The burgeoning student loan crisis in America – Staggering changes to student loans in 2016


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Gradually it’s getting tougher and tougher to graduate from college without taking resort to student loans. About 75% of the recipients of bachelor’s degree leave their school not only with a degree but also with huge amounts of debt. Research reveals that the humongous amount of $1.2 trillion in student loan debt is playing a role in preventing the Americans from making any type of big purchases which drive the growth of the economy. Not many are being able to buy new homes to rent an apartment only because they have huge amounts to pay back on their student loans.

The student debt crisis has in fact become so huge that it has even gained attention of the presidential candidates who are watching out for different ways in which they can make college affordable by reducing college and tuition costs. Approximately, around 40 million Americans with student loan debt are desperately looking for ways to manage debt.

Student loans – A sneak peak at the recent changes that can help them pay off debt

After reading such gloomy student loan debt statistics, you must be looking for something positive. Well, students are lucky enough that there are so many new programs which are being brought into effect in an effort to relieve the borrowers from debt. Here are some developments to take note of.

? The REPAYE Program: This program was introduced in 2016 as along with the income-based repayment programs. The REPAYE or the Revised Pay As You Earn programs provides assistance for repayment to a supplementary of 5 million borrowers each year. Borrowers can easily cap the student loan installment in a month to around 10% of their discretionary income. Those seeking help of this program can have their remaining balances waived off or forgiven after they have been making timely payments for 20 years. However, the amount forgiven is taxable.

? Loan repayment assistance is now a workplace benefit: As per a study from the SHRM or Society for Human Resources Management, around 3% of the US employers have started offering loan repayment options as a part of employee benefit. This number will most likely grow as more and more employers start understanding the importance of this benefit. Almost more than half of the respondents of a survey said that student loan assistance was better than 401(k) contribution match.

? Refinancing options sponsored by state: As federal benefits are done away with and eligibility criteria tightened for the large number of graduates, more states now started offering student loan refinancing options for the borrowers in debt. Through their new SELF Refi program, residents in Minnesota with debt could be able to refinance at rates which are as low as 3%. By offer state help, students might just waver from seeking help of private loan options.

? Get On Your Feet Loan Forgiveness Program: This is yet another one-of-a-kind loan assistance program offered on the state level. The Get On Your Feet Loan Forgiveness Program has started in New York and the program provides up to 24 months of debt relief to college graduates who live in the state and meet few eligibility requirements.

? A hope for a new President: It has been unanimously acknowledged that President Obama made a number of changes to the landscape of student loans during his terms. With the 2016 presidential elections, people can again expect a new President and along with him a set of new policies for the students. Though it is unsure about who is going to serve the nation, yet all the Presidential candidates have shared their student loan reform plan. Federal student loan refinancing, reducing loan rates are some changes that would definitely be included.

We have to leave it on time to know whether or not the above mentioned changes will remain or disappear but for now the students have definitely been given easier ways to pay off their student loan debt and live a debt free life.

Secured and Unsecured Loans – How to distinguish between them

A personal loan is always there to improve your financial situation whenever you find yourself amidst financial challenges. Even under circumstances when you need some money for purchasing something, such loans could be of great help. Your loan amount may vary depending on the terms of repayment, rates of interest and principal amounts. Secured and unsecured loans are the two types of personal loans that you come across in the market. You must understand the differences between these two categories in order to avoid trouble in the future.


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What is a secured loan?

A loan that needs collateral is termed as a secured loan. You must put up something worthy of meeting the lender’s losses in the event of your failure to repay the loan amount. It will enable the lender to recoup much of the loan amount by selling the object that you put up as collateral. Besides using jewelry, you may use your land, vehicles and properties for putting your collateral. This type of loan is described as “secured” due to its nature. Loans of this type turn the lenders more flexible and let them provide bigger amounts as principal, longer periods of repayment and better charges and rates for the borrower.

