Posted On: 2005-11-02
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Good morning everyone it is Wednesday November 2, 2005. Episode 105 of the finical aid pod cast. A new format for you got a lot of things for you guys to do today. Let's see what is happening here. As I mentioned yesterday, I wanted to talk about changing up the format a little bit. Some people have mentioned and I have asked for some feedback and I got a lot of great feedback. Thank you there for who all responded. But the music in the pod cast actually, some people because their music tastes are not mine, actually we'll fast forward through it. We've possibly missed some of the good stuff. So today's format is going to be different. What we are going to do, we are going to cover I guess all the informational segments first. And then once that is done, move on to one piece of pod cast music. This will have the affect of making the pod cast somewhat shorter but it will have everything you are really tuning in for. Ah upfront, you get it all at once. We'll try this out, well maybe I'll give it a week or two and then get some feedback from everyone about what they think about it. Please by all means, if you have feedback right away, don't hold onto it, send it to me firstname.lastname@example.org and I will be more than happy to read it and see what is on your mind.
With that, let's get started with the news: Topping the news today, if you go to Yale Music School, you're now going for free, at least for the next year or two. The Yale Music School received an anonymous 100 million dollar donation and as a result is really giving a free ride to everyone who attends the Yale Music School including second and third year students beginning with the 2006-2007 school year. Ah, this is very very big news, it's...this type of gigantic anonymous gift is really not unprecedented but it's extremely rare. So, if if you are a student at the Yale Music School, or you would like to be a student at the Yale Music School it looks like free rides for the next year and certainly and maybe even possibly beyond that. So really really terrific...ah it's like the whole school got a scholarship, really.
In other news, scholarship hunting, there's really really a lot of lousy information hunting for scholarships on the internet. Ah, a lot of scam sites a lot of stuff and really not very helpful. And we are going to cover this a little bit more, the scholarship hunting. But, there's a great article in the teen ink website, teenink.com. And I'll put a link to the show to the specific article called "Scholarships: Apply Now" and it is by I presume one of the staff writers there. But it's a really terrific article about applying for scholarships and how to do it in a way that is ethical, honest, and affective. I guess not both, three things that are ethical. But also, quick mistakes to avoid especially with the application itself. One of the things we talk about on the show a lot is specific scholarships to get ah but not how to really get them. But this is a really good article, so teenink.com very pleased to see a nice well written article. It says its written by teenagers so whoever Laura H. is from Wichita, Kansas has a, has a really good writing career ahead of her I think because it is a really terrific article. So as I mentioned, there are links in the show notes. All right, let's move on now.
Now to a scholarship update: Two scholarships updates today. The first is, the student loan network. One thing we have had in the past is we mentioned are international websites, internationalscholarships.com. It is a site for international students, either US students who look to study abroad or students overseas who look to study in the United States. It's a database, really a large database of thousand and some odd awards for people who are looking for help with financing education overseas or out of country I guess, because you could study in Canada, it's not overseas. Anyway, we have never had anything foreign domestics' scholarships. So one thing we are going to be starting out and I emphasize this is just getting started is domestic scholarships. It want necessary be limited to United States scholarships but it is going to be a directory of basically of as many scholarships as we can find. And this is going to be located at studentscholarshipssearch.com. This is not even in beta yet so it is pre-beta. It is alpha code site. It is zero point zero one. I think there is exactly one award in there right now and it's the one we mentioned on yesterday's pod cast, I think. I'm sorry I think it is the general women's something scholarship...we talked about it a few pod casts ago. It is really hard to remember the URL. But what I'm going to do is I'm going to start putting the scholarships in that I mentioned, in the financially pod cast, in this database as well as asking anyone to contribute information that they know of about a scholarship. Please go ahead and sign up and add links that you find to your scholarship as well into the database. It's free to register, it's free for everything. We are not going to charge money for this. There will be advertising for student loan network services and obviously that's how we are going to make money on it. But what the point of this is is to get more people really interacting to create a well grounded robust scholarship database that is doesn't require you to fork over an arm and a leg's worth of personal data to find an extra website. That's like silly. So that is scholarship update number one.
