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Expansion in PAYE, Pay as you earn plan

Student loan is taken as a relief or extra aid given to students to carry on  studies without the worry of finance sector, unfortunately these student loans initially may be beneficial but deep inside they make out roots so strong that no matter how much is paid back, it continues to get in huge heap which continues for years. The interest rate on these loans  affects the economy at a very large cut and is disturbing situation for the Americans. One scheme to reduce the burden was introduced by president Barack Obama  in October 2011 with the name of “Pay as you earn___ PAYE” which was implemented in December 2012. It is prepared to  relief the burden from the federal student loans. According to it only 10% of income share is to be paid as loan money and it will be over  up to 10 year period time depending upon the certain criteria which varies with the scenarios. It was helping out many students but a recent new expansion will make it more applauding from student front as more students category is included in it. Approximately 5 million more borrowers will be included as the changes will take place. Eligibility criteria will remain the same private and loans including the parents entity cannot be entertained  under this scheme. Political opposition is still to be faced from the republican party  because though it favors the students to get rid of debt amount it will sure evoke a huge amount of tax on elite class. Democrats are as expected in its very much favor. Lets see what becomes of it in republican and democratic tug of war….

Students Emergency Loan Refinancing Act

Democratic U.S. Senator. Elizabeth Warren, of Massachusetts is trying every effort which will benefit the students in long run. She initiated and debated on  the loan refinancing act but the bill failed as only four more votes were needed according to the rule as to have minimum of 60 votes and the bill has 56 votes in its favor.This is in fact a positive response and a debate will still be continued as to get this enacted again. According to the base point it is harsh that students pay higher rates on loans they have availed as to study while other people do not have that much liability on their shoulders. Though this bill is considered as political stunt by the oppositions but Warren is always at the front line in welfare work  and as well as  favoring the students. She is trying every way to persuade the Senate for making this bill to pass and get acted. Continue reading

claire-mccaskill

McCaskill Stands: Demands Fair Rates on Student Loans

Elizabeth Warren, the senior United States Senator from Massachusetts proposed a bill about lowering the  interest rate on student loan reasoning it as a burden on students shoulders as the debt amount is risen very high, but this bill is taken as a political propaganda by the republicans. Their point of view was as how to meet up the decreased loan rate and it is not offering any assistance to the college graduates. Same point of view was given by  the banks as they will be at a total lost situation too. New happenings  has arisen to this debate as McCaskill  (U.S Senator from Missouri) has also backed the, Students Emergency Loan Refinancing Act, to lower student loans. Sharing her personal experiences of using the student loan for pursuing her law degree. She  said students are in so much debt if the loan rate is lowered it will cut off a large debt amount which can be alternatively used in some other fruitful manner by the students. She is sure standing up for the Missouri students who are suffering and lagging behind due to the debt monster. Fact sheet about the crisis depicts it as  huge block in the economical growth road. This debt is stopping a growing proportion of families from buying homes, saving for retirement, and making purchases that are needed for stable  economy .

 

student-borrow-money

Should You Borrow money to payoff student loans?

Higher Education is one of the mandatory part of life cycle. It involves a cost factor which should be analyzed for better achievements. Many financial assistant ships  are available which follow some rules and procedures. Student loans are best described as giving money to needy student as to fulfill the basic needs of education like buying textbooks, availing transport facility  and for paying  accommodation charges till the completion of program being enrolled. But these student loans continue to be part of life even after the completion of studies and make pupil so much in debt that no matter how much repayment is made loan is still there to be paid. To get rid of it is to avail some better plan in timely manner. Continue reading

Bad Credit Home Loans for Consumers

Home loans for people with bad credit are available in different varieties for financing a home purchase. These home loans for people with bad credit can be categorized according to the needs of the consumer as well.

There are home loans for those who don’t want to pay down payments, loan amount requested, schedule of repayment and the interest rate. Home loans for people with bad credit do not have a higher interest rate than 12% in most cases.

Home Loans for Consumers with Bad Credit History

Fixed interest rates on home loans for people with bad credit carry a high interest rate. It is best for consumers avoiding high interest rates to reject such loan offers. Apart from this, consumers may be able to save a lot of money if they make higher monthly installment each month.

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