What Really Happens if a Student Loan Cosigner Passes Away?

June 9, 2012 · Posted in Family · Comment 

College tuition money can be hard to come by. For numerous, scholarships seem out of reach in the event the grades or sports skills are not there. Grant cash can also be reserved for the poorest with the poor. This leaves many students within the middle, and these students typically obtain college loans. Lots of these students require a cosigner for their school loans. Numerous people wonder what happens if a education loan cosigner dies. This can depend on a couple of elements like what type of loan the student has and what status the loan is in.

Federal loans and private loans would be the two types of loans accessible to university students. The Stafford Loan plan is low-interest education loans that don’t require a credit check. These loans need a cosigner only when the student is considered a dependent student younger than 24. The student is the one ultimately accountable for repaying these loans and also the cosigner is by no means held liable.

If the education loan cosigner dies having a federal Stafford Loan, the student is nonetheless responsible to pay. Should the student becomes deceased, the money is forgiven and also the estate isn’t held liable. In some instances, the loan can be forgiven if the education loan cosigner passes away. Check with your individual lender to find out if this really is the situation for you.

Private loans use a stricter application process and are tougher to come by. These are generally provided by big banks and lending institutions as a method to bridge the gap in between university fees and also the amounts awarded by federal loans and grants. Occasionally tuition is so high that private loans are needed, but students are young and haven’t had time to build credit. In these cases, students have to get a cosigner. What occurs to these loans if the education loan cosigner dies? These loans are treated much like any other private loan via a bank like a car or home loan. So long as the payments are not in default, absolutely nothing will occur to the estate of the deceased if the education loan cosigner dies. If the payments are in default, there is extremely little chance that the estate will be held liable. They’re more likely to pursue the living person on the loan and send them to creditors or pursue other litigation against them, because they had been an equal partner on the loan.

Cosigners may be an important part of student loan applications. What to do if a student loan cosigner dies is really a typical question, but the process is treated just like any other loan, with the exception of federal loans.

Stevie E.M. Abdul has been in the field of poor credit student loan for a long time and maintains a website about finding bad credit student loans where you can get answers to the rest of your questions.

Poor Credit Auto Loans Can Be Easier To Get Than You Think!

March 10, 2012 · Posted in Automotive · Comment 

If you are already suffering from bankruptcy and there is no way for you to buy a car, consider auto loans after bankruptcy which is commonly known as poor credit auto loans. This loan can be availed by a person no matter what is his credit history. A good credit history is not compulsory for you to get approved for auto loans after bankruptcy. However, your income and assets play an important factor in getting approved for poor credit auto loans.

If you have a very bad credit score and do not have any assets, it can be a bit difficult to get approved for poor credit auto loans that charge a reasonable interest rate and other associated charges. You can get approved for auto loans after bankruptcy even with a very poor credit and without providing any asset records. But such loans usually charge higher interest rates and even the tenure will be shorter. Poor credit auto loans already come with higher interest rates and it’s a challenge for you to find a cheaper rate. Try to provide some assets to get a lower interest rate. The reason behind getting a lower interest rate is that the lender does not have any risk over their money because they have your asset as guarantee.

If you have a higher income, chances are that you will qualify for a poor credit auto loan with lower interest rates. However, there are more factors to consider before grabbing such loans. If you are planning to buy a super size car or a luxury one, this loan may not be the right choice for you because the maximum amount you can avail with these loans are usually lower than 4,000 USD. You can increase this by providing assets or bringing a bigger down payment. But it is advisable to avoid such risks because you still will be paying a heavy interest rate.

There is nothing to worry in sharing your right financial condition with these agents. Most of them are small firms or operated by car dealers so chances are high that they will understand your condition. Since these companies are usually small, they provide more attention to customers and help them to choose the best option for their income level. This is very important while applying for auto financing after bankruptcy because they charge heavy fines for late payments and missed dues. This will add burden to your ongoing installments and your monthly amount to pay will become higher.

If your monthly rates become higher, situations are more likely to get worse because you can’t repay your loan. Since a poor credit auto loan is your last resort to apply with a poor credit history, you don’t want to be in more trouble.

If you are willing to buy a car to use for a long time, go to a company that provides auto loans after bankruptcy with a not so popular model. Usually poor credit auto loan providers will have some discount from manufacturers and these discounts will be higher for cars those are selling less. If you ask your lender to bring down the interest rate for such cars, he is most likely to agree because he is getting compensated from the manufacturer’s side.

