Question by internet: why have private banks CANCELLED their student loan programs?
Many banks have given up on “private student loans” and are abandoning it on a daily basis.
Private student loans are now seen as “high risk investment” by all major banks and some even claim that it is equivalent to “subprime loans” of 2006 and 2007.
Private student loan for years was an alternative to federal student loan for many whose needs weren’t covered by federal loan limits (such as cost of getting tutoring, gasoline/car expenses and other miscallenous expenses which are for education but not recognized by federal government).
BofA, Citi, JP Morgan, all scrapped their “private student loan” programs. Why?
Even credit unions have given up issuing private student loans for the promising students whose career depends on education. So now these promising students are deprived of a bright future because banks won’t give them the opportunity to prosper?
On 1 hand the economy is recovering per the media, but on the other hands credit is getting harder than ever to obtain from banks? without credit, people cannot make it. Small businesses that depend on access to bank credits for expanding and hiring people, have been shut out of any chance whatsoever. How will things improve then?
For making big ticket purchases such as new house, new car, opening new business, etc etc almost everyone depends upon access to credit from banks. With the help of loan and credit, these things are made possible and that’s how economy recovers and expands. If banks are shutting down on credit or making it tighter and harder than ever to obtain, the economy simply cannot improve ever.
Sadly, credit and loan is only available to the 1% now – who don’t need credit or loan anyway. For the rest of the 99, its NOT ALLOWED. Then why did Obama and Bernanke even bother to bailout the failing banks? this is a serious question.
nowadays even people with good credit score are being denied loan. You would have to have at least a 6 digit personal income just to qualify for loan. Good luck in trying to buy your next “new house” or next new “lexus or bmw”
how painful it must be for many people to realize that they will never get the chance to buy a new lexus or new bmw in the future. they have been deprived of reliable transportation needs
bill gates or mitt romney will get any type of loan or credit from the bank, but you won’t. is that the type of America the founding fathers envisioned, where rich keep getting richer and the rest are barred?
Answer by Maryjane Dark Goddess
Because it’s a high risk loan.
Add your own answer in the comments!
Question by blanch: are their any programs that i can get paid to go to school for nursing?
is there a nuring program that pays you to go to school?
Answer by Cookies On Steve
You can apply for a Pell Grant which will pay for your entire tuition (if you qualify based on your or your parent’s income) AND/OR you can apply for student loans on the same website (www.fafsa.edu.gov) to help you through. You have chosen a great degree because like mine (secondary education), there are programs out there where you can have your loans completely or partially canceled. My cousins are nurses and the hospital they work for completely paid for their loans for them if they work there for a certain number of years. Do a google search for “nursing careers canceled loans” or something of the like.
I suggest that you go ahead and apply for a student loan or Pell Grant. Even if you don’t qualify for the Pell Grant, you may qualify for the student loans. You don’t have to pay any back until you graduate or decide to drop out OR if you make poor grades or fail.
Give your answer to this question below!
An education loan is the only option for many students wanting to undertake college eduction. Often this loan runs into hundreds or thousands of dollars. An eduction loan can therefore be stressful on college graduates, especially since most students take up jobs with entry-level salaries. In such a scenario, the burden of the loan increases.
To ease the burden, graduates can opt for a Student Loan Forgiveness/ Repayment Program. This is a method for reducing the repayable amount thereby making it easy for students to overcome debt. These programs can help in eliminating the debt by a few hundred/thousand dollars in return for choosing certain careers, voluntary work or even military service.
What are Loan Forgiveness & Repayment Programs?
A loan forgiveness programs is backed by the Federal Government. According to this program, if a student fulfills certain criteria, a part of the loan amount or the entire amount payable, may be waived.
A student loan repayment program is different from a loan forgiveness program. This program may be used to reduce any type of loan. It enables the provision of additional funds, through which a student can repay his loan. Sometimes, the payment is directly made to the lender on behalf of the borrower.
