The Continuous Increase in Student Loans

Americans are accumulating more debts for college payments. This is the case despite records showing that in the past three years, they have been cutting on other types of loans such as mortgages, credit cards and vehicle loans. Here is an overview of the current debt scenario nationwide.

For student loans, the total debt was at $550 billion by the end of quarter two of this year. This is an increase of 25% as it was only at $440 billion during the third quarter of 2008, the period when household debt was at its highest. These numbers were provided by New York’s Federal Reserve Bank. On the contrary, the overall household debt has reduced by around 9%. In the past, it was at $12.50 trillion and it is already down to only $11.42 trillion. This decline is partly caused by the tightening of lending standards and banks’ write-offs of delinquent loans. When student loans and household loans are compared, a steady growth is seen in the former than the latter.

The figures above imply that recession is fueling the debt that students make. This may be due to the fact that college enrollment increases whenever jobs are not available. Moreover, the number of needy students is also growing at this time, said Mark Kantrowitz, publisher of Finaid.org, a tracker of industry relating to student loans.

For instance, there are around 9 million students who obtained Pell Grants. These mainly goes to students with lower than $40,000 in household income. This number is a huge increase from the $6 million grants given during the school year of 2008 to 2009.

Kantrowitz said that there is a possibility that the Fed in New York lowered the growth figures of the total student loan debt. He added that the numbers exclude the important interest costs that accumulate while students are still in school.

There is also a growth in the debt per student ratio. In 2009, the average level of debt for each student is around $24,000, reports the Project on Student Debt. At this rate, almost 2/3 of students finish school with loans.

Despite what analysts are saying that the economy is somehow improving, many Americans are still applying for a bad credit loan. This can either be an unsecured personal loan or a cash advance payday loan. Before taking out either of these two loans, always think about the interest rates and high fees that come with these loan types.

As summer 2011 begins, many economists are predicting for the improvement of the whole economy. This will result to higher interest rates and mortgage rates. To prepare for this, it is best to pay all debts with high interest rates before another increase happens. Without doing this, debts may become higher.

Bad credit unsecured loan requires a credit check and is usually charged with higher interest rates. The interest rates are most likely relative to the credit status of the borrower. Thus, the worse the credit background, the bigger chance of getting a higher interest rate. As an example, some lenders charge almost 20% for borrowers with very poor credit standing.

The other type of bad credit loan that does not require a credit check is the cash advance payday loan. The trade off for not having to go through a credit check is the payment of upfront fees. The average fee is from $15 to $35 for every $100 of loan. This may seem to be a small amount. However, when the loan amount is too high, the fees can easily add up to hundreds of dollars.

Regardless of the type of loan to take, always determine how to pay them. Applying and getting a loan without any idea how to come up with the payment may result to a bigger debt problem. Much worse, it can lead to a credit crisis that can turn one’s credit score from bad to worse.

A Quick Method to Get Laptop Financing for Individuals with Poor Credit

Young people, entrepreneurs and professionals today need to work even though they’re travelling and the best method to do this is by using a laptop.

A big amount of people nowadays need to depend on laptops so that they can manage to work even though they are travelling and the benefit and flexibility of a laptop can make it quite common today. However, laptops aren’t really that inexpensive and so they are not affordable to everybody.

Obtaining a laptop on credit is the fastest way of purchasing one when you really need it.

Bad credit could make issues hard: Obtaining credit loan for a laptop isn’t actually that tough but if you have bad credit; things might get a little complicated. It is a bit hard to find loan companies who could be willing to offer the credit when you have a poor credit score and thus, you’ll need to put in much more time and effort for searching a way to get credit. Nonetheless, it’s not absolutely impossible. If you spend some time exploring, you’ll absolutely find a few choices for credit.

Your loan alternatives: The very best way to get credit on laptop is to buy it online. Most online retailers and stores nowadays give several types of credit possibilities to their debtors and store cards which will permit you to buy their items on credit. The store credit cards are quite simple to obtain and you will be able to easily get one even with poor credit.