Scholarship update number 2: We may have covered this before but can't hurt to cover it again. The oldest, Margaret T. Barnes, full scholarship, full tuition scholarship in science of Colorado College. This is a full tuition scholarship so it's a free ride. This is to be used for rewards in chemistry, including biochemistry and biology, environmental science, geology, mathematics, physics, psychology including neuroscience. The scholarships are renewable for four years as long as long as the recipient is making satisfactory progress towards a degree. The application deadline is January 15th, so that is coming up fairly soon. By January 15th, send a letter to the department secretary addressed to the Barnes committee, the department for which you are applying describing your background in science and the reasons for majoring in that department. Three high school teachers will send copies of letters of recommendation directed to the department. One of these should be related most closely to the discipline related to which you are applying. And it should specifically address your potential for this reward. Send a photo copy of your admission to Colorado College and copies of transcripts and test scores directly to the department. So it's a full tuition scholarship at Barnes College and this is at coloradocollege.edu I'm sorry, it's not Barnes College, it is Colorado College, it's the Barnes full tuition scholarship in science is today's scholarship award update. And of course I'll put a link in the show and try to get this into our new scholarship directory. Again that is studentscholarshipsearch.com
Alright, one last piece of information, I'm going to cover APRs, news you can use. Okay, the APR, this is from studentplantium.com which is one of the student loan networks, that's consumer credit based. You've seen a lot of credit card ads and also in all sorts of other ads, especially for auto loans and things. XYZ, APR 2.2% APR this or that or whatever. And it's not always clear what APR is, what an Annual Percentage Rate is. Effectively, it is the rate you are going to pay in interest on the balance of your or whatever loan it is you are taking out rather it is an auto loan, a mortgage or something like that. The difference between this kind of rate and any kind of interest rate is that APR's are calculated to give you a periodic rate, interest rate. So let me give you an example. Let's say you have a credit card and it has a 20 percent APR which is pretty typical. It's 19.9 percent, well 20 percent to make the math simple. So that is your annual percentage rate. But it's not applied to anything annual; it is applied on a period base. The period base is usually one month. So take that 20 percent APR and divide it by 12. And you have a period rate of 1.6667 and it goes that way from quite sometime. This is the rate that is applied to that month's billing. So let's say you have a credit card and you have a 10,000 dollar average daily balance on that credit card. Your interest, the interest that you would pay is the 1.66667 or whatever times that 10,000 dollar balance you pay...ah...ah (let's see 10,000 here, let me get my calculator). Okay so you are paying about 167 dollars a month interest on that 10,000 dollar balance. So when you say an APR and you want to actually calculate what the periodic interest rate is so you can get an idea of what your monthly payment is going to be for something, take the APR and divide it usually by 12 cause most things have a monthly billing cycle. If you ever have something that is less than a monthly billing cycle, than chances are it is probably going to be a freighting loan. Most loans, their period is 30 days. The exception being pay day loans which just, oh man, those things have the most hideous awful interest rates. The period on a pay day loan is like 7-14 days. So it works out to 470 percent interest annually APR which is insane.
So, that is today's news you can use and one last thing, piece from the mailbag: James Summons writes in to ask, "My question is to do with what you were saying about using an equity line. If I understand you correctly, student loans don't affect or have very little affected on credit scores. I'll be requesting my report soon; we get two free in Georgia so I'll see it there. So your statement had me intrigued. I thought any loans would impact a person's credit scores." That's actually correct James, ah yesterday what I was talking about was that is came about was that student loans are different, treated differently in terms of how interest and stuff is computed out. But they are recorded on your credit report unless you have student loans to Sally Mae. And you can pull your credit reports through Expedia. Sally Mae only reports to one credit bureau, I believe it is Trans Union. So if you have soundly made student loans, those will not show up on your credit report. But which is generally a bad thing if you are making regular payments and are on time with your student loans because than that beneficial payment history never makes it into your credit report. So it's something to keep in mind. But no, absolutely student loans do appear on your credit report. Federal student loans because they have a different guarantor, are considered safer for banks and other institutions than consumer loans like a home equity loan or a home equity loan of credit. But they still do show up on your credit report and anything you do with them will still impact your credit report. So that's one reason why I always say to ask people to recommend consolidating their loans. It is beneficial to your credit report. Your taking eight loans, like eight Stafford loans because you get one per semester and you're basically paying them all off and opening one new single loan. So you have taken eight different loans and you have established a positive payment history of having shown you've paid them all off. And you have one new educational loan which is then you make payments on. Consolidating your student loans is a very very good idea for your credit report. You can do so at studentloansconsolidator.com, it's one of the student loan network sites. Or just give us a call here at the office if you have anymore questions about this. It is 877-328-1565 and talk to anyone of the wonderful people in customer service. Yes, student loans and credit are very very important, they do go together. Actually if you go to the studentloanconsilidator.com website, there's actually a whole section there I wrote about student loans and your credit. You can get more information there.
All right, let's move onto some pod-safe music: I was listening to the Daily Source Code yesterday and I heard a song by a guy named Bob Gentry, "Upside Down" and I was listening to it and it sounded like, what would happen if you mixed Rob Thomas with Matchbox 20 and with Slash from Guns N' Roses on guitar and put them together with a little bit of retro 70's feel. Well, that is what "Upside Down" sounds like to me. So, "Upside Down" from the pod-safe network music network as new as heard yesterday on The Daily Source Code.
"Upside Down" by Bob Gentry, new from the pod safe network. All right, that is going to do it for today's show. Like I said, it is going to be a little shorter format because we are doing only one piece of pod-safe music and putting everything else upfront. So if you like the new format let me know at email@example.com. If you miss the old format, let me know as well.
Show notes, at financiallypodcast.com as well as information on the two contests as well. This is what we are running right now. Free I pod now and free I pod music tunes gift card for 15 dollars. These are for the 100th episode celebration and for filling out a very quick three question survey that is what we are distributing in this month's newsletter. If you don't subscribe, to the email newsletter, definitely check it out. It's financiallynews.com. You can subscribe to it there. You can also read it on the website too. There's links to everything including everything to these contests and a very very good newsletter we started to publishing bits and pieces of the scholarship search secrets eBook which of course everyone who listens to the pod cast all ready got. So the newsletter folks, well you know, it's more work to listen to a pod cast than it is to read a newsletter. So you guys get rewarded first. All right, anything else, let's see. Comments and questions as always, the email address. And if you like the show, recommend it to a couple of people. Help them get subscribed to it using I Tunes or the I Pod, whatever the ipod preference of choice is. Otherwise, stay tuned, stay subscribed. We'll see you tomorrow for another episode of The Financially Pod cast. Take care.