Learn more about poor credit car financing. Stop by one of Mike J. Simpson Sr.’s top recommended sites where you can find out all about car loans after bankruptcy and what they can do to help you get the car you need!

Auto Loan Shopping Tips 101

March 10, 2012 · Posted in Cars · Comment 

Bad Credit Car Loansare so easy, a Caveman can do it!

If you or someone you know is in the market for a bad credit auto loan, your first step should be to get a copy of your credit report. Be sure to see if everything on the your credit report is actually accurate. There may be a good chance that you may find in-accurate information was reported on the report. If you do find a few errors, and you do not begin the process of disputing those items, you may be placed with a lender for your auto loan that is considered to be a “Sub-Prime Lender” rather than a “Prime Lender”, who in most cases will give you a higher interest rate and terms on the car loan.

When applying for bad credit car loans, try and get a report with your credit score if possible. For some time in the past, credit scores were only available to prospective lenders, who in turn used them to make credit decisions for those looking for loans. Now credit scores are available for consumers who want to see their score before shopping for a loan. Your score can be retrieved online from each of the three main credit bureaus: Equifax, Trans Union and Experian. If you have any kind of credit problems, it may be important to find out before you shop. Getting an accurate credit score and overall picture of your credit history will in the long run help you negotiate a better deal when shopping for a car loan online.

Another thing to remember when looking for a car loan is that you dont always have to get a loan through a dealerships finance department. Dealers make money off of every loan they get approved, as a result, if they do get you a bad credit car loan, it will most likely wind up costing you more money than if you shopped around for a loan by yourself. What you would try and do is secure a loan before you go to the dealerships to buy. This will save you a ton of money in the long run, if its possible.

Start searching around. Auto loan rates will be different from dealer to dealer so don’t be in a rush and jump on the first deal your offered if you dont have to. Credit unions are also a great place to look at. For many years in the past, credit unions used to only lend to people with good credit, now that has changed and people with some credit problems can also get auto loans this way. It’s getting easier and easier!

But don’t get me wrong, car dealer do offer a great service that can save you a lot of time shopping around, if you don’t have time to shop. They make the auto loan process quick and painless if you decide to apply through the dealership. It just may wind up costing you some money in the long run. They offer the convenience of dealing with a variety of different lenders and can get you an approval in practically seconds with todays technology. Remember, convenience is something you pay for in this day and age!

Learn more about Bad Credit Auto Financing. Stop by Frank A. Williams Jr.’s site where you can find out all about Auto Loan Quotes Online and what they can do for you.

How to Avoid Bankruptcy

December 2, 2011 · Posted in Business · Comment 

You can prevent bankruptcy by consolidating your debt with the help of a loan or debt consolidation agency to reduce your monthly payments and quickly pay off your liability. But before signing final paperwork, you should develop a financial plan and research your options.

Goal Of Consolidation

The goal of consolidation is to lower your monthly payments so you can pay off your debt and avoid bankruptcy. However, consolidation only works if you make it part of a larger financial plan. You have to be committed to reducing your liability and saving for financial emergencies.

Once you have consolidated your loans, it is a good idea to build a financial cushion of six months worth of cash reserves. This ensures that you can pay cash for the inevitable financial emergency and not increase your credit load.

Your next goal should be to make extra payments. The sooner you can pay off your principal the less you will pay in interest payments.

Types Of Debt Consolidation Loans And Programs

The two types of debt consolidation loans are mortgage loans and personal loans. Mortgage loans are ideal since their interest is tax deductible. However, you need to be sure that you have enough equity to borrow against and that you can recoup the cost of up front fees.

The other option is to use a personal loan. Personal loans are based on your credit score and income. Personal loans typically have lower interest rates than credit cards, but are usually higher than mortgages rates.

Instead of a loan, you can also use a debt consolidation service. These companies will negotiate lower interest rates with your creditors. There are no fees involved since these companies are usually non profit. They also provide credit counseling, offering financial advice and guidance.

Debt Consolidation Providers

Depending on what type of loan or program you choose, debt consolidation providers are relatively easy to find. If you are planning to use your home equity, then you will want to search for a mortgage lender. Many lenders offer free quotes online for easy comparison.

Personal loan lenders also can be found online. As with any financing company, you need to research rates and terms to find the best deal. Requesting a quote from a lender does not lock you into a loan. Legitimate lenders will be more than willing to provide this information to help you make a wise financial choice.

You can also get connected with debt consolidation services online. Some directory sites will help you find an agency in your area or you can work with a national agency.

This article is about How To Prevent Bankruptcy, but we also have additional information about aes student loan; if interested, check it out.