May 24, 2017 / by admin / advice / No Comments

Repayment Plans for Consolidated Student Loans: Federal Student Loan Consolidation’s Four Repayment Options

Those looking to bundle multiple federal student loans into a single loan do so for many reasons. For some, it’s the organizational convenience of making one monthly payment which makes consolidation attractive. Others seek federal student loan consolidation to lower their monthly payments and reduce their short-term debt after financial hardships brought them close to defaulting.

Regardless of the reason, those considering federally-backed Direct Consolidation Loans have four repayment options from which to choose. This article will explain these repayment plans and describe the benefits of each.

Federal Student Loan Consolidation – Two Basic Repayment Plans

For borrowers of federal student loans, two basic repayment plans exist:

  • Standard Repayment Plan – borrowers pay a fixed monthly amount which must be at least $50. Depending on one’s total indebtedness, the consolidated loan must be payed back to the Department of Education within 10 to 30 years. (The guidelines for when a loan must be repaid are found at the end of this section.) One benefit of a Standard Repayment Plan is that, over time, borrowers may end up paying less in interest than with a Graduated Repayment Plan.
  • Graduated Repayment Plan – borrowers’ minimum payments with this plan must be at least as much as the monthly amount of interest accrued. Often, payments begin very low. However, they increase every two years during the life of the repayment. Due to the low initial monthly payments, borrowers normally will pay more overall with this loan than with a Standard Repayment Plan. Despite this, it may be ideal for low income earners who anticipate better earnings in the future. As with a Standard Repayment Plan, borrowers on this plan must repay the loan within 10 to 30 years, depending on one’s indebtedness.

For both of the above plans, repayment of the consolidated federal student loan depends on the amount of indebtedness a borrower has. Below are the repayment time requirements:

  • For those whose indebtedness is less than $7,500, the consolidated loan must be repaid within 10 years;
  • For those whose indebtedness is between $7,500 and $9,999, the loan must be repaid within 12 years;
  • For those whose indebtedness is between $10,000 and $19,999, the loan must be repaid within 15 years;
  • For those whose indebtedness is between $20,000 and $39,999, the loan must be repaid within 20 years;
  • For those whose indebtedness is between $40,000 and $59,999, the loan must be repaid within 25 years;
  • For those whose indebtedness is $60,000 or more, the loan must be repaid within 30 years.

These two plans offer simple, long-term repayment options for consolidated loan holders. The next section will detail two additional plans which have more complex applications.

Federal Student Loan Consolidation – Two Complex Repayment Plans

The following two plans offer additional repayment choices for consolidated federal student loan holders:

  • Extended Repayment Plan – borrowers can only qualify for this repayment option if their total indebtedness exceeds $30,000. If such is the case, borrowers have up to 25 years to repay the consolidated loan, and may choose either a Standard Repayment Plan or Graduated Repayment Plan to do so.
  • Income Contingent Repayment Plan – this plan provides flexible options for borrowers so as not to jeopardize their financial solvency or the solvency of their family. The amount of a borrower’s monthly payments is determined by measuring one’s Adjusted Gross Income, family size and remaining loan balance. To qualify for this plan, borrowers must be willing to disclose their personal tax information (and if married, information for one’s spouse as well). According to Federal Student Aid, “Monthly payment amounts for some borrowers may not be enough to cover the interest accruing on their loans. This situation is referred to as negative amortization. In such cases, the unpaid interest is capitalized and added to the principal balance once per year. The amount added to the principal balance will never exceed 10 percent of the original Direct Consolidation Loan amount. Once this capitalization limit has been reached, interest continues to accrue but is not capitalized. The capitalization limit does not apply to interest that accrues during deferment or forbearance.” It should be noted that often times, because repayment amounts are small, loans are not repaid within 25 years. In such cases, the remaining balance of the consolidated loan can be forgiven.

Borrowers with a consolidated federal student loan considering each of the four repayment options must balance near-term financial needs with long-term financial obligations. However, immediate financial needs will often dictate which plan works best.

Federal Student Loan Consolidation – Changing Repayment Plans

It is possible for borrowers to switch repayment plans for their consolidated federal student loans, and there is no limit to the amount of times a borrower may switch. However, those who have chosen an Income Contingent Repayment Plan must make at least three payments before changing options.

