Student Loan Limits Not Keeping Up with Tuition Rates
August 31, 2009
As tuition rates at many colleges continues to rise, the limits that students may borrow each year has stayed the same.
Dependent undergraduates may borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year in Stafford Loans.
Students classified as independent from parents, may qualify for additional unsubsidized loans. Dependent students may also receive unsubsidized loans if parents do not qualify for a PLUS loan.
Unsubsidized loans can be a double edged sword — they allow the student to pay for college, but borrowers do not receive the interest free benefit of subsidized loans.
There is also cumulative limit of $23,000 for an undergraduate education.
The limits on amounts students can borrow though federal loans hasn’t increased since 1992. In that time tuition rates have more than doubled.
According to finaid.org, tuition rates increase at about twice the general inflation rate. On average, tuition tends to increase about 8% per year. In addition, general inflation has caused prices for student housing, meals and other necessary expenses to increase.
7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need
August 30, 2009
Prepaid debit cards are great financial tools and may be just the financial tool you need. Here a seven compelling reasons why:
1. A prepaid debit card helps you stay out of debt because the money you spend is your own. Credit cards encourage you to spend money you don’t have, thereby giving you a false sense of reality. In truth, by using a credit card what you’re doing is borrowing money from someone else (your card provider) to purchase the things you want. However, with a prepaid debit card the money you spend is your own.
2. Prepaid debit cards helps you control your spending habits, because in most cases you cannot spend over the amount you have in your account.
3. A Debit card can be the perfect way to pay your freelancer if you are a small business owner. Simply issue your freelancer a card and load funds onto the card whenever you want to pay them for a completed project.
Home Equity Loan Information - How to Use One Wisely
August 29, 2009
Using a home equity loan to get out of debt or make improvements to your home is usually a smart move. You have earned the equity, so it only makes sense that you put it to good use. Usually this type of loan offers a lower interest rate than credit cards or traditional loans, so it is a wise move for many circumstances. Perhaps one of the smartest uses of a home equity loan is for home improvements. You can take a $10,000 dollar loan, put it towards a new kitchen, and then turn around and sell your home for a profit. There are a few tips to getting the most out of your home equity loan. Use your head and ask questions, and you should have no trouble making the right decision.
First, you need to do your homework. We cannot stress this enough! The more you know about the process and your lender, the better prepared you will be come closing time. Get quotes from several lenders, which will give you a bargaining chip when it comes time to secure a loan. If you have found other lenders that can offer you a better deal, use that to your advantage. Always get it in writing.
What Does A Bankruptcy Trustee Do?
August 28, 2009
Once you file bankruptcy a court appointed bankruptcy trustee will oversee your case. The new law also requires that the bankruptcy petitioner to take a debtor education course and receive credit counseling from a U.S. Trustee approved non profit credit counseling agency.
United States Trustees supervise the administration of the following cases filed under the Federal Bankruptcy Code:
Liquidation proceedings under Chapter 7 bankruptcy - Those assets that are not exempt from creditors are collected and liquidated (reduced to money). The proceeds are distributed to creditors by a private trustee appointed to administer the debtor’s estate under Chapter 7.
"Wage-earner" reorganization proceedings under Chapter 13 - Chapter 13 bankruptcy, is used primarily by individual consumers to reorganize their financial affairs under a repayment plan that must be completed within three to five years. A "standing trustee" appointed by the United States Trustee typically serves as a trustee of the U.S. Bankruptcy Court where the case was filed.
Specific responsibilities of the United States Trustees include:
Appointing and supervising private trustees who administer Chapter 7, 12 and 13 bankruptcy estates (and serving as trustees in such cases where private trustees are unable or unwilling to serve).
Secured Loans ? Filling the Void Created by the Deficiency of Resources
August 27, 2009
"Money is like a sixth sense without which you cannot make a complete use of the other five."
W. Somerset Maugham aptly describes the role of money in the present day world. The presence of money divides the people in two classes- one who have money and others who do not. It is the latter group of people who can best describe the importance of money.
Had it not been for secured loans these people would have been starved of the luxuries of life. Secured loans are loans or borrowings by people to pay for goods or services usually taken with collateral to back the loan. Generally a collateral is advanced which values more than the secured loan offered. This will be helpful in case the borrower fails to repay the secured loan in full.
