Study Your Options On Student Loans

When you want to further your education by attending a college or university, there are numerous costs that need to be addressed. Included in these items are tuition, fees, books and incidental cost, and when you are away from home there is also room and board in the mix. The College Board says that the cost of college for this past year was an average of $11,000 for a two-year college and $14,000 for a four-year college. For private universities the costs were over double that amount just for one year. An increase is expected in these figures of 5-8% due to the rate of inflation. Scholarships and student loans are frequently one of the essential keys to guarantee a successful education. There are numerous places to find loans in order to help you get the education that you desire.

A very familiar way of acquiring funds needed for an education is through federal aid, which is a loan that is obtained through a government agency such as a Stafford Loan. There is more than $67 billion dollars available in loans through federal lending programs.

When you receive a government loan there are numerous things that must be done. A number of applications have to be filed, once done you will go through a process that will grant you a specified amount for the school year. In order to meet the criteria set for receiving financial aid you must have a high school diploma, be enrolled in college for a minimum amount of hours, maintain a certain grade point average and be a U.S. Citizen.

One of the government loans available is the Federal Stafford Loan. Once you qualify, there is a specified amount of money available for you. You will not have to start repaying this money for 6 months after you have left or graduated school. Another loan option is the subsidized loan. These are based on what the financial need of the student is. When a student is enrolled at least halftime in class and has a need for financial help, they automatically qualify for a subsidized loan. Then you have the unsubsidized loan, which is not dependent on financial need. This loan requires that the student or in most cases the parent to pay a specific amount of the loan within a certain amount of time.

There are also loans that you can get that are campus-based aid programs. These programs are sometimes grants given by the facility. These funds are received from federal funds, which have been given to the school, and they school can divide the money however they wish. Receiving this type of assistance qualifies you for work-study programs, where you have a job on campus. You could also qualify for a Federal Perkins Loan which is also dependent on what your needs are and how much the school has to give.

You can go online to the FAFSA website and apply for all the available government loans. For an application to be considered for the upcoming year, they must be in by the beginning of March.
Beginning this process will help you to find out which government loans will work for you. When there is a match for you, you will receive a letter informing you which loans are available to you and in what amounts. It is your choice which of the loans you accept, it can be none or all.

In addition to the government loans there are numerous private loans offered to student for which you can apply. In most cases, these loans will have a low starting interest rate, which can get higher later on. This is a way of obtaining any remaining money that you may need to pay for your education when there is not enough coming from a federal loan that you have applied.

Loans that you can obtain which are offered by the governments and private lenders are one of the ways available for you to attend the college or university of your dreams and get the education that you desire.


Getting a Car Loan With Bad Credit: Three Factors Considered by Lenders

There is a tendency for those of us with low credit ratings to become quite disheartened at the thought of applying for a loan of any type. Even when seeking a new car, the faith in the success of an application for a car loan with bad credit can be very low. But the truth is that so long as the right information is provided, approval is possible.

The fact is that lenders tend to be interested in only a handful of factors associated with an application, and the credit rating is just one of them. What is more, thanks to the arrival of online and low-interest loan providers on the market, car loans with poor credit are more easily accessible than ever before. So, there is little reason for such low expectations.

There are three principal factors that lenders look to before assessing the risks involved in lending to a particular applicant. Credit history is one of them, but so too is the employment history of the applicant and whether a cosigner is included. Car loans approved despite bad credit are only given the green light after balanced consideration of all three.

Your Credit History

The most obvious factors that lenders look at is the credit history of the applicants, though the reason that car loans with poor credit are available means it is not the most influential factor. What interests lenders with how the credit score became slow low.

For instance, is it because of a poor attitude towards their financial obligations? Or is it down to a run of bad luck, such as temporary unemployment or falling income? A car loan with poor credit can be approved if the lender believes the risk is lower that the credit history suggests.

Your Employment History

Having full-time employment and a dependable source of income is all important from the point of view of the lender. Confirming an ability to meet repayments is essential to get car loans approved despite bad credit. A lender will generally want to see at least a 6-month history with a current employer, as well as pay slips or bank statements confirming the income amount.

If the lender calculates that there is an insufficient debt-to-income ratio, with 40:60 the accepted maximum, then they will reject the application for a car loan with bad credit – even good credit scores cannot save applicants from this ratio.

A Cosigner is Included

The addition of a cosigner can make the application process a lot easier. A cosigner offers to cover the loan repayments should the borrower get into difficulties, a factor that effectively guarantees that a car loan with poor credit will be approved. The reason for this is that the risk factor associated with the loan is reduced dramatically.

However, it is important that the right person is chosen as the cosigner if an applicant is to get the car loan approved despite poor credit. Cosigners with bad credit histories are unlikely to provide the desired certainty.

Looking for the Right Lender

While it is useful to know what providers of car loans with poor credit look for, it is also necessary for the applicant to consider who they are going to apply to. Going to the local bank might seem the obvious move, but car loans from traditional lenders tend to come at high rates of interest and some very strict repayment conditions.

Online lenders tend to offer much better loan packages because they specialize on loans with poor credit. Therefore, it is easier to get a car loan approved despite bad credit online, and with manageable terms, than from more familiar lenders. Of course, the same three factors remain important as you seek approval on car loans with poor credit.