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May 24, 2017 / by admin / advice / No Comments

Best Credit Cards for Students in HS & College: How to Pick a Credit Card &Teach Your Student Responsible Use

Your child is leaving home for college where he will have to learn everything from how to register for classes to how to take the pens out of his jeans before putting them in the washer. Consider whether this is the right time for him to learn responsible use of credit along with a thousand other things. Here’s how to send your student out into the world armed with the knowledge that will prevent the kind of credit card abuse that wreaks havoc on credit ratings and can take years to overcome.

The Right Age for Credit Cards for Teens

Young children seeing their parents at the automatic teller believe that all the money you ever need is available at the push of a button. Teenagers, watching their parents use plastic for everything from iTunes to eye exams, but missing the part where the monthly bill is paid, might also think that a credit card is the key to a kingdom of unlimited shoes, video games and tacos. Basic as it seems, the first step toward successful use of credit cards is making sure your teenager understands how they work

According to Assistant Vice President Ryan Mills of Park National Bank  a teen is ready for a credit card only when she has completed a personal budget. Students should understand the mechanics of budgets, loans, and interest, and the difference between planned and unexpected expenses, necessities and discretionary spending. Learning to use credit cards responsibly means understanding when and how it is appropriate to use them.

Debit Cards for High School & College Students

Debit cards are a good first step, and according to the ABA (American Bankers Association) Education Foundation Get Smart About Credit Program, 50% of 18 and 19 year olds who use plastic have them. Debit cards are tied into an existing account, and because the cardholder is spending his or her own money, this is a good introduction to the use of plastic without the potential for debt. It is important for parents to realize that while debit cards are a valuable tool for students, they are not borrowing and repaying money so they are not generating a credit history. To do that, your student will need to go to the next step, which could be a low credit limit card,

Secured Credit Cards for Students

The best credit card for a student who has successfully mastered use of a debit card might a secured credit card. This type of card, while not funded with an account like a debit card, is backed up by a deposit at the bank. In the event that the cardholder does not pay her bill, the bank can and will deduct the payment (along with a hefty amount of interest) from the bank account.

Low Credit Limit Cards for Teens

Your best bet, once your teen has proven herself with a debit card, might be a credit card with a low credit limit. Parents should consider setting up a credit account in which they are the primary borrower, with the student as a cardholder on the account. The primary borrower receives the monthly statement and should review these statements and discuss them with the student until he is certain that the cards are being used wisely. Proper procedure for handling a credit card account includes the following:

  1. Keeping all receipts
  2. Checking the purchases (receipts) against the statement
  3. Paying the full amount on time ,every month

Compare Credit Card Rates

Although it should be your student’s goal to maintain a zero balance on his account, one of the best aspects of credit cards is the availability of funds for emergency use. Even the most careful young savers are sometimes faced with transmission repairs and broken bones that will need to be paid for over a series of billing cycles. When applying for a credit card, compare credit card rates, and even if you intend to pay off the balance every month, select a card with a low APR (annual percentage rate, the amount of interest you will pay annually on credit card balances) just in case.

Credit cards, a fact of life in today’s financial world, are easily abused in ways that can take years to overcome. Don’t wait till your student is drowning in credit card debt to teach him responsible use of this helpful financial tool!

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December 5, 2016 / by admin / advice / No Comments

Quick Cash Payday Loan – 4 Must Knows

Today that the majority of us live an active and busy life style that sometimes filled with money woes, that’s why 90 day installment loans can . This type of loan has fast approval and within a cases you are able receives a commission in less as one day. Easier to get than an advance loan with lower interest charged its for you to see why they are becoming more popular when vehicle tight.

These loans are made to meet the urgent needs of those persons who go to the mid of the month along with their payday is much away which is they cannot wait for. One hour payday loans are very much similar with small 2 hours with added feature all testimonials are can avail this loan even your past mid belonging to the month.

For our example, product information use a borrowing arrangement fee of $15 for every $100 borrowed. This is a typical rate, although you could find lower rates for period borrowers.

Cobra payday loans for bad credit with no credit check are very suitable form of cash loans. These loans help a person with low credit worthiness to receive their loan sanctioned and meet their short-run obligations.

Investigate about individual wageday loan firms. Many dallas lenders give a loan for moderateness but to buy limited stage. It is recommended you just conduct a credentials check to recognise if the firm is trustworthy and not fraudulent in general. Avoid giving out your personal information to firms who you don’t trust in.

If your loan was illegal, then predicament would tend to be better. Specifically why is, would certainly think have just paid from the principal amount and cleared this liability. Unfortunately or fortunately, a substantial role . is tiny bit different within your case. This sort of payday loan provider is legal in your state. This company has the license to do business many other states also. So, you’re had to have to pay back both the main amount and interests.

