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Know When it Makes Sense to Consolidate Student Loans – US News #pay #day #loans

#consolidated loans

Know When it Makes Sense to Consolidate Student Loans

Consider the type of loan you have and your repayment history before seeking consolidation.

Gone are the days when it was generally a good idea for most federal student loan borrowers to consolidate their loans. The student loan world has changed significantly, eliminating two of the biggest benefits of consolidation.

First, most federal loans previously featured variable interest rates. These rates changed annually, so consolidation allowed borrowers to lock in historically low numbers. In July 2006, interest rates on new loans became fixed. Because consolidation interest rates take a weighted average of the underlying loan rates, borrowers no longer automatically get a lower rate by consolidating.

Second, in the past, it was common to have your federal loans held by multiple servicers. By consolidating, borrowers could pay one servicer instead of many. Now, most borrowers pay all their loans under one bill from the start, thanks mostly to efforts on behalf of the Department of Education.

With these benefits removed, borrowers may be wondering if consolidation is even worthwhile. For many, the answer is, not really. However, it can still be a useful tool for some. Here are some situations where it can make sense to consolidate student loans.

1. To o btain access to forgiveness or repayment benefits: Student loan regulations and laws are complicated, but sometimes that can work to the borrower’s benefit. This is true when it comes to consolidation, Parent PLUS loans and Public Service Loan Forgiveness.

While Parent PLUS loans are technically eligible for PSLF. it’s hard for borrowers to take advantage of this benefit. A borrower must make 120 payments under either a standard 10-year, income-based, income-contingent or Pay As You Earn payment plan to qualify for PSLF.

The catch is that Parent PLUS loans are not eligible for the three income-related payment plans. and a borrower paying under a standard repayment plan will have nothing left to forgive after 120 payments.

If you consolidate a Parent PLUS loan under the Direct Loan program, however, it becomes eligible for income-contingent repayment and therefore has the potential to be eligible for PSLF. If the borrower wouldn’t otherwise be eligible for PSLF, having access to this option could make payments much more manageable, especially if the borrower still owes money when he or she retires.

On a related note, as only Direct Loans are eligible for PSLF, borrowers with older Federal Family Education Loan Program loans can use consolidation to transfer those loans ​into the Direct Loan program to gain access to PSLF.

Consolidation can work the other way too, especially when it comes to Perkins loans. Many unique forgiveness opportunities available to Perkins loans are lost when they are consolidated, so make sure you do your research before taking this step.

2. To obtain a lower payment : While income-related payment plans provide much needed relief for many, those lower payment amounts may still be too high to manage. For those borrowers, especially those with lower loan balances, extending the term of the loan through consolidation may actually yield a lower payment than some other repayment options.

This calculator can help weigh all of those options at once. Just remember that the longer you take to pay the loan, the more you will pay in interest.

3. To manage private student loans: The benefits of student loan consolidation have increased when it comes to private student loans. While it is generally not advisable to consolidate federal loans ​with private loans since you’ll lose the federal benefits, consolidating your individual private loans may make sense.

There’s been a significant increase in lenders offering a private loan consolidation product. increasing the competitiveness of these products. Borrowers can often find a lower interest rate and more favorable terms, especially if they have a good payment history on their existing private loans to date.

At the very least, private loan consolidations can extend the term of your loans, lowering the payment. As we’ve discussed in the past. private loans have very few lower payment options. so consolidating to a longer term with a lower payment can sometimes be the only option available.

If you have good credit and payment history on the loans you want to consolidate, this can also be a way to release the co-signer​ from responsibility of those underlying loans. The co-signer will not automatically transfer to the new loan product, so if you do still require one to consolidate, you’ll need to find a new one, or ask your existing co-signer​ to re-up his or her commitment.

