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FAP851: Earning money using affiliate programs, Cappex scholarships
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Student Financial Aid News
+ Inside Higher Ed: As the U.S. House of Representatives and Senate prepare to vote today on legislation to renew the Higher Education Act, various higher education groups offered their two cents on the merits and drawbacks of the sweeping measure. The National Association of Student Financial Aid Administrators endorsed the bill, especially its call to increase Pell Grant spending and a change to make the grants available to students year-round. “These increases in the Pell Grant program flexibility and authorization levels are a good first step; however the litmus test is at the appropriations level, when we put our legislative rhetoric into dollars,” wrote Philip R. Day Jr., NASFAA’s president. The Career College Association also praised the bill and urged Congress to pass it and President Bush to sign it. “The ball is at the goal line,” said Harris N. Miller, president of the group of for-profit colleges. “Time for Congress to light up the scoreboard for students, parents and higher education generally by passing this important bill.”
+ Fun story over on Inside Higher Ed about schools offering new media programs and majors
+ Personally, I think your best bet is to become an outstanding cross-disciplinary writer
+ Appeared on WCVB on Tuesday night about the MEFA student loan issue
Scholarship Update
+ Cappex $1,000 Business Career Scholarship
+ Cappex.com is awarding a $1,000 Business Career scholarship, and we want you to have a shot at it. This scholarship opportunity will be available at any college or university. All you need is a Cappex profile. The Business scholarship will be given to students with well-rounded profiles, so don’t hold back on the details.
+ To be eligible for this scholarship, you must have a high school diploma or GED and be currently enrolled in college or plan to enroll within the next 12 months. You also must explain to Cappex why you deserve this scholarship in the “Tell Us More” box at the bottom of the application. Application deadline is October 31, 2008. One award will be granted. Good luck!
+ Disclosure: paid affiliate program
+ Details at our free college scholarship search site
Jobcast
+ Opening up an entrepreneur shop using affiliate programs
+ Shill - I’ll be speaking at The Affiliate Summit on August 12
+ Affiliate programs are in essence commission-based marketing employees
+ A few popular ones - Amazon.com (5% on stuff), CJ.com
+ Get started - establish a business. Can be sole proprietorship, can be something more complicated. SP is easiest to start.
+ Set up a separate business bank account - check out ING Direct (paid link)
+ You’ll need a web site or other online property
+ Start browsing through the catalog of affiliate programs
+ Tip: sign up for products and services you already use and love
+ Example - ING Direct Savings accounts - I have absolutely no trouble recommending that people save more money
+ Find programs and sign up for them
+ Add links to your web site as appropriate
+ Measure your progress - most programs will not cut a check until you pass a certain amount
+ This is a volume business - you typically only get paid per customer once, so it’s a lot about building a large audience and driving traffic
+ It can pay well, but it’s hard work. It’s not at all automatic.
+ Disclosure and authenticity matter
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Direct MP3 file download: Click here to download the MP3
Reminders
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+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Stafford federal student loans at StaffordLoan.com
+ Parent PLUS loans at ParentPLUSLoan.com
+ Graduate student loans at GradLoans.com
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Private student loan consolidation at StudentLoanConsolidator.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Get FAFSA news at the FAFSA blog
+ The Financial Aid Podcast is a publication of the Student Loan Network.
I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.
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Co-signing for a loan is nothing new. Many of us at some point in our lives have needed a co-signer. Whether it was for an auto loan, or a supplemental school loan, co-signers have been there when needed them for various expenses we just couldn’t qualify for on our own. However, with the recent tightening of lending standards a new phenomenon is coming to light. People are starting to use co-signers on home loans. This trend, though it may be helping more families purchase their own homes, carries substantial risk to the co-signer, beyond any related risk for smaller loans.
What Are the Risks?
For any loan that you co-sign, you are taking full responsibility for any payment, should the primary borrower default or is unable to pay. This means that in addition to your own expenses, which are likely substantial, you must be both willing and able to take over responsibility of payment for the person you’ve co-signed for. If we consider smaller loans, such as auto loans or school loans, this may not have a huge impact but can still be a burden. However, when we are considering a home loan which can easily surpass the hundred thousand dollar mark, the effect on a co-signer’s finances can be devastating if the primary borrower is unable to make the payment, defaults, or completely bails on the loan with no forwarding address. Any defaults or missed payments will also affect the co-signer’s credit report, making it harder to get credit and loans in the future. Also, if you are not listed as a co-owner on the property, you could end up making payments for a house that is not yours. Once you co-sign for a loan, there is no turning back. The only way to get your name off of the loan is to pay the remainder of it, or for the lender to let you off of the loan.
Should I Co-sign?