Payday lending exists because it provides another significant element tool that can’t be found anywhere. In these days of foreclosures, bad economic times and shrinking credit (even to “good credit” customers), can be certainly sometimes a need for a very quick emergency borrowing option that does not entail benefit fees charged by banks and credit card debt. An article published within April 14, 2009 Wall Street Journal described how consumers who took out payday loans “avoided expensive checking account overdraft fees”. The article went in order to state that “nearly 90% said these people either very or somewhat satisfied without the pain . (payday loan) transaction” and concluded that “compared to (bank) overdraft practices, 2 hours are transparent”.

You can go for a minimum amount of AU$100 and it also would not extend beyond AU$1500. It is return superior health sum amount along with no interest charges within a period of 30 instances. You would not be condemned on the cornerstone of credit history history. Monetary reputation sometimes have gone through severe setback on the grounds of bad factors. Using a hammer ? be denied instant student loan. Such bad factors or adverse situations the like foreclosures, bankruptcy, missed payments, defaults, etc. You may well be one among the non property holders. As a way to gain these instant short term loans, utilize have to use a the obligation of risking any property as home mortgage.

You dont need to complete the any paper work formalities for this loan scandal. You need to fulfil some requirements to make the money via this loan scheme consist of you ought have a legitimate active and checking and saving account either any kind of govt. bank or in private account. Along this, the applicant also in order to have an unchangeable residence in USA along with the applicant age also matters which really should try to be a grownup whose age must be a little more than 18 years.

If had been able to satisfactorily answer the questions posed above, then happen to be ready to surf for mortgage products. Most importantly, if you’re have answered the questions above with conviction and determination, a person are in order to get a home loan.

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December 5, 2016 / by admin / Uncategorized / No Comments

Same Day Loans – Get Quick Cash Funds For Emergency Needs

Many people facing credit crises in their life want an easy solution to the situation. If you are also searching of cash loan to solve your short term financial needs, then you could possibly try our monthly payday loans. These loans may help you in solving al your problems knowning that too in the smallest possible time.

A person may also apply for such loans over planet wide. It is not only easy but additionally a promptly way in order to boost finance. Here a borrower has to just fill in the request form available around the website among the lender with the details. Once these are filled and verified, mortgage will be approved immediately.

For our example, provide you with more use credit fee of $15 each and every $100 borrowed. This is a typical rate, although you will discover lower rates for period borrowers.

Instant no fax payday loans are actually small but tend to be sanctioned with interruption. These loans are very helpful in solving small cash problems. Is certainly because along with immediate approval that they’ve become so well received. These loans are usually offered regarding your period of two to 25 days. The amount of such loans is also small. However in certain cases, the will even go beyond 1500 capital.

Step consider the above mentioned practical issues from the borrowers, Cash loans without banking accounts arrange for loans n which cash emerges right for the hand, within no any time. This solves your intent of meeting your urgent loans in energy. These loans are instant short term loans which end up being repaid in the next pay day advance. The maximum repayment time is just as much as 4 several months. Since they are instant short term loans, the lenders charge a very high rate curiosity on numerous provided. The number that is sanctioned can be used in any way in order to want within order to. You can pay the utility bills, rent belonging to the house or office, car repair, home repair, school fees, medical bills and many more. There just isn’t any limit so that you may where this loan amount should be spent.

Applying online offers options that your neighborhood loan store cannot offer, like the ability to period application each day a day, 7 days a helpless. You could commenced on the weekend, on the middle in the night.

How in order to? It is super easy to sign up for loans simply because. The online technology will make it easier for borrowers and lenders as excellent. Online medium is quicker and involves fewer thank you’s. Moreover, you can also search around for attractive deals at lower interest rates that suits your needs.

Monthly payday loans are small cash advances which are presented for an actual short duration of time. These loans typically offered to a person out belonging to the financial crisis in the cheapest possible a chance.

To get the cheap loan rates, they’ve got a small key. If you are among those to be able to bargain well, then you are lucky. Provided you can bargain smartly and effectively, you could easily get a loan rate which suits you completely. Marketing and advertising to start the bargain with reduced rates so that, in the end, you may get affordable uncomplicated payable rates.

If it truly is a debt relief program you are waiting to use, it all boils right down to the same mix; close to to see all your options and check out many in the companies that provide the ideas. As with online payday loans, you’ll wish to research debt relief or debt settlement before you sign anything.

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