Both programs are extremely helpful in student loan debt management. However, the amount eliminated under these programs is considered as a taxable income. While this may be discouraging, these programs are quite beneficial, and carry more value than the tax incurred through them.
If you do not want the repayments to be taxable, it is better to opt for student loans which provide for forgiveness. But this provision is available only when you work with certain professions and for certain employers for a required time period. For example, loan repayments under National Health Service Corps (NHSC) program are tax-free. Likewise, state programs which qualify for funding from the Public Health Services Act are considered tax-free.
Here is a list of institutions that provide the option of reducing/ eliminating student loans:
The American Federation of Teachers
The Association of Medical Colleges
The American Bar Association
A student loan debt management programis a resourceful tool to reduce debts. Make sure that you avail these benefits. Choose your option wisely. If you want additional provisions, opt for the programs which offer them. There might be some expenses in the form of taxable income. However, from a broader perspective, the program is more profitable and outweighs the costs incurred.
Student loan consolidation interest is determined by the buying factors, such as the professed risk of lending to the entity as well as the fiscal indexes they are close to such as stocks and wealth markets current trading trends. When students graduate from university, they start thinking about how to pay back their loans that financed their cost of education. A number of monetary lenders are offering student loan consolidation services aimed to ease the financial burden of borrowers. Many private banks and government banks offer finance options for students to entire their important education. Alabama Consolidation is a process by which the loans taken by the youngsters are merged into one loan and it is bendable for students to pay the interest at a time. People can take mortgages according their needs.
The federal student loan consolidation will assist scholars to merge all his loans into a single one with a very low interest rate. Also the duration or length of the payment term can be set according to their requirements. Learner can ask for a centralized consolidation credit from various fiscal institutions each offering great loan packages. The Federal Direct Student Loan Program (FDLP) and Federal Family Education Loan Program (FFELP) have been developed by these centers to assist students and parents combine their monetary. These two programs allow apprentice to merge PLUS Loans, Federal Perkins Loans and Stafford Loans. Scholars get lower monthly repayments and a longer imbursement period. These monetary usually offer lower interest rates and fees. For these Alabama programs, the fixed interest is regularly the weighted average of the interest rates of the loans that were consolidated.
It is logically much better alternative to combine private student loan programs than it is to evasion on a private school loan.
The absolute greatest advantage to being able to consolidate a private student loan is that people will have more fiscal options at the end of every month. The ability to save money each month on private student loans offers a huge profit to graduates who carry a lot of liability. People can contain other debts in this private student loan consolidation, such as any credit card liability you may have as long as the debt is education related in some way. The big qualities of taking this credit are that at these processes private banks approve the funds; finance requirements consist of a solid credit history and demonstrable income. Plus, the interest rate on a private student loan is usually higher than a Federal student finance, which can equal a higher review imbursement.
Scholars can receive personal student loans anytime they want to. It is possible mainly if they need some monetary resources to be bright to cover their educational expenses instantly. Big advantageous of this finance are that these are very suitable because it does not need a deadline for credit relevance. It is better to tale this loan from government or reputed colleges. These are generally only accessible to assist you with tuition and books, but sometimes they will send you a repayment check to aid you cover rent and other provisions. Personal student loans in Alabama offer various services rather than other private centers. This works out well because it will assist you pay for college and give you plenty of time to study and get those good grades that you need to be getting. You can generally get two different government loans and your monetary aid office will have more info for you.
Under federal rules, graduate youths are repeatedly regarded as non-dependents and are thus unable for PLUS parent loans, which are only obtainable to parents of undergraduates. Grad PLUS credits offer graduate students an additional college financing alternative to scholarships, grants, fellowships, and federal Stafford graduate student help. This credit is available students who are populace, nationals and permanent residents of the United States who display economic need. Undergraduate or graduate apprentice enrolled in a nursing degree program at least half-time may apply for nursing scholars finance. These Alabama Student federal credits offer low interest rates and long settlement terms