What is an unsecured loan?

A loan that doesn’t need collateral is termed as an unsecured loan. This option proves a lot safer from the perspective of a borrower. It protects the borrower from losing something important or valuable like that of his home. It tends to be riskier from the perspective of a lender. That’s one reason why the lenders run credit checks and issue loans worth smaller amounts. An unsecured loan helps you to reimburse amounts that you spend towards small purchases, home repairs, using cars or going out on vacations. Till you posses a good credit score and earn handsomely, you can’t expect a loan more than $10,000.

Qualifying for an unsecured loan

When it comes to an unsecured loan, you’ll need to qualify as per a few basic criteria. In the event you don’t meet these norms, you won’t qualify for the loan regardless of how many credit cards and loans you possess.

Loans can’t be issued to minors; you must be at least 18 years of age at the time of application. In order to prove your capacity to reimburse under usual circumstances, you must show a regular monthly income worth $750.

In case you’re applying for loan with a big lender or bank, they will run a credit check to determine your financial stability. Your loan application may be rejected, if your credit history shows any black mark or in case you’re a payment defaulter.

With loans, you’ll need to repay the principal and an additional amount as interest. The interest that you pay is calculated as per the APR (Annual Percentage Rate). This is a portion of the principal that’s calculated every year.

The lender’s wish to create a repayment plan for you seems natural when you can’t make your loan repayments. In case this repayment process fails then they may take any civil action against you or start collecting the proceedings. It could be taken in the event any collateral is placed by you, otherwise you might need to pay the interest back over a longer period of time.

Are low rate home loans a good option for home buyers?

homeloans2Identifying loans with a lower rate of interest doesn’t create any problem for you today. You may find it a bit difficult to compare home loans over the internet due to the competitive nature of the financial market. You must know if the lowest interest rate is in your best interest. If that is in your interest, you must learn how to make the most of it.

The Introductory Rate

In an attempt to attract fresh customers, it’s natural for the loan issuing companies to provide a honeymoon or introductory rate to the applicants. These loans will eventually prove to be more expensive although their interest rates may seem much lower compared to other loans. It’s very important for the borrowers to understand certain facts while applying for home loans. Such facts may include introductory period rate, whether it’s necessary for you to pay earlier rate before the honeymoon period comes to an end and the exceptions. The fact that it will help a borrower save dollars worth thousands in the long run makes it all the more lucrative for you to sign up for such loans.
Variable or fixed rate

A borrower needs to study the market conditions more carefully prior to applying for a loan as it helps him choose between a fixed or variable rate of interest. This is one of the most vital steps of loan searching. Going for a fixed rate loan seems worthwhile when such rates are not more than one percent over variable mortgages. Again, your decision is bound to be influenced by more than one variable.
Are these loans worth great value?

Introductory home loan offers may seem more appealing to home buyers, although the long-term worth of the loan is always the key to a successful decision. The road may seem uneven when you apply for an introductory low rate as you must consider situations when the rate pushes up to a much higher figure than what it’s worth under normal conditions. You mustn’t fall prey to a flashy initial rate.

Introductory home loans are now raising questions in the minds of home buyers as they offer a discounted rate during the short run, which is often termed as the honeymoon period. Such a honeymoon offer will usually last for about six months beyond which it will revert back to a much higher rate. This higher variable rate may initially prove beneficial for the loan applicant depending on his financial situation, but it may not prove worthwhile as it often demands more than the market average.

In comparison to a home loan worth a good value rate, the loans offering honeymoon rates don’t prove right from the very beginning. The borrowers end up paying thousands of dollars by the end of the loan term. When a certain portion of your loan is fixed, it actually protects your finances from sudden market fluctuations. A variable rate changes with the market condition; that’s one reason why a loan with a good value rate for a certain period of time is considered more beneficial. You must take factors like your current annual fees, discharge fees and establishment fees into account while determining whether the loan is actually good for you. Make sure you read through the offer document carefully prior to signing up.

