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Saturday, March 28, 2009 |
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Student Loan Tips for New College Graduates |
How are you ever going to pay off your student loans? Is your college debt going to follow you around for the rest of your life?
Investing in Your Future
Although it may seem daunting, if you approach your college loans as an investment rather than a burden it could help you get rid of your debt. If you think about it, you’re not much different than a business that borrowed thousands of dollars in startup money. You took out student loans to fund your professional training, now that you have the needed skills you can earn the money to pay back the debt. First we’ll take a look at making your payments while managing your cash flow.
Student Loan Consolidation
Many small businesses use a variety of funding sources when getting started such as credit cards, personal loans, and money borrowed from friends and family. Once they begin earning a steady income, one of the things they might do to lower payments and simplify the expense is to consolidate their debt into one payment.
Since college students in search of school money will also frequently use an assortment of funding sources, student loan consolidation may help simplify your college debt repayments. Consolidation can also reduce your monthly payments, for example you could go from owing $200 a month on three different loans to owing $200 on one. Obviously, you still have the same amount of debt and you’ll actually pay more interest over the long term. Another reason to consider loan consolidation is if you have loans at several different interest rates, you might be able to role them all into one loan with a better rate.
Lowering Your Payments
Of course, not all college graduates get a job right away, just like not all businesses are profitable right away. There may be a period of time after graduation when little or no money is coming in. Even though cash flow may be tight, you still have to pay back the money you borrowed. One thing you might look into is lengthening your student loan term, which should reduce your monthly payments. Of course this will actually increase the amount of interest you pay over the life of the loan but can help your cash flow in the short term.
Delaying Your Payments?
One advantage that college graduates in debt have over small businesses trying to pay back startup loans is that repayment rules are a little more flexible for students. If you haven’t landed a job yet and run into trouble making your monthly payments you can sometimes work with the lender to get a deferment, which allows you to hold off regular payments. If you don’t qualify for the defermentthere’s also something known as a forbearance which lets you temporarily postpone regular payments, typically for a shorter period of time than the deferment. Although these methods allow you to put off payments the interest on your loan will still be accruing.
Paying Off Your Loans
So far we’ve looked at cases where money is tight right out of school and you need help repaying your debt. If, on the other hand, you do find a job and have money you can put towards making extra payments on your student loan then go for it. The money you borrowed to go to school was an investment in your future earnings power. If you see the results of that investment right out of school and start paying down your loans then your break even point on the money you borrowed will come sooner.
Don’t be discouraged if you can’t afford to accelerate your loan payments, your degree should pay for itself eventually. Many students wouldn’t have been able to afford a college degree without borrowing money. You’re basically using leverage, borrowing money from the government at relatively low rates, to invest in an education. You then use those skills to earn a higher salary and pay off the money you owe over an extended period.
Student Loan Summary
You can use methods such as student loan consolidation, deferments, and forbearance to help manage the amount you pay for student loans as you’re getting on your feet. Once you have an established salary, paying down your loans will reduce the amount of total interest you pay and help pay off the debt faster.
Related Best Link ArticlesLabels: student loan, tips |
| posted by Moderator @ 1:18 PM |
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50 Student Loan Tips |
1. Meet with your financial aid or guidance counselor to get a better understanding of the student loan process.
2. Do not assume that you will not qualify for financial aid - there are many options available. (Some loans such as unsubsidized Stafford Loans and PLUS Loans are granted regardless of need.)
3. Start planning early! You can fill out the Free Application for Federal Student Aid (FAFSA) (after January 1st) even before you graduate from high school. If you have graduated already, start it ASAP!
4. Make sure that the FAFSA form you are filling out is the correct form for the school year in which you are seeking financial aid for.
5. Have all income, asset, tax information, etc. information available and ready to go before starting to fill out the FAFSA form.
6. Include your parents or guardians in on the whole process to help you with any questions that you might have about your expected family contribution (EFC), income, etc.
7. If filling out a paper copy of the FAFSA form, make a photocopy beforehand to practice on, to avoid making any mistakes on the original.
8. Consider completing the FAFSA form on the web at www.fafsa.ed.gov.
9. Always read the instructions before starting to fill out the FAFSA form, and follow them exactly.
10. Make sure that your FAFSA form is filled out completely and accurately to avoid delays.
11. Be honest and precise when filling out your FAFSA - do not lie about incomes, etc.
12. Do not leave any spaces on your FAFSA form blank. Put a zero in the space instead.
13. Do your research - not all loans are created equal!
14. Shop around! Compare lenders and see who will give you the best deal.
15. Look for a lender who will offer a variety of flexible programs to choose from.
16. Look for a loan that does not have prepayment penalties - paying all or part of your loan off early will save on interest!
