UK households owe an average of £7,900 on personal loans, overdrafts and credit cards.
UK families are typically £7,900 in debt from personal loans, overdrafts and credit cards, despite three years of paying them down, a report has found.
Meanwhile, credit card use could fall into permanent decline, with the rise of digital technology and payday lenders changing how people access credit, the Precious Plastic report from PricewaterhouseCoopers (PwC) said.
Each household paid off an average of around £355 of their unsecured debt in 2011, but UK households remain “among the most indebted in the world” despite three successive years of net repayments, the report said.
The report predicted UK consumers will continue their determination to pay down their debts, owing around £7,500 by 2013.
But it highlighted “worrying” signs in spending habits, particularly among the 25 to 34 age group, where a quarter have used credit to fund essential purchases in the last year.
Average incomes have fallen by nearly 3.5pc in real terms over the past year, squeezing budgets even further as consumers have faced soaring bills.
Simon Westcott, director in PwC’s financial services practice, said: “UK consumers are among the most indebted in the world, with the average UK household still saddled with nearly £8,000 of unsecured debt.
“Although the UK Government’s austerity drive appears to be hitting home, with households paying off an average of £355 worth of their debt in 2011, three years of austerity by UK consumers has only made a small dent in the total levels of borrowing.
“In addition to this, our credit confidence survey has shown that there is a growing reluctance to borrow in the future and a marked deterioration in confidence about meeting repayments, particularly among 18 to 24-year-olds.”
The report said that historically, the United States has been a strong indicator of what happens in the UK, but consumer credit in the US saw the largest increase in a decade in 2011.
It put the contrast in behaviour down to UK austerity policies, which have had “a strong influence on consumer confidence and attitudes towards debt in the UK”.
Bank of England figures showed last week that consumers cut their debts at the fastest rate in two decades during December, amid signs they dipped into savings to pay for Christmas.
Credit card borrowing was also flat for the third month in a row, despite the festive season.
The PwC report said that credit card borrowing fell by 5pc last year, leaving the average balance at around £1,000, with tightening credit conditions compounding the issue.
Meanwhile, debit cards grew by 10pc in 2011, to become used more frequently than cash in payments for the first time.
Mr Westcott continued: “Forty-five years since it was first introduced, the credit card is suffering a mid-life crisis.
“Consumers discarded nearly one million cards in 2011, taking the number of credit cards in circulation down to levels not seen for almost a decade.
“The longer term trend suggests that numbers will continue to decline, with the younger generation showing a preference for debit cards and emerging digital alternatives such as mobile payments.
“This generation seems unlikely to switch to increased credit card usage in later life, as perhaps they would have done in the past, suggesting that debit cards, mobile payments and other innovations will force the credit card into an ever decreasing market.”
He suggested there could be a general move towards charging annual fees as regulators push for more transparent ways of charging.
Mr Westcott said: “Other banking products are likely to go the same way as consumers and regulators look for simpler products and the free bank account may become a thing of the past.”
The report argued that the innovation and convenience offered by “alternative lenders” such as high interest payday loan companies was encouraging a broader selection of consumers to choose their services over banks.
Mr Westcott said: “Mainstream lenders need to be aware that what may have begun as a last resort could be an enduring relationship as consumers are pleasantly surprised at the convenient and innovative service they receive from these smaller, more agile providers.
“As these providers become more conventional, we are likely to see them venture further into the mainstream market with their own credit card, longer term loan products or even current accounts.”
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2012年2月6日星期一
2012年2月1日星期三
Banco Santander Chile Announces Fourth Quarter 2011 Earnings
SANTIAGO, Chile, Feb. 1, 2012 /PRNewswire/ — Banco Santander Chile (NYSE: SAN; SSE: Bsantander) announced today its unaudited results for the fourth quarter and full year 2011. These results are reported on a consolidated basis in accordance with Chilean GAAP in nominal Chilean pesos.
In 2011, Santander Chile’s ROE reached 23.0% with an efficiency ratio of 38.4%
In 2011 (12M11), Net income attributable to shareholders(1) totaled Ch$435,084 million (Ch$2.31 per share and US$4.60/ADR (2) and decreased 8.8% compared to net income achieved in 2010. ROE reached 23.0% in 12M11, among the highest returns in the Chilean financial system. The Efficiency ratio in 12M11 reached 38.4%, one of the best in Chile.
4Q11: Net income up 35.9% QoQ, driven by solid operating trends
In 4Q11, Net income attributable to shareholders totaled Ch$102,121 million (Ch$0.54 per share and US$1.08/ADR). Compared to 3Q11 (from now on QoQ) Net income increased 35.9%. Compared to 4Q10 (from now on YoY) net income increased 8.8%. During the quarter, the Bank saw an important QoQ improvement in margins and profitability. Gross income net of provisions and costs, a good proxy for recurrent earnings growth, increased 27.1% QoQ and 24.6% YoY in 4Q11. ROE in the quarter reached 20.8% compared to 15.8% in 3Q11.
Our outlook for Chile in 2012 continues to be positive, with GDP expected to grow between 3.8 – 4.0% and inflation to be close to 2.8%. Nonetheless, the Bank has been taking actions on 4 main points during the second half of 2011 in order to maintain sustainable levels of high profitability and efficiency in 2012 even if the external situation has a larger impact on this central scenario: (i) selective loan growth and spreads, (ii) prudent risk policies, (iii) high liquidity, and (iv) strong capital.
I. Net interest margin reached 5.3%, increasing 70bp QoQ
The Bank‘s Net interest margin reached 5.3% in 4Q11, increasing 70 basis points compared to the net interest margin reached in 3Q11. Net interest income increased 13.8% QoQ and 13.9% YoY in 4Q11. The higher quarterly Net interest income and NIM was mainly due to higher inflation rates in the quarter, since the Bank has more assets than liabilities linked to inflation. Inflation, measured as the variation of the Unidad de Fomento (an inflation indexed currency unit), increased 1.28% in 4Q11 compared to 0.56% in 3Q11 and 0.54% in 4Q10. Higher loan spreads (excluding the impacts of mismatches in inflation indexed assets and liabilities) also helped to boost the Bank’s NIM in the quarter. Loan spreads in the quarter went up following the stricter pricing policy implemented in 3Q11 by the Bank.
