LOANS » Best Lenders

If you're a liberal arts major, or have been thinking about becoming one, you have probably heard from more than one person that there will be very few job prospects waiting for you when you graduate. In fact, some don't even consider liberal arts to be a form of higher learning.

However, others rally behind the liberal arts major and its benefits. So to explore this idea further, let's look at whether obtaining a B.A. in liberal arts is truly worth the money.

What is a B.A. in Liberal Arts?

A Bachelor of Arts (B.A.) in liberal arts can seem a bit abstract; however, the concept is actually quite simple. According to the College Board Book of Majors, 2nd edition, "The liberal arts and sciences major provides you with a well-rounded education in the sciences, humanities, mathematics, and languages."

The major focuses primarily on critical thinking, writing and basic communication, which helps students become well rounded when functioning in their chosen careers.

Job Prospects for Liberal Arts Majors

Because liberal arts can be such a generalized major, the question of whether it actually pays off is constantly up for debate.

One concern many parents have with this degree is the job prospects that may or may not be available for their children upon graduation. However, according to ELearners.com, the number of opportunities available is extensive. Here is a short list of employers that hire liberal arts majors:

• Advertising agencies and PR firms
• Banks, financial institutions and investment firms
• Broadcast media companies
• Law firms
• Newspapers, magazines, and other media companies
• Non-profit organizations
• Political campaigns
• Publishing companies

Salary Comparisons and Debt-to-Income Ratios

Of course, another major concern for parents of liberal arts majors is whether the amount paid for school will match the income they are likely to receive. Below is a chart that illustrates the starting salaries of the highest paid majors in comparison to liberal arts majors.

From the above chart, you can see that the student with the liberal arts degree has a starting pay beginning at nearly $10,000 less than higher-paying majors. But this doesn't mean that the liberal arts degree isn't worth the money.

A way to make this determination is by looking at the debt-to-income ratio, which is calculated by looking at the average income earned by liberal arts majors, in comparison to the debt they're likely to incur in the process of earning the degree.

According to a College Board estimate, 60 percent of 2007 graduates have debt, which rounds out to about $23,800. Using the debt-to-income ratio calculator available on CollegeToolkit.com, if you're paying the above debt down at a 6 percent interest rate over 10 years, the debt-to-income ratio for the liberal arts major is roughly 8.7 percent, as compared to 5.3 percent for engineering.

According to CollegeToolkit.com, as long as your debt-to-income ratio is lower than 15 percent, you should be okay financially, which means without calculating other costs associated with average living expenses (rent, car, insurance, groceries, etc.) the liberal arts major may just be worth the money.

Potential for Growth / Higher Learning Opportunities

One great aspect of the liberal arts degree that is often overlooked is the potential for growth it offers. Most of the bachelor's degree programs in the liberal arts are also offered at the master's degree level - and some even at the doctorate level.

What's even more interesting is that, according to the University of Portland, data collected by AT&T showed that employees who had advanced to senior management positions in 20 years, 43 percent of them had liberal arts degrees, while 34 percent had been to business school. In other words, the room for growth and advancement is enormous if taken advantage of.

What makes liberal arts major so abstract is what can also create such exciting opportunities to its degree recipients. With this major, there isn't necessarily a linear line from graduation to a career. A student may start as an English major and end up a lawyer. Or a sociology major could easily become a political writer.

The opportunities are endless for those who choose to pursue a B.A. in liberal arts. So if you feel guided in this direction, it's worth exploring all of the opportunities that a B.A. in liberal arts could offer.

When it comes to finding the right personal loan, the bottom line for most people is going to be a favorable low interest rate. However, individual circumstances vary, and sometimes a person will need a loan sooner than a traditional lender can give it, or they need the loan for a brief period of time, or they don't have the credit history necessary to qualify for the best interest rates.

As a result, different lending options have emerged that cater to different circumstances, and each will offer different interest rates. Read on to get an idea of how these different personal loan lenders compare.