17.Look for a lender who will guide you through the student loan process and answer any questions that you might have.
18.Educate yourself on the types of loans and see which one fits your needs the best.
19. Understand the benefits and differences between federal loans and private loans.
20. Understand that private loans require a credit check.
21. Consider using a co-signer on private loans.
22. Understand the difference between subsidized federal loans and unsubsidized federal loans.
23. Always read the fine print on your loans, so that you know exactly what terms you are agreeing to.
24. Do not borrow more than is necessary - remember that you will eventually be paying this money back.
25. Sign and return all award letters and/or Master Promissory Notes ASAP!
26. If you are not satisfied with the amount of financial aid you receive, negotiate with your school's financial aid officers, or your lenders.
27. Find out about forgiveness options. Some fields of study offer to compensate part or all of your loans if you will work in that field for a number of years
28. Watch your mail for important information regarding your loan before, during and after your schooling.
29. Pay interest on unsubsidized loans while you are still in school, if possible.
30. Maintain half-time student status. This will keep your loans in deferment, meaning that you will not have to pay the monthly payment yet. If you do drop below a half-time status, you will enter the repayment period of the loan.
31. Stay within your budget to avoid using all of your loan money too soon.
32. Use student loans only for educational purposes. Using this money for other reasons is fraudulent and a criminal offense.
33. If you are filing taxes, meet with your CPA to discuss your options for deductions regarding your financial aid.
34. Attend all of the required Entrance and Exit Loan Counseling Sessions. This will give you important information pertaining to your loan.
35. Make your lender aware of any name or address changes to avoid any unnecessary problems.
36. Consolidate your loans - this could save you thousands of dollars.
37. Consolidate your loans while you are still in your grace period! This will allow you to lock-in at a lower rate than after your grace period is over.
38. Look for a company to consolidate with who will offer the best rates and incentives.
39. Look for a company to consolidate with who will guide you through the process and answer any questions that you might have.
40. Consolidate with a company who will offer different payment plans and options that will accommodate you and your income.
41. Take advantage of borrower benefits. Law School Loans offers a borrower benefit of saving .25% off of your interest rate by paying with auto-debit, as well as an additional 1% rate deduction after 36 consecutive payments. *
42. Create a realistic budget to help with paying your monthly loan payments.
43. Stay organized! Keep copies of your applications and other forms on file.
44. Make your monthly payments on time! Failing to do so can lead to default.
45. Make your monthly payments, regardless of whether or not you receive a bill. You are obligated to make the payments each month, even if you do not receive a reminder.
46. If you are unable to make your payments, contact your lender immediately. There are deferment or forbearance options that could temporarily postpone your monthly payments.
47. If you are granted forbearance, do not drag it out longer than necessary. The interest that accrues while you are in forbearance will be added to your loan balance.
48. If forbearance is necessary, consider it only for your federal loans, and continue making the monthly payments on your private loans. Private loans tend to have a higher interest rate, so this will save you money in the long run.
49. Round your monthly payments up. Paying a little extra each month, can save you a lot of money in the long run.
50. Stay informed about your loans. Always be aware of the balance, interest rates, etc.
Related Best Link ArticlesLabels: student loan, tips |
| posted by Moderator @ 12:11 PM |
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7 Secrets You Need to Know About College Student Loans |
1. Financial aid officers at all the major schools are wined and dined by the big student loan companies. These financial aid offices have set-up a "loan process" with a specific lender. In many cases, this is the federal government, but many colleges are now going with private corporations. The paperwork hassle in dealing with a bureaucracy has become too much for these financial aid officers. In some cases, the financial officer is really a "stand-in" rep. for a student loan company. However, what they are selling or advocating may not be the best deal. Consider that when you're trying to get financial aid help from a financial officer at a school.
2. Under the Clinton administration the federal government got involved in the student loan process in a big way. Now the private companies are getting the business back. If you are going to a private college you may not be eligible for federal loans.
3. Always consider your options and talk to a financial aid counselor. If you are applying for graduate school, be aware of the fact that there are few scholarships for graduate school relative to undergraduate programs. You may be able to find a scholarship, but in most cases it will not cover the real costs of graduate school. A graduate student loan may be your only option.
4. It is recommended that you go with a loan company that offers all of the following types of loan services:
Private Student Loans
PLUS Loans
Federal Stafford Loans
Student Loan Consolidation
Private Consolidation Loans
You want the largest selection possible.
5. Whenever possible lock in a student loan rate. Some loans are based off the Treasury bill. In these cases, the loan rate fluctuates. This can either be really good or bad. When interest rates go up, you may want to restructure the loan.