Selective loan growth led by lending to individuals and SMEs
In 4Q11, total loans decreased 1.9% QoQ and increased 10.8% YoY. The Bank has been following a more selective approach to loan growth in recent quarters. In the quarter, the Bank focused on expanding its higher yielding credit card loan portfolio that increased 1.6% QoQ and 15.9% YoY. Lending to SMEs led growth in the loan book and expanded 1.4% QoQ (7.9% YoY), reflecting the Bank’s consistent focus on this expanding segment. Relatively low yielding corporate loans decreased 18.5% QoQ.
II. Lower provision expense in the quarter and a stable evolution of the Bank’s Risk Index
Provision for loan losses in the quarter decreased 4.2% QoQ and 13.8% YoY. For the full year, net provision expense increased 0% compared to a 10.8% rise in loans. In addition, during the quarter, the Bank upgraded its provisioning model for loans to SMEs (See Annex 1). This signified a one-time charge of Ch$16bn in 4Q11. This concluded the process started in 2010 of overhauling our retail banking credit risk models. This should permit the credit risk areas to increase feedback regarding potential growth opportunities to commercial teams and allow the Bank to allocate capital more efficiently among business segments.
The Risk Index, which measures the percentage of loans for which the Bank must set aside loan loss allowances, based on our internal models and Superintendency of Banks guidelines, remained stable at approximately 3% throughout 2011 (3.02% in 4Q11). The Bank’s Non-performing loans ratio (NPL) increased from 2.8% in 3Q10 to 3.0% in 4Q11. This was mainly due to the fall in large corporate loans and higher growth of the Banks’ retail activities. The Coverage ratio of total NPLs (loan loss allowances over non-performing loans) reached 102.4% as of December 2011.
III. Solid growth of core deposits in the quarter
Customer funds (deposits + mutual funds) decreased 2.8% QoQ and increased 10.8% in the year. Core deposits (deposits from non-institutional clients) increased 2.8% QoQ and 29.2% YoY. As of December 2011, core deposits represented 74.6% of our total deposits compared to 67.0% as of December 2010. Our strategy of focusing on liquidity and core deposits in 2011 has resulted in an improved funding mix. The Bank’s loan to deposit ratio (measured as loans minus marketable securities that fund mortgage portfolio over total deposits) improved to 95.4% as of December 2011 compared to 99.8% as December 2010.
IV. Core capital at 11.0% in 4Q11, increasing 80bp QoQ
Shareholders’ equity totaled Ch$2,001,222 million (US$3.8 billion) as of December 2011. The Bank’s BIS ratio reached 14.7% as of December 31, 2011 compared to 13.9% as of September 2011 and 14.5% as of December 2010. The Bank’s core capital ratio reached 11.0% as of December 2011 compared to 10.2% at the end of 3Q11 and 10.6% in December 2010. Voting common shareholders’ equity is the sole component of our Tier I capital.
Institutional Background
As per the latest public records published by the Superintendency of Banks of Chile for December 2011, Banco Santander Chile was the second largest bank in terms of loans and deposits. The Bank has among the highest credit ratings among all Latin American companies, with an A+ rating from Standard and Poor’s and Fitch and Aa3 by Moody’s, which are the same ratings assigned to the Republic of Chile. The stock is traded on the New York Stock Exchange (NYSE: SAN – News) and the Santiago Stock Exchange (SSE: Bsantander). The Bank’s main shareholder is Santander, which controls 67% of Banco Santander Chile.
For more information see www.santander.cl
(1) The results in this report are unaudited and are reported according to Chilean Bank GAAP.
(2) Earnings per ADR was calculated using the Observed Exchange Rate of Ch$521.46 per US$ as of December 31, 2011.
http://tourism9.com/ http://vkins.com/
In 2011, Santander Chile’s ROE reached 23.0% with an efficiency ratio of 38.4%
In 2011 (12M11), Net income attributable to shareholders(1) totaled Ch$435,084 million (Ch$2.31 per share and US$4.60/ADR (2) and decreased 8.8% compared to net income achieved in 2010. ROE reached 23.0% in 12M11, among the highest returns in the Chilean financial system. The Efficiency ratio in 12M11 reached 38.4%, one of the best in Chile.
4Q11: Net income up 35.9% QoQ, driven by solid operating trends
In 4Q11, Net income attributable to shareholders totaled Ch$102,121 million (Ch$0.54 per share and US$1.08/ADR). Compared to 3Q11 (from now on QoQ) Net income increased 35.9%. Compared to 4Q10 (from now on YoY) net income increased 8.8%. During the quarter, the Bank saw an important QoQ improvement in margins and profitability. Gross income net of provisions and costs, a good proxy for recurrent earnings growth, increased 27.1% QoQ and 24.6% YoY in 4Q11. ROE in the quarter reached 20.8% compared to 15.8% in 3Q11.
Our outlook for Chile in 2012 continues to be positive, with GDP expected to grow between 3.8 – 4.0% and inflation to be close to 2.8%. Nonetheless, the Bank has been taking actions on 4 main points during the second half of 2011 in order to maintain sustainable levels of high profitability and efficiency in 2012 even if the external situation has a larger impact on this central scenario: (i) selective loan growth and spreads, (ii) prudent risk policies, (iii) high liquidity, and (iv) strong capital.
I. Net interest margin reached 5.3%, increasing 70bp QoQ
The Bank‘s Net interest margin reached 5.3% in 4Q11, increasing 70 basis points compared to the net interest margin reached in 3Q11. Net interest income increased 13.8% QoQ and 13.9% YoY in 4Q11. The higher quarterly Net interest income and NIM was mainly due to higher inflation rates in the quarter, since the Bank has more assets than liabilities linked to inflation. Inflation, measured as the variation of the Unidad de Fomento (an inflation indexed currency unit), increased 1.28% in 4Q11 compared to 0.56% in 3Q11 and 0.54% in 4Q10. Higher loan spreads (excluding the impacts of mismatches in inflation indexed assets and liabilities) also helped to boost the Bank’s NIM in the quarter. Loan spreads in the quarter went up following the stricter pricing policy implemented in 3Q11 by the Bank.
Selective loan growth led by lending to individuals and SMEs
In 4Q11, total loans decreased 1.9% QoQ and increased 10.8% YoY. The Bank has been following a more selective approach to loan growth in recent quarters. In the quarter, the Bank focused on expanding its higher yielding credit card loan portfolio that increased 1.6% QoQ and 15.9% YoY. Lending to SMEs led growth in the loan book and expanded 1.4% QoQ (7.9% YoY), reflecting the Bank’s consistent focus on this expanding segment. Relatively low yielding corporate loans decreased 18.5% QoQ.