Auto Title Loans – 3 Most Popular FAQs of Dummies

Auto_Loan-512Auto title loans are the easiest ways of borrowing money where the lender lends money by using vehicle title as collateral, without even checking credit score of the borrower. Whether you need $100, $1,000, or $10,000 you can get the required cash (to sail through the temporary hard pressed times) in minutes. Car title loans or auto title loans (to say in general terms as these loans can be acquired by putting motorcycle title as collateral as well) are subjected to different regulations in different states of the USA. So, before borrowing such a loan, you must check out all the important information associated with it.

Here are 3 frequently asked questions along with their answers:

FAQ #1: What is a Title Loan basically?

Car or motorcycle title loans are called title loans in short. It is a kind of secured loan where the lender keeps title of the borrower’s vehicle to give loan to the latter. Until and unless the loan amount is repaid in full along with the interest rate, automobile’s vehicle title is temporarily surrendered to the lender. If the borrower fails to repay the loan amount, title loan lender has the right of repossessing the automobile, selling it, and recovering outstanding debt.

Title loans are short term in nature and can be acquired in just minutes. If the loan amount is $100-$500 you can acquire it in minutes. Title loans generally come with high rate of interest, say 35 per cent APR or sometimes even more. The lenders say that the high default risk (because these loans are drawn mainly by people who are already in financial problems) leaves them with no other option but to charge higher interest rates.

FAQ #2: What is the Process involved in Title Loan Lending?

Title loans can be obtained either from store fronts or online. The borrower has to show valid identifications such as driver’s license, income proof, mail proof of residency, lien free car title proof, car registration, car insurance proof, and others. One form involves following of Kelley Blue Book that shows vehicle’s resale value. In many cases, half of car’s resale value is offered by the lender.

Auto title lender doesn’t check credit history or credit score of the borrower. However, he checks vehicle condition and value of the vehicle on which the secured loan is drawn. There are some title loan lenders who also verify whether the borrower has a regular income source or is employed. If there is any financing or lien on the automobile on which you are going to take loan, the lender will not offer you the loan. There is no fixed rate but range anything from 30 per cent to more than 100 per cent APR.

FAQ #3: What are the Auto Title Loan Laws in California?

A very common query among consumers is – how title loans work in San Diego, California? California law doesn’t have many regulations to limit interest charged by lenders in the state. However, auto title loan amount within $2,500 can’t have over 30 per cent interest rate. There is no limit on interest rate charged on loans above $2,500.

When a Cash Advance is the Only Option, Borrow Money the Right Way

Payday loans are now a global phenomenon, and the lenders are as varied as the countries from which they operate. Some loan companies, like are above board, with capped interest rates and transparent fees, while others are free to deal as they wish, almost totally unencumbered by APR regulations. It stands to reason, then, that those who find themselves in financial distress are looking at some murky waters. However, when a payday loan is the only option, there are ways to mitigate the risk and avoid exorbitant interest rates as well as dubious repayment plans. But these loans are a two-way street, and the ideal scenario is when both borrower and lender are on the up and up. Here are some strategies to ensure this is the case.

Don’t dig a deeper hole

Before even stepping into a payday loan office, it’s incumbent on the borrower to ensure that he or she is on solid-enough financial ground to make such a loantenable. However, since almost by definition payday loans are geared towards folks in financial dire straits, there is often no ideal scenario. Still, anyone who does not have an active bank account, is not currently employed, does not possess the appropriate documentation, has defaulted on other loans in the recent past, has more than one payday loan currently active, and has mercurial and irresponsible spending habits should not consider a payday loan. Such a loan will likely only exacerbate the problem.

loansKnow the loan fees and charges

Those who feel they can responsibly take out a payday loan should go into the process with eyes wide open. That means knowing all the charges and fees up front, before any contract is signed. Request a fee statement from the lender, and if they are on the up and up they will happily provide it. Know the loan establishment fee, any monthly fees incurred, any payment default fees, or any arrears fees. Avoid excess and hidden charges at all costs.