6. Pick a fixed student loan rate and start date to do a side by side comparison. Make sure that you are comparing apples to apples when student loan shopping and checkout numerous student loan companies before making a decision.
7. Never borrow more than you absolutely need. Compound interest can make a small student loan turn into a huge amount. Don't take out extra money and play the stock market or try to get rich quick. This scenario almost never works out for college students. Moreover, in most cases it is a violation of the student loan agreement.Labels: student loan, tips |
| posted by Moderator @ 12:02 PM |
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16 Tips for a Better Home Loan Decision |
This collection of tips aims to address the concerns and problems which we most commonly see people experiencing. It's been built up from discussions with eChoice's expert telephone consultants and home loan managers.
Decide what really counts
Everyone has different needs. You may hate the idea of monthly loan fees. Or you may think a few dollars a month is fine – but only if you can pay extra funds into your loan and take them out when you need them at no extra cost. You may want the option of moving to a fixed interest rate down the track. Or you may want to buy as much house as you can possibly afford, even if that means a low-flexibility no-frills loan.
Deciding which of these options suits you is one of the hardest things about taking out a home loan. (eChoice's application process, its telephone consultants and its home loan managers can help you sort out your priorities.)
Consider all the lending alternatives
Twenty years ago, almost everyone got their home loan from a bank or a building society. These days, you have many other alternatives. Specialist home loan companies like RAMS and Aussie Home Loans are growing ever more popular. The latest trend is firms that can offer products from several lenders. Well over half of all US home borrowers now get their loan this way. (This is the way eChoice works; we’ve selected a panel of lenders to ensure that you receive the loan features, rates and service that best match your needs.)
Compare loans
The right loan for you will have a particular combination of features, service and interest rate. It’s unlikely to be the first deal that’s offered to you. There’s plenty of help available. You can find comparisons of loan rates and features at eChoice. eChoice takes comparison one step further with a Web-based computer program called ChoiceMatch, which identifies loan products and lender that match your individual needs, and lending experts who ring you to sort out the details and help you understand your options.
Have the lender come to you
Visiting someone else’s office can be an uncomfortable experience, and takes more time than you’d want. Some firms - including eChoice, the Commonwealth Bank and RAMS - can send a “mobile lender” out to visit you and discuss your needs.
Don’t judge a loan on its rate alone
Your best loan probably won’t have the lowest rate around. The features and service you get can be much more important. For instance, a few of the cheapest loans won’t let you make extra repayments. And those cut-rate loans typically have the highest application fees.
Seek out experience
Older friends and relatives will often provide valuable advice as soon as you tell them you need help. Don’t be afraid to tap their expertise. (Research by eChoice and the Roy Morgan Research Centre shows family and friends are the single biggest source of home loan knowledge.) And you can find more expertise outside your immediate circle. When you apply on the eChoice Web site, you get a call from an experienced lending expert – someone who’s been in the lending game for many years and will take the time to help you understand your options.
Find a loan you can live with
Many of today’s loan products let you take money out of your mortgage for needs like a car or school fees. These are great features – as long as they don’t stop you paying off your loan. Will you be strong enough to resist the temptation to use the money that’s available? Now’s the time to know your limitations: if you can’t discipline yourself to repay fast, you might be better off with a less flexible loan. And because it’s less flexible, that loan will probably have lower rates and fees.
Get a health check on your existing loan
When you check your existing loan against what else is out there, you may find worthwhile savings. Such "refinancing" works particularly well if you can add other debts into your home loan, letting you pay off a car loan or personal loan at lower home-loan rates. Make sure you don’t end up paying your debts off more slowly. Take the refinancing savings and use them to pay off your loan faster.
Service matters
Lenders may promise quick service, yet take weeks to deliver your loan. Big banks can be as slow as tiny mortgage companies. Paperwork gets lost or delayed. In these cases, it helps to have a representative who can push the lender along on your behalf.
Don’t take too much notice of "unbelievable rates"
For instance, some lenders have been offering "honeymoon" rates as low as 3.99 per cent. But those eye-grabbing rates "revert" to a much higher standard rate after a few months, and the fees can be fierce. The loan with the amazing rate may leave you paying more for years afterwards. Or it may only be available under very strict conditions – conditions you don’t want to meet.
Watch out for exit costs
Some loans carry a hefty fee if you pay them off early. One of these products may be your best loan – as long as you know you want to keep your mortgage for many years.
Understand how mortgages work
Taking out a home loan can seem scary, especially if it’s your first. Talking with friends and relatives will take away some of the mystery. eChoice’s Web site offers more than 50 fact sheets to help you understand the home loan process.
