...William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement Important Notice: This Borrower’s Rights and Responsibilities Statement provides additional information about the terms and conditions of the loans you receive under the accompanying Master Promissory Note (MPN) for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans) and Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans). Please keep this Borrower’s Rights and Responsibilities Statement for your records. You may request another copy of this Borrower's Rights and Responsibilities Statement at any time by contacting your servicer. Throughout this Borrower’s Rights and Responsibilities Statement, the words “we,” “us,” and “our” refer to the U.S. Department of Education. The word “loan” refers to one or more loans made under the accompanying MPN. 1. The William D. Ford Federal Direct Loan Program. The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following types of loans, known collectively as “Direct Loans”: Federal Direct Stafford/Ford Loans (Direct Subsidized Loans) Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans) Federal Direct PLUS Loans (Direct PLUS Loans) Federal Direct Consolidation Loans (Direct Consolidation Loans) 4. About the MPN. You may receive more than one loan under this MPN over a period of up to 10 years to pay for your educational...
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...for additional grants and scholarships. Many scholarships are available through many sources and are granted to students based on merit rather than need. It would also be beneficial for a student to consider paying cash for their classes if possible. If it is necessary for a student to borrow funds to pay for their education there are two different types of loans available, subsidized and unsubsidized loans. A subsidized loan is need based, usually has a lower interest rate, the government pays the interest on the loan while the student is still enrolled and working toward his or her graduation and does not require payment until six months after graduation. Unsubsidized loans are not based on need, have a higher interest rate and although repayment does not begin until six months after graduation, interest will continue to accrue from the beginning of the loan while the student is still in school. It would be in the best interest of the student; if possible, to pay the interest payment on the loan as it accrues monthly to avoid owing more than necessary upon graduation. Financing Educational Expenses Student loans are disbursed each term and a student has the option of returning unused funds and thus reducing the amount that they owe. Based on my financial needs and the amount of funds that will be required to pay for my next term...
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...A payday loan is also known as a cash advance loan. It is a short term loan, which can be obtained for emergency purposes. In order to acquire the loan, one has to have; proof of income, a photo and the pay stubs. A payday loan is a short term loan, that can be obtained by a person who is faced with an emergency that requires immediate cash. The loan is also referred to as a cash advance loan. In most occasions, there are a few prerequisites while applying for this loan. These include: a proof of income, photo recognition and the previous pay stubs. Borrowing this loan needs a personal check that is post dated to be written to the lenders of the payday loan. Basically, the exact terms of the loan are evident in the relevant legal documents being presented by the lender. This indicates the annual interest rates late fees and financial charges. Usually, the date in which this loan is due is similar to the date of the borrower's paycheck. Moreover, this loan is flexible and can allow the borrower to extend the terms of the loan when he or she is unable to meet the payment on the due date. This loan is an excellent option for immediate cash; however, the borrower should have the capacity to repay the loan when the date is due. Payday loans feature late charges and high interest rates. This implies that, the interest accrued may equal and even at times exceed the principle amount borrowed. This may be as a result of unregulated interest rates since the loans are from private...
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...Payday Loans Executive Summary Payday loans are short-terms, high-interest loans where people go to a physical loan store or via online store that are not banks. They are designed for people who need a quick injection of money before their next paycheck and its purpose is fast, easy money to take care of unexpected bills or emergencies (Watson, Stephanie., 2014). They started around 1959 when the senate passed a bill allowing people to received small amount of money for short-term loans for emergency, such as bankruptcies, bad credit, etc… The bill was to help people who couldn`t receive a regular loan at a normal interest rate. Since then, Payday loans have become very popular and in 1996, Payday lending saw a huge boom when the senate legalized them. In the mid-2000, online lending became available and is now a huge piece of the market (PaydayLoanPay.com., 2011-2014). Recently many controversy have been discussed with the Payday lending industry because of many operating dishonestly and illegally. This huge issue has caused the department of justice to investigate and place restrictions causing many legal and honest operating Payday lending to close shops and employees losing their jobs (Okun, Sarah.). In the meantime, the honest and top Payday lenders have form the Online Lending Alliance (OLA) to defend them and make sure Payday Loans don`t get de-legalized because of cracks in the lending system (Jones, Liz., 2014, March 26). Payday loans serves...
