5 Steps For Guaranteed Unsecured Credit Card Approval...

Receiving a guaranteed unsecured credit card isn't difficult, but it will require some work. Here are a couple of tips to get you headed in the right direction.

Step #1 - Credit Score
Before you initiate applying for any credit card, know what your credit score is. Often times people think their credit's better than it very is. You are entitled to a free credit report every year, as well as every time you are denied credit. Take advantage of this. Knowing what is on your credit report will not only arm you with knowledge when you apply for credit, it's just smart too. You may find something on the report that needs to be disputed. The credit card company will be checking this, you need to know what they are seeing.

Step #2 - Debt to Income Ratio
The credit card company will be looking at more than just your credit score when they arrive at a credit approval decision. If you bring house $20,000 a year on paper, they may not think you make enough to cover any additional expenses. This is why the applications will ask questions about not just your income, but your different expenses such as mortgages or rent. Be armed with tax returns, bank statements, and other documents that will provide a more accurate snapshot of your income ratio.

Step #3 - Know Their Requirements
Finding out what criteria the bank adheres to in approving credit can be tricky. Since most unsecured credit cards will have requirements that vary, it may be hard to pin down exactly what you need to do. A quick call to customer service should be able to answer some of your basic questions though. If customer service isn't able to help you, ask to tell their finance department. This won't guarantee that you will get completely the answers, but it will get you on the right path. Some cards require minimum credit scores, minimum income requirements, and other factors that the bank predetermines. Applying for a card that requires a score of 700 when your score is 650 will only ding your credit further.

Step #4 - Current Relationships
You have a much better chance of being approved for an unsecured credit card with a company that you already have a relationship with. This doesn't mean that you must have another credit card through that bank, but if you have a mortgage or car note that is paid on time every month through a bank that offers cards, try these banks first. If you conduct your banking transactions with a credit union, often times you can get a guaranteed unsecured credit card by utilizing this existing relationship.

Step #5 - Features
If your credit history is a little shaky, but not necessarily bad, you may want to start by applying with credit card companies that offer "no frill" credit cards. The more benefits and features the card offers, the higher the requirements generally are. Forego the features such as airline miles or cash back for the time being. Once you've been a great customer of theirs for a time, you can apply or upgrade your card to one that does more for you.

With some research on your end, you should be able to find a guaranteed unsecured credit card with little effort....

Tags: loan to pay off credit cards, unsecured consolidation loan, guaranteed unsecured credit card

Is Using A Personal Loan To Pay Off Credit Cards A Good Idea?...

It might or might not be a great idea to pay off your credit cards by using money from a personal loan, but we're going to take a look at the pros as well as cons, and when you've read them, you should be able to easily decide whether or not it makes sense for you.

Moreover, it needs to be said right up front that the intent of this article is not to suggest that you take out a personal loan in order to pay off your credit cards, but is merely to point out the pros and cons of doing so.

First off, it's probably not worth taking out a personal loan to pay off your credit cards, if you owe less than $15,000 on them.

If you do owe more than $15,000 though, and you're probably to initiate missing payments, then paying off completely your cards might be a good idea, because you'd stay away future penalties, and paying more interest on the interest.

The first thing that you need to do, is to check how much interest you're paying on your cards, because you'll later need to compare this sum with the interest that's being requested by the bank offering the personal loan. The amount of interest that's charged for personal loans varies greatly,'ll depend mostly on your present FICO score.

If your credit rating's not in great shape, then it's likely that the interest on a personal loan will be higher than it is on your credit cards, but if you get behind on your credit card payments then the penalties build up fast, and so does the compounded interest.

The interest on personal loans does not compound, and you able to make arrangements for different repayment schedules when you sign up. What's more, you'll exclusively be making one payment a month, and a paid off personal loan looks a helluva lot better on your credit rating, than skipped credit card payments.

Should you think that a personal loan might be the best option, then before you go hunting for one, the following are what you'll most likely be asked for, if and when you apply for one.

1) At least three months proof of employment.
2) A recent pay slip, that shows your take home pay.
3) Utility receipts, to validate your home address.
4) Checking or deposit account details.

If you get loan approval, which should be inside 24-48 hours, then the money will be almost immediately deposited into your bank account, and your monthly repayment will be deducted from the same account automatically.

You should check out at least three loan companies before finally deciding on one, and then compare the following.

1) Interest rates. 2) The type of repayment schemes available. 3) Semi-hidden fees, and be alert to these. 4) What you'll need to provide to get approval. 5) How long it will take to get approved.

The final and most essential thing to check before signing on a dotted line, is whether your monthly payments will be higher, or lower with a personal loan.

Once you know that, you should easily be able to make an informed decision as to what would be best for you.

Some Parting Words Of Advice.

Don't be glib about personal loans, and only ask one because you believe that it will profit you. You want it to improve your situation and not worsen it.

After you get your loan, please do your best to ensure that your monthly payments get paid on time, even if this means that you'll must cut back on a few perceived luxuries. Remember that missed payments on your personal loan, will very negatively affect your future FICO score.

Tags: loan to pay off credit cards, unsecured consolidation loan, guaranteed unsecured credit card

debt consolidation loans with bad credit...

Information About Debt Consolidation Loans with Bad Credit

Finding debt consolidation loans with bad credit could be quite a task? after all, a lot of lenders dont want to take a risk on someone who's such an obvious credit risk. Luckily, however, a lot of lenders'll take that risk; its simply a matter of knowing what theyre looking for, as well as how best to approach them for a loan. Asking around to see which banks and lending companies offer debt consolidation loans with bad credit is a great start, and from there its simply a matter of presenting yourself in the best possible light in order to improve your chances of getting the money that you need.

Debt consolidation at a glance

Before applying for debt consolidation loans with bad credit, it helps to cognize exactly what debt consolidation is. Basically, consolidating your debt means that youre getting a loan that will be applied toward your outstanding debts? either paying them off completely, or paying off a portion of the debt to make the rest more manageable. This leaves you with the loan payment as either your exclusively payment to make or at least one of a few payments to make, and producing it easier for you to repay fewer debts than when you had the larger amount. Debt consolidation loans with bad credit are almost always secured loans, meaning that youve got collateral (such as a car or real estate) on the line to ensure that you repay what youve borrowed.

Getting the most from your loan

To get the best value and lowest interest rate when trying to get debt consolidation loans with bad credit, its best to use your most valuable property as your collateral and ask for considerably less than its total value. This insures that the lender will get their money back the only way or another, and usually makes them much more willing to issue debt consolidation loans with bad credit. Paying off as much of your debt as you could before applying is a good idea, too? it shows that youre dangerous about getting out of debt, and are making a legitimate effort. If it looks like you really want to fix your debt and credit problems, then youre more likely to be eligible for lower interest rates and better terms for debt consolidation loans with bad credit.

Shopping around for the best value

Even though youre applying for debt consolidation loans with bad credit, it doesnt mean that you have to accept the first offer that comes your way. Shop around with many lenders and compare their rates, seeing what terms one lender offers and whether other banks or finance companies can offer you something comparable. This will help you to get the most out of your money, and ensure that you have less to repay.

Tags: debt consolidation loans with bad credit

Bad Credit Consolidation Loans Are a Solution...

A bad credit rating able to be the kind of problem that feeds on itself, growing bigger as well as bigger until it becomes impossible to handle. Such a rating makes it nearly impossible to purchase not cheap items, like cars or homes without either a large amount of cash or many kind of equally expensive collateral.