This does away with the misconception that the lenders are bent upon repossessing the home. The lenders have little interest in the home or the asset offered as collateral. They take the step only as a last resort. The borrower is principally responsible for the state he is in. Lenders vie for the business of secured loans. The borrowers can exercise maximum bargaining power in the decision regarding the interest rate and the terms of repayment. The borrower makes the final decision on the fate of the secured loan. Thus the borrowers must accept the responsibility of the decisions.
Small Business Credit Cards
August 27, 2009
So what do you look for when applying for a credit card for your small business? One thing is for sure, wasting money isn’t an option because it can make or break your business. Things to look for are low interest rates and good customer service.
Ask around for companies with good customer friendly service. Some will let you off late payments time after time while others will come down like a ton of bricks. You need them to be flexible as you never know when you may run into problems
Make sure you don’t go with one because of a low introductory offer. You want a long term one as you may not have time every six months to be jumping from one to another. Before signing up for one read the small print, remember it could save your business.
Look out for special bonuses companies offer. Some times companies such as Visa or American Express join with other companies to save you money on anything from shipping or office supplies
Here are two small business credit card options but look around for more and weigh up the benefits for each one
American Express Business Gold Card
What is a Commercial Mortgage?
August 26, 2009
A commercial mortgage is a loan that uses commercial property as collateral. A commercial mortgage is a business loan which is secured against a commercial property.
Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs. But they can also be used to buy other business assets such as plant or machinery.
A commercial mortgage is a loan for a property that is used for business purposes. It’s probably the best way to finance the purchase of buildings and land for business because it provides a flexible and affordable solution that gives you access to capital.
A commercial mortgage is probably the best way to finance the purchase of buildings and land for business purposes. It provides the most flexible and affordable finance solution. Commercial mortgages are specialised due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.
As well as being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business.
College Expenses: Seven Ways to Save on an Education
August 25, 2009
Many people graduate from college owing thousands of dollars in student loans. It isn’t uncommon for students to graduate owing $30,000 to $40,000. For people that get married shortly after graduation that means starting out with around $80,000 in debt. Thats a lot of debt for a young couple just looking to buy a house and possibly replace their aging vehicles.
While you may not be able avoid taking out a loan for college, here are six tips to help minimize the cost of your college education.
Gearing Up for Bad Credit Mortgages
August 24, 2009
Mortgage would have never happened, had mortgages been a no profit venture for the mortgagees or the mortgage providers. The lender receives much more than he had actually lent. And you feared that you would not qualify for the mortgages having a bad credit history. Mortgagees somehow find ways to match borrowers with the offers available with them in order to have your business.
Bad credit mortgages are mortgages offered to people whose credit history has been adversely tainted. Sub-prime lenders make a special provision for people with an adverse credit history. But, it is crucial to escape lenders who pose as sub-prime lenders, but are actually overcharging them. There is a misconception in the minds of people that having a bad credit lessens their chances of getting a mortgage. In fact they take the offer as if it is the best that they can get.
We cannot expect the mortgage providers to not differentiate between those with a good credit history and those who have not. This however does not mean that the borrower must accept all terms on the mortgage without questioning their validity. There are many mortgage providers in the UK and the case will match some or other lender if a proper and exhaustive search is made. There are a few tips which could be used to reduce the intensity of the differentiation.
The Best Strategy To Erase Credit Card Debt
August 23, 2009
Credit card debt is a growing sickness in the United States and Europe. It is very important to eliminate debt and take control of your financial health.
In the below section, I have listed the best strategy to erase credit card debt. This strategy is tried and true and often recommended by financial planners and debt consolidation firms.
- In an Excel spreadsheet list all your credit cards, balance, credit card interest rate and minimum payment from your most recent credit card statement. If you are not computer savvy, you can list them on paper.
- Sort the list in ascending order of interest rate so that the credit card with highest interest rate is at the top and the credit card with lowest interest rate is at the bottom.
- Make a count of minimum payment of all the credit cards in the list you just created.
- Now calculate how much money you can save to pay off your credit card debt and become debt free. If you cannot pay off more than the minimum payment, it is time to do some budgeting to save more and pay towards your credit cards.