Opt for a short-term loan

And the smaller the amount, the better. Payday lenders should be upfront about their fees, but that doesn’t mean they won’t be exorbitant. Therefore it only makes sense to borrow a responsible sum in order to offset hefty repayments. Borrowers should only request amounts they know they can pay back in as short a timeframe as possible. Examples of reasonable short-term loans include sums varying from $200 to $2000.

Negotiate your own repayment schedule

The more dubious payday lenders will insist that the principal amount is repaid according to their schedule. There’s no reason to go with a company that is so unaccommodating in their lending policies. After all, the company benefits just as much as the borrower when it comes to issuing a loan. Therefore the two parties should be able to work together. The best payday lenders will work with individual borrowers to craft a repayment plan that suits both parties.

By adhering to the above guidelines, it’s possible to borrow from a payday lender smartly and with mitigated risk of default. Additionally, it’s ideal to select a lender with a robust online application system who can deliver all pertinent loan documents quickly via email.

If a Cash Advance is Not Required

The allure of a quick cash advance can be very enticing, however you should always be 100% sure that the money is required immediately and that the amount being borrowed can settled in a reasonable timeframe. Do the sums and figure out how long it will take to pay back, and if the term exceeds your expectations then a different type of loan might be your best option. Some companies like Rapid Finance will help people in unusual circumstances with a wide range of loan types, meaning that they will refer customers who need a payday loan to a reputable company, or if they identify the purpose of the loan is to buy a car then they will explain how the car itself can be used as security to bring down interest rates.

Pay for Your Education with Installment Loans

Parents want to do all they can to give their children an education and a chance to make something of their own future. However, an education is incredibly expensive and many young people have to miss out because they cannot get a scholarship and their parents simply cannot afford to support them. It is no surprise, therefore, that many students have to turn to student loans.

Student Loans and Installment Loans

While student loans may be necessary, it is important that young people don’t get burdened down by unmanageable debt. This is why students may be interested in looking for installment loans. Finding an installment loan direct lender online means that students are able to get the money they need to pay for their education and daily living expenses, but in a way that is affordable.

There are many different types of loans that students can apply for. Installment loans for students are not common, but it is recommended they search for these because they are often the most affordable. The monthly payments are fair and mean that, by the time the student finishes college or university, most of their loan will already have been paid

It is generally quite easy to get an installment loan because they can be arranged online. While rare, there are even a number of lenders who offer them without requiring a credit check. These tend to be offered by universities or government departments, however, and it is about knowing where to look for them. However, there are also high street lenders and online lenders that offer student installment loans. While these have worse terms than the government or school incentives, they do also help a student build up a credit record, which will benefit them in the future. The most important thing, however, is that it enables young people to get the education they want.

Finding an Installment Loan

If you are a student and you are looking for this type of loan, you do have to make sure that you do your research. There are numerous unscrupulous lenders out there as well. It is recommended that you spend some time speaking to credit unions, your student council and other experts. Getting a loan as a student can be very difficult, particularly if you want to go outside of standard student loan institutions.

It is also very important that you budget properly first. Being a student is expensive and ending up with a mountain of debt is almost unavoidable. However, ending up with bad credit is not necessary. You must know for sure that you will be able to make the repayments of your installment loan, even if that means taking on a job. In that case, you may want to think about whether this job will be sufficient to see you through your financial difficulty so that you don’t have to take out a loan at all. The most important thing, however, is that there is help out there if you need it.

Talking “Money” and Loans: How difficult is that?

Admitting that we’re having cash flow problems is something that none of us like to do, especially to our closest friends and family. While our partners might be aware of the issues, because of it affecting them too, others might be completely unaware that we’re struggling for cash and that’s the real reason we’re turning down their suggestions to go for a meal or on a night out together.