II. Lower provision expense in the quarter and a stable evolution of the Bank’s Risk Index
Provision for loan losses in the quarter decreased 4.2% QoQ and 13.8% YoY. For the full year, net provision expense increased 0% compared to a 10.8% rise in loans. In addition, during the quarter, the Bank upgraded its provisioning model for loans to SMEs (See Annex 1). This signified a one-time charge of Ch$16bn in 4Q11. This concluded the process started in 2010 of overhauling our retail banking credit risk models. This should permit the credit risk areas to increase feedback regarding potential growth opportunities to commercial teams and allow the Bank to allocate capital more efficiently among business segments.
The Risk Index, which measures the percentage of loans for which the Bank must set aside loan loss allowances, based on our internal models and Superintendency of Banks guidelines, remained stable at approximately 3% throughout 2011 (3.02% in 4Q11). The Bank’s Non-performing loans ratio (NPL) increased from 2.8% in 3Q10 to 3.0% in 4Q11. This was mainly due to the fall in large corporate loans and higher growth of the Banks’ retail activities. The Coverage ratio of total NPLs (loan loss allowances over non-performing loans) reached 102.4% as of December 2011.
III. Solid growth of core deposits in the quarter
Customer funds (deposits + mutual funds) decreased 2.8% QoQ and increased 10.8% in the year. Core deposits (deposits from non-institutional clients) increased 2.8% QoQ and 29.2% YoY. As of December 2011, core deposits represented 74.6% of our total deposits compared to 67.0% as of December 2010. Our strategy of focusing on liquidity and core deposits in 2011 has resulted in an improved funding mix. The Bank’s loan to deposit ratio (measured as loans minus marketable securities that fund mortgage portfolio over total deposits) improved to 95.4% as of December 2011 compared to 99.8% as December 2010.
IV. Core capital at 11.0% in 4Q11, increasing 80bp QoQ
Shareholders’ equity totaled Ch$2,001,222 million (US$3.8 billion) as of December 2011. The Bank’s BIS ratio reached 14.7% as of December 31, 2011 compared to 13.9% as of September 2011 and 14.5% as of December 2010. The Bank’s core capital ratio reached 11.0% as of December 2011 compared to 10.2% at the end of 3Q11 and 10.6% in December 2010. Voting common shareholders’ equity is the sole component of our Tier I capital.
Institutional Background
As per the latest public records published by the Superintendency of Banks of Chile for December 2011, Banco Santander Chile was the second largest bank in terms of loans and deposits. The Bank has among the highest credit ratings among all Latin American companies, with an A+ rating from Standard and Poor’s and Fitch and Aa3 by Moody’s, which are the same ratings assigned to the Republic of Chile. The stock is traded on the New York Stock Exchange (NYSE: SAN – News) and the Santiago Stock Exchange (SSE: Bsantander). The Bank’s main shareholder is Santander, which controls 67% of Banco Santander Chile.
For more information see www.santander.cl
(1) The results in this report are unaudited and are reported according to Chilean Bank GAAP.
(2) Earnings per ADR was calculated using the Observed Exchange Rate of Ch$521.46 per US$ as of December 31, 2011.
http://tourism9.com/ http://vkins.com/
2012年1月9日星期一
Financial Check-Up: 10 Steps to Get Mortgage Ready
SANTA ANA, CA–(Marketwire -01/09/12)- Whether you’re financing or refinancing, the thought of applying for a mortgage can be scary. After all, a lot of folks say the mortgage marketplace has largely closed down and that home loans are difficult to get, if not impossible.
“More than four million existing homes were sold in 2011 according to the National Association of Realtors,” said Steve Patton, executive vice president with Carrington Mortgage Services, a lender with 27 offices, and licensed to do business in 42 states. “How can there be so much real estate activity without financing and refinancing? Mortgages are clearly more difficult to get than they were during the real estate boom a few years ago, but millions of loans are still being issued.”
So what’s the secret to getting a home loan in today’s marketplace?
The application process is a lot easier if you prepare in advance.
“The lender has a list of necessary documents which will be needed to create the loan,” said Patton. “While paperwork requirements can vary, borrowers generally have most information in hand. The trick is to organize financial information in advance so you can be mortgage-ready.”
The purpose of a financial check-up is to identify what lenders want and to place that paperwork in a file so you’re ready to apply for a mortgage. The result is that when you apply for a loan, all the required documentation will be in hand and your application will have a great chance to fly through the underwriting process.
What Lenders Really Want
There are lengthy guidelines outlining what lenders need to document loan applications. For borrowers, the best approach is to assume that lenders want everything required for your particular situation and to build an application file from that perspective.
What do you need? Patton said his firm has a lot of information online (www.carringtonhomeloans.com) and that most borrowers can use Carrington’s 10-point application checklist to start a basic file.
1. Income: Tax returns and pay stubs. Have complete tax returns and W-2s in hand for the past three years — just in case a lender wants to go back more than two years. The same with pay stubs: always have the last three or four stubs in the file. If self-employed you may also need a year-to-date profit-and-loss statement, especially if you apply for a loan late in the year.
2. Debts: You must disclose all debts. Lenders will generally have some idea of what you owe from credit reports. However, you’ll need to document debts including account names and numbers, the amount owed and the required monthly payment. Make sure to include debts such as: car loans, student loans, mortgages and credit card accounts. The best approach is to have the latest three monthly statements for each account in the file.
3. Credit: Lenders will pull both credit reports and credit scores from the three major credit reporting bureaus. A credit report can be seen as a history of credit use while a credit score is a statistical measure of credit usage. Borrowers can get free copies of credit reports from AnnualCreditReport.com. Three months before applying for a mortgage get a copy of your report and check it for factual errors and items that are more than seven years old (10 years for bankruptcies). “If you find errors or out-of-date items,” said Patton, “contact the credit reporting agency or creditor to get them removed. Inaccurate information can hurt credit scores and affects the borrower’s ability to qualify in some cases.”
4. Assets: Assets are a sign of financial stability and financial stability very much pleases lenders. Pull together the latest three statements for such things as retirement accounts, stock brokerage accounts, mutual funds, savings, checking, etc.