A Bad Credit Remedy
Debt consolidation loans are a solution many are turning toward to solve bad credit issues. This is a loan, which means borrowing more money, so it should exclusively be taken as a last resort, e.g. avoiding bankruptcy. When bad credit is so bad that it is impossible to get a loan anymore, a debt consolidation loan can be the first step to restoring financial stability. The debt consolidation money goes into paying back all other debts, leaving only the consolidation loan itself to be repaid. Through regular monthly installments, the consolidation loan will be paid back to the lender, at a lower interest rate. This lower interest rate allows for quicker repayment and faster restoration of a low credit rating.

How a Secured Consolidation Loan Works
Secured consolidation loans require large assets as collateral, such as a home. This is the easiest way to secure a loan, due to it is less risk to the lender. As the debt is paid off, it will take about six months to a year to restore the borrower's credit rating, allowing him or her to get back to life as normal - hopefully with a better perspective on financial matters.

How an Unsecured Consolidation Loan Works
Applicants without assets to put up as collateral can still apply for an unsecured consolidation loan. This type of loan bears a higher rate of interest and offers less money, but there is no threat of repossession. It will still allow a debtor to pay off other outstanding debts.

What Can Be Paid Off with a Debt Consolidation Loan?
Anything that might reflect poorly on the borrower's credit rating can be paid off with the debt consolidation loan. This usually includes such things as credit cards and medical bills, but can be car payments or credit lines maxed out from shopping. A consolidation loan will pay these in full, which begins the process of repairing credit. There will be no more phone calls requesting early payment from various creditors, after a bad credit loan is taken out. There will no longer be high interest rates that make entire repayment near impossible. The consolidation company works with the borrower to ensure that the repayment schedule is reasonable and as fast resolved as possible.

A Revived Credit Rating
The moment the old debts are paid off with the loan, restoration begins on the borrower's credit rating. After only six months to a year, there will be a marked improvement upon the credit rating. Every person who takes out debt consolidation will have the loan and the repayment schedule individual tailored to fulfill his or her financial needs.

Tags: bad credit consolidation loans

Is an unsecured consolidation loan right for me?...

* Yes, if you need a reduction in monthly outgoings, to settle an Individual Voluntary Arrangement (IVA), to speed up repayment of several debts with one creditor or if you could substitute lenders for better interest rates, but you have no assets to use as security.
* No, if you have used a consolidation loan unsuccessfully before, to consolidate an old consolidation loan or to free up credit as well as store cards that you intend to continue using as part of your normal monthly budget.

Compared to a secured loan, unsecured loan lenders have to accept a higher risk due to they won't have anything to fall back on if you can't make the repayments. This means that they'll have to carry out creditworthiness checks to evaluate the level of risk, such as credit history, property ownership, income, size of loan and repayments and the number of recent loan applications.

After the checks have been made, the lender will either accept or decline your application. Not completely lenders evaluate the risks the same for each case, and there's fit competition inside the unsecured loan retail place. Some lenders will offer different products depending on the size of the risk they feel they are taking, and there are lenders that purposefully accept higher risk applicants. However, these lenders offset their risks by charging higher interest rates for these loans. The size of unsecured loans obtainable ranges from ?500 to ?25,000, and the repayment schedules could vary from six months to ten years.

Unsecured loans can be taken out either as a fixed interest loan, allowing you to budget for a regular payment each month, or as a variable interest rate loan. Because these vary with the Bank of England base rate, it can be more difficult to budget for these. Choosing which format is the most suitable will be a matter of personal choice, depending on your needs and personal circumstances.

Tags: unsecured consolidation loan

The Subprime Aftermath: Lessons Learned

June 08 - Though not quite as contemptible as an obscene four-letter word, the term "subprime loan" comes close. Those two words acquired a stigma over the past year as the real estate retail essentially collapsed. It's the rare financial analyst that fails to remind us how subprime lending resulted in nationwide misery. Unfortunately, after uttering that accusation, many counselors are remarkably imprecise as to exactly what constitutes a subprime loan. Does a home bought with no down payment and a loan equal to 100% of the purchase price qualify? You'd certainly think so from the articles I read. And what about loans where little or no principal payments are made during the early years? The suggestion normally conjures up predictions of impending disaster.

At the risk of sounding indifferent to living dangerously, I'm not averse to either of these two borrowing techniques. Actually, the harshly criticized zero-down purchase does not necessarily mean high risk. For over half a century the widely used GI loan, created by the Servicemen's Readjustment Act of 1944, provided military veterans with home loans on a nothing down basis. Countless ex-servicemen profited handsomely from this program.

As for failure to make principal payments during the early years of a loan, this became, in essence, the normal method of home financing following the Great Depression of the 1930s. Consider the typical FHA loan, by which millions of Americans acquired their residences. The standard 30-year fully amortized fixed-rate loan provides that at the completion of the first five years of scheduled payments, about 95% of the original balance remains unpaid. Even after ten years, 85%'s still owed. This is because most of the payments in the early years go toward interest. Technically this might not equate to no payments of principal, but it comes pretty close.

This, then, conjures up the question: Exactly what differentiates current subprime lending abuses from earlier-day practices perceived as creative. As an example of this latter practice, consider a device I used extensively in the high interest rate duration of the 1970s and 1980s, known as an all-inclusive mortgage (also called a "wrap-around"). In this circumstance, a property is sold subject to a seller's carryback mortgage loan, junior to and inclusive inside an existing first mortgage that remains on title. Providing the underlying loan carries no due-on-sale provision, which many at the time did not, it's a permissible technique. This contrivance, though unconventional, provides benefits to both buyer and seller when properly structured.

This gets us down to the crux of matter, which is abuse in home financing. It's a subject that easily fills volumes. However, at its heart is a basic discord: home acquisition beyond a purchaser's ability. It is this that made subprime lending an insidious perversion. The entire loan industry joined together, incorporating various devices in its quest to finance houses. Certain practices now under scrutiny by legislators and regulatory agencies included minimal initial interest rates scheduled to adjust upward at a later date, buyer qualification based upon unrealistic low initial monthly payments, and loan approval of buyers whose credit history indicated unreliability. Although these factors completely contributed to the final calamity, they were not the cause, but merely the effect.

Fundamental to it all is creation of loans by entities whose funds are not at risk. When loan authorization is granted to processors who profit on creation, but who are unaffected by later payment failure, unsafe lending is guaranteed. It is not by accident that loan approval rested largely with mortgage lending firms that merely complied with established institutional criteria, often nonsensical. All participants profited handsomely by the fees generated through loan creation, despite easily predictable default at many later date. In reality, sound practices are attainable with no special prohibitions or regulatory oversight. Though I'm actively engaged in mortgage lending, I've yet to experience a single foreclosure so far this century. The reason is fundamental. I do not loan other people's money---I risk my own. My personal self-interest insures that loans go only to borrowers who I feel confident will honor their obligations or, that if unexpected misfortune strikes, the loans are amply backed by the securing properties. That's what the secured loan business is all about. What must exist are circumstances by which the maker of the loan only profits from good loans, not bad ones. Enacting a mass of rules to thwart bad intentions is not the answer, for no law will ever obstruct the human capacity for connivance.

I'll briefly summarize with my admonition to the typical homebuyer. I advocate that you not commit to obligations that strain your limits. It's more sensible to restrict yourself to less than you able to handle. Simply put: Choose a cheaper home than you could afford. And while we're on the subject, you might apply that same formula to other aspects of your life. You're far better off if your vehicle, your home furnishings, and your vacations are well within your means. More specifically, these three products should be obtained with no borrowing of any sort. Maintaining a standard of living that requires you to stretch regularly to meet payments is not really much fun. Cash on the barrelhead may seem old-fashioned, but it makes for a more enjoyable way to live.

