TIP OF THE WEEK - November 23

Can You Get a Student Loan Bailout?

This article was reported by Amanda Becker for "The Big Money".

A new program links payments on federal student loans to income
and forgives balances after 25 years. Those working in public service
could have their debts erased after 10 years.

If you've got a diploma hanging on your wall, chances are it didn't
come cheap. About two-thirds of the 3 million or so college seniors
who donned a cap and gown this year took on an average debt of
$22,500 for the privilege of earning that diploma. The debt graduate
and professional students incur is often tens of thousands more.

As graduates struggle to find jobs during the worst economic crisis
of their lifetime, an adviser to the secretary of education expects a rise
in the default rate on student loans, which cannot be easily renegotiated
or discharged in bankruptcy. But a provision of the College Cost Reduction
and Access Act of 2007 that reduces monthly payments for hundreds
of thousands of borrowers who qualify for the new Income-Based
Repayment plan took effect July 1.

Borrowers who work in certain public service jobs could also have the
balance of their loan erased after making qualifying payments for 10
years. (Supposedly, this costs the government nothing, since it will now
change the way it subsidizes student-loan lenders.)

So, will your student loan be bailed out? In a word: maybe. At the very
least, the IBR program will lower the monthly payments of people who
accumulated significant federal student loan debt but don't have the
income to make the payments on the standard 10-year repayment plan.
This relief may reach as many as 1 million people, according to the
Project on Student Debt. And despite lower payments, the former students
won't be paying off their loans indefinitely -- any remaining balance
will be forgiven after payments, are made for 25 years.

Basing loan payments on income isn't a new concept. For years, graduates
with federal student loans had options to reduce or eliminate their
payments, depending on how much money they made. But IBR is intended
to be more generous.

IBR caps monthly payments at 15% of earnings above 150% of the
poverty line, or $10,830 for a single-person household. Online calculators
at the free public service site FinAid.org can help you compare what your
income-based payments, income-contingent payments and income-
sensitive payments would be.

There are situations in which an IBR payment would be zero. If your
payment is so low it doesn't cover the interest accruing on your loan, the
government will pay the interest for three years on subsidized Stafford
loans, which are government- backed loans given to financially needy
students that do not accrue interest while the borrower is in school.

After that period, and for all of the other kinds of unsubsidized federal
loans, unpaid interest will accrue but will not compound. In other words,
you won't be charged interest on top of interest. Borrowers who think they
could benefit from IBR should contact their lender and ask for an
application that will authorize the release of their adjusted gross income
from the Internal Revenue Service each year.

Student loans can have a big influence on career decisions. Even former
students with good jobs say their monthly loan payments make it hard to
buy a home, start a family or save for a rainy day. The news is even more
promising for people working in public service jobs: government
employees, teachers in public schools and universities, workers at public
hospitals and anyone working for a 501(c)(3) nonprofit would qualify.
Anyone working in a qualifying job who borrowed from the Direct Loan
Program is eligible for loan forgiveness after 10 years, down from 25.

To qualify for forgiveness, borrowers who work in a public-interest
position must either have an existing Direct Loan or consolidate a federal
loan with a private lender into the Direct Loan Program and make 120
payments after Oct. 1, 2007. The payments do not have to be consecutive,
can be made while at different eligible positions and must be made on the
income-based or standard repayment plans.

At this point, the burden is on borrowers to document where they were
working during their repayment period. The Department of Education is
planning to develop a more definitive system to confirm eligibility, but
right now borrowers should keep pay stubs and tax documents that verify
their work history.

IBR and public-loan forgiveness won't be the best options for every
borrower. Some borrowers -- those able to make higher monthly payments
-- would be better served by sticking with a traditional payment plan to
avoid accruing years of additional interest. Graduates who financed their
education with private loans are ineligible entirely.  But for an MBA grad
who borrowed $150,000 planning to be an investment banker but ended
up in government service, IBR will result in payments that are affordable
on a civil servant salary.

TIP OF THE WEEK - November 16

Managing Stress

 

1) Recognize Stress:

Stress symptoms include mental, social, and physical manifestations.
These include exhaustion, loss of/increased appetite, headaches,
crying, sleeplessness, and oversleeping. Escape through alcohol,
drugs, or other compulsive behavior are often indications. Feelings
of alarm, frustration, or apathy may accompany stress.

If you feel that stress is affecting your studies, a first option is to seek
help through your educational counseling center.

Stress Management is the ability to maintain control when situations,
people, and events make excessive demands. What can you do to
manage your stress? What are some strategies?

2)  Look Around

See if there really is something you can change or control in the situation.

3)  Set Realistic Goals for Yourself

Reduce the number of events going on in your life and you may reduce
the circuit overload.

4)  Remove Yourself From the Stressful Situation

Give yourself a break if only for a few moments daily.

5)  Don't Overwhelm Yourself

Don’t worry about your entire workload. Handle each task as it comes,
or selectively deal with matters in some priority.

6)  Don't Sweat the Small Stuff

Try to prioritize a few truly important things and let the rest slide.