5. Gifts: If you’re buying property with help from an outside source, lenders will require a gift letter from the donor which confirms that the money you received was not a loan. Note that you can’t get a “gift” from the seller, builder, broker or anyone with an interest in the transaction.
6. VA Loans: Those seeking a VA mortgage but are no longer in the service will need to provide a Certificate of Eligibility (Form DD214). If currently on active duty, lenders will want a letter from your commanding officer to verify service.
7. Divorce: A large number of marriages end in divorce but the usual claim that 50 percent fail is debatable. What’s not debatable is that divorce can impact mortgage applications. Applicants must report all required alimony and child support payments — think of them as a form of debt. Recipients need not include alimony and child support payments in loan applications, however such payments can be counted toward qualifying income if documented.
8. Bankruptcy: More than 1.5 million people declared bankruptcy in both 2010 and 2011. You can sometimes qualify for a new mortgage within two years if the bankruptcy was caused by a hardship such as the loss of a job or a medical emergency — and you have re-established good credit. Lenders will require a bankruptcy to be fully documented, including copies of the petition and discharge.
9. Foreclosure: If you have a foreclosure, expect to wait two to five years for a new mortgage — but longer for those who “walked-away” from a home loan. Lenders will require details regarding exactly what happened and why, as well as a strong credit history after the foreclosure.
10. Rentals: Your tax returns should tell the financial story regarding any rental units you own. Depreciation from rental units — often a big item — can be “added back” to boost qualifying income. Also, lenders will want copies of leases.
“By creating a financial check-up and having the required paperwork in hand, you’ll be able to move quickly through the process and hopefully avoid application headaches and hold-ups,” said Patton. “The 10-point Carrington application list is a way to get started at your own pace, to see what information you have and what verifications you need.”
For a specific list of documents and verifications, speak with lenders well before entering the mortgage marketplace.
Peter G. Miller is a widely-published writer who specializes in mortgages and real estate
http://tourism9.com/
“More than four million existing homes were sold in 2011 according to the National Association of Realtors,” said Steve Patton, executive vice president with Carrington Mortgage Services, a lender with 27 offices, and licensed to do business in 42 states. “How can there be so much real estate activity without financing and refinancing? Mortgages are clearly more difficult to get than they were during the real estate boom a few years ago, but millions of loans are still being issued.”
So what’s the secret to getting a home loan in today’s marketplace?
The application process is a lot easier if you prepare in advance.
“The lender has a list of necessary documents which will be needed to create the loan,” said Patton. “While paperwork requirements can vary, borrowers generally have most information in hand. The trick is to organize financial information in advance so you can be mortgage-ready.”
The purpose of a financial check-up is to identify what lenders want and to place that paperwork in a file so you’re ready to apply for a mortgage. The result is that when you apply for a loan, all the required documentation will be in hand and your application will have a great chance to fly through the underwriting process.
What Lenders Really Want
There are lengthy guidelines outlining what lenders need to document loan applications. For borrowers, the best approach is to assume that lenders want everything required for your particular situation and to build an application file from that perspective.
What do you need? Patton said his firm has a lot of information online (www.carringtonhomeloans.com) and that most borrowers can use Carrington’s 10-point application checklist to start a basic file.
1. Income: Tax returns and pay stubs. Have complete tax returns and W-2s in hand for the past three years — just in case a lender wants to go back more than two years. The same with pay stubs: always have the last three or four stubs in the file. If self-employed you may also need a year-to-date profit-and-loss statement, especially if you apply for a loan late in the year.
2. Debts: You must disclose all debts. Lenders will generally have some idea of what you owe from credit reports. However, you’ll need to document debts including account names and numbers, the amount owed and the required monthly payment. Make sure to include debts such as: car loans, student loans, mortgages and credit card accounts. The best approach is to have the latest three monthly statements for each account in the file.
3. Credit: Lenders will pull both credit reports and credit scores from the three major credit reporting bureaus. A credit report can be seen as a history of credit use while a credit score is a statistical measure of credit usage. Borrowers can get free copies of credit reports from AnnualCreditReport.com. Three months before applying for a mortgage get a copy of your report and check it for factual errors and items that are more than seven years old (10 years for bankruptcies). “If you find errors or out-of-date items,” said Patton, “contact the credit reporting agency or creditor to get them removed. Inaccurate information can hurt credit scores and affects the borrower’s ability to qualify in some cases.”
4. Assets: Assets are a sign of financial stability and financial stability very much pleases lenders. Pull together the latest three statements for such things as retirement accounts, stock brokerage accounts, mutual funds, savings, checking, etc.
5. Gifts: If you’re buying property with help from an outside source, lenders will require a gift letter from the donor which confirms that the money you received was not a loan. Note that you can’t get a “gift” from the seller, builder, broker or anyone with an interest in the transaction.
6. VA Loans: Those seeking a VA mortgage but are no longer in the service will need to provide a Certificate of Eligibility (Form DD214). If currently on active duty, lenders will want a letter from your commanding officer to verify service.
7. Divorce: A large number of marriages end in divorce but the usual claim that 50 percent fail is debatable. What’s not debatable is that divorce can impact mortgage applications. Applicants must report all required alimony and child support payments — think of them as a form of debt. Recipients need not include alimony and child support payments in loan applications, however such payments can be counted toward qualifying income if documented.
8. Bankruptcy: More than 1.5 million people declared bankruptcy in both 2010 and 2011. You can sometimes qualify for a new mortgage within two years if the bankruptcy was caused by a hardship such as the loss of a job or a medical emergency — and you have re-established good credit. Lenders will require a bankruptcy to be fully documented, including copies of the petition and discharge.
9. Foreclosure: If you have a foreclosure, expect to wait two to five years for a new mortgage — but longer for those who “walked-away” from a home loan. Lenders will require details regarding exactly what happened and why, as well as a strong credit history after the foreclosure.
10. Rentals: Your tax returns should tell the financial story regarding any rental units you own. Depreciation from rental units — often a big item — can be “added back” to boost qualifying income. Also, lenders will want copies of leases.
“By creating a financial check-up and having the required paperwork in hand, you’ll be able to move quickly through the process and hopefully avoid application headaches and hold-ups,” said Patton. “The 10-point Carrington application list is a way to get started at your own pace, to see what information you have and what verifications you need.”
For a specific list of documents and verifications, speak with lenders well before entering the mortgage marketplace.