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The Loan Officer's Practical Guide to Residential Finance (Perfect Paperback)

This's the 2009 Edition of the first book in the "Practical Guide" series for the mortgage industry.

Published since 1992, as well as updated annually, this 198 page textbook was written as an answer to the "sink-or-swim" training methods of numerous mortgage firms. The format is designed to give the newly initiated loan officer/agent, lender, processor, or other initiate the practical information they need to do the loan officer's job.

The reader learns how to understand rate and point quotes, how to use a financial calculator, how to make basic computations customers require, how to understand loan programs and compare product features. The student progresses through understanding loan specifications - Conventional Conforming, Jumbo, FHA/VA and Sub-Prime program guidelines - to a practical understanding of ratios, income, assets and closing costs, debts and credit history. This is then placed in the context of the loan application - how to collect all the required documents and disclosures and supervise a loan from application to closing. Beyond the basics, students learn how to finance various property types; condos, PUDs, new construction and investment property. A detailed chapter on refinancing addresses the issues which most often confront the loan officer in a period of heavy refinancing - 10 reasons to refinance.

Finally, understanding how loans are made in the secondary market and the basics of interest rate quoting and behavior are covered.

This product is submitted for approval for use in continuing education in all states which have, or are adopting, a requirement. Many companies use this product as a handout to prospective new loan officers. Many loan officers give this product to their referral sources to help educate them to the requirements of the industry.
Thomas Morgan's The Loan Officer's Practical Guide to Residential Finance is THE most comprehensive loan officer training book in print today. Chock full of every single aspect of the mortgage origination process, I truly recommend this book to every amateur as well as novice loan officer I know!
I wish I had found this book the day I passed my state exam. It would have saved me much frustration as well as my confidence could have been boosted a lot sooner, which is key to succeeding in this business. This book is putting me equal to, if not ahead of many individuals who have been in the business for years. I'm shocked at how little people cognize and I'm pleased at how much I've learned from this book. Absolutely the best money I've spent on my early career!

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Cheap cash loans: avail cash to meet urgent needsl...

Cash loans are the loans which can be availed to meet the urgent needs and requirements. You have to make sure that the loan comes into your hands without any delay and hurdles because if you do not get the required amount of money in time of your need then it does not hold any value at all. These loans should be available to you at a low cost so that its repayment is not a burden and such a loan can also be availed online as well. The finance has become cheaper than ever before with the cut throat competition among the lenders in the financial market. The interest rates have got reduced considerably and these loans are really very useful when we take into account the factors like penalties and late fees etc. With the finance you can also save yourself from the humiliation of not paying the urgent bills on time.

The amount of money that you can borrow is up to $1500 with simple requirements and the application for the loan amount can be done directly from your computer. The procedure of availing cheap cash loans has become easier which is also an outcome of the growing competition in the market. At some point of time or the other every one of us feels the requirement of quick money and in that situation can make the desired funds available to you on a very short notice as well. With the help of the finance you can get the money that you need almost instantly.

Keeping in mind the mental agony faced by a borrower at the time of financial crisis, a system has been devised in which it is not required for the borrower to do much paperwork. It is also not required to provide any unnecessary details along with the application for loan since there is no credit check. Thus no unnecessary details along with the application for loan are required to be provided and this comes as a great relief

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New Ride Loans - Get Approved for a Car Loan...

We all do our best to save money these days and cut down on expensive items that may not be necessary for every day life. Unfortunately, there are a few items that are impossible to get around not having. One of these is housing and the other is having a car.

Public transportation is a good thing but it’s not for everyone. It’s a fact that many people need their cars mainly for work and family transportation but with the economy the way it is it’s hard to find good financing.

New Ride Loans has teamed up with a short list of places with Utah used cars and have figured out a great system to help people with good and bad credit get a nice car and financing all in one place.

By creating a list of criteria that every dealership needs to adhere to, New Ride Loans assures their customers that they can not only get financing but search for a car that will have a free, limited warranty, a vehicle history report guaranteeing it free of a salvage title, offer an exchange policy and provide a price list on all inventory.

For the customers with good credit and a job New Ride Loans is able to use their extensive list of lender contacts to compare rates and find the best ones possible.

Even if you are looking for a Utah bad credit auto loan, New Ride Loans approves 99% of their working applicants and can work with you to find a term and monthly payment plan that is best for you and your budget.

It should be a fun process when searching for Utah used cars and New Ride Loans has done all the research and analysis to make it as seamless and simple as possible. They will make sure you get the car you want so you don’t have to settle for a cheap car and high interest financing.

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College Loans Consolidation: Should I Consolidate My Student Loans?...

Should I Consolidate My Student Loans?

If you've education loans, you will face the challenge of having to service multiple student loan rates when making loan repayment. This is common when consolidating student loans at a lower interest rate and taking up new loans at the current student loan consolidation rate.

By consolidating student loans, you practically combine all of your loans together into one single loan package. This implies that you will have only one lender and one loan payment to manage. College loans consolidation also gives you an opportunity to lock in at a lower interest, which can potentially save you a great deal of money over time.

Your personal debt can be easier to manage if you consider repackaging all your loans into one single loan. When talking to a prospective lender about college loans consolidation, you may realize the possibility of converting your loans with variable student loan rates into one with a fixed rate to get the best rate for consolidation, including the option of a longer loan repayment period. Such approach could help you more effectively manage your overall personal loan debt by reducing your monthly repayment.

The consolidation rate chargeable for college loans consolidation will vary depending on if you go through a government or private lender. As a rule of thumb, you will theoretically get the best deal on student loan consolidation rate when working with the federal government to complete consolidation. However, as and when student loan interest rate heads south, you should check out a private lender to find out any chance of you getting a better deal, should you decide to do your college loans consolidation with a particular lender.

It does not really matter if you should eventually decide to consolidate your loans with a private or government lender. Here is a piece of advice. Be sure to carefully consider what the resulting post-consolidation monthly payment will be like, and find out how much the consolidated loan will cost you in total (principal plus interest) until the entire consolidated loan has been paid in full.

If you do your homework right and your final figures project significant amount of monthly savings, then the answer to our question at the start, "Should I Consolidate My Student Loans?" is certain to be a resounding yes. In this case, any decision to go ahead with college loans consolidation is really a 'no-brainer'.

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Student Loan Lawyer...

A student loan lawyer is accessible both on as well as off line to help undergraduates who have defaulted on their college contracts and need advice on what legal alternatives they might have at their disposal for getting out of their dilemma. Outside of bankruptcy, a legal representative may help the coed by recommending consolidation, getting payments stretched out, or getting the contract discharged due to disability. Discharge is possible if it able to be proved that an undue hardship will result (that is, if the borrower will be unable to maintain a minimum standard of living) if the payments are made. When a convincing case is presented by a student loan lawyer, the courts will sometimes find a debtor could pay a portion without hardship, and discharge the rest.

Recent bankruptcy law changes have made it more difficult for people to file for bankruptcy, and student loans are almost never dismissed, so the legal representative may prefer to take concern of the borrower's problems outside of bankruptcy. A student loans lawyer will point out that college contracts are not enforceable if the school closed before the student could finish his or her education, or if it falsely certified the borrower was able to profit from its program. On the other hand, the attorney will inform a college-age debtor that the lender has the right to garnish 10 percent of the debtor's wages to pay back the indebtedness, and they have the right to intercept tax refunds and apply them to the balance. Another problem the student loans lawyer will point out is the inability to get any other college contracts if one is already in default. If the only solution seems to be bankruptcy, the attorney can help decide which Chapter to file under, and can lead the applicant through the legal procedures required.