7)  Learn How to Best Relax Yourself

Meditation and breathing exercises have been proven to be very
effective in controlling stress.  Practice clearing your mind of disturbing
thoughts.

8)  Selectively Change the Way You React

But not too much at one time.  Focus on one troublesome thing and
manage your reactions to it/him/her.

9)  Change the Way You See Your Situation; Seek Alternative Viewpoints

Stress is a reaction to events and problems, and you can lock yourself
in to one way of viewing your situation.  Seek an outside perspective of
the situation, compare it with yours, and perhaps lessen your reaction to
these conditions.

10)  Avoid Extreme Reactions

Why hate when a little dislike will do? Why generate anxiety when you
can be nervous? Why rage when anger will do the job? Why be depressed
when you can just be sad?

11)  Do Something for Others

This helps get your mind off your self.

12)  Get Enough Sleep

Lack of rest just aggravates stress.

13)  Work Off Stress

Get active physically; whether it's jogging, tennis, gardening, etc.

14)  Try to "Use" Stress

If you can't remedy, nor escape from,  what is bothering you, flow with it
and try to use it in a productive way.

15)  Try to Be Positive

Give yourself messages as to how well you can cope rather than how horrible
everything is going to be.

***  Most importantly, if stress is putting you in an unmanageable 
state or interfering with your schoolwork, social and/or work life, 
seek professional help at your school counseling center.

TIP OF THE WEEK - November 9

How to Avoid Procrastination

To remedy procrastination, answer these basic questions.

What do you want to do?

    •    What is the final objective and end result?
         (It may be obvious, or it may not )
    •    What are the major steps to get there?
         Don't get too detailed:  think big.

What have you done so far?

    •    Acknowledge that you are already part way,
         even if it is that you are in the thinking phase. 
         The longest journey begins with a first step.

What is your biggest motivation?

    •    Do not concern yourself if your motivation is
         negative!  This is honest and a good beginning.
         However, if your motivation is negative, re-phrase
         and re-work it until it is phrased positively.

What other positive results will flow from achieving your goal?

    •    Identifying these will help you uncover benefits
         that you may be avoiding:
         Dare to dream. List out what stands in your way.
         What is in your power to change? What resources
         outside yourself do you need?  Resources are not
         all physical (i.e. tools and money), and include time,
         people/professionals/elders, even attitude.

What will happen if you don't progress?

    •    It won't hurt to scare yourself a little... Develop your plan,
         list major, realistic steps.  A project is easier when it is
         built in stages; start small; add detail and complexity
         as you achieve and grow.

How much time each will take?

    •    A schedule helps you keep a progress chart and reinforce
         that there are way-stations on your path .  What time of day,
         week, etc. do you dedicate  yourself to work?  This helps
         you develop a new habit of working, build a good work
         environment, and distance distractions.  (It is much easier to
         enjoy your project when distractions are set aside.)

Rewards you will have at each station

    •    Think of rewards and also what you will deny yourself
         until you arrive at each station.

Build in time for review

    •    Find a trusted friend, elder, or expert to help you motivate
         yourself or  monitor progress.

Admit to:

    •    False starts and mistakes as learning experiences.
         They can be more important than successes, and
         give meaning to "experience".
    •    Distractions and escapes.  Do not deny they exist,
         but deny their temptation.
    •    Emotion.  Admit to frustration when things don't
         seem to be going right. Admit that you have had a
         problem, but also that you are doing something
         about it.
    •    Fantasy See yourself succeeding.

Finally, if procrastination is a habit of yours, focus on the
immediate task and project, and build up from there.
Each journey begins with one step.

TIP OF THE WEEK - November 3

Note Taking Skills and Strategies


Here are some techniques and strategies that will help you become a
good note taker, whether you are taking college lecture notes or class
notes these tips will be a great  help in staying ahead:

1) If the instructor writes something on the chalkboard/overhead,
then it is usually a key point and you should write it down.

2) Try to use a three-ring binder, it allows for more flexibility in
rearranging your notes and any handouts that you may receive.

3) Sit towards the front and center of the class where you'll be less
distracted, hear the professor and have a good angle on any visual
aids that may be shown.

4) Don't rely on someone else's notes, you may not understand
everything that they write down and you'll remember the best by
taking your own notes.

5) If your instructor talks fast, it may help to bring an audio recorder
and record the lecture while taking notes. After the lecture is over
you can replay the lecture and fill in any parts that you missed.

6) Do reading assignments or homework questions before class,
it is easier to take notes when you know what the instructor is
talking about.

7) Date your notes. Add titles and subtitles when you move onto 
a new topic for easy referencing.

8) Write down any terminology along with the definition that the
instructor may present.

9) Make sure that you write legibly, if you can't read them later,
they'll be useless. If you have sloppy handwriting it may be wise
to type your notes so that they are easier to read.

10) If you missed what the instructor said ask him/her to repeat it
or go to the instructor after class and ask for clarification. If you are
in a rush, ask the instructor any questions at the beginning of the
next class. You may also want to find the answer from a friend or
the textbook.

11) Compare notes with a classmate to make sure you didn't miss
any important points.