache. They beg the question whether we’ve now passed the point where students can be expected to stump up any more towards their education.”
From this autumn, tuition fees in England will rise to £3,225 and, in the coming years, students in Wales are expected to be asked to pay an additional top-up amount for every year of their course.
Lleu Williams, deputy president of Wales’ National Union of Students (NUS), said the move to introduce top-up fees could see thousands of Welsh undergraduates rack up annual debts in the region of £5,000.
He told the Western Mail: “It isn’t clear what the introduction of top-up fees in Wales will do to student debt, but it is realistic to say that it will probably equal that of students in England.”
The NUS has spent months lobbying the Assembly Government for the introduction of a national bursary scheme to help cash-strapped undergraduates. Under the proposals, the bursary would cover the cost of university life for the country’s poorest students.
“We believe that this would be the best financial option for students in Wales. It would help offset debt for those most in need,” Mr Williams said.
Under current rules, students can claim for an annual loan to cover the cost of their tuition, plus extra for books, rent and bills linked to everyday living.
However the short-term loans begin to get repaid after a graduate starts to earn a £15,000 salary.
An England-only review of tuition fees is due to commence this year, but will not be complete until after the general election.
A spokesman for the Assembly Government said that in Wales the student finance system has already been reviewed, the results of which were published in March.
He added: “All the evidence shows that those people with higher levels of education earn higher amounts throughout their lifetimes which compensates for the initial investment by the student, however, we are committed to ensuring that financial barriers do not deter potential and existing students from entering higher education.”
Source
Welsh undergraduates now owe an average of £4,021 for each year of study, according to the research into students’ finances.
The breakdown of national figures also revealed that amounts owed varied drastically between students attending further education institutes in Wales, England, Scotland and Northern Ireland.
The average debt per year of study in England is £5,271, while students in Scotland and Northern Ireland owe £2,194 and £4,324 per academic year respectively.
The findings – part of the annual Push Student Debt Survey – come as A-level pupils await results that will determine whether or not they will be among the next batch of university students this autumn.
Worryingly, the report also revealed that debt is creeping up year on year, with undergraduates coming to the end of their first year of study expecting to owe £21,200 by the time they leave, compared to the £13,874 owed by those about to complete their third year of study.
Johnny Rich, editor of university information site Push.co.uk, said: “With the economy in recession, students are even more concerned about debt than they have been in recent years.
“Finding part-time work has got harder and many students are facing real financial hardship and are worrying about what lies ahead. Even so, the advantages of having a degree still vastly outweigh the costs and the Push survey shows that – with high quality advice and information – students can keep their debts down while still enjoying the benefits of university.
“These figures will give next year’s review of student funding a real headache. They beg the question whether we’ve now passed the point where students can be expected to stump up any more towards their education.”
From this autumn, tuition fees in England will rise to £3,225 and, in the coming years, students in Wales are expected to be asked to pay an additional top-up amount for every year of their course.
Lleu Williams, deputy president of Wales’ National Union of Students (NUS), said the move to introduce top-up fees could see thousands of Welsh undergraduates rack up annual debts in the region of £5,000.
He told the Western Mail: “It isn’t clear what the introduction of top-up fees in Wales will do to student debt, but it is realistic to say that it will probably equal that of students in England.”
The NUS has spent months lobbying the Assembly Government for the introduction of a national bursary scheme to help cash-strapped undergraduates. Under the proposals, the bursary would cover the cost of university life for the country’s poorest students.
“We believe that this would be the best financial option for students in Wales. It would help offset debt for those most in need,” Mr Williams said.
Under current rules, students can claim for an annual loan to cover the cost of their tuition, plus extra for books, rent and bills linked to everyday living.
However the short-term loans begin to get repaid after a graduate starts to earn a £15,000 salary.
An England-only review of tuition fees is due to commence this year, but will not be complete until after the general election.
A spokesman for the Assembly Government said that in Wales the student finance system has already been reviewed, the results of which were published in March.
He added: “All the evidence shows that those people with higher levels of education earn higher amounts throughout their lifetimes which compensates for the initial investment by the student, however, we are committed to ensuring that financial barriers do not deter potential and existing students from entering higher education.”
Source
Wednesday, October 28, 2009
Student loans encourage culture of debt
Students are racking up crippling debts because they’re not being taught the difference between student loans and other forms of credit, a financial education charity warned this week.
Chris Tapp, director of Credit Action, said because it’s “basically impossible” to get into difficulties with student loans, students are given the message that it’s fine to be in debt.
Tapp believes students should be taught the difference between student loans and other debts such as overdrafts and credit cards to help them avoid getting into financial difficulties.