An attorney can refer the scholar to various agencies that will help with the workout and consolidation of contract, including a schedule of payments based on income. One such program is the Federal Direct Student Loan Consolidation Program, where borrowers make monthly payments based on yearly family incomes. Presuming that most coeds want to repay their loans, any of those suggestions by a student loan lawyer will help satisfy lenders. Probably the most important service a student loans lawyer can give is advice before contracts are taken out so a borrower has a realistic view of the financial picture he will face.

Too numerous college applicants have no idea of how to manage their money, and a student loans lawyer could offer a presentation to high school seniors on that topic. Parents might want to confer with these professionals. God wants us to handle our money as His stewards. Zacchaeus gives us a good example for handling money honestly, and in remembering our obligation to the Lord. "And Zacchaeus stood, and said unto the Lord: Behold, Lord, the half of my goods I give to the poor; and if I have taken any thing from any man by false accusation, I restore him fourfold" (Luke 19:8). Borrowing any kind of money is a dangerous decision. As believers, we have a responsibility to consult God first about our finances.

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Student Loans In Bankruptcy....

Student loans are not dischargeable in bankruptcy unless you able to show that your loan payment imposes an "undue hardship" on you, your family, and your dependents. Non-dischargeable debts are those debts that you cannot totally eliminate when you file for bankruptcy and'll have to be paid by you.

It is almost impossible to show an undue hardship unless you are physically unable to work and the chances of your obtaining any type of gainful employment in the future are non-existent.

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, privately funded student loans are treated the same way that loans funded and guaranteed by the federal government or nonprofit institutions. Prior to the new law, if you had a loan from a private-sector lender that was not guaranteed, it could be discharged under chapter 7. The new law gives these loans the same protection as the guaranteed loans.

If you would like to discharge your student loans under the "undue hardship" exception, you must file a separate motion with the bankruptcy court and then appear before the judge to explain your hardship. This is not an easy task, so if your student loans are the main part of your debt, you would be better off not facing the harshness of bankruptcy as courts are extremely reluctant to discharge student loans.
Consolidating Your Loans Under Chapter 13
Although you may not totally eliminate student loans in bankruptcy, you could consolidate them, with your other bills, in a Chapter 13 proceeding. Under this chapter, you can propose a repayment plan in which to pay your creditors over three to five years. For a Chapter 13 bankruptcy, you'll need a stable income with disposable income and must have no more than $1,010,650 in secured debt (debt involving property that your creditor may take if you don't make your payments) and $336,900 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. Chapter 13 will also interrupt collection action against you.

If you include your student loans in a Chapter 13 repayment plan, depending on definite factors such as the size of the loan, the number and amount of your other debts, and the amount of your disposable income, you might be able to make a dent in the loan balance over the life of your plan. However, you will still owe whatever student loan debt remains when you complete your plan.
Challenging the Loan Balance

Often, a student loan has been transferred between lenders many times, and it's not clear just how much is owed or whether any charges in addition to the principal amount of the loan are in accordance with law.

In a Chapter 13 bankruptcy, you can use an objection to the claim of the holder of a student loan to get a court's determination of your rights. Once a judge decides what is properly owed, the bankruptcy court decision is binding on the lender even if the repayment period on the loan stretches beyond the end of the bankruptcy plan.
Government Collection Procedures on Defaulted Student Loans
The Higher Education Technical Amendments of 1991 (HEA) eliminated all statutes of limitations for any collection action by a school, guaranty agency, or the United States under a federal loan program. The amendments also eliminated all limitation periods for tax intercepts, wage garnishments, and other collection efforts.

If you're not able to discharge your student loans in bankruptcy or establish a repayment plan in a Chapter 13 proceeding, the federal Department of Education has the right to:

* Tack collection fees of 25% and collection agency "commission" fees of approximately 28% onto the principal, interest and penalties you already owe
* Take your federal income tax refund until all your defaulted student loans have been paid
* Garnish up to 15 percent of your wages, without suing you first
* Take as much as $750 per month (up to 15 percent of your income) in federal benefits to which you might be entitled, such as social security retirement and social security disability income, and apply that amount toward your outstanding defaulted student loan debt
* Sue you for your outstanding student loan debt and place liens on your property

Repayment Alternatives

Depending on how far in default you are on your student loan payments, you may be able to:

* Work out a repayment plan with the student loan lender that stretches payments out over a longer period or calls for graduated payments that increase as your earning possible increases
* Get the lender to agree to defer repayment until your career and financial circumstances have improved
* Consolidate all your student loans into one loan that spreads the payments over a longer period of time, often at lower interest rates

However you decide to deal with your mounting student loans, it's best to tackle the problem as soon as possible to avoid paying more in the long run.

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<h1 class="subject">How do I consolidate student loans from different lenders?</h1>

I have three loans from three different lenders. Who would buy up all three of my loans and give me a decent interest rate? I have good credit.

It's never a good idea to consolidate student loans because you are already getting the lowest loan rate available. Just pay off the smallest loan by adding payments to it and pay the minimum on the other loans... then pay off the next smallest loan until they are all done.

Even if you got the same rate by consolidating, you lose, let me explain: It will increase your loan payment. This is not good b/c you will be less likely to add extra payments this way... all extra payments go on the capital... not the interest. Also, there are often hidden charges for consolidating... so check that out first. If the payment is less, then you also have a problem because that means that they have extended how long you have to pay your loa, therefore charging you more interest... banks love that!!!! Do you want to keep your money or give it away????

If you had to consolidate, I'd choose ING as your bank of choice. Good Luck!

Go to Salliemae.com

<h1 class="subject">What happens to 401k loans when you change jobs?</h1>

If I am planning to leave my job in the near future and I have 30k in my 401k and approx. 12k in loans, how will the loans be repaid? Do I pay the taxes at year end? Also what if I decided to cash out the rest?

It depends on the requirements of your 401(k) plan. Some 401(k) plans allow you to continue to make payments on loans after you leave your job. Others require you to pay back loans within a certain number of days (often 30, 60 or 90) after you leave, or the loan will become a distribution.

If you have the money and want to pay back the loan, you can call the 401(k) administrator to find out where to send the check. The administrator should also be able to tell you about how the loan can be repaid - if it is within a certain time period, or if it can be over the original life of the loan.

If the loan becomes a distribution, you will owe your marginal tax rate plus a 10% penalty, when you file your taxes for the year the loan was determined to be a distribution. On $12k, if you are in the 25% bracket, you will owe $4200 in taxes. If you do not have enough withheld from your paycheck to cover the additional taxes, you could end up owing penalties for underwithholding, so it would probably be best for you to update your W-4 to have additional tax withheld.

You get the option to leve it there or move it with you. You may also close it out and get a penalty or put it in an IRA. You have the choice, your past job will let you know.

You need to pay back the loan before you leave or you will be charged taxes as though you received a distribution. Generally that is state tax, federal tax and a 10% penalty on top. If you want the rest of the money, I would suggest rolling it over into another qualified plan, such as an IRA. That way you will avoid paying the taxes.

aj485 has it right...only thing I would add is that your new job may allow a loan rollover. It's not well publicized but it's legal to do. That would keep you from owing taxes...you'd simply start making payments at new plan (you'd also have to make up missed payments!). If you cash out the rest you'll actually only receive 21k. They'll withhold 20% of the entire 42k or 8,400. In addition you'd owe a 10% penalty on entire 42k so your tax bill will be 12k or so. That's on top of your normal taxes. Not a pretty picture! That's not considering the 300k damage you'll be doing to your retirement...10k distribution for a 20 something is a 100k reduction in retirement savings.