4.To get out of default: If you’ve defaulted on your federal student loans, consolidation is the fastest way to get the loan out of default. Consolidation is not as beneficial as loan rehabilitation, as consolidation doesn’t remove the default from your credit history. However, if you’re not eligible for rehabilitation or can’t take the time to complete that process, consolidation can get your loan back in good standing.

A good place to start to determine the pros and cons of consolidation will be your student loan holder, which will have a good understanding of how consolidation will benefit – or not benefit – your particular situation.

About Us – Fast Auto Loans, Inc #poor #credit #loans

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All across the state of California, people in need of emergency cash know where to go for the cash they need. A title loan from Fast Auto Loans, Inc, will enable you to meet some of your financial challenges. With our experience and professionalism, we can help you get a fast cash title loan that works for you in 30 minutes or less. Get started today! With our statewide network of convenient locations, you can find a Fast Auto Loans, Inc location right in your neighborhood.

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At Fast Auto Loans, Inc you can always count on being treated with the courtesy and respect you deserve. Our team of professional loan representatives will take the time to help you find a fast cash title loan that is right for you and make sure you get access to your cash as soon as possible.

Thank you for choosing Fast Auto Loans, Inc for your fast cash needs. Get started now by completing our online form and a representative will call you with all the details about getting the cash you need with a title loan.

About Us

All across the state of California, people in need of emergency cash know where to go for the cash they need. A title loan from Fast Auto Loans, Inc, will enable you to meet some of your financial challenges. With our experience and professionalism, we can help you get a fast cash title loan that works for you in 30 minutes or less. Get started today! With our statewide network of convenient locations, you can find a Fast Auto Loans, Inc location right in your neighborhood.

Why Choose Fast Auto Loans, Inc?

At Fast Auto Loans, Inc you can always count on being treated with the courtesy and respect you deserve. Our team of professional loan representatives will take the time to help you find a fast cash title loan that is right for you and make sure you get access to your cash as soon as possible.

Thank you for choosing Fast Auto Loans, Inc for your fast cash needs. Get started now by completing our online form and a representative will call you with all the details about getting the cash you need with a title loan.

About Us- Loans For Military #express #loans

#loans for military

About Us

Loans For Military introduces itself as a trustable loan arranging company. Our services are available for arranging a variety of loan options, including military loans, loans for military, bad credit military loans, no credit check military loans, military payday loans and military signature loans.

Loans For Military has expanded its services all over the nation, which empowers us to serve all customers in a better way and borrowers can make an application with us from any part of the country.

We, at Loans For Military, do not follow any time constraint when it comes to the application process. Therefore, whenever you want you can make an application with us just by submitting our online loan application form. We offer our services 24 hours a day, 7 days a week and 365 days a year. Therefore, whenever you need our assistance in order to smooth out your lending process, you can contact us.

We, at Loans For Military, can arrange loan deals for all kinds of borrowers, including those who are suffering from bad credit problem. There is no credit checking process with us and in addition, we do not charge any application fee from the borrowers as well.

Privacy has also been included in our services so that we can maintain our service authenticity. Our privacy policy will always assure you of the safety of your documents. Trust Loans For Military if you need any kind of loan in order to solve your monetary problems.

About us – Nationwide Auto Lending #credit #union #student #loans

#nationwide loans

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Nationwide Auto Lending is your reliable auto finance company regardless of your credit score or prior credit history. is recognized as the leading provider of bad credit auto loans in the United States. We will help you obtain auto financing for bad credit so you can own the car you really want..

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Nationwide Auto Lending is the right place for everyone who is shopping for a new or used automobile looking for loans with competitive rates, flexible terms and more. It does not matter what your credit score is, we can serve you with the most affordable car loans deals.

We are rated #1 for bad credit auto financing in all 50 states. Once your financing is approved you simply select the new or used car you want to own. So if you need car financing for bad credit without any hassles or fees just complete our free online auto loan appllication below and get approved in a couple hours. It is just that easy so let’s get you approved today!