Don’t buy features you won’t use
eChoice often comes across borrowers who say they want a product such as an "all-in-one" loan, which lets you bundle your salary, borrowings and savings into one account. Many people find that a highly-featured loan perfectly suits their needs. But you pay higher interest rates and fees for all those features. After talking with our lending experts, some of our customers decide they don’t need as many expensive features as they thought they did. Whether you use eChoice or get your loan some other way, ask yourself: "what am I really going to use?"
Shark alert!
Taking out a home loan has less risks than investing (after all, the lender’s giving you money) but you may still end up relying on your lender’s judgements. You want those judgements to be made in your interest. Choose a lending organisation with a reputation for ethical behaviour. (A few firms have been known to charge just for showing you how their preferred loan will work. This service shouldn’t cost you anything. eChoice and many other lending groups provide it free.)
Beware the Line of Credit
Borrowers like the flexibility of being able to put all your savings straight into your loan, and then draw on it whenever you need it. Many loans let you do this. But some borrowers end up with a product called a "line of credit" – a loan which never gets paid down. eChoice offers line-of-credit loans, but they're appropriate for only a very small group of borrowers. eChoice home loan manager Mike Ayres calls this the single biggest problem he’s seen borrowers getting into recently.
Before refinancing, speak to your existing lender
Refinancing your loan can slash your borrowing costs. But some fixed-rate loans will cost you more to refinance than you could possibly save. In some cases, you’ll be better off doing nothing.Labels: home loan, tips |
| posted by Moderator @ 11:59 AM |
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6 tips to choose your home loan lender |
Every one dreams of buying a home but most of us do not have sufficient funds in our bank account to make such a purchase. So we are left with the option of asking a housing finance company to finance our purchase. However choosing the best home loan lender is important if we have to escape all the hassles that are linked to availing a loan.
Also before you pick the lender for your home loan try to sort out in own mind the criteria you are looking considering your own credentials. Check on some important aspects of the loan, such as finance costs and interest rates. Tracing down a good home loan lender who can guide you through the entire loan procedure and help in accomplishing your dream of a nice house is a little difficult. So some of the following tips can help you in achieve your dream faster.
1.Finalize your property before the lender
You should always finalize the property you want to purchase before looking for lenders that would be ready to finance your house. This is important because some banks lend for a property that is already furnished while others extend for a self constructed property or property that is under construction. Thus it is better to finalize the category of your property first and then look for lender options. It will help us to focus in a defined area and extract all relevant information before finalizing on the lender.
2.Ensure your loan eligibility criteria
All the banks follow some eligibility standards for giving a loan. Primarily, it depends on your income and repayment track records. You can get details of all bank home loan criteria from individual banks or in the Rupeetimes Home Loan section and choose the one that can offer you maximum amount based on your income. The loan eligibility amount can also be increased if you club your and spouse’s income.
3.Fixed or Floating interest rate
One is always left in dilemma while opting between fixed and floating interest rate. It is always thought that a fixed interest rate means same rate throughout the tenure but sometimes it is adjustable after a certain period of time, provided which either your EMI amount or the loan tenure can increase. Thus it is better to clear this point in hand with your lender. On the other hand, if you are opting for the floating rate loan, make sure that your lender’s floating rate has come down at least over the past two years. Market scenario should also be analyzed if you planning to avail a floating rate loan as it depend on the economy’s interest rate. Some time back Rupeetimes.com covered an article describing the pros and cons of fixed and floating loan rates.
4. Processing fee is non-refundable
Banks always charge a fee in order to apply for loan with them. This fee is known as the processing fee and is non-refundable. Generally it varies between 0.50% and 1% of the total loan amount. However one should be clear that paying a processing fee does not mean that o loan will be sanctioned by the bank. Therefore it is always better to have written agreement with your lender. A switching fee is also charged if plan to switch from a floating rate to fixed rate. The catch is that you can try to negotiate on this. Some banks on negotiations even give you a flat processing fee.
5. Assure all the hidden costs
Mostly the interest rate charged by the bank is taken into consideration while taking a loan but there are large hidden costs involved with most loans that prick the borrower’s pocket. Hence it is advisable to decide on all legal charges, pre-payment charges, valuation fees, processing fee and other hidden costs before a loan is availed.
6. Be assured about the lender before making a choice
You should always be well informed about your lender as it will help to have a clear picture about the future. Depending on where you live, you can locate online comparison on rupeetimes.com that will tell you about a number of similar lenders suiting your needs. At a glance you can get all the right and detailed information you need and on what each lender can offer to its customers. If you match up what each lender can give you to what you are actually looking for and which best suits your needs, you can then compare it with others.Labels: home loan, tips |
| posted by Moderator @ 11:57 AM |
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Home Loan Tips |
The home buying process can seem complicated, but if you take things step-by-step and you know how to choose the right home loan, you will soon be holding the keys to your own home!