<h1 class="subject">Is paying off defaulted loans that aren't on my credit report going to help my credit score?</h1>

I owe $9,000 in student loans. They just started garnishing my wages for $500/month. The loans were from 1998 and do not appear on my credit report. The collection company told me that once they're paid off that they will appear as not in default on my credit.

If they are garnishing your wages, that means they have gone to court and received a judgment. Those are public records and will eventually get placed on your credit report.

Paying the debt off will not get a judgment removed form your reports, but it will show it was paid off. The effect to your score will be minor.....judgments hurt your score badly for a few years, whether paid off or not.

If you have pulled all three of your credit reports and it's not on there then they are BSing you. If it's not on there it can't help you or hurt you. They just want their money.

I'm sure it won't. The credit bureaus are also people. They will probably ask you for the full story why you defaulted on it, if you have a very logical alibi (written proof) that you will give them when the time comes that you will apply for a loan, with your stable job and the rest of your bills, are paid on time this will pull themselves up together.

Don't be afraid or worry on this too much - Just keep an open account that you could purposely maintain for a while - this will show the lender or bank that you are a very good creditor.

Life is full of unexpected difficult situation sometimes we have to face and they understand that. You just have to prove them. OK?

Yes, it will help, if not now, later. Eventually, they will be reported to the credit bureaus and believe me when I say they will. By paying them off now, you will eliminate any future negativism's from being reported. Be sure to get a satisfied in full receipt and a letter stating that the loans were paid in a satisfactory manner. They want the money they will give you this type of letter. If they won't then you may have some problems down the road, but with this letter, you can always override their negative reporting, if it were to happen in the future.

<h1 class="subject">What are in-school deferments in reference to student loans?</h1>

I just checked my loan balance page, and it says for the two loans from undergrad, there are in school deferments for a period of time.

I'm currently in school again right now, and will be for the time frame of these two loans. Does that mean, while I'm in grad school, I don't have to pay the undergrad loans? Or, is there more to it?

Thanks!

You have the idea exactly right. While you are in school the loans are still in deference (or you do not have to pay back at that time). You indicated that it will be defer(ed) while you are in grad school- that still works out fine because that means you will not be required to pay anything until at least you are out of school! I don't believe that there is anymore to it then what you posted and I hope this helps!

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<h1 class="subject">What kind of Private loans should I look into?</h1>

I am a full-time student, and I eventually might have to look into Private loans to help fund my college education and living expenses. What loans should I look for, and where should I look?

Jnaujo:

Honestly?

Any kind you can get.

The news is taking a long time to trickle down through the affected students, but the private educational loan market was eviscerated by the worldwide banking and lending crisis. At least 80% of the lenders who once made these loans have either folded, or are no longer accepting private loan applications. The lenders that have folded were many of the most active participants in this market - names like Astrive, Campus Door, My Rich Uncle, and NextStudent..

Other lenders have failed and been merged into other banking institutions - Wachovia is now part of Wells Fargo, but Wachovia had long since pulled out of the private educational loan market, anyway.

There are a handful of major lenders who are still accepting private student loan applications (don't confuse this with the number of lenders who are still making Stafford and PLUS loans) - we're talking Wells Fargo, Chase, Citi, and a few more.

You'll need to be prepared for the fact that ALL of these lenders have tightened the screws on student lending - it is almost IMPOSSIBLE for students to qualify for a private educational loan without a cosigner. Even that's not as simple as it sounds, because the lenders are quite picky about who they'll accept as a cosigner, too.

Apply for the loan when you've registered for classes. Most lending products require that your loan be "certified", which means that the lender will need to contact your school to verify your enrollment, and to determine your Cost of Attendance and unmet need. You should anticipate a high probability of being asked for a cosigner, and be prepared to provide a highly creditworthy individual for this purpose.

I hope that helped - good luck.

Go to Free Open University and save your money. Keep your job and pay your way Free Open University cost nothing. Most of the textbooks are free.

<h1 class="subject">What happens to subsidized loans for college if you take a summer off?</h1>

Subsidized loans for college, says the goverment pays the interest as I attend school at least on a half time student. Which is 6 credits a semester. But what if I only take one (3credit class) or even take the entire summer off? Will I be responsible to start paying for my loans, even if I would go back in the Fall Semester?

Well, if you fall below part time for 6 consective months, then you have to start paying them back and interest WILL then start to incrue.

That is fine though, everyone doesn't do summer schoool. So just get at least part time during fall sessions and everything will be fine. Summer months only last no more than 3.

No, all loans are differed until 6 months after you take your last class or graduate. If you are enrolled for the fall semester your loans will be able to stay in a state of different.

<h1 class="subject">How many US auto loans and home mortgages financed by banks are out there?</h1>

I'm trying to discover the # of US home mortgages and auto loans financed by banks in the US and the average value of each type of loan. It's for a school project.

Go talk to an officer at your local bank. There are many tens of millions of each, but I don't have exact data.

<h1 class="subject">How do I get loans to go to school without a cosigner?</h1>

After the completion of Fafsa and such, I only need $11,000 or so to pay for my upcoming freshmen year of college tuition. My parents are unwilling to sign loans for me to go and I can't guarantee that the private scholarships I've applied for will be enough to cover the remaining costs. Is there anyway at only 17 I can get loans myself or come up with the money before my freshmen year begins in august. Please help.

A minor cannot enter in to a legal contract, so no lender will give you a loan until you are at least 18. Even then, without a co-signer, it will be very difficult to secure a loan without equity. You will need to have a job earning more than $1,000 and to be able to prove that you can pay back the loan.

You can however get a federal student loan (without a cosigner) that you will never have to pay back as long as you meet regular admission standards. Apply at Student Loan.Gov at:

http://www.students.gov/STUGOVWebApp/Public?topicID=15&operation=topic

or

http://www.students.gov/STUGOVWebApp/Public

- or

http://fafsa.ed.gov.

You won't need a cosigner for a federal student loan.

Be aware that the max you will be able to borrow is about 3,500 a year as a freshman. This will likely pay for your tuition and books.

Best of luck to you!

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<h1 class="subject">Difference amortized housing loans and refinancing of arrears housing loans, what is the principles behind?</h1>

my housing loans is for 30 year amortized monthly. arrear for several months and want to restructure loan. what is the best

options. Difference between amortized housing loans and re-financing of default housing loans?

It boils down to several factors, all of which will cost you money. Both are esentially new loans. The first is starting over again for 30 years with your existing mortage, your arrears, points, and origination fees. This gives credit for what has been paid towards principal. A re-fi is also a new loan. You must requalify. Considering that you are in arrears this might affect your credit rating, but you may be able to get a better rate.

You should talk to a processor and have them determine when a break even point would be with each loan. The break even point is when you have paid off the extra that the new loan cost. The shorter the time, the better the loan. You might also consider taking out a signature loan and just pay off the arrears. This may be your best way to go.pp

<h1 class="subject">How do construction loans work?</h1>

My husband and I are working with a builder of a subdivision we are planning on building in. We chose a home from the options this builder has for the sub. To get started on the house, we need to give him $5,000 down. However we do not have the funds saved so we are able to do a construction loan. I've heard so many things about construction loans and how the fees are horrible. Yet, its been so hard for me to find any information. Would the fees be that steep, even though we only need $5000 down? Is there any specific banks/companies out there that make this process easier that anyone would recommend? Any help or information would be greatly appreciated. Thank You!