Money is one of the most common causes of arguments between couples, with many marriages even ending over financial disagreements. While many tell us “it’s good to talk” and “a problem shared is a problem halved”, it’s easier said than done!

Nobody ever likes to have to ask to borrow money, not since the days when we were in the school canteen desperate for a sneaky bar of chocolate that our dinner money didn’t quite stretch to anyway.SunnyImage_Financewand(1)

As we get older, we develop that sense of pride that won’t let us ask for help. It’s very common and we all get that feeling from time to time where we’d rather do anything than ask to borrow a tenner from a friend or to ask our brothers, sisters or parents for a bit of money to cover the bills.

However, if it makes the difference between going into serious debt and getting that period of grace, then discussing our finances with those who love and care for us is the obvious solution, even if it’s a difficult conversation to have.

Talking things over with friends and family, getting their views and opinions, can actually help to come up with solutions to our problems, and one of those is something that you can actually work together on. Guarantor loans are an agreement between a lender and the borrower, which is also signed by another person, ensuring that the money gets paid back and there are a number of benefits to this form of lending.

  • The first reason for this is that while our friends and family might not be able to help us directly by lending us the money there and then, they can help by signing the agreement to cover the cost of the repayments if we can’t meet them – essentially verifying that we’re going to be able to pay the money back.

  • The second is that it is much safer than going to other lenders who charge high rates of interest and demand that payments are made even if you can’t make those repayments. A guarantor loan comes with a set of rules relating to what happens if you default on your agreement, and that usually means that the guarantor – your friend or relative – would help you out.

  • Finally, it’s the kind of loan that you can take out even if you have a poor credit history. While banks might turn you down for the loan, even if it’s only a few hundred pounds, guarantor loans are much more likely to be approved because you’re getting the backing and assistance of someone who might have a much better rating

How You And Your Family Can Met Your Short-Term Goals

According to the U.S. Census Bureau, as of 2011, 69 percent of U.S. households were in debt. That is a lot of bills that need to be paid. Combine that with the increase of the cost of living over the past 15 years, and many American families are forced to look for short-term financing to cover short-term goals and emergency costs.

The cost of living calculator at the American Institute for Economic Research indicates that it costs the average consumer $137.21 to purchase the same goods and services that they purchased for $100 only 15 years ago. That is a 37 percent increase over 15 years. Not everyone’s salary increases has kept up with inflation, which makes it even tougher for families to pull together the money needed to maintain a satisfactory standard of living, never mind paying for emergencies, such as car repairs, broken glasses, or home repairs.Sunnydadhabaab

When banks fail to loan necessary funds, you may be tempted turn to less reliable means of paying for short-term needs, such as payday or title loan companies, which often charge outrageous rates and lend more than the consumer can afford to pay. The end result? You fall further into debt.Instead of borrowing outside of your means, look for lenders who offer small flex-pay installment loans, lines of credit, and single-pay loans based on your ability to pay. Even when challenged by poor credit ratings, consumers have the right to fair and courteous treatment from a lender.

When looking for an American lending company to meet your needs, look for one that is licensed in your state. MoneyKey is the leading licensed lender in many parts of the US, and they adhere to the strict guidelines to provide responsible loans for Americans. As an online lender, they make sure their website has Secure Socket Layer (SSL) encryption to protect your personal information from theft. Their application is simple and includes just a few quick personal questions and the required size of your loan. In order to apply for the short terms loans from MoneyKey, you must be an American citizen (or permanent resident), with an active bank account and a working email address. They’ll contact you regarding your loan via that email account, so you have to have reliable access to it.

Whether you are looking for single-pay loans to get your through a crisis or flex-pay installment loans to help your family meet short-term goals, you can find lenders who are willing to work with you. Remember, you are not alone. You are just one of many who are struggling to make the best of a bad situation.