Ten steps to buying a home
Step 1: Figure out how much you can afford. What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. The calculators can help, but it is best to visit a lender to find out for sure. A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that down payment!
Step 2: Know your rights
Step 3: Shop for a loan. Save money by doing your homework. Talk to several lenders, compare costs and interest rates, and negotiate to get a better deal. Consider getting pre-approved for a loan.
Step 4: Learn about home buying programs
Step 5: Shop for a home. Choose a real estate agent, Wish list - what features do you want, Home-shopping checklist - take this list with you when comparing homes.
Step 6: Make an offer. Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.
Step 7: Get a home inspection. Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.
Step 8: Shop for homeowners insurance Lenders require that you have homeowners insurance. Be sure to shop around.
Step 9: Sign papers. You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!
Step 10: The House is yours now. Have Puja or hawan.
Terms used in Housing Finance
EMI: Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal
Floating Rate of interest: Rate of interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up
Monthly Reducing balance: In this system interest reduces monthly with repayment of Principal amount
Annual Reducing Balance: In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back
Fixed rate of interest: Rate of interest remains unchanged throughout the period of the loan
Processing charge: It's a fee payable to the lender on applying for the loan
Prepayment Penalties: When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment
Commitment Fee: Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned
Miscellaneous Cost: It is quite possible that some lenders may charge documentation or consultant charges .Labels: home loan, tips |
| posted by Moderator @ 11:47 AM |
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You can settle the loan on payday |
Lisa Bachelor The Observer, Sunday 29 June 2008
Offshore money-lending companies charging interest rates in excess of 2,000 per cent are targeting cash-strapped borrowers in the UK via the internet. They are offering 'payday loans' that provide desperate borrowers with up to £1,000 over 31 days, which then has to be paid back with hundreds of pounds added on in interest.
Some lenders come from the US, where payday loans have become big business since the credit crunch. One, Pounds Till Payday, operates from Malta and its website declares annual interest rates of 2,225 per cent.
'We are concerned that although payday loans have been on the UK high street for some time they are now springing up in increasing numbers online,' says Peter Tutton, debt policy adviser at Citizens Advice. 'Until recently people on a low income could still access loans from mainstream lenders but now the banks have closed their doors to higher risk customers.'
The Archbishop of Canterbury, Rowan Williams, recently opened a House of Lords debate on families and debt and called for 'an urgent review' of the rates charged by doorstep lenders.
Debt On Our Doorstep, a coalition of debt charities and credit unions, is so concerned about payday loans that it has tabled a motion in Parliament calling for an investigation into them.
The loans are targeted at desperate borrowers who cannot get money elsewhere. No credit checks are carried out and all that is required in most cases to get the money is bank account or debit card details. The money is paid into the borrower's account the same day and is debited straight from the account - with charges - 31 days later.
This no-questions-asked approach to lending is irresponsible, say the debt charities, tempting people to borrow money...#65279; with no prospect of repaying.
'We would suggest that not bothering to run any credit checks or verify income constitutes irresponsible lending and would like the Office of Fair Trading to look at whether these companies should have their credit licences revoked,' says Damon Gibbons, chair of Debt On Our Doorstep.
Citizens Advice came across one case of a single parent with a 10-year-old child who had multiple debts of £8,000. Her weekly income when she came to the CAB consisted of £83 statutory sick pay and £200 in state benefits. One of her debts was a payday loan, taken out online, with an APR of 1,355 per cent.
'Her mental health was deteriorating and her financial situation was becoming increasingly impossible,' said a Citizens Advice spokesman.
The Observer talked to an online saleswoman - 'Danielle' - at Pounds Till Payday and was told that for £100 borrowed the company would charge £29.98. When we asked if there were any late payment charges if we did not have the funds to pay within 31 days, we were told that a £59 charge would be added to the bill, which is not advertised anywhere on the website.
Other operators include Payday Express, which charges £20 for each £100 borrowed, and Month End Money, which charges £25 per £100.
Debt advisers are worried that the squeeze on credit will lead to a similar situation as in the US, where payday loan companies are commonplace. In some parts of Cleveland, the city in Ohio hardest hit by the sub-prime mortgage crisis, all the conventional banks have been replaced by payday lenders.
Payday loans are so insidious that they have been banned in a handful of states; in New York, annualised rates of interest offered by any lender must not exceed 25 per cent. But even in New York the number of so-called 'check-cashing shops' is on the rise.