It doesn't sound like you are being required to get a construction loan. The builder is asking for an earnest money deposit. Typically, builders require $5,000 to start the home and would ask for an additional 5 or 10 during different phases of the project. If they are going to build something to your specifications, they want you to have enough money into it so you don't back out. The only financing you will need is a normal mortgage, once the house is complete. You will be able to use the money given to the builder as the down payment. Otherwise, you can buy the model.

If you only need $5000 you should approach your bank and see if you can get an unsecured personal loan. Most banks will do that amount unsecured. Most of the time people get construction loans when they are building and they are for a short period of time until the house is built so they can get a mortgage. If you can't get an unsecured loan then do you have a vehicle with equity that you could borrow against? If the builder is doing the construction loan then you might pay higher fees. Check with your bank.

I think you should consider local lenders on this. I have no idea what the fees are for construction loans, however they will roll the remainding amount into your mortgage when finished and you take on your permanent loan.

<h1 class="subject">How do they process your student loans when you almost at your borrowing limit?</h1>

I have around $4500.00 left in student loans, and I have two semester left of college. In the fall, I am taking 15 hours, but in the spring I am only taking six. Will they offer the remaining of my loans for the fall semester, and I can use my pell grant for the spring or will they split the remaining loans between the two semesters?

Chances are they will split the remaining loans between the two semesters, at least my college does.

hope this helps

<h1 class="subject">What to do when you run out of student loans?</h1>

I am on my last year of Grad school and I run out of student loans. I had the federal loans and a citi-assist loan but my school is telling me that I maxed out on the amount of loans I can get (the full cost of attendance). What can I do? I see there are private student loan option but some say maximum is total cost of attendance... this means I am ineligible? what are my options?

No, it means all you can get is the total cost of tuition & books. Call a few of those companies & ask. Also, since you're in last year, ask mom, dad, aunt, whoever you can for a personal loan. Also, get a job. Waiting tables can be really good $$ for minimum hours put in. Dinner or cocktail only. There's no money in breakfast or lunch.

Get a part-time job.

<h1 class="subject">What types of loans are out thier for first time home owenrs with good credit?</h1>

What types of loans are out thier for first time home owenrs with good credit? The place that I want to buy is about $185 can I still get a zero down loan? If not what is the next best thing?

JJ I would be very careful asking for help with your financials on this venue. What you are most likely to get are solictations, like you've already gotten.

Do business with local lenders. Should something go wrong at least you can visit them to make sure they correct it.

As for the actual question, FHA and USDA have good programs, the VA as well especially if you were wounded.

Best of luck!

Conventional loans have basically disappeared at 100% the highest now is about 97%. FHA can also do 97% and USDA (if in what's considered a rural area) up to 100% and VA 100%. I still wouldn't suggest a 100% financed loan in this volatile market though where prices could still continue to decline. I'd suggest saving up enough to cover at least 5% before looking into buying a home.

Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing office

<h1 class="subject">What does it mean when my student loans have a zero balance due to a claim?</h1>

My student loans are through NelNet and I received a letter from NelNet instructing me to stop making payments. The reason they give is that my student loan account has been paid by a claim and now has a zero balance. I have had student loans since 1995; but I also have filed bankruptcy. What does all this mean? What claim paid my loans off? Did I or someone else get sued for the money?

That is a question they should be able to answer for you. Is it possible there was a class action suit? Or included in bankruptcy? Contact them and find out.

n

I thought the laws didn't allow student loans to be apart of a bankruptcy. But you should really contact the student loan provider to see what is going on. They may have sold your loan to another company so its not its not longer owed to the original one.

<h1 class="subject">Is it better to pay off student loans quickly?</h1>

I'm graduating this June and I'm going to have about 30,000 canadian in student loans. I want to pay off my loans as quickly as I can even if it means sharing a room with someone. I'm planning to take at least 50% of my pay check to go into loans. So maybe around 900 a month, which allows me to pay off my loans in about 3 years. I'm normally a saver anyway and I can live cheaply. I would have just enough money left over for rent and living expenses. My rent would only be about 400 dollars. Plus, I have savings right now that would work as my emergency fund. Do you guys think that it's a good idea and is it worth it financially? My thought is that it would save me on interest even though it would be hard for a few years, but I will be much better off in the long run. Any suggestions?

Its always good to pay down debt

Good Luck!!!

To answer that question you need to consider two things:

1. The rate of interest on your loan and

2. the rate of interest on savings and investment.

In other words, if the interest on your loan is higher, you may want to pay that off first, but ensure that you can pay it off earlier. Some institutions do not permit early repayment, believe it or not.

If your savings gives you higher interest, save your money, make the required payments on your loan and pay it off over the specified period. It also builds your credit rating. If you can, you should really consider investing the money while making loan payments.

However, if you are thinking of making a big purchase soon, like a house, the money you have outstanding does affect what they refer to as your "debt service ratio". In other words, they look at how much of your income goes towards servicing or repaying debts. You should talk to the institution and find out if you get any rebates for early re-payment.

go to this site and fill out the form, it takes less than a minute. then you'll get help and great advice on how to lower your student loan.

I agree with you on paying the loans off as soon as possible. Why carry a debt for years and pay all of that interest?

But like you, I prefer to pay things off as soon as possible. When I got my 1st house (back in 1975), I almost passed out when I saw my amortization schedule. I was making a $300/month payment - but the amount owed was only reduced $19.97 (rest was interest). After a lot of argument, the bank finally agreed that I could make extra principle payments. I made 2 extra per month (About an extra $40 at first, but slowing go up each month). That house was paid for in less than 15 years (as oppose to the normal 30 years).

I'm now 55, been retired for 2 years - I could not have retired without the house being paid for. :=)

The sooner you pay off your student loans, you can get into other things.

If that is the only loan you have then yes, it will be better to pay it off as quickly as possible. Make sure you have a stable interest rate or maybe negotiate for a lower one. DO NOT GET INTO CREDIT CARD DEBT....it will overwhelm your other loan. Good luck.

Better still, don't take one out. Something fishy about those.

Given the choice btwn paying off the loans or buying a house to live in as an investment, it is financially better to buy the house. the loans will help develop your credit rating and are viewed as honorable debt. buying the house will cost, but the house will appreciate at a rate faster than the interest will accrue on the student loans. not to mention that rather than paying rent to share space with someone, you can work out the house, rent out a room or two to students or friends who are responsible, and they can help or completely cover the cost of your mortgage, thereby allowing you to live rent free, gain on the investment in the house, and still pay a lot toward your student loans.

<h1 class="subject">What can u tell me about business loans to start up a new business?</h1>

In the process of opening a new business. How do business loans work - I know I need a business plan etc before I can apply for a loan, but what's some other info? What's the interest rate range, what's the range of how many yrs u can have the loan, range of amnt they can loan, will they include the first yrs lease amnt in the loan if needed...etc, etc?

A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.

However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.

When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.

Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.

Good luck,

Ilya Bodner

Small Business Owner

Initial Underwriting Group

Hi There,

You don't specify the amount you need, however, you are on the right track when you state you need a business plan.