Peter G. Miller is a widely-published writer who specializes in mortgages and real estate
http://tourism9.com/
2012年1月3日星期二
Financing College Costs in 2012: Smart Tips
Most likely, your 529 plan and equity in your home are still down, but tuition keeps rising. Still, there’s money out there for students who need help with college financing. Here are 12 tips to help you attend school for less in 2012.
Go to college despite the job market
The year 2011 provided several arguments to skip college — high unemployment rates, tuition hikes and a harsh job market for grads. Go anyway.
“The jobs that are growing, the industries that are growing and the markets that are going to be available to students are those that require higher education,” says Brittania Morey, spokeswoman for the Iowa College Access Network. “Students who are choosing to go to college are preparing themselves for the work world of tomorrow.”
According to a 2010 report by Georgetown University, 63% of jobs offered by 2018 will require postsecondary education. Morey says students can cut college costs by searching for scholarships early and investigating awards in their community.
Don’t eliminate yourself
The biggest mistake students make is believing they’re not eligible for college aid. A 2009 study by Finaid.org showed that 2.3 million students who would have been eligible for the federal Pell Grant missed free college cash because they didn’t apply.
While students attending pricey institutions frequently apply for aid, the likelihood is lower at cheaper schools and community colleges, says Diana Fuentes-Michel, executive director of the California Student Aid Commission.
“That’s where folks tend to believe that they wouldn’t qualify for financial aid because of the low cost,” she says.
The U.S. Department of Education reports that all students, regardless of income or financial assets, are eligible for up to $27,000 in federal Stafford Loans over four years.
File for FAFSA fast
The Free Application for Federal Student Aid, or FAFSA, qualifies students for federal grants, loans and work-study jobs as well as some private and state-sponsored awards. Filing it as close to Jan. 1 as possible maximizes your college aid eligibility, says Lynda Forster, CEO of the financial aid consulting group Collegiate Capital Corp. in Mineola, N.Y.
“Most (families) think that financial aid forms must be completed after the tax returns are done, and that is not accurate,” she says. “You cannot wait until April. All of the money is already awarded.”
Since federal grants are distributed on a first-come, first-served basis, Forster recommends that families file the form using estimates of their income and assets. If they need to change something, families can file corrections at FAFSA.ed.gov.
Choose your major carefully
From private loan-forgiveness programs to state and federal grants, there’s money available to students majoring in high-demand fields. While the federal government offers up to $4,000 per year to future educators through the Teacher Education Assistance for College and Higher Education, or TEACH, Grant Program, individual states offer similar college financing initiatives for up-and-coming teachers, nurses, fire and emergency medical technicians, public defenders, child care employees, health care workers and those pursuing jobs in other fields.
Students who know their major can check with their school’s financial aid office to see if there are awards available in their fields. Professional organizations and nonprofits, such as the National Restaurant Association and the National Environmental Health Association, also offer awards to students in specific fields of study.
Find a ‘safety’ school
Guidance counselors recommend that students apply to an academically safe school. Martha Savery, director of community outreach for the Massachusetts Educational Financing Authority, recommends that students apply to a financially safe school, too.
“We always tell families (not to) self-select based on the cost that you see in the admissions material because many colleges and universities are able to provide a substantive financial aid package,” Savery says.
As of Oct. 29, all institutions that receive federal funding are required to post a net price calculator on their website that can help families estimate college costs with aid factored in, according to the National Center for Education Statistics. Students also can compare net prices of different schools by income level on the NCES website.
Meet the deadlines
With more students vying for aid, there’s stiff competition for dollars. Don’t eliminate yourself by missing a deadline, Savery says.
“If your child was applying for admission to XYZ university, you would not contact that admissions office and say ‘You know, I’d like just three or four more days just to tweak my essay,’” she says. “(Families) need to look at the deadlines from a financial aid perspective in exactly the same way.”
Ask the boss
A 2010 study by Business and Legal Resources, a compliance consulting firm in Old Saybrook, Conn., showed that nearly 85% of U.S. companies offer tuition reimbursement to employees. That’s up from 52% in 2007.
There are some pretty big catches. More than 75% of employers require that course work be job-related to qualify for reimbursement. Companies also may restrict how much reimbursement employees can get, require a certain grade point average or limit reimbursement to employees at a certain job level. More than 60% of companies offering reimbursement require employees to stay with the organization after completing study.
Go federal first
Federal loans are still the cheapest student loans. Through June 30, subsidized Stafford Loans will carry a 3.4% fixed interest rate. All Stafford Loans — subsidized, unsubsidized and grad loans included — disbursed after June 30 have a 6.8% fixed interest rate, according to the Department of Education. Stafford Loans are capped at $27,000 over four years for dependent students, but Morey says that federal loans to parents can help.
Through the Parent PLUS Loan, families can borrow up to the cost of attendance minus financial aid the student has received, and they’ll only pay 7.9% in interest — a rate that’s far below those of many private loans, according to DOE.
Cap those loans
Federal student loans also can be capped at 15% of a student’s “discretionary income.” That’s defined as earnings above 150% of the poverty line. For 2011, discretionary income would include earnings above $16,335 for a family of one, according to the Department of Health and Human Services. Earn less than $16,335, and the federal government won’t charge you anything for your student loan as long as your income stays below that threshold.
A double bonus is that students who make consecutive loan payments for 25 years will have their debt forgiven, according to the Oakland, Calif.-based Project on Student Debt. The time frame is reduced to 10 years for students who work in public-service professions such as teaching or social work after graduation.
Despite the tremendous potential savings, research shows that few students take advantage of the program. A White House fact sheet from October says that only about 1.3% of students with federal loans opt for income-based repayment.
Fight the hikes
Thanks to state budget cuts, tuition and fees at the average two- and four-year public institutions rose by about 7% this year, according to the College Board in New York. But in states such as Florida and California, prices at undergraduate state universities rose by 15% or more.
“The immediate kind of response to (tuition hikes) is to put it on a credit card or to look to their parents to try to get them to take a loan out,” says Fuentes-Michel.
The problem is that parents frequently can’t take on additional debt, and credit card interest rates are substantially higher than those of federal student loans. Instead of falling in the plastic trap, Fuentes-Michel recommends that students look to federal loans, private scholarships and part-time employment for college financing.
Save the right way
One of the strangest loopholes of financial aid is that how you save can impact your aid just as much as how much you save.
