Title: FAP914: Student credit cards, interest rates, Over Again

" The -- student loan interest rates in history that unfortunately you can't have that and much more on this week's financially podcast episode 914."

" Financially podcast is publication of the student loans didn't he stop by the web site. -- actually podcast dot com these comments on blogs and subscribe. I tune us into music by Charlie flew the biggest hard --"

" Good Friday June 12 2009 my name is Christopher -- thank you for tuning into the financially podcasts got a great show for -- this week filled with information about the economy jobs college degrees more details on student credit cards student loan interest rates and a whole lot of things in freestyle Friday so let's get rolling with the news. Topping the news this week federal student loans prior to July 1 2006 he used to be variable rate loans. Student loans issued before that date was set at the price of the 91 day treasury bill Petit bill wait for the last auction in the month of may of each year. Plus one point 7% for loans increased. Nine to a -- plus two point 3% for Stafford loans in repayment and plus loans are set it in 91 day plus three point 1% interest rate. In 2005. Overreacting just temporarily high interest rates congress mandated that Stafford loans after July 1 2006 would be set. At a fixed rate of six point 8% and plus loans at eight point 5% removing the variability of the federal -- on interest rates now. What does that look shortsighted today. The nine to a day T bill rate closed on May Twain eighth 2009 at zero point 178%. The lowest is ever closed -- for student on purposes. For the class of 2009. Was mean field this you have the last class to have any variable rate to a federal student loans your staff for the industry from graduation the and your grace period. Is a whopping one point 878%. Which is far far below the six point 8% for the loans issued after July 12006. Want to loans go to repayment -- two point 478%. Parents with plus loans taken out before July 1 2006 will pay a rate of three point 2% at between 278%. Far below the eight point 5% they're gonna -- loans issued after July 1 2006. Now here's the best part the good news for the class of 2009. You can still consolidate your federal student loans and lock in those interest rates on those earlier loans you have to do that. Primarily -- Department of Education. By doing so you'll convert those variable rate loans into fixed rate loans. And lock in those abnormally low interest rates for the remainder of -- paying them so you could be paying. You know essentially probably about 2% on the staff for the home for the remainder of the ten year term which is a great great deal. You want to contact the Department of Education for loan consolidation information. For more you can go to student loan consultant to dot com. Some commentary -- two lessons here. First consolidate your student loans if you have any of the older variable rate loans. You will. Probably never get a better interest rates periods. Second assumed that. What are -- piece of legislation congress names it's going to have the opposite affect. The -- 2005. Legislation that this since costs college students millions of dollars by locking them out of the lowest interest rates in history. Was Colby College access and opportunities act the F 2007 legislation that forced the majority of student loan companies to either go out of business or curtail borrower benefits like interest rate discounts for on time payments -- that was Colby College cost reduction and access act which increased the cost of college and reduce access. Based on the track record you could safely bet that congress is upcoming higher education opportunities act will provides no new opportunities for students. The lesson to be taken from this is for students parents and families to stay informed and engaged in the political process is full of and stuff. As it is. And to assume that congress is completely capable of predicting the unintended consequences of of legislation stay informed -- gates stay up to date. Other things that are going to impact your wallet now -- as he -- a student loans in the decades ahead communicate with your elected officials and pressure them. When -- back to decent that's a really really bad idea time now for a scholarship update. In this week's scholarship update the A Dorn foundation scholarship program. This is a nursing scholarship that provides a 5000 dollar reward to students are going to be pursuing a bachelor's master's and doctoral degree in nursing or complementary field. The number of awards and amount of what's been determined and you -- they're not renewable. But it they can be applied to its tuition fees and books winners will be required to submit grades and invoices for those allowable expenses. For -- some advice mr. by August 1 of each year but it's a great award it's relatively easy to apply if we can find more information about it at a free scholarship website. Student scholarship search dot com now up -- nine point seven billion dollars in scholarships and of course -- minder what to remind us. One we'll have you scholarship points code it later on in the show for a scholarship points members for twenty points. -- would -- drawings on the month and two we have to scholarship drawings this month he 1000 dollar scholarship point's award and the 2500 dollar student platinum award. Both of which you can find out more information that's scholarship points dot com. Time now for I on the economy. Two pieces and economic news from this week the first from inside a higher dot com. Educational organizations received 41 billion dollars in donations in 2008 down about five point 5% from the previous year. According to giving USA an annual report on charitable giving. Donations to all charitable organizations were down from individuals requests corporations and foundations. Foremost colleges these national figures will come as no surprise and honestly I -- the drop in giving was in greater. That said that means there's about five point 5% -- scholarship money out there. More students competing for the -- scholarship dollars so again next year member scholarship points if you haven't gotten a copy yet please go to student scholarship search dot com slash e-book. And grab our free scholarship search e-book to help you find the scholarships that are still offering money. There are a lot of them and probably you know I think the last figures 20/20 five billion dollars in scholarships are floating around out there and many of the awards available. -- have -- 51015. Applicants. We had award the couple weeks ago that was begging for applicants on MySpace so by all means. Yet searching the e-book is free grab a copy of it. Seconds left last week very very end of the week the Bureau of Labor Statistics released the latest on the employment version the data. The the short version summary stay in school the unemployment rate for college graduates. Is half that on the national rate while those with less than a high school diploma. Or 65%. Higher six facts are more likely to be unemployed than the national rate. The college degree -- better is no guarantee of a great job we're great life but there's an undeniable correlation. That as educational attainment increases unemployment decreased so -- get as much educations you can afford -- obvious trying to graduate with this as. A whole lot of debt the statistics and numbers and things are actually pretty interest in a look at -- link in the show notes -- financially podcast dot com. -- and see what the chart looks like and why it's a really really huge importance to us to finish up that degree. Some news you can use real quick we talked a few weeks -- about the yet credit card accountability and responsibility and disclosure act of 2009 which -- the student credit card act. That was passed by congress assignment president but whenever it actually did summarize all the different points of legislation and what they mean -- now so. The credit card accountability responsibility and disclosure act which of course is we know from congress shall neither increase accountability responsibility or disclosure. Will amend the truth in lending act to establish fair and transparent practices related to the extension of credit and has and it's a whole bunch of benefits. College students were singled out for special treatment and hear the changes that will be happening as of February 30. First prohibits extensions of credit to consumers under the age of eighteen analysts -- emancipated under state law. Or the consumers parent or legal guardians designated as the primary account holder. Miners are allowed to have a credit card in the name on a parent or legal guardians account so the apparent to be the ones will be taking up the credit cards. And the students will be the ones who will be running up charges somehow that's as compared to for parents for full time part time students attending an institution of higher education who between 1821 years of age you legislation reads. It limits the credit line from anyone credit card to the Grier 20% of annual income of 500 dollars and listeners a co sign -- It limits the total credit line from all credit sources to 30% of annual income -- co -- And if there is a co -- requires written co -- approval before granting any increase in the credit line. They'll also prohibits creditors from granting more than one credit card account to college students have no verifiable annual gross income and already have a credit card account with a creditor. Or any of its affiliates up. Those the final pieces of legislation that affect. The ability to get student credit cards after February 2000 and tense up. Assuming that credit markets approval of over the summer. If you want to credit card in college may want to have one that has that does not have these -- restrictions you may want to start looking into it. Personally I don't think you need a credit cart I really don't for for college you can get by with a debit card anything has a -- logo on it but. If you want to get a card that does not have these restrictions and -- put it nest a safe deposit box is something just so you haven't. You may wanna do your shopping around before February of 30. For more information about -- compare credit card -- go visits student platinum dot com. Time now for free stuff Friday. In this week's freestyle Friday a whole bunch of all sorts of things and increased decreased from wide assortment of things. Couple things number one everything will be in the show notes at financially podcast dot com C don't have to scramble to write things down it's hitting the back button. On an iPod or your iTunes player. The second thing is that a lot of these things are actually really useful this week some useful stuff. Even if it's not useful to you grab it anyway and then donated to local shelter or something like that because in hopes -- the community and doesn't cost to a thing. Starting off we have nylon magazine is giving -- 22 free songs in iTunes now it's not any song -- the eight pre selected playlist but hey if you -- What bands are promoting anyone gets a free music. This is a a discount code for their playlist that would get you all 22 songs are free. Quartet is giving way and LED key chains flashlight very helpful. The F folks so -- six dot -- given point 100 recycle business cards so if you need some business cards for your job search. Or even just happened it's a good idea for all college students to have business cards of regardless within the -- the job we're not. -- laws has your personal webs and stuff on it cortex is giving four by six outcome is giving away. 100 of these red boxing picture me is given we have free eight by ten portrait print. Sickened a sign up for free account with them and then get the -- nice -- ten print it out. Esquire magazine is giving away a free Steve I think it's a six month subscription I know at six issues at a twelve month subscription but you can get. If you are starting your thinking about starting your own small business. A quick books and intuit are giving away their starter edition of quick books 2009 for windows so if you will -- some accounting software that will actually do lovely year in taxes and thanks to on small businesses. This is a great package to get a hold of and finally Wal-Mart and tampax a given when a box of them bonds so. That will conclude freestyle Friday let's move on of the free song of the week this is Rebecca will be with over again."