One of the simplest methods of obtaining business credit, especially since your personal credit is good is to set up your business as a formal legal entity. By doing so, you position your business to obtain credit much easier, in fact, once you've done so, you can apply for an unsecured line of credit, (a credit card), which is the simplest form of business credit to obtain. The great thing about this approach is you leverage your good personal credit, but once you obtain the loan, it does not show on your personal credit report. (You must of course keep your payments current, but you are building your business credit - A real win-win!)

By the way, the best business credit card available is offered by ADVANTA, they like new businesses and they are offering 0% interest for your first 15 months, then a fixed rate of 7.99% thereafter...You won't beat this with any bank offer!

You can learn more about the steps to starting your business, and applying for a business credit card at the links below.

Good Luck!

<h1 class="subject">What happens to the status of student loans if I transfer undergraduate schools?</h1>

I just transferred undergraduate schools and still have some student loans from my previous school (Sallie Mae and Federal Direct loans). Is there some sort of clearing house that my new enrollment status will be sent to so that the loan agencies know that I haven't just stopped going to school (and thus cause my loan payments to become due)? Or must I obtain enrollment verification from my current school and send it to each loan agency myself?

Although most lenders find out if you transfer schools, it's best not to wait to hear from them, as they may have you in repayment status, and if you go too long without making a payment, you'll default which will ruin your chances of federal aid in the future.

Best thing to do is call each loan servicer, inform them that you changed educational institutions, and ask if they need you to provide anything to them to keep your loans in good standing with them.

Good luck with your education!

<h1 class="subject">Student loans not in repayment or in deferral included in a mortgage loan application as an expense?</h1>

Am applying for a mortgage loan and have two school loans already on my credit report but specify one is not in repayment and second is deferred. However, the loan application is requesting all expenses listed on my credit report. Are these loans not in repayment included in my expense ratio?

Student loans that are deferred...need to be deferred for 3yrs in order to take it out of the expense ratio.

If not, I WOULD HIGHLY recommend that you find the original contract of the student loan. OTHERWISE, the underwriter will use his own calculations of what you will pay...which is USUALLY higher than you will normally pay.

I am not sure why you are not repaying it, but it is still due before your mortgage will be, which is usually in 30 years.

Yes, because it is a bill that is owed, even if you are not currently paying it.

I bought a house a few years ago and was still in school. They took an estimate of when I would start having to repay the loans, at the time it was about 2 years from the start of the mortgage. So, no they did not add it in to my current expense ration. I would say if the loans will be due in the current future, less than a year, then they would.

Ana they are included in your overall financial picture and debt ratio's.

<h1 class="subject">How do student loans work? Once I start paying them back, do I have to pay back consistently?</h1>

Like if I have $1000 now gathered from working as a student for 2 years, can I use that to pay some of the loan back? Or, is it that once I start paying back loans, I can't stop, and I must consistently pay them back every month?

Also, do student loans have minimum sums we are allowed to pay every month? Like can it be that i'm only allowed to pay if i'm paying in a minimum sum of $800 or $1000?

P.S. this is not for me, so its not like I can look over a contract or anything like that.

It seems like everyone who answers on this subject just refer you to a website. Here's my knowledge so far on my son's student loan... He just got accepted for his first fiscal year in school and the fine print states that if you pay $1000 when your payment is only $250 (example), then your next payment wouldn't be due until after those other payments are paid from what was left of the $1000, meaning, you have an extra three months of payments paid from that money before you had to pay again. Make sense? But no matter if you overpay or pay monthly, you do need to make sure you pay on time, or it could affect your credit rating. I'm not sure what you're saying on your second part, but all loans have a minimum payment due each month, if that's what you're talking about. So what it comes down to is that you can always pay more than what you owe. No bank will turn down money early.

i hope this site helps a bit

http://www.eioba.com/a31894/how_student_loans_work

<h1 class="subject">What kind of loan can I get to consolidate private student loans?</h1>

I have $100,000 in private student loans from two lenders. The interest rate is over 10%. Is there a way to get another loan to pay this off at a lower interest rate? What kind of debt consolidation program should I consult? Most student loan companies only deal with Federal loans it seems. I keep seeing ads for mortgage loans with low monthly payments-- is there something similar I could get for a personal loan? THANKS!

You know what my answer to this problem is? I am joining the Marine Corps. I'm gonna be programming. There are plenty of different jobs in the Corps other than just killing ppl. So if I were you I'd go to marines.com and search for your nearest recruiter to see what they could do for you. What do you have to lose by talking to a recruiter. Nothing.

You're right, there are a lot more companies that deal in federal student loans than there are companies dealing in private student loans. However, this is changing. As tuition rises and the student loan debt increases, companies have responded to the need for private loan consolidation. Sallie Mae -- one of the biggest names in student loans -- introduced a private loan consolidation product within the last year. I would encourage you to read up on the various companies that offer private student loan consolidation and pick one that you're comfortable working with long term. Among the reputable companies I've found who offer this service are...

Sallie Mae: http://salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/private.htm

Key Bank: https://www.key.com/html/H-1.39.b.html

Education Finance Partners: http://www.educationfinancepartners.com/loans_privateconsolidationloan.html

Wells Fargo: https://www.wellsfargo.com/student/repay/private_consolidation/?_requestid=13154

Nelnet: http://www.consolidation.nelnet.net/PvtDescription.asp

You can look into *other* types of loans as well. When home equity loan rates plummeted, a lot of borrowers jumped on that bandwagon and took out a home equity loan which they then used to pay off their student loans. The best part? There is no limit to how much home equity loan interest you can deduct on your taxes, while there is a limit to how much student loan interest you can deduct. If you own a home, you can look into this option. If you don't own a home yet, you can keep this option in the back of your mind. You can always take out a home equity loan later on and use it to pay off whatever private consolidation loan you decide to obtain today.

Good advice from FinAidGrrl....the only thing I would add is that private consolidation loans are credit-based, meaning the interest rate charged will depend on your credit history, so anything you can do to raise your credit score *before* you consolidate might get you a lower rate.

<h1 class="subject">How do I get loans to obtain another bachelor's degree in a different field?</h1>

I was denied loans to obtain my bachelor's in nursing because I ALREADY have a bachelor's in business. I need my nursing degree for the field I now want to go into, but I have to get student loans to obtain it. I have never had a student loan so why is this so difficult? Will the new stimulus package help with the student loan process?

I am in the same situation as you. Here is what I did.

Fill out your FASFA form online (www.fafsa.ed.gov). Add all the schools that you intend to attend on your FASFA. Different schools have different deadlines to have your FASFA submitted. The earlier you submit your FASFA the better so that you can meet the deadline for all the schools. You must obey your school's deadline not the federal deadline for your state. The school receives money from the FED and they prepare a financial aid package for all the students that meet their deadline and that are accepted. The student package consist of scholarship, Stafford and Perkin loans. This all depends on your family's expected contribution toward your education. Whatever amount extra that you need you have to get a private student loan which is credit base. Your parents could also take a student loan on your behalf. For private student loans try Discover student loans and sallimae as. Your school should have a list of all the lenders that offers private student loans as well as a list of scholarships that you can apply for. Good Luck !!!!

If your expected family contribution is zero and you are interested in working in undeserved communities after you graduate for a free education. Check out the following link:

http://bhpr.hrsa.gov/nursing/scholarship/applicantbulletin/default.htm#benefits

ss

You should be able to get the stafford loan no matter what, You wont be eligible for some financial assistance from FAFSA, but as far as getting a student loan, you should automatically be approved for the stafford.

Talk to a school councelor to find out more options.. but dont give up!!! best of luck!!

