|
|
 |
|
 |
||
|
|
|
|
|
|
||
What is a Student Loan?
Not everyone is aware of what is a student loan? Student loans, as the name implies, are available to students who require help with living costs while studying.
Student loans are part of the governments financial support package for degree only students embarking on a course of higher education. For most students, a student loan is their largest single source of income. So unless you have very generous parents, you will need to apply.
Regardless of where you are studying, if you are from England and Wales you will apply to your Local Education Authority using an HE1 form. They will then calculate how much youre entitled to receiving ? as well as working out whether you need to pay tuition fees.
They will then send you back a form that you need to forward to the Student Loans Company (the government organisation that administers your student loan) who will process your application. This usually takes a month, so make sure you get the paperwork done well in advance of the start of term.
Although it is only a loan, youll never be able to borrow money more cheaply, so its the most cost-effective way of borrowing money while youre studying to pay for all those bills. The interest charged is only equal to the rate of inflation.
Unlike support towards tuition fees, you have to repay any loans. The Student Loan is repaid after you graduate (or after you leave the course, should you leave before completing). Repayments are calculated on a sliding scale and are repaid monthly directly to the Student Loan Company.
Should your salary fall below ?10,000 payments are suspended until you earn above this figure again whereupon you will recommence payments. Interest on the Student Loan is calculated at a preferential rate which is far lower than any commercial bank loan rates.
Loans have the unfortunate tendency to mount up your debt. If you take the full ?4,000 a year for three years that means youll be ?12,000 in debt by the end of your course ? and if youre on a longer degree programme, that total could be even higher.
You may freely reprint this article provided the authors biography remains intact:
What is a Tenant Loan?
Ever wondered what is a Tenant Loan? A tenant loan is another term for an unsecured personal loan. Tenant loans are aimed specifically at people who do not own any property. Tenant loans are a way for those people who rent their accommodation from the council, private landlords or live with parents to apply for a loan.
Tenant loans are unsecured because you do not need to own a property to use as collateral on the loan. Unsecured loans are a good loan option for people who are financially stable and able to keep up loan repayments, and who may or may not own their own property.
Tenant loans can be taken out and used for any purpose, including new car, debt consolidation, home improvement or luxury holiday.
Tenant loans are available from a range of banks, building societies and other financial institutions. You can borrow from around ?1,000 to ?50,000 and choose to repay the tenant loan over a period of 1 to 25 years.
The basic requirements for those wishing to apply for tenant loans are:
You are in full time employment.
You are paid by computerised pay slips.
Your bank account accepts a Direct Debit facility.
You have proof of identification and residence - normally utility bills. You have made satisfactory rent payments (excluding living with parents)
You have a home telephone line (or a mobile provided a copy of the agreement is produced)
The disadvantages of tenant loans is that you will not be able to get such low interest rates or as much collateral as those who put up their home as security have access to. Rather than borrowing up to ?100,000 which you can if you own a property, you will only be able to borrow up to ?25,000. However there are benefits ? the loan will not be tied to your home so if you do have problems repaying, your home will not be directly at risk.
It is important to carefully plan and budget your monthly repayments to make sure you can afford to take out a tenant loan. Tenant loan lenders will be less relaxed about missed repayments because they do not have your property as security. Remember that although the loan lender cannot repossess your property, they can still take you to court.
When applying for a tenant loan you will need to have three years accommodation and address details, and three years employment history. If you have moved address or job recently you may have more trouble getting a loan.
However there are loan companies that will offer you a loan whatever your situation, so make sure you are honest when making your application and you will be able to get a loan that suits you and your needs.
You may freely reprint this article provided the authors biography remains intact:
Guide to Secured Loans
Here is a useful guide to secured loans. A secured loan is a loan that a lender provides on the understanding that a property is secured against the loan. Secured loans are also commonly known as a homeowner loan, home loan or home owner loan.
Secured loans can be a sensible way to borrow for certain expensive items, such as home improvements or debt consolidation.
This type of loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because the lender has some security to offset against the loan should you default on the repayments.
A secured loan enables homeowners to borrow capital and offset the risk against the value of their property. This means that anyone taking out a secured loan is effectively using their property to guarantee the loan. If the borrower fails with the repayments, there could be a possibility their home is at risk.
Because the loan is secured against your home, the interest rate should be cheaper than an unsecured loan and you may be able to borrow more. One of the major benefits of a secured loan is that the interest rate charged by the lender tends to be significantly lower than that of an unsecured loan.
A lower interest rate, which is calculated as the annual percentage rate (APR), means that more of your monthly repayment is going towards repaying the original loan, rather than being absorbed by the interest you have incurred along the way. The interest rate for your secured loan will depend on many factors such as the amount of loan requested, the terms of the loan and your personal details.
Also, you can cut your monthly payments by stretching the loan over a longer term anywhere between five and twenty-five years.
A secured loan is the perfect way to borrow between ?5,000 and ?75,000 at a low rate. Obviously the better your credit history and individual circumstances will affect the rate which is offered to you. You can be approved for a secured loan even if you have mortgage arrears, retired or have county court judgements.
The consequences of not being able to keep up your payments are much more serious than with an unsecured loan. The danger with a secured loan is if you are unable to keep up the repayments on your loan your home which secured the loan could be in danger. Should you fall into difficulties or are unable to make the repayments on your loan you will sooner or later lose your home.
This is why before taking out a secured loan it is vital that you consider your debt problems seriously and make sure that you have budgeted fully and can cover the loan repayments.
You may freely reprint this article provided the authors biography remains intact:
 |
©Copyright
InsideTheWeb.All Rights Reserved.
|
 |
|
|
||
 |
Designed by kohj |
 |