The Fastest Places to Get Loans

The Fastest Places to Get Loans

Sometimes you need money fast. Unfortunately, the bank is not a place to get a loan. They require long credit checks and an application process with so many boxes it can make your head spin. You need an alternative to meet your urgent monetary needs. There are places where you can get quick loans, however.

Let’s take a look at some of the places you can get money straightaway.

Credit Cards

We do not often think of credit cards as a loan, but at heart, this is exactly what they are. If you still have credit available, it is a good idea to plug it in and take the money you need with no questions

What you should beware of is eating up more than 30% of your total credit limit. This can hurt your credit score in the long-term.

Payday Loans

Payday loans have gained a lot of bad press over the years for their high interest rates, but what is often forgotten is how many people they have helped in a bind. With these type of quick loans you can often receive the money the next day.

The key to making payday loans work for you is to do your research. Do not approach the first company you see and ask for a loan. Here are some tips to help you through this process:

  • Research the company you want to take a loan from. Do they have a good reputation?
  • Only take what you can afford to make the repayments on. People get into financial difficulties because they do not follow this step.
  • Check to make sure that you can take a loan. While most companies perform no checks, some are starting to do this. Do not waste time applying to a company that will not pay you the money.

Family and Friends

If you need an urgent loan to get out of a hole, family and friends are a great place to look. Depending on whom you ask, this could provide you with all or part of the money.

Dictate terms before going through with this. Outline when you will have to pay the money back and whether there will be any interest. Write down the terms and conditions so there are no disputes later on.


Getting loans fast often means giving up the prospect of low interest rates and favorable terms. Before taking out a loan, think about whether you can trim your budget. You may find you do not need to ask for a loan after all.


Now Avail Car Title Loans Without A Credit Check

There are many ways of obtaining fast cash through loans. But most loans require you to provide collateral that is always not possible. Now there is a solution to this problem as well. You can now opt for car title loans where your car title can be used as collateral. A lien is placed by lenders on the car title after which the borrower has to submit the hard copy of the car title against the loan amount. When the borrower repays the loan, not only the car title is reverted, but also the lender removes the lien. Thus, now you can obtain quick money without offering any asset as collateral.

Auto_Loan-512Services by the title loan companies

In the event of going through financial problems, you fail to concentrate on work that can decrease your productivity. But now you can avoid such situations as you can get hold of short term loans such as auto title loan that is offered by reliable and trusted financial institutions. These companies strive in crafting the finest solutions for you by implementing quick approval and easy application process. Thus, now you know where to approach for obtaining quick cash. Within an hour, you can apply for the loan. If you submit the correct documents, it will be approved within minutes.

Conveniences offered by this loan

Many a times, when you take loans, due to some or the other reasons, you fail to pay back the money on time. This can happen with anyone, and it is never done intentionally. However, these are some situations that can hurt the score of your credit. Several banks are present that do not give loans to borrowers with poor credit. In the current times, you can discover numerous car title loan companies that will easily offer you a loan without a credit check. Such loans are never conveyed to the credit bureaus. Thus, it cannot be counted against any individual.

Reason for the popularity

A credit check is needed by most kinds of loans, but it is not with a car title loan for which it is highly popular among borrowers in the present day. All you need is a well-functioning car along with the hard copy of the car title. The competitive job market has begun to influence the lives of individuals for which they feel the requirement of taking loans. Even if you have no credit at all, the companies offering the loan as mentioned above will quickly approve your loan request without a credit check. However, you will need to submit proof if income, proof of residency and a photo ID.

Looking at the gains

There are some benefits associated with this loan for which it now obtained by numerous people. For instance, even though you have put up the title up for the vehicle, you have the freedom of keeping the vehicle with you. Most importantly, you can obtain these loans without a credit check. Also, you can drive the car during the entire loan period. However, the lender might ask you to buy an extra insurance. This is truly beneficial as you can achieve the cash you need without changing your lifestyle.

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