“Money put into a student’s name is not the place where you want to park it,” says Forster. “A student’s assets and income (are) counted much higher than a parent’s.”
While assets saved in a parent’s name can subtract up to 6 cents for every dollar from your federal need-based scholarships and grants package, every dollar of student assets takes away 20 cents, according to the White House’s National Economic Council. Money saved in a grandparent’s or relative’s name won’t count at all. However, 529 plans are one exception. Funds stored in a 529 plan in the student’s name count as parental assets, according to FinAid.org, the college financing resources website.
Reconsider 529 college savings plans
Many 529 plans lost value when the market dipped in 2008, but they’re coming back — this time with more conservative investment options. In the past two years, states including Nebraska and Indiana have added financial options insured by the Federal Deposit Insurance Corp. that allow parents to access 529 tax incentives without taking any market risks.
On top of providing federal tax-free growth, certain states also provide state tax incentives and matching grants to encourage account holders to save.
Copyright 2012, Bankrate Inc.
http://tourism9.com/
Go to college despite the job market
The year 2011 provided several arguments to skip college — high unemployment rates, tuition hikes and a harsh job market for grads. Go anyway.
“The jobs that are growing, the industries that are growing and the markets that are going to be available to students are those that require higher education,” says Brittania Morey, spokeswoman for the Iowa College Access Network. “Students who are choosing to go to college are preparing themselves for the work world of tomorrow.”
According to a 2010 report by Georgetown University, 63% of jobs offered by 2018 will require postsecondary education. Morey says students can cut college costs by searching for scholarships early and investigating awards in their community.
Don’t eliminate yourself
The biggest mistake students make is believing they’re not eligible for college aid. A 2009 study by Finaid.org showed that 2.3 million students who would have been eligible for the federal Pell Grant missed free college cash because they didn’t apply.
While students attending pricey institutions frequently apply for aid, the likelihood is lower at cheaper schools and community colleges, says Diana Fuentes-Michel, executive director of the California Student Aid Commission.
“That’s where folks tend to believe that they wouldn’t qualify for financial aid because of the low cost,” she says.
The U.S. Department of Education reports that all students, regardless of income or financial assets, are eligible for up to $27,000 in federal Stafford Loans over four years.
File for FAFSA fast
The Free Application for Federal Student Aid, or FAFSA, qualifies students for federal grants, loans and work-study jobs as well as some private and state-sponsored awards. Filing it as close to Jan. 1 as possible maximizes your college aid eligibility, says Lynda Forster, CEO of the financial aid consulting group Collegiate Capital Corp. in Mineola, N.Y.
“Most (families) think that financial aid forms must be completed after the tax returns are done, and that is not accurate,” she says. “You cannot wait until April. All of the money is already awarded.”
Since federal grants are distributed on a first-come, first-served basis, Forster recommends that families file the form using estimates of their income and assets. If they need to change something, families can file corrections at FAFSA.ed.gov.
Choose your major carefully
From private loan-forgiveness programs to state and federal grants, there’s money available to students majoring in high-demand fields. While the federal government offers up to $4,000 per year to future educators through the Teacher Education Assistance for College and Higher Education, or TEACH, Grant Program, individual states offer similar college financing initiatives for up-and-coming teachers, nurses, fire and emergency medical technicians, public defenders, child care employees, health care workers and those pursuing jobs in other fields.
Students who know their major can check with their school’s financial aid office to see if there are awards available in their fields. Professional organizations and nonprofits, such as the National Restaurant Association and the National Environmental Health Association, also offer awards to students in specific fields of study.
Find a ‘safety’ school
Guidance counselors recommend that students apply to an academically safe school. Martha Savery, director of community outreach for the Massachusetts Educational Financing Authority, recommends that students apply to a financially safe school, too.
“We always tell families (not to) self-select based on the cost that you see in the admissions material because many colleges and universities are able to provide a substantive financial aid package,” Savery says.
As of Oct. 29, all institutions that receive federal funding are required to post a net price calculator on their website that can help families estimate college costs with aid factored in, according to the National Center for Education Statistics. Students also can compare net prices of different schools by income level on the NCES website.
Meet the deadlines
With more students vying for aid, there’s stiff competition for dollars. Don’t eliminate yourself by missing a deadline, Savery says.
“If your child was applying for admission to XYZ university, you would not contact that admissions office and say ‘You know, I’d like just three or four more days just to tweak my essay,’” she says. “(Families) need to look at the deadlines from a financial aid perspective in exactly the same way.”
Ask the boss
A 2010 study by Business and Legal Resources, a compliance consulting firm in Old Saybrook, Conn., showed that nearly 85% of U.S. companies offer tuition reimbursement to employees. That’s up from 52% in 2007.
There are some pretty big catches. More than 75% of employers require that course work be job-related to qualify for reimbursement. Companies also may restrict how much reimbursement employees can get, require a certain grade point average or limit reimbursement to employees at a certain job level. More than 60% of companies offering reimbursement require employees to stay with the organization after completing study.
Go federal first
Federal loans are still the cheapest student loans. Through June 30, subsidized Stafford Loans will carry a 3.4% fixed interest rate. All Stafford Loans — subsidized, unsubsidized and grad loans included — disbursed after June 30 have a 6.8% fixed interest rate, according to the Department of Education. Stafford Loans are capped at $27,000 over four years for dependent students, but Morey says that federal loans to parents can help.
Through the Parent PLUS Loan, families can borrow up to the cost of attendance minus financial aid the student has received, and they’ll only pay 7.9% in interest — a rate that’s far below those of many private loans, according to DOE.
Cap those loans
Federal student loans also can be capped at 15% of a student’s “discretionary income.” That’s defined as earnings above 150% of the poverty line. For 2011, discretionary income would include earnings above $16,335 for a family of one, according to the Department of Health and Human Services. Earn less than $16,335, and the federal government won’t charge you anything for your student loan as long as your income stays below that threshold.
A double bonus is that students who make consecutive loan payments for 25 years will have their debt forgiven, according to the Oakland, Calif.-based Project on Student Debt. The time frame is reduced to 10 years for students who work in public-service professions such as teaching or social work after graduation.
Despite the tremendous potential savings, research shows that few students take advantage of the program. A White House fact sheet from October says that only about 1.3% of students with federal loans opt for income-based repayment.