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...Home Loan FAQs A. An Introduction to Home loans 1. What is a Home loan? Home loan is the sum of money a bank or financial institution lends you to help you buy your dream home. By taking a home loan from a bank or a housing finance company you pledge your home as the lender’s security for repayment of your loan. The bank or financial institution will hold the title or deed to the property till the loan has been paid back with the interest due for it. Home loans are generally taken for long tenures as the loan amount is usually a huge sum. A home loan can be taken anywhere between 5 and 30 years. The amount of loan one is eligible for is dependent on the individual’s credit profile. 2. What is a down payment? What are the ways in which I can source my down payment? Generally as a thumb rule, banks or financial institutions lend 85% of the cost of the property. 15% of the money is expected to be paid as a down payment for the loan. Opting for a personal loan if you can afford that cost as well, pledging your investments, getting loan against your insurance policy etc. are some ways to liquidate your assets and pay your downpayment. 3. Are there any specific loans available for NRIs? Yes, there are specific loans that are tailored for the requirements of NRIs who wish to build or buy a home in India. 4.What is reverse mortgage? This loan facility allows a senior citizen (above 60 years of age) eligible to apply for a reverse mortgage loan and avail 60% of the value of the residential...
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...Payday Loans: Helpful or Hurtful Joseph Santini Monmouth University I. Introduction There is a new trend in lower income communities in the United States called payday loans. The popularity of getting payday loans to help to pay off utilities and short term debts. These loans have become controversial and brought on speculation of the ethics of the loans and their practices. There has been legislation brought through state senates on this issue but with heavy lobbying have not be able to see the light of day. The tactics of these lobbyists have also come into question. The overall question to be answered is if payday loans are good for this country. II. What are Payday Loans? Payday loans are defined on Investopedia as a short-term loan with a small borrowing amount and a high rate of interest. The way it works is the borrower writes a post-dated check for the borrowing amount plus a fee for immediate cash. The lender keeps the check until the agreed date which is normally the borrower’s next payday. These loans are also commonly called cash advance loans or check advance loans. (Investopedia) These are attractive to lower income community because the loans offer them money right away before they earn it. The feeling of having physical cash in their hands makes them confident in themselves. This system is great if you can pay the debt off quickly but if you take just a small amount of time to pay the loan the debt can pile up. This is because these loans have a...
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...Mortgage Loan Originator A mortgage loan originator is an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain ("Safe Mortgage Licensing Act, 2015"). Mortgage loan originators develop and maintain a network of business relationships that serve as a source of referrals for new mortgage lending opportunities. This network can consist of real estate agents, builders, business professionals as well as other valuable resources. Mortgage loan originators participate in development opportunities and constantly promote homeownership as well as other lending opportunities. Communication and people skills are very important and traveling is a necessity. A work from home environment is the norm, but a few office visits during the week is expected. Many loan originators work for financial institutions such as banks, credit unions, and other credit lending companies. I chose this profession as my project because of my interest in mortgage lending and my experience in the financial industry. As a loan originator, mortgage lending is a very skilled job. You have be self-sufficient, people friendly and very creative when conducting business development ideas. You help your clients from start to finish in the loan process and leave lasting impressions that will bring future clientele. My experience in the financial industry will be a great asset because money and math is still part of the lending...
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...taxes of a house for sale, and decide on a purchase price you would be willing to pay (assuming you have the means). Find a current market interest rate for a 30-year fixed-rate mortgage having a down payment of 20 percent of the purchase price. 2. Compute the down payment, amount financed, and the monthly mortgage payment (showing how to use the appropriate financial formula). 3. Compute the monthly amount of real estate taxes and add to the monthly mortgage payment to get the total monthly amount paid. 4. Suppose that in order to qualify for the loan, the total monthly amount paid cannot exceed 30 percent of monthly income. What is the minimum monthly income needed to qualify for the loan? What is the minimum annual income needed? (Note: This is a simplified minimum income requirement calculation, for the purposes of this project, as it does not take into account other costs such as insurance or other loans or assets currently held.) 5. Construct an amortization table (using spreadsheet software or online resources. 6. Assume that the first payment is made in January of the current year. Find the month and year of the last payment. Find the date of the first month when the amount applied to the principal exceeds the amount of interest paid. How many of the 360 payments have been made at this point? 7. Assuming that the mortgage is held for the full 30 years, compute the total principal paid and the total interest...
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...LOAN PACKAGE REQUIREMENTS BANK OF AMERICA: B of A requires all parties to provide the past 2 years of business tax returns, and current year’s tax return. All owners with at least 20% ownership required guarantee, with a minimum of 80% of ownership represented. All loan documents must be signed at the local Bank of America centers. BofA offers secured loans so that borrowers can get a loan without securing against specific business or personal assets. CHASE: Chase requires all business to be for profit, have to be a small business defined by SBA. Business has to be done in the United States, have reasonable invested equity. All business must use alternate financial resources such as personal assets before apply for a loan. Company must be able to demonstrate a need for the loan, and loan funds can only be used for sound business purposes, and no delinquent existing debt obligations. DOCUMENTS NEEDED: The United States Small Business Administration (SBA) requires business owners to complete an application for business loans, “SBA Form 4” (www.sba.com). Small business loans require the same documents which are personal background application, resume, business plan, personal & business credit reports, tax returns, financial statement, and bank statements. BUSINESS PLAN: Leo Hirschfield started Tootsie Roll in Chicago 1896, the primary objective was to consume the US; Canada, and Mexico with their tootsie roll candies. The companies now sell its products in...