Understand the Consequences of Student Loan Default – US News #home #mortgage #rates

#student loan default

Understand the Consequences of Student Loan Default

The possibility of wage garnishment is just part of the headache.

​Recently, the New York Federal Reserve released some alarming information on student loan defaults that indicated up to a quarter of all borrowers from the last nine years have defaulted on their loans. The report also showed that up to 37 percent have missed at least one payment.

These numbers are much higher than the three-year cohort default rate measured and published annually by the Department of Education and show a growing trend of borrowers who are in need of information on how to use the lower payment and other options available for federal student loans .

Most struggling borrowers know that their loan is in default or at risk for going into default. so some of the consequences such as tax refund and wage garnishment may not be a surprise. But there are other consequences of defaulting on your federal student loan you may not be aware of.

There Will Be Fees​

If you ask federal student loan borrowers why they defaulted on their loans, nearly all would answer that they were in financial difficulty or couldn’t afford their payments. For a defaulted loan, it only gets worse.

First, the entire balance of the loan is due and payable immediately. There are no more monthly bills and no more lower payment options, as the loan loses eligibility for these benefits by being in default.

Second, any interest that was outstanding at the time of default will be capitalized, or added to the principal. This will increase your overall loan balance and cause you to have interest charged on interest, which is certainly not ideal.

The collection costs may be the biggest blow. Collection costs vary for different types of loans. For Perkins loans, these can be as high as 40 percent.​ ​For federal Stafford, PLUS, and consolidation loans. collection costs are as high as 24 percent ​, but can be discounted to 18.5 percent if the borrower consolidates out of default or as low as 16 percent if the borrower rehabilitates the loan​.

These costs can add up quickly. Let’s say you defaulted on your $25,000 federal loan after a year. This example loan has a 5 percent interest rate, so right away your loan holder will add $1,250 to the balance in capitalized interest, plus any late fee amounts they may have charged you along the way. Now add the 24 percent collection cost of $6,300, and your $25,000 balance has grown to $32,800 in a year.

These collection costs are set in federal law and regulation, so in most cases, there’s not a lot of wiggle room to negotiate these fees. Some loan holders will reduce these fees if you agree to pay the defaulted loan in full.

Expect Garnishments and Lawsuits

Federal student loan holders and the Department of Education can garnish your tax refund without any type of court order or legal action, although they will notify you ahead of time and give you the opportunity to appeal or resolve the default. If you filed your taxes with a spouse, their portion of the refund will also be garnished and put toward your defaulted student loan.

If having the refund garnished is a hardship, the borrower can try appealing to the loan holder to have some or all of it returned. Success in this case varies. The non-borrower spouse can also file an injured spouse claim to have his or her portion of the refund returned.

In general, defaulted student loans will be certified for tax offset after months of attempts to resolve the loan with the borrower with little or no response. Once a loan is certified for offset, it’s rare to have it removed unless and until the loan is either taken out of default or paid in full. They can also garnish your Social Security and other benefits.

Wage garnishment is another tool often used to collect defaulted student loans. Affected borrowers are sent notification at least a month prior to the beginning of the garnishment and given the borrower an opportunity to appeal. Loan holders, with some exceptions, may garnish up to 15 percent of a borrower’s wages.

If these tactics prove unsuccessful, the U.S. Department of Justice may decide to sue the defaulted loan borrower for payment. This action can add significantly more fees and put your assets at risk, but is rarely taken due to the other tools the government has to collect these loans.

Other Consequences

One of the more well-known penalties of student loan default is being unable to take out additional financial aid. This can be sort of a no-win situation if you were in financial difficulty in the first place because you did not complete your credential or you need an advanced degree or certificate. Defaulting can also tank your credit score.

Some state boards are even allowed to revoke or suspend a license to practice certain professions in their state for borrowers with defaulted federal student loans. This can include medical professionals, teachers, state officers and attorneys.