All significant retailers today give this alternative and they work like normal credit cards. You’ll need to make regular payments each and every month.

If you don’t want to go for this option, then you can even consider of applying for a short term personal loan to be able to pay for the laptop. There are several lenders and financial institutions today that provide loans for such purposes and a lot of them don’t even look at your credit history whenever you apply.

Although it’s somewhat difficult, you can still get a few options to acquire a laptop on credit. There are some choices which are good sufficient and not even very pricey. It’s critical for you to do your research well, check all the options you have and then examine them. Choose one which provides you a lower rate of interest and which gives you greater flexibility. This is also a great approach to rebuild your credit scores so that you can effortlessly get credit the next time.

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You may or may not have bad credit, but you may also be asking yourself whether or not it makes sense to refinance… Because you may be in a position to actually do so.

Well, let’s think about it…..

You need to find out if you can save more money and lower your monthly payments by doing so… One thing that is really important to know or at least note is, that you must make sure that you are factoring the additional costs of a refinance…

Those additional costs include things like loan origination fees, and points you may need to pay to get a better interest rate.

This could be a tough call if you have a fixed rate only slightly higher than current rates or an ARM that adjusted downward in the past year. Just make sure that you’ll be able to recoup the cost of refinancing before you sell your home. Divide the amount of the estimated closing costs (usually 3% to 6% of the mortgage amount; look at your loan papers from last time) by the amount of the monthly savings you anticipate. That will tell you the number of months until you break even.

A second mortgage or a home-equity line of credit complicates things. If you simply want to refinance the first mortgage, your total housing debt shouldn’t exceed 80% of your home’s market value, or else the holders of the second lien may refuse to resubordinate (agree to stand behind the first-mortgage holder for repayment if you default).

If the holder of the second lien refuses to play ball, you could try consolidating all your housing debt into a single mortgage — so that you can use some of the loan proceeds to pay off your second lien. To get such a conforming cash-out refi, you must have at least 20% equity, and for a conforming jumbo, you need 25% to 30% equity, or 35% to 40% equity if the loan is more than $625,500. You’ll also pay a higher interest rate, and paying the higher rate may not make sense. Another strategy is to take out a new home-equity line of credit from the lender of the new first mortgage and use it to pay off the old line of credit. Consider a line of credit with an option to lock in the rate.

There are lots of other things to think about… One of the best things you can do is take the time to talk with a qualified mortgage broker or loan officer.

One thing to note, a loan officer and a mortgage broker are two different people. Mortgage brokers make additional money on selling the loan products. A loan officer may not. Make sure you talk to the broker or officer and find out if they charge an origination fee, and if there are other costs added or associated with working with them, that are not directly related to the loan itself.

Where Can I Get the Lowest Rate?

Start by calling your current mortgage lender and your bank or credit union. you can also get on the internet and do some searches on the keywords getting low interest rates. Some mortgage brokers may be able to give you a wholesale rate that beats the rate from a bank’s loan officers. Known as correspondent lenders, they are typically large brokers that do the underwriting and immediately sell the loans they originate to wholesale lenders or investors — meaning they can both find you a loan and approve it. If you’re trying to consolidate loans, a mortgage broker may also offer more options than a retail loan officer. However, some lenders prohibit brokers from originating loans of more than $417,000.

If you have an existing relationship with a bank, then it may be a good idea to get with them and start the discussion about what you can do to get a better interest rate.

When you’re ready to get rate quotes, call your prospects in the late morning (eastern time), when lenders have issued the day’s rate sheets but before any changes are made to them. Each lender with whom you apply must give you a good-faith estimate, and you can use the GFE to compare lenders’ offerings. You don’t have to pay an application fee to get a GFE, but you might have to pay about $50 for the lender to pull your credit report. GFE= good faith estimate….

Don’t be afraid to talk with your lender… ask them about different programs, and ask them about what kinds of things you can do to get better payments.

You never know what is out there, and you never know what you can get until you ask…

so start asking….

Remember, you can save hundreds of dollars by getting lower interest rates, and you may quailfy for things you didn’t know you qualified for….