Government Student Loans – What Are the Options?

Government loans are amongst the many options that are available for students when financing their education. There are scholarship programs and grants to apply for, as well as various student loan types. However, federal financing seems to be preferred by many students.

There are many federal loan programs that can be applied for by students and parents. The one most popular for parents is the PLUS loan program designed especially for parents and graduate students. The Stafford loan is the most popular choice for students. There are other programs that often fall under these two loan types. Within these types of loan programs there are two basic classes of loan to be aware of.

Most students and parents do not begin repayment of student loans until six months after the student is no longer attending college. While that may seem appealing the interest that can begin to accrue right away and that is expensive. That is where the two classes of loans come into play – unsubsidized and subsidized loans.

First lets consider a subsidized loan. This class of loan alleviates the worry of interest compounding during the students education. With a subsidized loan the federal government pays all interest that accrues on the loan until six month after the student is out of school. Neither parents or students have to worry about any interest payments until then.

With an unsubsidized loan repayment still does not begin until six month after the student finishes his education. However with this class of loan interest begins to accumulate as soon as the money changes hands. Annual interest is added to the principal amount of the loan at the end of each year which means that the following year interest compounds not only on the original principal amount of the loan but also on the previous years interest. With interest compounding in this way an unsubsidized loan can be quite expensive.

To understand exactly how much an unsubsidized loan with deferred payments will cost you, plug the numbers into a loan calculator. That way you will be able to use the numbers of your loan and the interest rate you qualify for. You will then see just how much you will have to pay in interest over the life of the loan.

Of course it would be ideal to fund an entire education with subsidized federal loans. But that is rarely possible. These loans are typically limited by parents’ income and it is extremely uncommon to receive 100% financing through these. Most students have to rely on a combination of different loan programs to fund their entire education.

To determine how you will be able to finance your education you can complete a Free Application for Federal Student Aid (FAFSA) at

The Secret to Getting a Car Loan

You probably need, or want a new car. Maybe you don’t have a car at all, or maybe you just want a new one. Just because the economy can’t afford a car loan, doesn’t mean you can’t. The first thing you need to do is secure a car loan. With the current economy, however, you may be feeling like that new car, truck or SUV is just out of the question right now. That may not necessarily be true.

There are several different kinds of auto loans to consider and many different ways to go about getting them. The key is to find out which one suits you, so that you can drive away in that shiny new truck you’ve been looking at for months.

- Know what kind of car loan you’re looking at. There are several different kinds of auto loans out there now, from bad credit car loans to traditional new car loans. You can get your loan online or from your bank or credit union. It’s a good idea to shop around for the best interest rate and make sure it’s fixed.

- Know your credit standing. If you have bad credit, you’re probably aware of it already, but it can make all the difference in how much you can be financed for. The SUV you want might cost $35 thousand and you may only be able to get an auto loan for $15 thousand. That’s a huge difference and a huge amount of car. If you’re not willing to wait until your credit is better to buy a new auto, you may want to consider a bad credit car loan, which usually requires a little more of a down payment and has a higher interest rate.

- Get pre-approved for your car loan. It won’t do you any good to go drive that lovely new Ford if you don’t know if you can get the financing needed to buy it. Consider going through your current bank or credit union for an auto loan and arrange auto withdrawal for the payments. This can help you get the pre-approval you need, and get you a lower interest rate on your car loan. Explore all your options before you buy, so you’ll know exactly what kind of car loan you’re getting into and all the fees you’ll be paying. Be prepared to have money down and don’t hesitate to look into the dealer financing, too.

- Many major car manufacturers offer financing through them. Ford, GMAC and Honda all have credit programs that your dealer may be able to offer.

- Don’t feel like you have to use up every dollar you’ve been approved for. Once you’re approved, this gives you some bargaining power with dealerships. Use it. If you’re already pre-approved for a $30 thousand dollar auto loan, don’t feel like you have to get a more expensive vehicle just because the lender says you can have the funding. Make it a point to choose a car that won’t break your budget. Keep your payments as low as you can so that you can pay off your new automobile more quickly than the terms of the loan dictate.

The important thing with car loans is that you not overextend yourself and make sure to shop around to get the right financing for your situation. With a little research, you can be easily financed for the car you’ve been wanting and not struggle to pay for the car loan each month.

Bad Credit Loans – Saving Grace For the People

Mr. Richard is a software engineer in a leading software firm in the capital of United Kingdom. His daughter, Carla Richard is soon getting married to her love of life. Unfortunately, owing to the widespread economic crisis, Mr. Richard’s firm recently suffered tremendous losses at business fronts. A huge downsizing wave soon followed, as a part of corporate workforce shedding move. Although, Mr. Richard survived the downsizing wave but was not able to survive the pay-cut measure. Yes, now Mr. Richard is working in the same firm but with half salary package. This sudden nemesis has put an abrupt stop in the splurging capacity of the Mr. Richard, who till few days back was thinking to make her daughter’s wedding a memorable affair to remember for long time. Now the wedding day is nearing and he is clueless about how he will be able to pay for all the expenses of wedding, her daughter’s wedding gown, food and caterers, wedding invitation cards, arrangement of reception lounge and other expenses. He is having nightmares daily about his daughter whose sad face tells the whole story. But finally, after many sleepless nights, Mr. Richard has ultimately sought the help of payday loans to overcome this trauma, as soon as possible.

Payday loan is one of the finely conceptualised loan products that has been delivering effective credit services to the people of the United Kingdom at the most reasonable rate of interest from time since its inception in the finance fraternity of the English economy. Also famous as ‘bad credit payday loans’ (one and same thing with the impetus is on the one’s struggling with a poor credit score), this loan product helps people by bailing them out of urgent debt problems such as immediate disbursal of house rent, shopping bills, hospitalisation, medical treatment expenses and many such other expenses. One can even avail these loans for financing his / her vacation voyage or even for meeting the marriage expenses (Are you listening Mr. Richard ?).

The best part of these bad credit payday loans is that the lenders of these loan products do not urge the prospective borrower to undergo the necessary ‘credit check’ which always proves to be a major deterrent, in other cases of availing loans. What more, for availing these loans, one need not pledge any asset as security with the lender, since, this whole lending-borrowing affair is strictly limited to a very short span of time, normally a month. However, it is absolutely necessary to qualify the basic eligibility criteria for procuring these loans for bad credit. The basic eligibility criteria are as follows

Loan applicant should be the citizen of the United Kingdom

Loan applicant must be 18 or over the age of 18 years

He/She should be having a regular source of income

He/She should also have an active bank account

If a borrower fulfills these criteria successfully then he is completely fit for applying for these bad credit payday loans. However, he needs to keep in mind that when asked for, he should be able to furnish all proper documents and information in front of the authority. If he fails to do so whether intentionally or unintentionally, he can suffer serious consequences in regarding to procuring the much sought-after bad credit payday loans.