Fight the hikes
Thanks to state budget cuts, tuition and fees at the average two- and four-year public institutions rose by about 7% this year, according to the College Board in New York. But in states such as Florida and California, prices at undergraduate state universities rose by 15% or more.
“The immediate kind of response to (tuition hikes) is to put it on a credit card or to look to their parents to try to get them to take a loan out,” says Fuentes-Michel.
The problem is that parents frequently can’t take on additional debt, and credit card interest rates are substantially higher than those of federal student loans. Instead of falling in the plastic trap, Fuentes-Michel recommends that students look to federal loans, private scholarships and part-time employment for college financing.
Save the right way
One of the strangest loopholes of financial aid is that how you save can impact your aid just as much as how much you save.
“Money put into a student’s name is not the place where you want to park it,” says Forster. “A student’s assets and income (are) counted much higher than a parent’s.”
While assets saved in a parent’s name can subtract up to 6 cents for every dollar from your federal need-based scholarships and grants package, every dollar of student assets takes away 20 cents, according to the White House’s National Economic Council. Money saved in a grandparent’s or relative’s name won’t count at all. However, 529 plans are one exception. Funds stored in a 529 plan in the student’s name count as parental assets, according to FinAid.org, the college financing resources website.
Reconsider 529 college savings plans
Many 529 plans lost value when the market dipped in 2008, but they’re coming back — this time with more conservative investment options. In the past two years, states including Nebraska and Indiana have added financial options insured by the Federal Deposit Insurance Corp. that allow parents to access 529 tax incentives without taking any market risks.
On top of providing federal tax-free growth, certain states also provide state tax incentives and matching grants to encourage account holders to save.
Copyright 2012, Bankrate Inc.
http://tourism9.com/
2012年1月2日星期一
New Loans for People With Bad Credit Offered With Highest Dollar Amounts
Beginning 2012, ReallyBadCreditOffers.com will provide new personal loans for bad credit with higher loan amounts to help people who have had their credit damaged during the economic downturn and seeking easy to get approved loan offers with higher payouts.
Fort Lauderdale, FL (PRWEB) January 02, 2012
Money has become difficult to come by whether it is for refinancing mortgages, paying off credit card debt, car loans, college tuition, or just cash to help pay household expenses and stay even with the rising costs of food and gas. For people seeking bad credit loans, new offers will be provided by ReallyBadCreditOffers.com with higher loan amounts approved than previous offers.
The website offers visitors easy to follow guides to help people fix their finances and improve their credit. Additionally, visitors can read through what to expect when facing bankruptcy, foreclosure, or other matters commonly associated with money problems and bad credit scores.
“Getting people approved for what they need is our goal, making the lending process easier for borrowers” said Ariel Pryor, loan expert. “We work to help people through emergency financial situations, and then provide the help to rebuild their finances on more solid footing.”
The Federal Reserve has reported sub-prime consumer debt for the 3rd quarter of 2011 at $792.3 billion revolving debt and $1,665.2 billion non revolving debt. These debt amounts have showed little movement throughout 2011 as consumers continue to borrow to get by.
“The average American consumer is facing a perfect storm financially,” reported Pryor. “Getting approved for traditional financing is harder than ever, while more people than ever are facing unemployment, inflation, and high interest bills, all while carrying a bad credit history.”
The U.S. Department Of Agriculture has projected that the costs for all food to increase 3.25 to 3.75%. Grocery store prices are forecast to rise 4.25 to 4.75%. For those fortunate enough to have jobs in this economy, the average wage increase in 2011 was between 2.5% and 3%, which did not keep up with the increase in food costs. This occurred while housing prices fell an additional 3.4% from October 2010 to October 2011.
Rising gas prices, increased food costs and other economic woes hit consumers in the pocketbook, leaving many without the means to stay afloat financially. The website gives bad credit advice and compares the various resources available to help people facing these financial challenges.
“Good people are facing incredible challenges. It is important that people know there are resources to help provide relief.” said Pryor.
The website offers the beleaguered consumer guides to help reduce a households debt burden, tips to pay off high interest credit card debt and a number of bad credit personal loans that are easy to get approved and fund quickly for emergency needs.
About ReallyBadCreditOffers.com
A leading industry source of bad credit services since 2007, ReallyBadCreditOffers.com is continues to work to make rebuilding after bad credit easy and hassle free. The website provides information for lending and credit repair for the consumer to compare as well as loans that offer people easy approvals and quick funding.
Contact:
Ariel Pryor, Financial Expert
http://www.reallybadcreditoffers.com
(520) 344-2001
###
Ariel Pryor
ReallyBadCreditOffers.com
(520) 344-2001
Email Information
http://tourism9.com/
Fort Lauderdale, FL (PRWEB) January 02, 2012
Money has become difficult to come by whether it is for refinancing mortgages, paying off credit card debt, car loans, college tuition, or just cash to help pay household expenses and stay even with the rising costs of food and gas. For people seeking bad credit loans, new offers will be provided by ReallyBadCreditOffers.com with higher loan amounts approved than previous offers.
The website offers visitors easy to follow guides to help people fix their finances and improve their credit. Additionally, visitors can read through what to expect when facing bankruptcy, foreclosure, or other matters commonly associated with money problems and bad credit scores.
“Getting people approved for what they need is our goal, making the lending process easier for borrowers” said Ariel Pryor, loan expert. “We work to help people through emergency financial situations, and then provide the help to rebuild their finances on more solid footing.”
The Federal Reserve has reported sub-prime consumer debt for the 3rd quarter of 2011 at $792.3 billion revolving debt and $1,665.2 billion non revolving debt. These debt amounts have showed little movement throughout 2011 as consumers continue to borrow to get by.
“The average American consumer is facing a perfect storm financially,” reported Pryor. “Getting approved for traditional financing is harder than ever, while more people than ever are facing unemployment, inflation, and high interest bills, all while carrying a bad credit history.”
The U.S. Department Of Agriculture has projected that the costs for all food to increase 3.25 to 3.75%. Grocery store prices are forecast to rise 4.25 to 4.75%. For those fortunate enough to have jobs in this economy, the average wage increase in 2011 was between 2.5% and 3%, which did not keep up with the increase in food costs. This occurred while housing prices fell an additional 3.4% from October 2010 to October 2011.
Rising gas prices, increased food costs and other economic woes hit consumers in the pocketbook, leaving many without the means to stay afloat financially. The website gives bad credit advice and compares the various resources available to help people facing these financial challenges.