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" Here. -- and I each time you win. And nice."

" You know it's. I mean -- this yeah. Am pleased and and non and home. Okay. And now okay and none and slim. Saying. That I -- line news."

" Kindness and and and and now. -- It."

" Okay. And yeah. It now. Kelly yeah. Me. Com. And home."

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" That was over again by Rebecca will be on the podsafe music network you can find out more about her stuff at Rebecca will be dot com link in the show notes of course of financial podcasts dot com. This week scholarship points code is 31 IR 559. That's 30 Y as in yellow ours and Romeo 559. For twenty scholarship points he can use towards our monthly drawings and of course next month a Big Ten thousand dollar trying some pictures. But you were registered on scholarship was -- account you're actively participating in racking up points. I'll tell you want the easiest ways to get points on scholarship when stuck Thomas to refer a friend that referred. A few hundred people now and have accumulated at the close to 17000 points which if I were eligible to -- which I'm not. Who would probably be able to win the 10000 scholarships and make sure that you are referring your friends as well it's really easy to do. That's great India earned points section of the web sites and actually give that a try. Again that the code is 30 YR 559. Thank you for tuning into the financially podcasting and we'll talk to you next Thursday happily because next Friday I -- headed out to the podcasts across borders conference. In Kingston Canada so -- actually be on the road. Four good part of Friday some of the the show optical pie either cranked out there's tonight. Or hey who knows maybe all recorded in the car on the way up I'll be writing with a good friend my Chris -- We'll see it could it be very very long and very confusing financially podcast as a result but. No matter what we'll have a show next week of course some more scholarships stuff in it as well thanks to union take care and a top you next week."