Solutions and Fixes

If you’re having financial difficulties, call your loan holder. If the loan isn’t in default yet, there are many lower payment, deferment and other options available that can help prevent that from happening – but you need to reach out.

Most of the defaulted borrowers that the Student Loan Ranger encounters could have prevented the default from happening if they’d just allowed their loan holder, or other industry advocate, to work with them.

If you have already defaulted, you can resolve the default through rehabilitation, consolidation or by paying the loan in full.

Personal Loan of $25, 000 in US? Bank to apply? Credit History? #consolidating #debt

#25000 loan

Personal Loan of $25,000 in US? Bank to apply? Credit History?

Recently, I wrote an article on the best way to pay off your education loan after Job. If you have read it, I have mentioned, I took a $25,000 loan in US and sent it to home country to save good amount of money.  The question that might have come to your mind is, Where the hell should I apply to get $25,000 Loan ?  Which bank should I apply. How should I build credit history ?  I will try to address some these things in this article and how I got my loan.

Importance of Credit History

Credit history in US is of significant importance, if you do not have good history…you are basically screwed…You do not want to commit any mistakes in the beginning (first  few months in US) to build your credit history. Read this article on How to build good credit history in US .  Anyways, if you have bad credit history, it is not a good idea to apply for a personal loan. It can even ruin your credit history more. You just need to know your credit score and assess how much history you have build before applying.

Which Banks to apply. National or Local ?

Most of you might have an account in nationalized bank like Chase, Bank of America, US bank…the fact is, I would not recommend applying to the nationalized banks. Simple logic, there is too much hassle there and too many rules to deal with because you are dealing with a big bank on a national level. The odds are you getting approval with decent credit score is relatively less. So, where should you apply. Ever heard of the credit unions ?  Yes, you should apply in credit unions or local banks. Credit unions are very local and they usually deal with local customers and meant for community development and not just mere profit. They will have all the facilities you need and the size of the bank and attention you get is much more. I applied my loan in a credit union and got it approved. So, did my friends…

How to build a good relationship with Banks like Credit Unions ?

When I landed in US for the first time fortunately, I opened an account in a local credit union. I deposited some amount and then did not use it much. After 2 and half years, I called them and asked if I can apply for a personal loan and they said sure. I did some paperwork submitted my pay stubs and I got the loan approved. The reason I say this story is, I opened the account long time ago and had some transactions with them. I have been an old customer for them for 2 and half years…it is basically building the history of the account and not just credit history. Though my credit score was not super high, I got my loan approved because I was an old customer.  So, if you plan to take such personal loans, I would recommend you to open one of those accounts in credit unions and do keep doing some transactions and just build some history.  You have to be very careful; do not open too many bank accounts, unless needed.

Overall, just do not screw up your credit history by applying to every card that comes in mail. Try to build good credit history and if you have plans to take personal loan, open an account in a small credit union and build some history. Once you are prepared, at the right time with right credit history you can apply for personal loan and you will get it approved without any hassle.

Did you apply for any personal loans in US. Any experiences ?

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4 Must-Know Facts About Obama – s New Student Loan Plan – US News #loan #repayments #calculator

#student loan interest calculator

4 Must-Know Facts About Obama’s New Student Loan Plan

Nearly 5 million borrowers could be affected by expanded Pay As You Earn eligibility.

President Barack Obama announced some big news this week that stands to help many student loan borrowers ​​​​​​​​​​​​​.

Most people met the president’s proposed changes with excitement, even though it seemed like many didn’t exactly understand what the changes were or, even more importantly, how the changes may apply to them. So, let’s answer some big questions about the president’s executive action.

1. Will these updates help me? If you have federal student loans, maybe. With his executive action, the president expanded the existing Pay As You Earn program available to federal student loan borrowers.

Currently, this plan caps monthly payments at 10 percent of a borrower’s disposable income and forgives the balance after 20 years of payments. Those aspects of this plan won’t change.

