Business school education – How will you finance it?

graduationstudents_2397281bHigher education has become quite costly in the recent times. In the present times, no one can think of financing their education by paying money out of pocket. Most of the students who are interested in pursuing higher education, whether business school courses or any other courses, will be liable to take out loans for bad credit to fund their education. However, it should also be noted that if you take out student loans, then you will also be liable for repaying the loan. Thus, it will be better if you could check out what your monthly payments will be like when you start repaying your student loans. However, if you wish to avoid the option of repaying the loans, then you will have to check out the scholarships and grants available for business school education. If you get the scholarships and grants, pursuing higher studies will become easier and you will not be burdened with the thought of repaying the loan.

Financing options available for students

Here are some of the financing options available for the students to pursue their higher education. Let’s take a look at them:

  • Albers Scholarships for Professional MBA students: Merit based scholarships are available to new students who will be pursuing a professional MBA course. The scholarships will be given to students depending upon their GMAT scores. Both part-time as well as full-time students will be able to qualify for this scholarship.

  • Financial assistance for domestic students: There are a number of federal student loans available for students, who are US citizens, irrespective of their income. In order to get help of this loan program, the students who are pursuing business courses will have to fill out the FAFSA form online and submit it. It is the Graduate Admissions Department which will work with you to develop a financial package for you.

  • Financial assistance for international students: International students, pursuing MBA courses in the US, will also be able to qualify for loans no credit check financial assistance. The financial assistance may, at times, depend upon your GMAT scores. Apart from this, the international students should get in touch with the Financial Aid Department of the school and check out other options available to them.

  • Frank Shrontz Graduate Assistantship and Scholarship in Business Ethics: This scholarship is designed for those graduate business students who support business ethics community through the Seattle University’s northwest Ethics Network. The students will be liable to help the faculty with various research projects mainly related to positive business culture, social responsibility, etc.

  • Genevieve Albers Fellowship: This is a fellowship which helps graduate business students to get financial help in lieu of assistance to the Albers faculty regarding various academic researches. This fellowship is offered to one student for the term of their graduate program.

  • Graduate Assistantships: This financial help is available to any student who is pursuing any graduate business program. However, unless positions are available no announcement is made regarding the assistantships. Once positions are available, announcements are sent out.

Hope now you have a clear idea as to how you can get financial help in order to pursue your business school education. 

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Car loan – How will you manage it?

10767980_sTaking out a car loan involves a lot of homework. You will have to negotiate well with your car lender in order to get a loan with good terms and conditions. But you will not own your car fully unless you have paid off the car loan in full. The term period of a car loan may range from 36 month, 60 month or 72 month. You can take out the car loan from a car dealer, credit union or a bank. If you handle the car loan well and manage it properly, paying off this bad credit loans can be a simple and easy process. This will depend upon the type of car you have purchased, the monthly car loan payment, rate of interest, etc. If you manage your car loan well and if you pay off the loan on time, then you will be able to build up positive credit and your credit scores will also improve. Moreover, the car will be paid off and you will become the sole owner of it.

If you cannot pay off the car loan on time, then your car can turn out to be a big liability for you. You will neither be able to pay off the car nor will you be able to sell it off. Thus, it is very important to know how you can manage your car loan.

Budgeting – The best way to manage car loan

Whether you have taken out a car loan or any other type of loan, the main aim should be to pay it off. In order to pay off the loan, you will have to save money by cutting down on unnecessary expenses. In order to successfully do this, you will have to formulate a budget and see how the car no credit check loans fits into it. In order to formulate a budget, you should monitor all your monthly expenses for 2-3 months. This will give you an idea as to what your unnecessary expenses are and where you can cut them down. Do not make undue sacrifices to maintain your new vehicle. If you find yourself in such a situation, it will be better to go for a cheaper car or a second hand car. You will find a large number of online budgeting tools in order to formulate your budget. Apart from this, there are various online calculators available to help you in this matter.

It should also be noted here that it is costlier to maintain a car than to simply pay off the loan. It has been found that most people spend around 11% of their income toward their car payment. Also, the average cost of car ownership is around 1.5 times greater than that of paying off the loan. Here lies the importance of budgeting! When you budget for your car, you should take into consideration expenses like gasoline, insurance, new tyres, oil changes, etc.

In order to make sure that your payments reach the car lender on time, you should opt for the payment method which suits you the best. You can pay it online, go for auto payment, mail a check or even make payments in person by visiting the lender. 

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4 Simple strategies to do away with debts and boost credit score

debtDebt doesn’t only ruin your financial stability but it harms your credibility also. With a bad credit report and low credit score you can never expect any lender to offer you the best interest rate. The only solution is to work on improving your credit score. Now, there are numerous ways through which you can improve your credit score considerably. The most effective way is obviously debt elimination. You must get out of debt as soon as possible to bring a considerable change in your credit score.

How to eliminate debt for a good credit score

Following are 4 effective strategies that you can use to pay off due debts and perk up the credit score over the time. Have a look at the strategies below:

  1. Make it a habit to pay on time: Delaying debt payments for too long can be harmful for both your finances and your credit score. So, you must concentrate on paying off your due accounts as soon as possible. If due to some financial hardship you can’t continue the payments, then you should talk to your creditors. Inform them about all the hardships you’re facing. Try to negotiate with creditors to get some reduction on the interest rate. For the negotiation you may even get professional help. In this way you’ll be able to pay off your debts gradually and your credit score will also go up.