The biggest payday loans company, the MoneyShop, owned by US company Dollar Financial, has 250 stores in the UK and recorded 55 per cent lending growth in the last quarter of last year.
The loans are advertised heavily on the internet and are even offered via big-name financial comparison websites Moneysupermarket.com and Moneyexpert.com. Sean Gardner, chief executive of Moneyexpert.com, says: 'Payday loans have their place, but people have to be very clear about what they are signing up for. There are rightly serious criticisms about the product and they should come with a health warning.'Labels: payday loan |
| posted by Moderator @ 10:59 AM |
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About Payday loan |
A payday loan (also called a paycheck advance or payday advance) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card (see cash advance). Legislation regarding payday loans varies widely between different countries and, within the USA, between different states.
Some jurisdictions impose strict usury limits, limiting the nominal annual percentage rate (APR) that any lender, including payday lenders, can charge; some outlaw payday lending entirely; and some have very few restrictions on payday lenders. Due to the extremely short-term nature of payday loans, the difference between APR and effective annual rate (EAR) can be substantial, because EAR takes compounding into account. For a $15 charge on a $100 2-week payday loan, the APR is 26 × 15% = 390% but the EAR is 1.1526 - 1 × 100% = 3686%. Careful reporting of whether EAR or APR is quoted is necessary to make meaningful comparisonsLabels: payday loan |
| posted by Moderator @ 10:53 AM |
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Why Choose 24 Hour PayDay Loan |
Quick - same day cash advance (within 24 hours)
Simple, hassle free application - all online for your convenience
Affordable fixed repayments - with no hidden charges. Cheaper than credit card interest or going overdrawn.
Names you can trust - all our providers have been providing payday advances for many years
Faxing is not always required - with QuickSilver and with Payday UK the whole application process is done online (their "Express" service)
No credit checks are done - which means a poor credit history is not a problem (n.b. Payday UK do conduct a credit check as part of their "Express" service)
Confidential - no-one will approach your employerLabels: payday loan |
| posted by Moderator @ 10:41 AM |
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Payday Loans |
Payday Loans from £50 to £1000
Apply TODAY, Spend TODAY, and repay on your PAYDAY!
It seems a long way until your next payday. You think you'll run short of cash. You need a payday advance - an online payday loan that is repaid directly out of the coming month's pay cheque. They are Quick, Easy, payable to you the Same Day, and Fully Confidential.
A Payday Loan will help you get through a cash crunch without paying late fees (e.g. credit cards) or bouncing cheques. It can also cover you for the period while you are sorting out unsecured/secured loans or remortgages.
Choose from a great range of approved lenders - there is no restriction on the number of applications you can make, and so you may wish to apply to more than one to maximise your chances of getting the funds you want. You can find out more about the basics of Payday Loans below. We have also have a detailed FAQ section for you.
Quicksilver
Borrow from £80 to £750
2 minute secure online form with instant decision given to you - no awkward questions & complete privacy
Secure form means total confidentiality and security
Funds direct to your bank account in 24 hours
wonga
Borrow from £50 to £750 (maximum £200 on the first occasion)
Repay early with no extra fees. Improve your trust rating to borrow more next time.
Charges are higher than QuickSilver.
Wage Advance
Borrow from £80 to £750
You need a bank account and a debit card
You need to be employed with an income of £700+ per month.
You need to have been employed in your current job for at least 2 months.
Provident Personal credit
Borrow from £50 to £500
Short term unsecured personal credit - not strictly a payday loan service - an alternative
4 different types of loan product to choose from
A poor credit history need not be a problem
Friendly door-to-door service - some post code restrictions.
You do not need a bank account or debit card
Payday uk
Borrow from £80 to £750
Their "express" service means one short online form and instant service - no fax required.
No cheque book required - only a debit card is needed
Simple online application process
Dune Finance
Borrow up to £1,500 the same day
Small unsecured loans rather than a payday loan
Apply immediately by phone - no quibble refund policy on calls made
All application details done by phone - no paperwork, and full confidentialityLabels: payday loan |
| posted by Moderator @ 10:27 AM |
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Thursday, March 26, 2009 |
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Federal Student Loan Consolidation |
Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation is a great tool for managing your finances - providing immediate payment relief and long term benefits. With our fast and convenient eSignature, your application will be complete in just a few minutes.
Cut your monthly student loan payment by as much as 50%
Simplify your finances with one monthly payment
Improve your credit rating
No credit checks, fees, or application charges
Reduce your interest rate 0.6% by consolidating during your grace period
Free Non-Student Loan Debt Consultation
Do you have more debt outside of student loans? Please request a free debt consultation today. Consolidate your debt into one lower payment, avoid bankruptcy, and be debt free in as little as 12-48 months. Get Started Now!