The Traditional, Bank-Issued Personal Loan

For most people, a bank will be the first place they turn to when they need a personal loan. However, there's a major liquidity crunch going on, and banks have cut way back on loans of all kinds -- credit card limits, for example, have been slashed for even people with the best credit and payment histories.

Not only are they approving drastically fewer loans, but they're also charging higher interest rates for them. These rates vary by location, with the best rates in New York hovering around 16%. In Los Angeles the lowest is about 18%, but in Cheyenne, Wyoming a borrower could get a loan for as little as 9%.

On the plus side, banks are very often trusted names, and operate under stringent federal regulations. That sense of security is a welcome one when it comes to money.

Cashcall

Cashcall offers people living in New Mexico, California, Idaho and Utah loans with an APR of 139.34%. Their standard loan of $2,600 costs $75. Thirty-six payments of $298.94 later, the loan is paid off.

Clearly, this is going to be the loan of last resort for most people, but if circumstances are dire and there aren't any other options, then it's (arguably) better than nothing.

Check into Cash

Specializing in payday loans and payday advances (more or less the same thing), Check into Cash offers customers small loans (between $100 and $800) against their next paycheck.

On a $100 loan, for example, the fee is $15 - and the whole amount must be repaid (not $85, as you might think). Loans of this type are for people in a real jam, but like the jaw-dropping CashCall loan, if they prevent something worse from happening then they're ultimately worth it.

Peer-to-Peer Lending

A booming new lending, loaning, and investing vehicle, peer-to-peer loans are made by individuals to other individuals, with no banks involved. Driven by the Internet, peer-to-peer lending is still experiencing growing pains, but the fact that they're growing so quickly suggests a promising future.

They're more of a risk for investors because there's always the chance that a borrower can default. For borrowers, however, they offer some of the lowest interest rates available. Two of the biggest names in peer-to-peer lending are Prosper and Lending Club.

• Prosper.com

Although not available everywhere, Prosper.com is currently advertising personal loan rates of 7.5% for people with credit scores over 640.

Prosper's auction process among lenders can also send your initial rate down if you're a particularly appealing loan prospect. Additionally, Prosper lets you make early loan payments and pay the bill off before it's due.

• Lending Club

Like Prosper, Lending Club brings investors together to offer borrowers personal loans at phenomenal prices.

Currently, Lending Club offers potential borrowers with the best credit scores loans with 7.89% interest rates.

New reports show that students are relying on federal student loans to finance their college tuition as private student loans become more difficult to obtain. The reports, issued by the College Board, show that private loans fell a whopping 52 percent in the 2008-2009 school year as a result of...

The delinquency rates dropped on auto loans made indirectly through dealers and directly to consumers in the second quarter. The numbers are provided by a report from the American Bankers Association (ABA) and may be an indicator that predictions made by economists that the economy has already...

An " on-the-spot loan " is simply another term used to describe a pre-approved loan. If you're qualified to get an on-the-spot loan, you've now got access to a line of credit up to the amount that the lender has approved. In these instances, the lender has not felt the need to check your credit...

In an effort to help homeowners modify their mortgage loans, some lenders are taking steps to lower the principal amount, according to a new report from the Office of the Comptroller of the Currency (OCC). The report shows that while many lenders are taking the route of temporarily suspending...

Every now and then people need access to money quickly to cover unexpected expenses. When the time comes it may be difficult deciding between using a line of credit from a credit card or securing a loan of some type to help get through the rough patch. Each option has both advantages and...

Did you go to college to increase your earning potential, but end up saddled with debt instead?

Those struggling to repay their federal student loans recently gotten a break. As of July 1, 2009 The U.S. Education Department changed the terms of student loan repayment to allow borrowers to adjust...

If you're going back to school for the first time in years and are looking for a way to pay for it, the prospect of student loans may have crossed your mind. It's an extremely common way to pay for tuition and is likely to be a way for you to cover at least part of your tuition costs.

But...

The thought of going back to school after having been out of school for so long can seem distasteful, especially after you've already paid off your college loans just to realize you may have to take out another student loan. It's hard to stomach the thousands you may end up owing again.

Luckily,...