Alaska Student Loans - AlaskaAdvantage

The state of Alaska has a program that is aimed at providing opportunities for students to take advantage of higher education and find financial loan programs to assist them to pay for tuition, books and living expenses.

Students have a number of ways of taking advantage of the Alaska student loans program. There are education grant programs as well as education loans programs.

Furthermore, there are family and parent loan packages and specialized loans, all provided under the banner of the Alaskadvantage program which has been trademarked by the state of Alaska.

The Alaska grant program is aimed at students who are applying to attend college in areas were there is a skill shortage and the student has a financial need requirement that can be substantiated.

There are qualifying requirements that must be met to be considered for a grant and the student grants can be as much as $2000 per academic year.

The loan programs that the Alaskadvantage program sponsors include Stafford loans, which are federally guaranteed loans. Apparently they are the lowest cost loans that students can obtain and you can obtain the loans in a subsidized and unsubsidized format depending on qualifications that are available on the Alaskadvantage web site.

The entire area of loans and grants is quite complex so there are advisors who can assist the students and their parent to figure out what the best approach is for them. As a first step students looking for grants as well as loans should spend some time becoming familiar with the services, grants and loans that are available.

University of Alaska Shuttle Bus Ride

Student Loans - When it's Time to Consolidate

Before students (or past students) decide to declare bankruptcy, or start down the path of being chased by collection agencies, they need to consider getting the loans consolidated.

What follows is and article, and a video on student loan consolidation.   

You may have campus aid and other federal education grants available so look around for the best possible financial solution before you make a decision regarding a student loan dilemma.

The education we all get when graduating from college is the lesson of debt. Consolidation is essential when your higher education is costing you massive interest payment. Consolidating student loan arrears is paramount if you want a fresh start for the rest of your life.

No matter what you call it; student loan consolidation, college finance consolidation, etc, it is no fun leaving college and dealing with a bad interest rate and starting professional world in the hole.

Many students before you have been in the same boat and the only true way to clear off your consolidated debt is by working it off. Try to search all public information sources and education resources before heading off to the bank.

If you were not lucky enough to afford your college education up front, get a government grant or win a full scholarship then you learn the hard way when it comes to bad debt.

Graduate college with a bachelor of arts and starting learning how to survive in the world of financing and commerce. I suppose a masters in commerce would be the ideal degree to have when it comes to paying of all your student loan debt.

The student aid organizations on campus and off campus can help you during your schooling so that you are prepared for graduation. Take advantage of their aid when you leave school also as they know the finance game down pat.

Hey...ask your professors for advice too. Many professors had student loans themselves, and can give sound financial advice for your future after graduation.

Related Video – Student Financial Advisors – Ad

625 Credit Scores and Bad Credit Financing

Little ditty on 625 credit scores over at the WOF. This is used by permission.

A credit score of 625 is very common if you have had some credit problems and no bankruptcy. I bet you are wondering how the Fair Isaac algorithm decided you have a credit score of 625.

The Fair Isaac score starts at three hundred and goes as high as nine-hundred. Just be glad you don't have three hundred. Ain't nobody talking to you then!

Anyways...a credit score of 625 would be calculated 10% on the "types of credit you have", 10% on "recent inquiries on your credit report", 15% on the "length of your credit history", 30% on your "outstanding debt", and 35% on your "payment history".

As you can see, if you outsanding debt and your payment history is OK then you are not doing too bad.

Factor 1 = 35% on your payment history.
Factor 2 = 30% on your outstanding debt.
Factor 3 = 15% on the length of your credit history
Factor 4 = 10% on recent inquiries on your credit report.
Factor 5 = 10% on the types of credit you have.

So lets figure out a credit score of 625 shall we. Above I stated the range starts at 300-900. The half way mark between 300 and 900 is 600. So taking in the factors listed above, a credit score of 625 is 25 points above the half way point. You could score a zero, goose egg, nothing, on factors 3-5, but if factors 1 and 2 are good, you are usually golden.

For more direct information on Fair Isaac and their fico scores, or more information about a credit score of 625, you can find all of this information at http://www.fairisaac.com/.

This is a very good website and their is lots of information all to do with credit scores and credit concerns. I have used this site to glean new and updated inforamtion on the subject of "bad credit loans".