  1. Customize your budget plan to pay more: To pay off debts quickly you need to accumulate some more money. Start saving more by modifying your monthly budget. Avoid unnecessary expenses and save some more. With each extra savings, you’ll be able to pay off more debt. Eliminate the debts with higher interest rate first. Thus, you won’t have to pay off the interest rate for long.

  1. Earn some extra: Increase your income for early debt payments. Maybe you can do some part time job or rent out the less used room in your house to earn some extra bucks. With that extra money you can pay off your debts faster and improve your credit score with time.

  1. Use credit cards with care: This is the most important step to steer clear of debts and improve credit score considerably. Don’t close your credit accounts all of a sudden. Rather handle the accounts carefully. Reduce the usage of credit cards. Use cash instead. In this way you’ll be able to reduce debt accumulation. Responsible usage of credit cards will help your credit score to go up.

With all the 4 strategies pointed above, you can easily get rid of your due debts and make your credit score ascend. So, just follow these strategies with perseverance and let your credit score grow gradually.

Financial risk management

RiskFinancial risk management is the practice of creating economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. Other types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them.

Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.

In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks.

Finance theory (i.e., financial economics) prescribes that a firm should take on a project when it increases shareholder value. Finance theory also shows that firm managers cannot create value for shareholders, also called its investors, by taking on projects that shareholders could do for themselves at the same cost.

When applied to financial risk management, this implies that firm managers should not hedge risks that investors can hedge for themselves at the same cost. This notion was captured by the hedging irrelevance proposition: In a perfect market, the firm cannot create value by hedging a risk when the price of bearing that risk within the firm is the same as the price of bearing it outside of the firm. In practice, financial markets are not likely to be perfect markets.

This suggests that firm managers likely have many opportunities to create value for shareholders using financial risk management. The trick is to determine which risks are cheaper for the firm to manage than the shareholders. A general rule of thumb, however, is that market risks that result in unique risks for the firm are the best candidates for financial risk management.

The concepts of financial risk management change dramatically in the international realm. Multinational Corporations are faced with many different obstacles in overcoming these challenges. There has been some research on the risks firms must consider when operating in many countries, such as the three kinds of foreign exchange exposure for various future time horizons: transactions exposure, accounting exposure, and economic exposure.

Megaprojects (sometimes also called “major programs”) have been shown to be particularly risky in terms of finance. Financial risk management is therefore particularly pertinent for megaprojects and special methods have been developed for such risk management.

Central bank

european-central-bankA central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on printing the national currency, which usually serves as the nation’s legal tender. Examples include the Bank of England, the European Central Bank (ECB), the Federal Reserve of the United States, and the People’s Bank of China.

The primary function of a central bank is to provide the nation’s money supply, but more active duties include controlling interest rates (i.e., price fixing), and acting as a lender of last resort to the banking sector during times of financial crisis (e.g., bailouts). It may also have supervisory powers, intended to prevent banks and other financial institutions from reckless or fraudulent behaviour. Central banks in most developed nations are independent in that they operate under rules designed to render them free from political interference.

In Europe prior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song Dynasty was the first to issue generally circulating paper currency, while the Yuan Dynasty was the first to use notes as the predominant circulating medium. In 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The medieval European Knights Templar ran an early prototype of a central banking system, as their promises to pay were widely respected, and many regard their activities as having laid the basis for the modern banking system.

As the first public bank to “offer accounts not directly convertible to coin”, the Bank of Amsterdam established in 1609 is considered to be the first central bank. The central bank of Sweden (“Sveriges Riksbank” or simply “Riksbanken”) was founded in Stockholm in 1664, making it the oldest central bank still operating today.[5] One role of the Swedish central bank was lending to the government, which was likewise true of the Bank of England, created in 1694 by Scottish businessman William Paterson in the City of London at the request of the English government to help pay for a war. The War of the Second Coalition led to the creation of the Banque de France in 1800.

Although central banks today are generally associated with fiat money, the 19th and early 20th centuries central banks in most of Europe and Japan developed under the international gold standard, elsewhere free banking or currency boards were more usual at this time. Problems with collapses of banks during downturns, however, was leading to wider support for central banks in those nations which did not as yet possess them, most notably in Australia.

The US Federal Reserve was created by the U.S. Congress through the passing of The Federal Reserve Act in the Senate and its signing by President Woodrow Wilson on the same day, December 23, 1913. Australia established its first central bank in 1920, Colombia in 1923, Mexico and Chile in 1925 and Canada and New Zealand in the aftermath of the Great Depression in 1934. By 1935, the only significant independent nation that did not possess a central bank wasBrazil, which subsequently developed a precursor thereto in 1945 and the present central bank twenty years later. Having gained independence, African and Asian countries also established central banks or monetary unions.

The People’s Bank of China evolved its role as a central bank starting in about 1979 with the introduction of market reforms, which accelerated in 1989 when the country adopted a generally capitalist approach to its export economy. Evolving further partly in response to the European Central Bank, the People’s Bank of China has by 2000 become a modern central bank. The most recent bank model, was introduced together with the euro, involves coordination of the European national banks, which continue to manage their respective economies separately in all respects other than currency exchange and base interest rates.