“It’s important to make a distinction between the kind of burden that you face with student debt as opposed to any other type of debt,” he said.
“I don’t think that’s been done as effectively as it could have been by the government and others.”
Two years ago, before the onset of the credit crunch, Tapp warned that student loans were fostering a culture of debt that encouraged students to “live beyond their means”.
“We now have a generation for whom you’re extremely odd if you’re not in a substantial amount of debt. It’s that culture of borrowing that student loans have really fed into,” he said.
Source
Chris Tapp, director of Credit Action, said because it’s “basically impossible” to get into difficulties with student loans, students are given the message that it’s fine to be in debt.
Tapp believes students should be taught the difference between student loans and other debts such as overdrafts and credit cards to help them avoid getting into financial difficulties.
“It’s important to make a distinction between the kind of burden that you face with student debt as opposed to any other type of debt,” he said.
“I don’t think that’s been done as effectively as it could have been by the government and others.”
Two years ago, before the onset of the credit crunch, Tapp warned that student loans were fostering a culture of debt that encouraged students to “live beyond their means”.
“We now have a generation for whom you’re extremely odd if you’re not in a substantial amount of debt. It’s that culture of borrowing that student loans have really fed into,” he said.
Source
Thursday, October 15, 2009
Life as a student: hidden costs and threat of debt
Thousands of students are finalising their university arrangements for next year following the publication of the A level results. But amid the pressure to choose the right university and the best course, it is easy to overlook the need to also find the most suitable bank account.
The unpleasant reality is that studying at university is very expensive. Students can expect to owe £23,000 by the time they graduate – the just published Push Student Debt Survey shows that undergraduates accumulate debts, on average, by more than £5,000 per year.
Yet most parents believe the cost of university is only half that amount, according to analysis by Equifax — so students may get less parental help than they hope.
The good news for students at Queen’s University or the University of Ulster is that Halifax reports that the student cost of living here is the second lowest of anywhere in the UK, while the cost of accommodation is the very lowest.
Undergraduates here can expect to spend in total £160 a week, compared to £248 in London.
And the average weekly rental here is less than £41, compared to the UK average of £77 or £95 in London.
Beware the unexpected
The National Union of Students (NUS) warns, though, of being caught out by unexpected costs. A student on a mathematical or computer science course should expect to find an additional £1,430 per year to pay for books, equipment and fieldwork. For medical students the often unexpected and unbudgeted extras cost £902.
“Universities need to be much more open about the hidden costs associated with different courses,” says Wes Streeting, the NUS president. “Many students preparing to go to university this summer may be in for a real shock.”
It is almost inevitable that students will face years of debt after they graduate because of the introduction of tuition fees.
Both Queen's University and the University of Ulster charge the maximum permitted £3,225 for tuition fees.
Those studying in Britain face similar charges.
Although tuition fees in Scotland are paid by its government, this only applies to Scottish students and those from non-UK countries in the EU.
But while tuition fees are chargeable, students may defer paying them by obtaining a student loan to cover the fees.
These become repayable after graduation when a person starts earning over £15,000 per year.
Source
The unpleasant reality is that studying at university is very expensive. Students can expect to owe £23,000 by the time they graduate – the just published Push Student Debt Survey shows that undergraduates accumulate debts, on average, by more than £5,000 per year.
Yet most parents believe the cost of university is only half that amount, according to analysis by Equifax — so students may get less parental help than they hope.
The good news for students at Queen’s University or the University of Ulster is that Halifax reports that the student cost of living here is the second lowest of anywhere in the UK, while the cost of accommodation is the very lowest.
Undergraduates here can expect to spend in total £160 a week, compared to £248 in London.
And the average weekly rental here is less than £41, compared to the UK average of £77 or £95 in London.
Beware the unexpected
The National Union of Students (NUS) warns, though, of being caught out by unexpected costs. A student on a mathematical or computer science course should expect to find an additional £1,430 per year to pay for books, equipment and fieldwork. For medical students the often unexpected and unbudgeted extras cost £902.
“Universities need to be much more open about the hidden costs associated with different courses,” says Wes Streeting, the NUS president. “Many students preparing to go to university this summer may be in for a real shock.”
It is almost inevitable that students will face years of debt after they graduate because of the introduction of tuition fees.
Both Queen's University and the University of Ulster charge the maximum permitted £3,225 for tuition fees.
Those studying in Britain face similar charges.
Although tuition fees in Scotland are paid by its government, this only applies to Scottish students and those from non-UK countries in the EU.
But while tuition fees are chargeable, students may defer paying them by obtaining a student loan to cover the fees.
These become repayable after graduation when a person starts earning over £15,000 per year.
Source
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