Private Student Loans: Finding the Right Funding Option

Finding the money to pay for college can be a challenge, but there are options available that mean everyone has a source that suits them. Most college-goers seek private student loans, but that is only one route to funding open to those embarking on tertiary education.

The other options include federal loans, which many prefer to secure to help them pay for college tuition because of the lower interest rates and better repayment terms. The only problem is that approval for college financing is always associated with the means (or lack of means) to pay.

The final option is available to only a privileged few – privileged in terms of talent and ability. Between the three types, it is possible to secure the student loans or funding schemes needed to make sure that the education needed for a bright future is secured.

Financial Aid

Financial aid details can be received at the financial aid office on your college campus. It is not a private student loan, and is better known as public or federal loans since it is the government that either issues the loans themselves or subsidizes it. Understandably, there are a lot of advantages to this kind of financing package.

For a start, because the lender is not looking to make a healthy profit, the interest is usually charged at rock bottom rates, while the repayment schedule is very flexible. With these terms, the loan itself is very affordable, but getting approval for college financing like this is not that straightforward.

Applicants have to be able to prove they are in need of financial help, so they are often means tested. This involves the lender checking parents and personal income to see if the federal student loan is really needed at all. The two most common programs are Stafford Loans and Perkins Loans.

Private Loans

Everyone will seek a federal loan, knowing that the interest on them is low. However, for many college-goers, private student loans are the only option. These are charged at higher rates of interest, and often come with clauses that ensure the lender makes their profit. However, they can also come with a period of grace extended until graduation.

Most colleges will help new students with the application, but it is important to note that the documentation and information provided must be given by the applicant. Usually, approval for college financing is greatly helped by a cosigner – a parent or relative who promises to cover loan repayments if the student is not in a position to meet the repayments.

This strengthens the application, but remember that the terms of the student loan can include a period of grace. During vacations, when summer jobs can be secured, there is an opportunity to pay off some of the loan balance. However, once graduation arrives a definite repayment schedule will be introduced.

Scholarships

There is a third funding option that can see students access the money needed to pay for their college education, and it is infinitely better than a private student loan. That is because a scholarship never needs to be repaid, so there is no debt to keep a graduate or student up at night.

However, a scholarship is also the hardest funding source to qualify for. When seeking approval for college financing, it is necessary to prove an ability to prepay. But for a scholarship, it is the institution that decides based on a talent or aptitude that sets the receiver apart from others.

It could be based on sporting ability or academic ability, but unlike a student loan, the person who benefits must be recognized as special.

Are You Thinking About Taking the Home Loan?

Today the market of affordable housing is growing fast. Likewise the number of people who want to buy home has also increased in some past years. Amongst these most of are youth who are getting good salary in very young age and want to possess their own home. As a result of this there is a boom in home loan market. But do you know what points you should keep in mind before you proceed for home loan. When you should be aware and where you should save yourself from being confused. Let’s take a look at some points.

1 ) Good Financer – You should be in regular contact of your financer, hence your financer’s customer care policy should be excellent. To know this your can contact the old customers of your financer or bank. You should also check the old records of company regarding how much benefit their customer s got on the rebate of interest rates and also check did this company increased the interest rate initially.

2) Big Amount of down payment would be much better – You should have some amount for down payment before you go for home loan. Big down payment amount means lower the amount of home loan and as a result of this EMI would be also less.

3) Which scheme is better Fixed or Floating – It is presumed that fixed loan are more costly over floating rates. But there is no assumption of interest rate in the case of floating. Hybrid loan combines the benefits of both. In case of Hybrid, Some amount of loan is based on floating and some is based on fixed.

4) Benefits of extending the time limit of loan – if your age is not too much then you can be saved from both, pre payment and more EMI. Instead the time limit of paying the loan will be increased and you won’t have much burden.

5) Pr-payment is much better – If fortunately you acquire some funds through any source and you are in fix for choosing between the option of more EMI and pr-payment then pr-payment is the good option. Some people may agree with more EMI so they get more rebates on income tax on interest. Before taking any decision analyze carefully which is more beneficial between pr-payment and rebate on income tax on interest.

6) Think about refinance – If some other financer is giving you loan with much less burden in comparison to your home loan financer, then you can also think about refinance, however for doing this you will have to pay a fee. You will have to take the closing quotation from our current financer and provide it to your new financer. Closing quotation means how much principle is left and how much amount you have to pay for closing the loan account. Your refinancer will take over the loan account by giving the cheque of this amount to your previous financer. You will have to pay some pre- payment penalty to your old financer and some processing fees to your new financer.

Securing Car Loans With Bad Credit Does Not Depend on Down Payments

The challenge when buying a new car with low credit scores is made a little easier when a down payment is provided as part of the purchase deal – or at least that is what is often claimed. A down payment when seeking car loans with bad credit would reduce the loan size. But it is not true.

The truth is there is no problem with securing loan approval with no down payment. In fact, there is no situation where a lump sum payment is required, and most dealers have ulterior motives when telling customers that a down payment is needed. This is the trick that so many people are taken in by, and one that can see them hundreds of dollars more than they have to.

There are some simple points that should be known before agreeing a car loan. This way, the purchaser is in a stronger position to negotiate the best possible terms. Here are just 3 pointers.

Car Financing Is For Mark-Up

Car dealers are synonymous with double dealing, and cheap shots, and their reputation is well deserved. When customers are seeking car loans with bad credit, the dealer will contact the finance company on their behalf and apply for the finance deal. And, they will secure the lowest possible interest rate.

That seems fine but if the finance company offers finance at a rate of 9.5%, then the dealers will increase that to 11.5%, pocketing the difference with each payment. This is common practice in the motor trade, but is not particularly well-known amongst consumers.

What is more, dealers tell their customers that approval with no down payment is practically impossible because of their bad credit status. Usually, they explain that the down payment reduces the car loan sum and, therefore, the repayments. This is not true at all, with down payments usually placed in the bank account of the dealer, and the financing deal set at 9.5% to make it seem as though a discount is secured.

Down Payment is Not Obligatory

A common claim is that down payments are obligatory, in the same way that mortgage provider usually only allow a maximum 90% financing deal. This is simply not true for car financing, and a 100% car loan with bad credit is perfectly acceptable.

In fact, it is not even necessary to get financing through the car dealers, and instead a loan can be secured from a bank or other lending institution. When turning to this financing option, approval with no down payments is the norm and the loan deal can be trusted as being straightforward and honest.

So, instead of the 11.5% the dealers claim must be paid, a more competitive 10% might be charged, even with bad credit. Getting the car loan is essential for many of us seeking a new car, but the right terms are important too.

Pre-Approved Loans

The best strategy to securing a car loan with bad credit is to be pre-approved by a bank or online lender before going to the car dealer. This then gives the customer the power in negotiations. They do not need to work out financing terms with the dealers but can simply tell the dealer what car they want and at what price.

This means that the dealers have no room to insist approval with no down payment is impossible, and are not given the chance to pocket extra profits on the car loan – and at your expense.