If you need a loan and you have bad credit, you can visit Credit.com. They are in the business of providing bad credit applicants the financing they need.

Dan The Mortgage Man – Video Appearance

Q&A On Selling Estate Homes as Executor

Q: I am concerned about property that is in my parents' trust. Since they both have died, me being the executor, I have had the home on the market in Apple Valley, Calif., since February 2006 with three different real estate companies. I also have dropped the price from $525,000 to $387,000 and still have had no bites. It is a lovely place that needs the right buyers.

Anyway, for tax purposes, how can I find an appraiser who would place a value on the house for December 2005 when my father died so I can claim a loss on the property when it sells, if it ever does? Joanna Ellis.

A: The direct answer to your question is that any qualified appraiser should be able to reconstruct the value of the property in question on the day your last surviving parent died. The Internal Revenue Service suggests you insist on someone who is licensed in California and a member of a professional association.
   
However, you needn't go to that trouble because there is no loss, at least not yet. Just because you believe the place should have sold for $525,000 and didn't doesn't mean there is a loss. You can't lose something you never had, so as long as the house eventually sells for more than your adjusted basis in the place, you'll have a gain, not a loss.

Your adjusted basis in the property is its value at the time it was inherited by you. Obviously, at this point, you'll need an appraiser to help you figure out what the fair market value was at that time. But even at that, the IRS says that "to claim and prove that you're entitled to a loss because the fair market value dropped dramatically and you sold at a much lower fair market value several months later...... would be difficult."

The eventual sales price could be documented through the closing statement, but you will need a qualified appraisal to establish that the basis (fair market value as of a certain date in time) was greater in order to claim a loss. Again, it needs to be from a qualified appraiser.

The IRS suggests that you read two publications: Sales and Other Dispositions of Assets (Pub.544) and Basis of Assets (Pub. 551). Visit the IRS Web site.

Q: I believe I am a victim of one of those exotic or toxic loans I have been reading about. I hit a period of financial difficulty and refinanced an investment property. It was one of those 1.99% first month and negative amortization loans. I didn't want it. I told the mortgage broker over and over I was uncomfortable with this type of loan, but he kept hammering away at me to take it.

He may have been trying to help me through my financial difficulties. Because he had put so much time and effort into the loan, I felt sorry for him and took the loan against my better judgment. And now of course, I curse him every time I pay the mortgage.

I have never paid less than the interest and try to pay more toward the principal. The interest is tied to the 12-month Treasury bill and goes up every month. I am now paying more than 8.25% interest and it could go up to 10%. I asked and the prepayment penalty is more than $5,500. Is there any way I can get out of this awful thing? My FICO score has been adversely affected because I moved money out of my [home-equity line of credit] at 8.25% interest into a credit card debt of 4.99%. Ann Shonstrom.

A: Sorry, Ann, but there isn't much I can offer. One course of action would be to bite the bullet and keep paying on the note until the prepayment penalty period expires. They usually run from three to five years. Another would be to appeal to the lender to waive the fee in return for refinancing with the company.
Tell the lender your tale of woe, that you were coerced into taking a loan that was foisted upon you by an unscrupulous broker and now are in way over your head and on the autobahn to foreclosure. From what you say, the part about being preyed on by the broker doesn't sound like it's exactly true. But a little exaggeration on your part won't hurt and may help to grease the skids.

Finally, if all else fails, try refinancing with another lender and rolling the prepayment charge with the first lender into the new loan's principal. That way, you'll at least ease the pinch of a lump-sum payment. None of these suggestions are pretty, but that's all I have for you.

Q: I bought a $100,000, one-bedroom, one-bath condo in March of 2006 because I thought real estate prices would keep going up. They plummeted instead. Now I'm stuck making interest-only payments on a condo that I live in, which is located in St Petersburg, Fla.

I have emergency money in the bank that will keep my safe for 12 months. But I don't know if I should hold onto the condo until the market turns around or sell it immediately and take a loss. Every other owner is selling their unit in the same complex, so I have competition. I'm worried this market won' t turn around for another five years. What's your opinion. I need some advice. Thanks, Todd.