What will change is the number of borrowers who can take advantage of this option. Currently, only newer borrowers are eligible for this plan. However, starting in 2015, borrowers who took out loans before October 2007 or stopped borrowing by October 2011 will now be eligible. Government officials estimate this number to be 5 million people.

2. How much could I save? Now, most federal loan borrowers are eligible for income-based repayment – a different repayment plan that has the same premise as Pay As You Earn.

Unlike Pay As You Earn, IBR caps payments at 15 percent of one’s disposable income and forgives the balance after 25 years of payments. Those differences could mean a lot, both in monthly payment amount and in the total amount paid over time.

For instance, consider a borrower who owes $55,000 at a 3.41 percent interest rate, has an income of about $35,000 per year, and is not married and has no other dependents. Here’s what that person’s payments would look like under three different payment plans:

5 Warning Signs of a Bad Credit Card – US News #student #loans #rates

#bad credit cards

5 Warning Signs of a Bad Credit Card

Don’t be duped by a horrible offer.

It doesn’t take much effort to find dozens or even hundreds of credit card offers. All you have to do is visit the websites of the largest credit card issuers, such as JP Morgan Chase, Citibank and Bank of America. Add to that the Visas and MasterCards available from major retailers, hotel chains and airlines, and it’s easy to find yourself awash in offers.

Naturally, some offers are better than others. It’s often tricky to determine what the best offer is, but there are a few warning signs of an offer that’s not as good as others. Here are five clear signs of a credit card you should skip right past.

No bonus rewards. Reward programs are common features of credit cards. They offer you some form of reward or rebate for purchases made on the cards.

Reward credit cards come in a variety of shapes and sizes. Some provide discounts at specific retailers. For example, the Target Visa gives you 5 percent off on all purchases at Target. Various gas station chains offer as much as 25 cents per gallon in rebates when you use their particular Visa or MasterCard to buy gas. Other cards offer points that can be used in various ways. Some hotel chains, for instance, offer cards that generate points with each purchase and can be exchanged for a free night of lodging at one of the hotels in that chain.

If you’re smart, a good rewards program can easily help you save on everyday purchases. There are multitudes of cards out there that offer at least some kind of rewards program, so there’s no reason to accept a card that offers you nothing in return for using it.

High APR. If you carry a balance on your card from month to month, you’re going to face interest charges. The higher the APR on your card, the more interest you’re going to pay each month on a particular balance.

Let’s say you have a 19.9 percent APR on a card with a $1,000 balance, and your monthly minimum payment is 4 percent of your balance. In that case, to pay off the card, you’ll pay $40 a month, but it will take 73 months. You’ll also end up paying a total of $1,556, which translates to an extra $556 in interest.

If you simply reduce the interest rate to 9.9 percent APR (and leave the other factors the same – a $1,000 balance and a 4 percent monthly payment), things change quickly. You’ll still pay $40 a month, but you’ll end up paying off the card in 58 months. Your total payment will be $1,209.11 – only $209.11 paid in interest.

Therefore, if you carry a balance, a high APR is something to avoid because a lower APR will directly save you money. (Of course, it’s better to simply not carry a balance.)

Low credit limit. Each credit card offer comes with a credit limit that indicates the maximum amount of credit you can use on that card. While it’s rarely a good idea to use a card up to the credit limit, there are times when that flexibility can help.

For example, if you’re going to make a major purchase like a laptop, it’s nice to have the consumer protection that a Visa or MasterCard offers, but if your credit limit is too low, you can’t simply buy it with a swipe of the card.

A higher limit can also help improve your credit score, since scores factor in credit card utilization rates (the ratio of your balances to credit limits).

The bottom line: If your card offer limits your credit to $250 or $500, look elsewhere.

High fees and penalties. Credit card companies make a lot of money from fees. Fees for balance transfers, cash advances, cash withdrawals from ATMs, payment by phone, online payments – if there’s a way to charge you, they will.