This is a decision that is entirely up to you in light of your circumstances. Now that you are aware of the risks, make sure that you are completely familiar with the primary borrower. While you may know this person well, you may not know them well financially. The way someone conducts themselves financially can be completely different and foreign compared to how you think of them on a daily basis. Become familiar with their financial history and their credit. Do not be afraid to ask them questions; after all, this is a favor you will doing for them, at a potentially substantial cost to yourself. The borrower should be more than willing to provide you with all the information you request. Be wary if they do not seem honest and upfront with you. Make sure that you will actually be able to afford the home loan payments on your own, should the primary borrower face financial hurdles.
Additional Resources
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FAP850: MEFA Massachusetts Student Loan Interview on WGBH Video
I thought I’d publish the actual video from the WGBH interview about MEFA the other day as a download, as opposed to making you watch it only on the web site. The video runs about 8 minutes long, and my thanks go to the staff of WGBH for a great interview and a great studio experience.
Direct video file download: MP4 file
Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
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Reminders
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+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Open an FDIC-insured savings account today!
+ Stafford federal student loans at StaffordLoan.com
+ Parent PLUS loans at ParentPLUSLoan.com
+ Graduate student loans at GradLoans.com
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ Private student loan consolidation at StudentLoanConsolidator.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Get FAFSA news at the FAFSA blog
+ The Financial Aid Podcast is a publication of the Student Loan Network.
I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.
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This time, I and my coworkers at the Student Loan Network made a brief appearance on WCVB Boston 5 about the MEFA student loan issues.
MEFA customers, make sure you’ve maximized your federal student loans such as the Stafford loan and the PLUS loan, and if you still need a private student loan, investigate ours at AlternativeStudentLoan.com.
Did you enjoy this? If so, please consider subscribing for free to get it delivered to you. Subscribing for free means you don’t have to remember to download it every day.
+
+
+
Reminders
+
+ Financial Aid Podcast Show Notes at FinancialAidPodcast.com.
+ Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook
+ Parent PLUS loans
+ Open an FDIC-insured savings account today!
+ Private student loans available at any time - visit AlternativeStudentLoan.com
+ FAFSA form tutorials and free help at FAFSAonline.com
+ Financial Aid discussion forums
+ Get FAFSA news at the FAFSA blog
+ Stafford federal student loans at StaffordLoan.com
+ The Financial Aid Podcast is a publication of the Student Loan Network.
I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208.
ShareThis
On the wave of a two-day rally, mortgage rates improved last week overall. This despite a Friday reversal that had caused rates to tick higher just before weekend house-hunting began.
And, like so many other weeks this year, last week's mortgage market activity was defined by its quick-moving interest rates. At least one major mortgage lender issued 11 separate rates sheets between -- an average of more than 2 per day. Now, as an active mortgage rate shopper, you can't predict mortgage rate volatility but you can be prepared for it.
Start by knowing which mortgage product is the best fit for your long- and short-term financial goals and then be ready to pounce on a "good rate" because the rates expire as soon as that next rate sheet gets issued.
Another effective way to prepare for shopping is to watch for data that can influence the market's opinion of the U.S. economy. This week, there's a lot of it --starting with Tuesday's Consumer Confidence report. When confidence levels are high, economists expect Americans to spend more, propelling the economy forward towards inflation. Inflation makes mortgage rates rise.
Then, on Thursday, the Employment Cost Index data is released. This will be a closely-watched figure this month because it should show if American workers are pressuring employers for raises in light of higher gas and food prices. If wages are up, it will be considered inflationary because businesses eventually pass that cost back to consumers.
Again, bad for mortgage rates. And lastly, on Friday, the jobs report will be released. American businesses have shed jobs in each of the last 6 months, and June is expected to show the same. The jobs report's influence on mortgage rates is enormous so expect big rate swings Friday, either up or down.
Overall this week, considering the weight of the data, it may be prudent to finish-up rate shopping as soon as possible and get locked in with your lender. As the week progresses and the data's import grows, the markets should get less and less stable.
Jumbo Mortgage rates for July 29, 2008. Loan amounts up to $2,000,000:
3/1 ARM 5.875%
5/1 ARM 6.25%
7/1 ARM 6.50%
10/1 ARM 7.75%
30 Yr Fixed 7.875%
All rates offered to the borrower with 1 point cost. Rate quotes assume an owner occupied purchase transaction with a 25% down payment, 720 credit score, full income qualification and 12 months of verified reserves. Rates are subject to fluctuation. Custom jumbo loan rate quotes and rate lock advice are available by visiting www.thegreatloan.com
MORTGAGE RATE TREND:
Next 7 days: Slightly Lower
Next 30 days: Flat
Next 3 months: Higher
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