Recession sending many students back to school

There are many reasons people decide to go back to school such as being pushed out of a job, needing upgraded skills or to land a new job. With the recession looming, it’s no surprise that colleges and universities across the country are reporting record spikes in enrollment.


Most experts are blaming the current economic crisis as the direct cause of the enrollment spike. Betty Krump, executive director of the American Technical Education Association, based in Wahpeton, N.D. recently reported that they are seeing a 16-17 percent rise since the beginning of last fall.

So, what does this mean for students needing more education? There are many factors to consider before returning to school. If the unemployment rate continues to rise, jobs after graduation will become even harder to come by. It is imperative that students have mapped out a specific course of study. Some skill sets are “recession proof” and others may not have a high demand in the work force.


Prospective students should also research the future job growth for the position they are seeking. The Bureau of Labor Statistics publishes the Occupational Outlook Handbook that can be viewed online and is a great resource for researching job potential in your particular field.

Paying for college may be the most important factor to consider. Recent changes in Congress have changed the the process in which students obtain financial aid and banks are weary of lending in the current financial market. Also, private college tuition is projected to rise in the 2009-2010 school year. So what are some options for students needing college tuition? For those wanting to bypass the federal Government, grants and scholarships are money that does not have to be repaid. There are many organizations and charities out there that offer such rewards but often go unclaimed because student don’t know they are available.

Resources

Bankruptcy Laws Make Debt Settlement The Only Avenue For Many Debt Ridden Consumers

Debt settlement companies have been around for about 10 years, but have become very popular during hard economic times. New bankruptcy laws have made it considerably harder for the consumer to qualify and many are turning to debt settlement as an alternative.


Debt settlement companies allow the consumer to make payments to a separate savings account until it reaches an amount the company will accept. According to The Association of Loan Companies (TASC) the average consumer debt is settled at about 50 percent less than the original loan balance.

Opponents, including some members of congress claim that settlement companies charge exuberant fees for their services. Although, it is true that there are many unethical firms out there, there are many legitimate companies that treat the consumer fairly as well. Legitimate companies will usually not charge an upfront fee. It is imperative that the consumer learn to recognize scams and to steer clear of companies wanting excessive upfront fees.

Consumers who have smaller amounts of debt or cannot file bankruptcy due to new laws may turn to debt settlement as a viable option. It is very important to make sure a prospective settlement firm is a member of (TASC). TASC is the regulatory body of the debt settlement industry and any company that is not a member should be avoided at all cost. A large number of states require debt negotiators to be lawyers. If a company has not yet implemented the attorney based model they should not be utilized.

The Pros and Cons of Debt Settlement

Debt settlement has become popular in the last few years for people looking to reduce or eliminate their debt. Most of us have read all the success stories and the horror stories posted on the net. It can be a very confusing process. You may be asking yourself if debt settlement is the right option for you.

The truth of the matter is that it depends on the individual. It can be a great option for those really struggling, and not the best avenue for others who have a smaller debt amount.

Let's explore the Pros and Cons of debt settlement.

Pros
-Faster results: Once you settle, your debt is paid off. It doesn't happen the next day, but you are not facing years of repayment.
-Debt paid off: Again, once you settle, the debt is gone. It is up to you to stop using your credit cards
-Lower debt amount: Most reputable banks will settle from somewhere between 40-60 percent lower than the original balance
-Avoid bankruptcy: If you are extremely behind on your payments, this can be a viable alternative to bankruptcy
-You don't need a lawyer: Some companies are located within law offices and others may purposely resemble a law office to look more professional, but you do not require a lawyer.

Cons
-You must be behind or have stopped making payments. Otherwise, there is no incentive for a bank to settle.
-Many bogus companies: The market is full of pretenders. Many faulty organizations hide pertinent information from the consumer or charge exuberant fees. It is always a good idea to research any company you plan on doing business with. Are they listed with the BBB? Do they have a satisfactory rating?
-Taxed on savings: If you owe $14,000 in credit card debt and settle for $7,000, the federal government requires you to pay taxes on the 7K you saved.
-Some companies may require a lump sum. If this occurs, you may need to save up before you decide to settle. It's a good idea to have a separate savings account that you do not access until you have saved up the amount needed.
-Your credit will be affected. After you settle, your credit report will indicate that you have settled your debt. However, your score will go down. But a good credit score is an illusion when you are buried in debt.
-Calls from creditors: Debt settlement will eliminate some of these calls, but you will still get them. They can be annoying and come at the worst times.
-Not for everyone - Debt settlement is stressful and requires you to re-arrange your life habits. If you are not comfortable with any of the cons, debt settlement may not be for you.

So there it is. The pros and cons of debt settlement. I hope this information has been helpful.

Debt Settlement VS. Bankruptcy

For those of us facing a financial crisis, the word bankruptcy can ignite powerful emotions. The thought of losing your assets, ruining your credit and the embarrassment you face with friends and family can make you pull your hair out. Filing for Chapter 7 can:

-Tarnish your credit report for 7-10 years.

-Require you to sell off all of your property not protected by law.

-A Chapter 13 bankruptcy will not wipe out your debt, and still affects your credit rating.

-Bankruptcy will make it difficult to obtain affordable interest rates in the future.

-Bankruptcy can stay on your court records for up to 20 years , and can hurt your chances of getting a job or renting an apartment.

Debt settlement is a better alternative for several reasons:

Unlike Bankruptcy, most reputable debt settlement programs will NOT affect your credit report. If you choose to settle a certain debt, it will show up as "settled" on your report. Potential employers, or others looking at your history will not be able to tell that you are working with a debt settlement company.

Good settlement programs will lower your balances. Once you pay off your new balance, creditors will notify the credit agency that your debt has been settled. Debt settlement allows you to settle your debt without losing your property or adhering to a lengthy bankruptcy repayment plan. Even though your credit score may drop while in a debt settlement, your debts will be repaid and you can start rebuilding your life once you have completed the program. Plus, you will not have a 10 year stain on your credit report or negative court records that follow you around for even longer.