Get Started – Easy Online Application
Federal Student Loan Consolidation Payment Relief
One of the key benefits of consolidating your federal school loans is payment relief. By combining all of your student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable. Learn more about how student loan consolidation works in this step-by-step tutorial.
Consolidating with Student loan Consolidator
Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.
What Qualifies for Federal Student Loan Consolidation?
Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.
Get Started – Easy Online Application
Consolidating with Student loan Consolidator
Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.Labels: student loan |
| posted by Moderator @ 9:27 AM |
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FinAid : Student Loan Consolidation |
Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It is very similar to refinancing a mortgage. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.
A separate page provides a comparison chart of consolidation loan discounts.
Most FFELP lenders are no longer offering consolidation loans because these loans are no longer profitable. Students can still consolidate their loans with the US Department of Education's Federal Direct Loan Consolidation program at loanconsolidation.ed.gov even if their college does not participate in the Direct Loan Program.
Interest Rates
The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
For example, suppose a student has just unsubsidized Stafford Loans originated on or after July 1, 2006. These loans have a fixed interest rate of 6.8%. When they are consolidated by themselves, the consolidation loan will have an interest rate of 6 and 7/8ths of a percent, or 6.875%. So the interest rate increases only slightly.
If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. For example, if the borrower has $5,000 of Perkins Loans (at 5.0%) and $10,000 of unsubsidized Stafford Loans (at 6.8%), the weighted average is
$5,000 * 5.0% + $10,000 * 6.8%
------------------------------ = 6.2%
$5,000 + $10,000
This weighted average, 6.2%, is then rounded up to the nearest 1/8th of a percent, yielding a consolidation loan interest rate of 6.25%.
Note that the weighted average does not fundamentally alter the underlying cost of the loan. It preserves the cost structure by including each interest rate to the extent that it applies to part of the overall loan balance. For example, the consolidation loan in the previous paragraph says that of the $15,000 consolidation loan balance, $5,000 will be at 5.0% and $10,000 at 6.8%, yielding an equivalent interest rate of 6.2%.
If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.
(For the mathematically inclined, there is a slight difference due to the different shapes of amortization curves at each interest rate. In the example given above on a 10 year term, $10,000 at 6.8% has a monthly payment of $115.08 and total interest paid of $3,809.66, $5,000 at 5.0% has a monthly payment of $53.03 and total interest paid of $1,364.03. If you add these, you obtain a total monthly payment of $168.11 and a total interest paid of $5,173.69. Using the weighted average, $15,000 at 6.2% has a monthly payment of $168.04 and a total interest paid of $5,165.01. So using a weighted average yields a very small reduction in the monthly payment (in this case, 7 cents) and in the total interest paid ($8.68) due to a kind of triangle law. Of course, when you consolidate the interest rate is rounded up to the nearest 1/8th of a point, so $15,000 at 6.25% has monthly payments of $168.42 and total interest of $5,210.42, yielding a slight increase. So you pay a tiny bit of a premium for consolidation, due to the rounding up of the interest rate.
The PLUS loan interest rate loophole can reduce the interest rate on 8.5% fixed rate PLUS loans by 0.25% through consolidation.
If you were deferring the interest on an unsubsidized Stafford Loan by capitalizing it, most lenders will add the capitalized interest to principal when you consolidate. (Lenders can capitalize interest at most quarterly, but most capitalize it once when the loans enter repayment or at other loan status changes.)
No Cost to Consolidate
Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans. There are no fees to consolidate.
Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. While other federal education loans, such as the Stafford and PLUS loans, may charge some fees, the fees are always deducted from the disbursement check. There is never an up front fee. If someone wants you to pay an up front fee, chances are that it is an example of an advance fee loan scam.
Who Can Consolidate
Both student and parent borrowers can consolidate their education loans. (Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.)
Married students are no longer able to consolidate their loans together. This provision was repealed effective July 1, 2006. When married students consolidated their loans together, each spouse became responsible for the full amount of the loan, and the loans could not be separated if the couple got divorced. To avoid such problems in the future, Congress decided to repeal this provision as part of the Higher Education Reconciliation Act of 2005.
Students can only consolidate their education loans during the grace period or after the loans enter repayment. (Loans that are in default but with satisfactory repayment arrangements may also be consolidated.) Students can no longer consolidate while they are still in school. (The early repayment status loophole and the ability of Direct Loan borrowers to consolidate during the in-school period was repealed as part of the Higher Education Reconciliation Act of 2005, effective July 1, 2006.)