<h1 class="subject">How exactly do 'interest only' mortgage loans work? When do I pay on the principle of such a loan?</h1>

I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an interest-only mortgage loan?

In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.

However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.

I disagree when you say that an IO mortgage is cheaper than a conventional mortgage because in a conventional mortgage with a constant annuity, the interest component of the monthly instalment decreases with time (as the loan is amortised gradually). In an IO loan, that doesn't happen http://answers.yahoo.com/question/accuse_write?qid=20070517140237AAzHPc8&kid=Hr8mCWnbJkPa0x9S_qiL&s=comm&date=2009-04-22+16%3A50%3A00&.crumb=

you can get a fixed rate of 1-30 years at interest only payments. the loan term remains at 30 years. so you can get a 5 year interest only loan based on 30 year pay back term. what this means is that the first five years you are required to make only interest payments. any amount more than that paid will get applied to principle. after the 5 year term comes up, the loan is still open but now your payments either adjust to the market at the time and/or your payments become principle and interest.

Interest only loans are good if you get them fixed for 5 years or more. it helps make payments more affordable, but you never pay down your balance. if you ever plan on moving within 10 years, dont get a loan that requires principle and interest. if you know you will never move again, then go for a principle and interest payment as long as you can afford it.

In an 'interest only' loan you never pay principal down at all, just pay interest only. when the loan term is over, you still owe the principal in full. These work best when you're taking out a short term loan to, say, rehab a house that you intend to sell for more than you bought it for, so that you can reap the profit. These loans aren't for the average person. These loans are for various terms, but usually short term (1-6 months, 1 year, etc) and are almost always fixed rate.

The other answers are mostly correct, however no interest only loan product allows for interest only payments throughout the term of the loan. They are all limited to a pre set interest only period with 15 years being the longest period I am aware of. These loans can be fixed rates as well. The best one I know of is a 40 year loan term with the first 10 years being interest only. This basically allows you to make smaller payments for the first 10 years, then having a traditional 30 year fixed rate over the remaining 30 years. There are also no rules that do not allow you to pay towards the principal during your interest only period. Many people will take an interest only loan for the security of having a smaller payment when they need it, but paying extra to principle when their budget allows. Anything you pay extra applies directly to your principal balance which will ultimately reduce your payment once the interest only period is expired.

Every loan has an APR, what people refer to as "bad" is an ARM (adjustable rate mortgage).

An interest only loan is usually amoritized over 30yrs. But yes, you are just paying interest only & NOT paying anything towards your principal. If after 30yrs. of paying Just the interest on say a $100K loan,,,, after 30yrs. you would still owe $100K, at which time you would sell the home or just refinance. Most people do not pay interest only on the same loan for 30yrs.

If you have an interest only loan, it is because you couldn't afford to pay the principal as well when you first got the loan. You should contact the bank who holds your mortgage note & ask if you have a "pre-payment" penalty OR if it would be OK to make some payments towards your principal.

If you're currently on an adjustable rate interest only loan, it would be better & safer to refinance to a fixed loan payment. Even if it is interest only, just make sure you ARE able to, if you want, to make extra payments towards principal.

<h1 class="subject">How do student loans affect a mortgage applicaton?</h1>

I have $60,000 in various student loans, but since consolidating my combined payment is only $300/month. I have no other debt. Do lenders view student loan debt differently due to the flexibility of the loans? Also, would they look more at the total amount of the debt or the monthly payment when determining the rate and loan amount?

With 20 years experience in the mortgage business, I have never seen a student loan that was in repayment treated any differently than any other long term debt. While you may be able to ask for a hardship deferal in the future, which is the only advantage on a student loan that doesn't exist on a standard installment loan, no lender wants to anticipate that circumstance. As long as the payments extend past 10 months in the future, the lender will only use your monthly payment as part of your qualifying ratios. The total debt is not that important and would only be a minor factor. What will matter more is your payment history on the student loan: it should be perfect. It all comes down to the quality of your credit history (your FICO score) and your qualifying ratios of debt/income.

lenders will look at the monthly payment to determine your debt to income ratio and the timeliness of your payments and yes they do look at it a little differently because of the characteristics of the loan

<h1 class="subject">How do student loans affect a mortgage applicaton?</h1>

I have $60,000 in various student loans, but since consolidating my combined payment is only $300/month. I have no other debt. Do lenders view student loan debt differently due to the flexibility of the loans? Also, would they look more at the total amount of the debt or the monthly payment when determining the rate and loan amount?

With 20 years experience in the mortgage business, I have never seen a student loan that was in repayment treated any differently than any other long term debt. While you may be able to ask for a hardship deferal in the future, which is the only advantage on a student loan that doesn't exist on a standard installment loan, no lender wants to anticipate that circumstance. As long as the payments extend past 10 months in the future, the lender will only use your monthly payment as part of your qualifying ratios. The total debt is not that important and would only be a minor factor. What will matter more is your payment history on the student loan: it should be perfect. It all comes down to the quality of your credit history (your FICO score) and your qualifying ratios of debt/income.

lenders will look at the monthly payment to determine your debt to income ratio and the timeliness of your payments and yes they do look at it a little differently because of the characteristics of the loan

<h1 class="subject">What Loan company will take over my federal student loans when the loans are in forbearance?</h1>

What Loan company will take over my federal student loans when the loans are in forbearance so I can go back to school?

My loans are government loans from Saillie Mae. I owe them under $5000.

I heard about this company that will take over your school loans from them but I don't know the name of the company.

No one will "take over" your loans. You will still owe the money to your lender when you are in forbearance. They will simply add interest every month while you are making payments.

If you are asking about defaulting the lender will just contract out with a collection agency to start calling and hounding you to mail them payments. If you make 6 to 12 months worth of willing and reasonable payments you can ask your lender to "rehabilitate" your loan. This is when you are issued a new loan and pay off the one in default so you can get federal fin aid again. Again, rehabilitation can only be done after you have made 6 to 12 months of payments.

<h1 class="subject">What Loan company will take over my federal student loans when the loans are in default?</h1>

What Loan company will take over my federal student loans when the loans are in default so I can go back to school?

My loans are government loans from Saillie Mae. I owe them under $5000.

I heard about this company that will take over your school loans from them but I don't know the name of the company.

When your federal educational loans are in default, you have several options:

You can repay the loan in full.

You can negotiate a new payment plan with your lender.

You can "rehabilitate" your loan.

You can consolidate your loan.

Obviously option one is rarely attractive or possible for defaulted borrowers.

Option two (renegotiate) should be investigated fully - most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with.

Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount.

Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple - a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt - a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and - in the end - you'll pay far more back than you would have paid on the original loan.

As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 - is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?"

See - in the end, you'll pay me back $170 instead of $100 - that's how a consolidation loan works. But remember - we're not talking a $100 loan for a couple of weeks - by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan.

I've attached some information about consolidating from the Department of Education - take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers.

Good luck to you!

Another f-ing professional "student". 8-\ http://answers.yahoo.com/question/accuse_write?qid=20080826065819AA7L3R8&kid=Ppt2A3e.AnfGRSpI6i2y&s=comm&date=2008-12-26+11%3A38%3A48&.crumb=

Right now it's taking over 9 months of consecutive payments to get out of 'default'. I have no way of knowing which lender is going to take over your loan because quite frankly, student lenders have really clamped down on who they will work with.

This can also mean that you could stay in collections until it's paid off.

The collection agency will work to find a lender to take your loan back over once you're out of collections.

Once you are deemed out of 'default', you can then apply for student financial aid.