“Good people are facing incredible challenges. It is important that people know there are resources to help provide relief.” said Pryor.
The website offers the beleaguered consumer guides to help reduce a households debt burden, tips to pay off high interest credit card debt and a number of bad credit personal loans that are easy to get approved and fund quickly for emergency needs.
About ReallyBadCreditOffers.com
A leading industry source of bad credit services since 2007, ReallyBadCreditOffers.com is continues to work to make rebuilding after bad credit easy and hassle free. The website provides information for lending and credit repair for the consumer to compare as well as loans that offer people easy approvals and quick funding.
Contact:
Ariel Pryor, Financial Expert
http://www.reallybadcreditoffers.com
(520) 344-2001
###
Ariel Pryor
ReallyBadCreditOffers.com
(520) 344-2001
Email Information
http://tourism9.com/
New Loans for People With Bad Credit Offered With Highest Dollar Amounts
Beginning 2012, ReallyBadCreditOffers.com will provide new personal loans for bad credit with higher loan amounts to help people who have had their credit damaged during the economic downturn and seeking easy to get approved loan offers with higher payouts.
Fort Lauderdale, FL (PRWEB) January 02, 2012
Money has become difficult to come by whether it is for refinancing mortgages, paying off credit card debt, car loans, college tuition, or just cash to help pay household expenses and stay even with the rising costs of food and gas. For people seeking bad credit loans, new offers will be provided by ReallyBadCreditOffers.com with higher loan amounts approved than previous offers.
The website offers visitors easy to follow guides to help people fix their finances and improve their credit. Additionally, visitors can read through what to expect when facing bankruptcy, foreclosure, or other matters commonly associated with money problems and bad credit scores.
“Getting people approved for what they need is our goal, making the lending process easier for borrowers” said Ariel Pryor, loan expert. “We work to help people through emergency financial situations, and then provide the help to rebuild their finances on more solid footing.”
The Federal Reserve has reported sub-prime consumer debt for the 3rd quarter of 2011 at $792.3 billion revolving debt and $1,665.2 billion non revolving debt. These debt amounts have showed little movement throughout 2011 as consumers continue to borrow to get by.
“The average American consumer is facing a perfect storm financially,” reported Pryor. “Getting approved for traditional financing is harder than ever, while more people than ever are facing unemployment, inflation, and high interest bills, all while carrying a bad credit history.”
The U.S. Department Of Agriculture has projected that the costs for all food to increase 3.25 to 3.75%. Grocery store prices are forecast to rise 4.25 to 4.75%. For those fortunate enough to have jobs in this economy, the average wage increase in 2011 was between 2.5% and 3%, which did not keep up with the increase in food costs. This occurred while housing prices fell an additional 3.4% from October 2010 to October 2011.
Rising gas prices, increased food costs and other economic woes hit consumers in the pocketbook, leaving many without the means to stay afloat financially. The website gives bad credit advice and compares the various resources available to help people facing these financial challenges.
“Good people are facing incredible challenges. It is important that people know there are resources to help provide relief.” said Pryor.
The website offers the beleaguered consumer guides to help reduce a households debt burden, tips to pay off high interest credit card debt and a number of bad credit personal loans that are easy to get approved and fund quickly for emergency needs.
About ReallyBadCreditOffers.com
A leading industry source of bad credit services since 2007, ReallyBadCreditOffers.com is continues to work to make rebuilding after bad credit easy and hassle free. The website provides information for lending and credit repair for the consumer to compare as well as loans that offer people easy approvals and quick funding.
Contact:
Ariel Pryor, Financial Expert
http://www.reallybadcreditoffers.com
(520) 344-2001
###
Ariel Pryor
ReallyBadCreditOffers.com
(520) 344-2001
Email Information
http://tourism9.com/
Fort Lauderdale, FL (PRWEB) January 02, 2012
Money has become difficult to come by whether it is for refinancing mortgages, paying off credit card debt, car loans, college tuition, or just cash to help pay household expenses and stay even with the rising costs of food and gas. For people seeking bad credit loans, new offers will be provided by ReallyBadCreditOffers.com with higher loan amounts approved than previous offers.
The website offers visitors easy to follow guides to help people fix their finances and improve their credit. Additionally, visitors can read through what to expect when facing bankruptcy, foreclosure, or other matters commonly associated with money problems and bad credit scores.
“Getting people approved for what they need is our goal, making the lending process easier for borrowers” said Ariel Pryor, loan expert. “We work to help people through emergency financial situations, and then provide the help to rebuild their finances on more solid footing.”
The Federal Reserve has reported sub-prime consumer debt for the 3rd quarter of 2011 at $792.3 billion revolving debt and $1,665.2 billion non revolving debt. These debt amounts have showed little movement throughout 2011 as consumers continue to borrow to get by.
“The average American consumer is facing a perfect storm financially,” reported Pryor. “Getting approved for traditional financing is harder than ever, while more people than ever are facing unemployment, inflation, and high interest bills, all while carrying a bad credit history.”
The U.S. Department Of Agriculture has projected that the costs for all food to increase 3.25 to 3.75%. Grocery store prices are forecast to rise 4.25 to 4.75%. For those fortunate enough to have jobs in this economy, the average wage increase in 2011 was between 2.5% and 3%, which did not keep up with the increase in food costs. This occurred while housing prices fell an additional 3.4% from October 2010 to October 2011.
Rising gas prices, increased food costs and other economic woes hit consumers in the pocketbook, leaving many without the means to stay afloat financially. The website gives bad credit advice and compares the various resources available to help people facing these financial challenges.
“Good people are facing incredible challenges. It is important that people know there are resources to help provide relief.” said Pryor.
The website offers the beleaguered consumer guides to help reduce a households debt burden, tips to pay off high interest credit card debt and a number of bad credit personal loans that are easy to get approved and fund quickly for emergency needs.
About ReallyBadCreditOffers.com
A leading industry source of bad credit services since 2007, ReallyBadCreditOffers.com is continues to work to make rebuilding after bad credit easy and hassle free. The website provides information for lending and credit repair for the consumer to compare as well as loans that offer people easy approvals and quick funding.
Contact:
Ariel Pryor, Financial Expert
http://www.reallybadcreditoffers.com
(520) 344-2001
###
Ariel Pryor
ReallyBadCreditOffers.com
(520) 344-2001
Email Information
http://tourism9.com/
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