That’s why it pays to look at the fine print. If you find that a card will charge you fees for all of these things – particularly for things you are likely to do, like transferring balances – skip it and move on to the next offer.

Variable interest rates. This is a particularly pernicious trick that some credit card companies like to use. They’ll advertise a very low initial rate, but it turns out that it’s a variable rate they can change at will. Trust me, they will change it, and it will cost you.

You should look for fixed-interest rate cards, even if they’re a bit higher than variable rate cards. Still, be careful – there are situations when companies can change the rate on a fixed rate card. Be aware of those situations by reading the documentation that comes with your card.

If you avoid these five warning signs of a bad credit card, you’ll wind up with a card that’s right for you .

Explore Graduate Student Loan Options for 2014 – US News #medical #school #loans

#graduate school loans

Explore Graduate Student Loan Options for 2014

Graduate and professional students have several private and federal loan options available.

Unlike undergraduates, who can qualify for Pell Grants and other subsidies, student loans are the primary financial aid vehicle for graduate students. Fortunately, grad students have several funding options to choose from.

• Stafford loans. Most graduate students can borrow up to $20,500 a year in federal Stafford loans and cannot exceed $138,500 between undergrad and grad school. Those limits jump to $47,167 annually, with a lifetime cap of $224,000, for students in certain health fields.

Graduate students only qualify for unsubsidized Stafford loans, which begin accruing interest immediately. Student loan legislation passed in August 2013 tied federal student loan interest rates to the interest rate on the 10-year Treasury note. As the rate on that note increases, so do the interest rates on Stafford loans and Direct PLUS loans.

Interest rates for new loans are determined as of June 1 each year and locked in for the life of the loan. The rate for graduate Stafford loans is equal to the rate of the Treasury note, plus 3.6 percent, and is capped at 9.5 percent. Grad students who borrowed a Stafford loan for the 2013-2014 school year did so at an interest rate of 5.41 percent. Stafford loans come with federal loan benefits, including flexible repayment plans and certain loan forgiveness programs .

• Graduate PLUS loans. Students can cover their entire out-of-pocket costs each year – including living expenses – via the PLUS loan program. Unlike other federal loans, borrowers must pass a credit check, and those with an account in collections or a bankruptcy on their record may be denied.

Like Stafford loans, the interest rate on new PLUS loans is determined annually using the rate on the 10-year Treasury note as of June 1. Graduate students will pay that rate plus 4.6 percent, with a cap of 10.5 percent. Grad PLUS loans borrowed for the 2013-2014 school year have an interest rate of 6.41 percent. The interest rate is locked in for the life of the loan.

Grad PLUS loans also qualify for federal repayment options such as graduated or income-based repayment, as well as loan forgiveness.

• Perkins loans. Graduate students with limited financial resources may qualify for a Perkins loan, but experts warn that these funds are few and far between. While the Perkins loan is a federal program, the funds are doled out by the institution and loan payments are made directly to the school.

Qualifying students can receive up to $8,000 a year in Perkins loans, which come with a fixed interest rate of 5 percent. Unlike Stafford and PLUS loans for graduate students, interest on Perkins loans does not begin accruing until nine months after graduation.

• Private loans. In some cases, students can borrow loans with interest rates starting as low as 2.25 percent. But if the rate is variable it can change dramatically over the course of the loan, and students could wind up paying a lot more than they initially planned.

Several private lenders, such as Wells Fargo and Sallie Mae, also offer loans with fixed interest rates, which may be lower than the rates available via federal PLUS loans. While the loans may seem enticing, students should fully understand the terms of the loan before signing on the dotted line, says Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators.

We almost always say that students should be choosing federal loans over private, Draeger says.

Students who plan to take out a private loan should look for one that mimics the benefits offered with Stafford and PLUS loans, including a grace period for repayment and protection against income loss, he says.