Your Questions About Direct Loan Servicing

Nagesh answers:

Actually, Need, there is a program that might be of interest to you – a program called the Public Service Loan Forgiveness program. It’s almost brand new – in fact – it was only established in 2007.

Unfortunately, it’s not going to get you off the hook for those payments – or at least not for quite a while.

Don’t shoot the messenger here – I’m only telling you how the program works.

If you remain a full-time, public service employee for 10 full years – and – you make all of the payments on your federal loans as scheduled every month – any balance remaining after that 10 year period will be written off and excused.

You don’t have to start as of right now – the program took effect as of October 1, 2007 – so your employment and payments that you have made in the last 20 months would count towards the 120-month requirement.

I recommend that you investigate the possibility of consolidating your federal student loans through the Federal Direct Consolidation program. Unlike private loans, you will be able to arrange for consolidation of your fed loans through that program. Consolidating will have the effect of lowering your monthly payment by stretching your payment term. If you qualify to stretch your payment term from 10 to 20 years, you’ll both lower your payment AND ensure that you’ll have a good number of payments excused at the end of the 10-year qualifying period for the Public Service Forgiveness program.

For more information on the program, I recommend the lengthy discussion that can be found here: http://www.finaid.org/loans/publicservice.phtml

Good luck to you – I hope this information helps you.

Nagesh answers:

@Lucky Star if the rich can send there capital over seas so easily what will happen when Obama starts to penalize them through sky high tax rates, with a click of a button they can send there money over seas.

Also on the whole medcine and housing thing. Something like 40-50% of doctors say they can’t stay in busniess with Obamacares regulation, if they quit will that lead us with less or more medcine to go around. (the answer is less and all though the cost pay not be paid out of pocket book it will be paid by longer waits and less realiable service) and for the housing bust the goverment forced banks to loan to people who they woulden’t normally loan too begining the process that ultimatley brought about this recession.

Oh and lucky star generations of that were left off welather then the last generation, along with new technology like the internet, iphones, and computers I would not consider that a failure. The only good thing that came out of a communist country was the video game tetris, and it was a capitalist who found out that would make a good video game and got the rights to market it.

On to the main question.

Capital is still capital weather or not the goverment owns it or not. If a private farmer owns a piece of farmland, or the goverment it’s still farm land. But here is the kicker the farmer who does nothing but farm, is responsible in making sure that land is productive 99.999999999999999999999999999% of the time will do a more efficent job of getting things through to market and had cheaper prices then goverment. This was proven in the soviet union when the country was importing food despite an abuncence of farmland in Russia that went unused because of goverment mismanagment.

Nagesh answers:

The amount of people throughout the United States who find themselves in debt continues to rise. For you, raising a child while being a college student made your financial a difficult one. For most, however, debt is the result of extraneous spending, poor money management, or both.

Below is a list of ten tips to getting out of debt. Some are easier to follow than others, but all are designed to help alleviate the problem – so take comfort in the fact that you can solve your debt, though it will be a tough process…

Ten peices of advice from allbusiness.com:
1. Create a realistic monthly budget for your expenses. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the bills are paid to be spent elsewhere. Stay within your budget guidelines.
2. Pay off the balance on the credit card with the highest interest rate first (unless the balance on any card exceed 50 percent of your credit limit). First, pay all balances to below 50 percent of the card limit because balances above this level cause your credit score to diminish. Then pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have additional older accounts, close it after it is paid off. Next month do the same with the card that has the next highest interest rates. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates). Use this as your preferred account. You need only four open accounts to establish a positive credit history.
3. Learn to use cash instead of credit cards. Have one primary credit card and use it only for emergencies or major necessities, such as a new refrigerator if the current one stops working. Put your credit card in a safe place, not available for everyday use. Also, do not accept increases on your credit card limit above an amount you can easily pay off in three months.
4. Use direct deposit for your paychecks. Also have a limit on how much you will allow yourself to withdraw each week and month.
5. Cut down on your discretionary expenses. This includes dining out, overusing your cell phone, and other such unnecessary expenses.
6. Evaluate your living situation. Your housing costs should be no more than 33 percent of your household income, including mortgage payments, property tax, and both property and homeowner’s insurance. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.
7. Avoid borrowing money to get out of debt, especially consolidation loans. Many people think this is a way of helping them get out of debt. However, consolidation loans are simply a means of combining debt. You could end up losing everything because you’ve tied it all up in one loan. If you must borrow, see if a friend or family member can lend you money, since the interest rates should be low or nonexistent.
8. Contact your creditors and try to work out repayment plans. Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.
9. Become a savvy shopper. Look for deals, bargains, and savings. You’d be surprised at how much you can save if you take the time to shop around. Check out the price comparison Web sites such as Shopping.com and BizRate.com.
10. Look for extra ways to make some money. From part-time work to a garage sale to taking in a boarder, there are many ways to bring in some additional income.

If all else fails, seek out help from a debt reduction specialist or counselors [see link below] who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of people in debt and charging them high service charges.

For MSN Money’s take on credit card debt, follow this link-
http://moneycentral.msn.com/content/Banking/creditcardsmarts/P74808.asp

For more advice, these are also helpful allbusiness.com links-
Should I Borrow Money to Get out of Debt: http://www.allbusiness.com/3915481-1.html
To Get Matched with a Relief Specialist:
http://www.allbusiness.com/3776688-1.html

Good luck in climbing out of debt. Try to modify your personal finance outlook in doing so, and you should be well on your way.

Nagesh answers:

It did move. The new address, to which a person is forwarded to after going to the web page you cite is:
* https://www.myedaccount.com/
It is a web page of the U.S. Dept. Of Education Student Aid on the Web.

I got to the above cited web page, too, by going to:
* http://www2.ed.gov/offices/OSFAP/DirectLoan/index.html
and then clicking on the Direct Loan Servicing link in the left sidebar.

This is the toll-free Federal Direct Loan Servicing phone number, if you wish to telephone the agency and verify the new web address – I good idea, I think:
* 800-848-0979
Direct Loan Servicing Center
Borrower Services Department
P.O. Box 5609
Greenville, TX 75403-5609
(Central time zone)

It’s always good to play it safe. I’m not sure why the web site has a “.com” domain.

Librarians–Ask Us, We Answer!
Find your local Public Library at:

Find your College/University Library at:
http://lists.webjunction.org/libweb/Academic_main.html

Best wishes

Nagesh answers:

Direct Loans is a company that services Stafford Loans (gov’t loans). As far as disbursement, you’d have to check with your school for that. D.L. Gives them the $ and the school does whatever they have to do with it first before getting you a check for what’s remaining…or giving you the whole thing. Usually around the first week or so of the semester. As long as you did your FAFSA paperwork n’ stuff then you’re good to go! Good luck!