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We get a lot of questions from readers that are not sure about what direction to take when it comes to continuing their education. Are you confused about taking online classes? Are you debating if online classes are the best fit for you? Are you debating the merits of an online degree vs traditional degree? Either way, the linked articles will help you understand the merits, advantages and disadvantages of an online degree and the more traditional campus based degree.

Here are some sample questions that we get asking us to recommend an online degree or if an online degree was a better choice over a more traditional campus based degree.

• I want to go back to school and start taking a networking course. The classes are online and seem like a good fit for me. I’m very interested in computer networking but have been unable to commit to a campus school for many reasons. Do you think I should go for an online class? Previously transportation was an issue and had to use public transportation to go to school.
• I’ve never taken any online classes before and so am completely in the dark about what to expect. Can someone point out the  pros & cons to taking online classes? I’m very concerned about the practical portion of my degree and how this will work in an online degree school. Any feedback around this will be greatly appreciated
• I find myself constantly thinking about going back to school. I have a bachelors degree and feel a masters degree will add weight to my resume. I’m exploring the online school option since I have a 9 to 5 job and quitting my job is not an option. Am I making the right choice?

We get tons of related questions as above and therefore have written extensively about the subject. Take a look at the advantages and disadvantages of an online education and also the comparison between an online education vs a traditional education. I’m positive these should help you come to a fair understanding on what direction you would want to go.

Typically your college hands over a check for any leftover funds from your student loan or federal aid or grants once all the educational expenses from the college or university has been met. Now the funds handed over to the student with the following expectations. Since the refund is from your government or private student loan, the expectation is that you will use the remainder of the loan i.e your refund money on things that support your education. These could be school supplies, boarding and even commute. Yes, this does mean that you can put your refund money to purchase a car to help in your commute to school.

It is important that you maintain strict records on how you spent your loan refund money. This will come in handy if and when you have to show for whatever reason where the balance of your student loan funds went. What this means is that you cannot use your left over funds for entertainment and other non educational reasons. Spend your left over bonanza wisely.

This is a very common question and below are some of the related queries we get on this subject. As always any personal information is removed.

• “How can I spend my refund loan amount?”
• “I might be getting back close to $2000, I would love to use that money to pay my rent and other bills that have piled up. Is this allowed?”
• “What should I spend my loan refund money on? I already have all my books & other school supplies. I would like to buy a used car for transportation to & from school. Can I do this? I don’t think I have to explain to the Financial Aid office how I spent the money. What else should I do with any leftover money?”

Consolidating your private student loans or any student loans for that matter can make financial sense if you get a better rate of interest and your term of the loan remains unchanged or better is reduced. This is a crucial factor in deciding if consolidating your loans is worth it and if it makes financial sense.

If however your consolidating company offers to lower your monthly payments but increase your repayment term then purely from a financial perspective this does not make it a good deal for you. You don’t know have to know much about loans to understand what this means – the longer you stretch your repayment, the more interest you pay on your loan.

For the sake of argument, let’s assume that you are hoping to consolidate $30,000 of private loans that will enter a 10-year repayment at 8.9% interest. Right now, you would be looking at 120 payments of $378.41 a month. Consolidate that $30,000 into a 20-year loan at the same interest rate, and your payment drops to $267.99 a month – a savings of $110.42 a month. I’m sure you could put that extra $110 to good use.

But here’s the catch – over 10 years, your total payments will be $45,408.36. How’s that compare to 20 years, where your total payments will be $64,318.53?

What’s the privilege of cutting your monthly payment by $110 going to cost you? $19,000. Wow, that’s the list price on a Honda Civic, a Mini or a Pontiac G5.

Make that same deal on your government loans, and you’re looking at another $15,000 in extra interest. That’s quite a lot to pay. Before you consider consolidation, take a look at your lender’s other options, including Income Contingent Repayment, extended repayment, graduated repayment, and the brand new Income-Based Repayment. Do the math, and see which of these might make the most sense for you.

Don’t be in a hurry to consolidate or consolidate for the sake of it, there are several options available to you and unless you do your due diligence, it will prove to be a very costly decision.