A: I'm not totally familiar with the St. Pete market, but from what I hear about Florida in general, the state is terribly overbuilt with condominium apartments that are either sitting unsold and empty or have been sold to investors who now trying to unload them because, like yours, their deals didn't pan out as expected. From what I understand, the market won't turnaround for several years, so you are, indeed, in a pickle.

If you want to sell immediately, which may be your best option, you'll have to cut your price drastically so it is far enough below your competition to draw some attention. Remember, sales are going on all the time, even in overbuilt markets. It just takes the right price to make a deal. If, on the other hand, you want to wait this thing out, you should be prepared to hang tough for a lot longer than 12 months.

You mentioned that you live in your condo, which is not like most investors I know. For the most part, they either rent them or leave them empty in hopes of reselling in a few months after prices have risen to the point where it is worthwhile to sell. But since you are an owner-occupant, your situation is a bit different. If you want to keep the place as your principal residence, you might want to consider refinancing into another loan.

I realize that an interest-only payment on a $100,000 or so mortgage can't be much, but eventually you are going to come face to face with much larger monthly payments. So it may be to your advantage to refi now while you still can and while loan rates are still rather low.

Policies in California Denied by Allstate - Homeowners

Good post on Allstate insurance corp. stopping homeowner coverage in California. Good picture and video as well.

Allstate announces they won’t be doing anymore homeowner policies in CA. Reason stated is that they see California as a high risk due to mother natures constant ravaging of the Sunshine state.

We’ll see more of these big insurance companies making moves like this. Basically, they want our monthly payments, but they don’t want to paying out anything. No big surprise as they’re, arguably, all scum of the earth.

Story…    

Allstate Corporation ,in the US, said this week it would no longer write new homeowner policies in California, marking another reduction in its property coverage nationwide.

Allstate, which insures about 17 million households nationwide, said the move was part of an effort to "manage the risk" of offering property insurance in "catastrophe-prone California".

Allstate said it would continue to insure its existing 900,000 policy holders in California. Those homeowners seeking coverage would be referred to another insurer, Pacific Specialty Insurance Company, which is based in California.

"Allstate is taking responsible action now so that the company will continue to be in a strong position to help protect customers in California and across the country," Robert Barge, the field vice president for Allstate in California, said in a prepared statement.

Insurers playing rough
Steve Poizner, the commissioner of California's Department of Insurance, the state's regulatory body for the insurance industry, issued a statement questioning Allstate's decision.

"While the writing has been on the wall regarding its intent in California, I believe this is a short-sighted business decision," Poizner said. "I expect there will be no shortage of insurance companies who will be more than happy to compete to serve more than 1 million Allstate customers."

Last fall Allstate had proposed a 12.2 percent increase in premiums for its homeowners, its first in over three years, to cover the threat of fires and earthquakes that are known to plague California.

State regulators had questioned the proposed rate hike, pointing at Allstate rivals such as Safeco Corp. (Charts, Fortune 500) and State Farm who had reduced rates in recent years. Mumblings emerged last February that Allstate was considering tightening its policies or refusing new insurers.

One consumer group, the Foundation for Taxpayer and Consumer Rights (FTCR), argued that Allstate's decision to stop writing new policies was part of an effort to coerce the state into allowing the rate increase that is still awaiting a lawmakers' decision.

"If Allstate intended to hang the threat of leaving the state in order to pressure the state to allow them to charge excessive rates, then we say good riddance," said FTCR's Carmen Balber.

The new policy, which will take effect July 1 of this year, is the latest coverage cutback by Allstate. The carrier recently announced it would no longer write new homeowner policies in Florida, Connecticut, Delaware and New Jersey and in certain counties in the Atlantic and Gulf Coast regions.

Other insurers have made similar announcements, including State Farm, which announced earlier this year it would no longer write new homeowner and small business policies in Mississippi following a legal battle over Hurricane Katrina damage claims

[Source CNNMoney.com]

Related Video…Anderson Cooper investigation on Allstate insurance.

Good Q&A On What Kind of Money To Use For Donations

I like this Q&A on charitable donations. Found on Cecil Loans, but originally on the Kip. Like what Cecil did with the video and pics.. 

Question: Which is better -- donate stock to a charity or donate the proceeds from selling the stock?