Parents, however, can consolidate PLUS loans at any time.
You Can Consolidate with Any Lender
Students and parents can consolidate their loans with any lender, even if all of their loans are with a single lender. (The single holder rule was repealed on June 15, 2006, as part of the Emergency Supplemental Appropriations Act of 2006. Borrowers no longer need to exploit the single holder rule loopholes in order to consolidate with any lender.) Direct Loans can also be consolidated with any lender. This allows you to shop around for a lender that offers a lower rate or better discounts.
Most lenders require a minimum balance before they will consolidate your loans. For example, many lenders will only offer consolidation loans for borrowers with loan balances of at least $7,500. A few lenders will offer consolidation loans for balances of $5,000 or more, and the Federal Direct Consolidation Loan program has no minimum balance for consolidation loans. (Lenders may not discriminate against borrowers who seek consolidation loans on the basis of number/type of student loans, type/category of educational institution, the interest rate on the loans, or the type of repayment schedule sought by the borrower. Lenders are, however, able to discriminate on the basis of the amount of the loans being consolidated, so lenders can set a minimum balance on the loans.)
Which Loans Can be Consolidated?
Any federal education loan can be consolidated. You can even consolidate a single loan. There are, however, a few restrictions on consolidating a consolidation loan.
You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself. These restrictions have been in effect since early 2006.
Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. Consolidation does not pierce the veil on previous consolidations.
The new restrictions on consolidating a consolidation loan limit your ability to use consolidation to switch lenders. Generally, you will consolidate your loans once, toward the end of the grace period or after the loans enter repayment, and then be locked into that lender for the lifetime of the loan. If you want to preserve your ability to use consolidation in the future to switch lenders, you should exclude one of your loans from the consolidation.
Repayment Plans
Consolidation loans provide access to several alternate repayment plans besides standard ten-year repayment. These include extended repayment, graduated repayment, income contingent repayment (Direct Loans only) and income sensitive repayment (FFEL only). If you do not specify the repayment terms, you will receive standard ten-year repayment.
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid over the lifetime of the loan is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
You do not need to pick an alternate repayment plan. We recommend sticking with standard ten-year repayment, because it will save you money. The alternate repayment plans may have lower monthly payments, but this increases the term of the loan and the total interest paid over the lifetime of the loan. See our caveat about extended repayment below.
Repayment on a consolidation loan will begin within 60 days of disbursement of the loan, unless the borrower qualifies for an deferment or forbearance.
Federal education loans, including consolidation loans, do not have a prepayment penalty. So you can pay off all or part of your federal education loans without incurring a penalty. If you want to take advantage of this, be sure to include a letter with the extra payment indicating that it should be applied to reducing your principal. Otherwise, the lender may treat it as an advance payment of the next month's monthly payment.
Tools for Evaluating Consolidation Options
FinAid's Loan Consolidation Calculator can help you understand the tradeoffs of consolidating your loans. It compares the reduction in the monthly loan payment with the increase in the total interest paid over the lifetime of the loan. It also shows you the interest rate on your consolidation loan.
Despite the switch to fixed interest rates on Stafford and PLUS loans eliminating a key financial incentive to consolidate, there are still several reasons to consolidate your education loans. These include having a single monthly payment, access to alternate repayment plans, the PLUS loan interest rate loophole, and the ability to reset the 3-year clock on deferments and forbearances. But consolidation can cut short the grace period, although the grace period loophole can work around this problem. It is best to avoid consolidating Perkins loans, because you lose several valuable benefits. Beware of extending the term of your loan, as this can increase the total interest paid over the lifetime of the loan; you can stick with standard ten-year repayment.
Before consolidating, always evaluate the benefits provided by the current holder of your loans. The loan discounts offered by originating lenders tend to be superior to those offered by consolidating lenders, since consolidation loans have tighter margins. Also, if you received a fee waiver or rebate from the originating lender, you may have to repay that discount if you consolidate with another lender. It may be possible to get some of the benefits of alternate repayment plans without consolidating, such as extended/graduated repayment with a loan term of up to 25 years and a single monthly payment, if you have more than $30,000 in federal education loan debt accumulated since October 7, 1998 with the lender. (This is due to a little known provision of the Higher Education Act, in section 428(b)(9)(A)(iv), and the regulations at 34 CFR 682.209(a)(6)(ix).)
You can change the repayment schedule on your loan once per year. So consider starting off with standard ten-year repayment on your consolidation loan. You are not required to start off with extended repayment. If you find it difficult to afford the payments, you can always switch to extended repayment later.Labels: student loan |
| posted by Moderator @ 9:05 AM |
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