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For-profit college student loans received in 2008 are expected to see a 46-percent default rate, which in turn is prompting the federal government to consider implementing a “gainful employment” rule. This rule would ensure for-profit colleges only accept students who are actually expected to earn enough salary after graduation to repay funds before receiving distributions for federal student loans.

Nearly Half of Students to Default

This is the third installment of our financial myth-busting series. Below, we’ll dispel some of the most common student loan myths. Be sure to check out the rest of the series.

There’s a lot of confusion surrounding student loans and you’ve probably heard a lot of myths. So to get you on track to the truth, let’s explore the false information currently out there.

When it comes to buying property, picking out your dream home is just the first in a long line of important decisions you’ll need to make. For example, how are you going to pay for it? Like most home buyers, you probably need to finance a majority of the purchase price with a home loan. So the question is, which mortgage type is the best?

There is a seemingly endless array of mortgage loan types to choose from. You individual needs, goals, financial situation and more will play into picking the one that helps you afford a new house best. However, as a starting point, most mortgage borrowers will compare fixed rate mortgage loans and adjustable rate mortgages.

If you are in school, or if you have kids attending college, you know that every year the expenses associated with a higher education rises. Paying for college is increasingly difficult as available scholarships shrink in number. Additionally, federal student aid does not always cover all the costs of going to school. There are private student loans, but sometimes those are not practical (or attainable) in an individual’s situation. If you are experiencing a “funding gap” with your educational financing, you might be able to close with the help of P2P lending.

You probably already know that peer-to-peer (P2P) lending offers various opportunities for those wishing to consolidate credit card debt. P2P lending also helps businesses find financing. Business microloans are becoming increasingly popular as start-ups find it difficult to get more traditional financing, and there is a very real possibility that students might find P2P lending helpful for closing a college funding gap.

When it comes to investing, many people are looking for alternatives to the stock market. One of the options is to engage in peer-to-peer (P2P) lending. There are a number of different ways for you to get involved with P2P lending, but quite possibly one of the most intriguing is by making microloans to entrepreneurs. This option appeals to many people because it allows them to help others while at the same time providing an opportunity to earn money.

Microlending to Businesses

College tuition is rising at an alarming rate–faster than inflation, and faster than most people’s ability to save for college. It is becoming more difficult for the average student to make it through college without some form of financial aid, but that doesn’t mean it is impossible. In fact, if you are willing to do a little legwork, you may be able to graduate college without owing any student loans, which is essential if you are working toward one of the lowest paying college degrees.

Here are some tips to help you make it through college without student loans:

By Casey Bond

There’s no doubt that the rising cost of college tuition and other expenses associated with higher education is making it harder and harder for people to attend college. Plus, those who are otherwise capable of obtaining affordable student loans tend to be doubtful that the current job market will supply them with the employment necessary to pay them back. It seems a college degree is something reserved for the affluent.

Lending money to family members is one of the hardest things to do. You’ve probably heard a million times before: Money and blood don’t mix. But there are times when it’s just unavoidable and issuing a family loan to a loved one is the only practical financial solution.

For most people, having to lend money to anyone is an encroachment of their comfort zone, let alone someone they have a close relationship with. Yet, if done right, lending money to family can be very rewarding. If done wrong, you could end up losing your money and damaging a very important relationship. It’s a very fine balance that needs to be maintained.

After high school, I joined the legions of graduates who went to college. I lasted one year at a traditional four year university before adventure came calling. I had solid grades, but I didn’t know what I wanted out of college, so it didn’t seem right to continue getting my education when I didn’t have a plan in place. So I left. I didn’t drop out of college for good, but I did place my education on hiatus.

My situation isn’t unique–thousands of people put college on hold every year for one reason or another. In my case, I joined the USAF. I was seeking an adventure and 5 continents and 30 countries later, I decided I had my adventure and I wanted to complete my degree. So I went back to school while I was on active duty.

It seems that banks are making a habit of using their free capital to lend money to the government via bond buys, which means that business and personal loans are not being distributed. Fed Reserve Chairman Ben Bernanke is not happy about this action because it means credit is not being extended when it could. But he believes new global banking rules could turn things around.

Banks Take Advantage of Low Interest Rates