Answer:It depends on whether you've gained or lost money on the investment.

If the stock has increased in value since you bought it, then you'll be better off donating it to charity instead of selling it off. That way, you'll avoid the capital-gains taxes on the profit. Say you bought 100 shares of a stock at $10 and it's now worth $40 per share. If you give the stock to charity, you won't have to pay the capital-gains taxes on the $3,000 in profit. If you held the stock for more than a year and are in the 15% long-term capital gains tax bracket, that move will save you $450 in taxes, which you'd owe if you sold off the stock first. And you will still be able to deduct the stock's current market value -- $4,000 – as a charitable contribution on your taxes if you itemize, like you would whether you gave stock or cash.

If the stock has decreased in value, though, it's better to cash it in first so you can deduct the loss. If that 100 shares of stock you bought at $10 is now worth $4, for example, you'll be able to write off the $600 loss if you sell the stock before giving the money away. If you held the stock for more than a year and are in the 15% long-term capital-gains bracket, for example, that move can save you $90. And you'll still be able to deduct the value of the gift as a charitable contribution -- $400 in this case.

Before you give away stock, first make sure the charity is set up to deal with the gift. Some small charities don't have brokerage accounts and may have a tough time selling the stock or mutual funds.

Another option: Set up a donor-advised fund. You can then give the stock to the donor-advised fund, which sells the investment and gives the cash to the charity. You'll get a tax deduction for the charitable gift when you transfer the stock to the donor-advised fund, but will have unlimited time to decide which charity to support -- making it a good move if you'd like to make a donation before year-end for tax purposes but would like some extra time to select the charity.

[Source Kiplinger.com - Your Money]

Related Video….Tax Saving With Charity Donations. At home instead of overseas….hmm… wild idea. 

Bad Credit 101 From Cecil Loans

Good Reason To Get a Bad Credit Loans 

Bad debt is a super reason for getting a bank loan, but there are many other reasons people with bad credit need financing. I briefly touch on these issues here. One of the most common misconceptions I see, when helping people with bad credit, is they tend to think they don't have a fair shake from lenders. That is true in some cases, but generally, lenders and banks only lend money to consumers that can truly afford to make their payments, AND afford to maintain their existing lifestyle. If your credit is badly damaged and you need a loan for a car, house, education or consolidation, you understand the frustration of facing unfair interest rates. Many financing companies treat people with bad credit poorly.

They crank up their interest rate and then act like they are doing you a favor just because of your bad credit rating. The banks use the Fair Isaac database/system to classify your rating and approve your high interest loan all in one breath. If you don't like the way you are being treated by your local banks you can use the internet. Since you are reading this that means you likely have a bad credit rating and you are considering the benefits of an online loan.

Lending Money To People With Bad Credit

Lending money to people with bad credit is not as risky as most banks want you to believe. The statistics show that the majority of people with bad credit are secure credit risks. Why.....because they don't want anymore hassles and they are usually dedicated to fixing their credit rating. A defaulted payment sure won't help them on their way back to a good credit rating. So when you are in a position to negotiate your interest rates you need to be aggressive. Don't assume that because you have bad credit you deserve whatever interest rate they offer. This is what I kept in mind when I built this financing resource.

Thousands of Choices for Bad Credit Loans

There are thousands of choices when getting your loan so you want to be very selective. I'm confident that I have narrowed down the list for you already. See the recommended lenders at the bottom of this page. Note their interest rates and read their web site content. You will soon realize which one is the best financing option for you. You may have seen some of these online loan providers before but take a moment to check out the loans for consumers with bad credit. I'm sure you have not seen some of these companies. One in particular is very popular with the visitors to this site. They are called Creditaxis and they have over 80 bad credit financing companies to choose from. Their track record is excellent when it comes to delivering on their promises. Essentially they are a financial broker.

Debt Consolidation for Bad Credit Loans

Another excellent option is getting a debt consolidation loan. I feature one of the best debt consolidation merchants on this page. They never share your personal information with third parties and they give fast free quotes. Their site and form are secure so your information is safe. Most people don't realize that providing sensitive and confidential banking information online is much more secure than using your credit card in bricks and mortar businesses.

Related Video on Bad Credit Loans