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...Harvard Business School 9-291-026 Rev. October 29, 1993 Note on Bank Loans Bank loans are a versatile source of funding for businesses. For example, these loans can be structured either as short- or long-term, fixed or floating rate, demand or with a fixed maturity, and secured or unsecured. While each potential borrower's business is unique, reasons to borrow generally include the purchase of assets including new fixed assets or entire businesses, repayment of obligations, raising of temporary or permanent capital, and the meeting of unexpected needs. Loan repayment generally comes from one of four sources: operations, turnover or liquidation of assets, refinancing, or capital infusion. This note describes traditional bank lending products, the role of the lending officer, credit evaluation, and the structuring of credit facilities and loan agreements. Specialized loan and credit products are described in Appendix A. Traditional Commercial Bank Lending Products While increased competition has forced banks to develop innovative credit facilities and financing techniques, traditional products, which include short-term, long-term, and revolving loans, continue to be the mainstay of commercial banking. Short-Term Loans Short-term loans, those with maturities of one year or less, comprise more than half of all commercial bank loans made. Seasonal lines of credit and special purpose loans are the most common short-term credit facilities. Their primary use is to finance...
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...5 Approaches for Dealing with Student Loan Delinquency The Federal Reserve Bank of New York published a quarterly report last month on household debt and it showed that student loan delinquencies were still rising. As of Q4 of 2016, 11.2% of all student loans were 90 days or more past due on repayment of their loans and some borrowers were actually in default. This is a disturbing trend, particularly when compared to consumer debt in general which is at 4.8% and includes credit card, auto loans, mortgages etc. In other words, student loan borrowers even with deferment, lower payment options and other federal student loan options are more than twice as likely to be seriously delinquent with repaying their student loan. Many studies indicate...
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...JANUARY 31, 2012 INFRASTRUCTURE SPECIAL COMMENT Default and Recovery Rates for Project Finance Bank Loans, 1983–2010 1. Introduction 1 2 4 7 12 14 15 28 37 37 39 60 60 Table of Contents: 1. INTRODUCTION 2. SUMMARY 3. OVERVIEW OF THE PROJECT FINANCE INDUSTRY 4. DATA AND METHODOLOGY 5. DISTRIBUTION OF PROJECTS 6. DISTRIBUTION OF DEFAULTS 7. DEFAULT RATE ANALYSIS 8. RECOVERY ANALYSIS 9. FURTHER ANALYSIS OF TIME TO DEFAULT AND TIME TO EMERGENCE BY INDUSTRY 10. EXPOSURE AT DEFAULT APPENDICES MOODY’S RELATED RESEARCH ACKNOWLEDGEMENT Analyst Contacts: NEW YORK 1.212.553.1653 This Special Comment (the “Study”) is an update to Moody’s initial study published in October 2010 (the “Initial Study”) examining the default and recovery performance of project finance bank loans. The Study documents Moody’s updated analysis of historical project finance bank loan default and recovery rates using updated and expanded aggregate data (the “Study Data Set”) from a consortium of leading sector lenders (together, the “Bank Group”). Moody’s wishes to acknowledge and thank each of the banks in the Bank Group for supporting and contributing to the Study. This Special Comment is an abridged version of a more comprehensive study undertaken on behalf of the Bank Group. The updated Study Data Set includes 3,533 projects which account for some 51% of all project finance transactions originated globally during a 27 year period from January 1, 1983 to December 31, 2010. The Study Data Set is...
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...When Brittany Peter and Paul Peter were “house hunting” five years ago, the mortgage rates were pretty high. The fixed rate on a 30-year mortgage was 8.75% while the 15-year fixed rate was at 8%. After walking through many homes, they finally reached a consensus and decided to buy a $200,000 two-story house in an up and coming suburban neighborhood in the Midwest. To avoid prepaid mortgage insurance (PMI) the couple had to borrow from family members and come up with the 20% down payment and the additional required closing costs. Since Brittany and Paul had already accumulated significant credit card debt and were still paying off their college loans, they decided to opt for lower monthly payments by taking on a 30-year mortgage, despite its higher interest rate. Currently, due to worsening of economic conditions, mortgage rates have come down significantly and the “refinancing” frenzy is under way. Brittany and Paul have seen 15- year fixed rates (with no closing costs) advertised at 5% and 30-year rates at 5.75%. Brittany and Paul realize that refinancing is quite a hassle due to all the paperwork involved but with rates being down to 30-year lows, they don’t want to let this opportunity pass them by. About 2 years ago, rates were down to similar levels but they had procrastinated, and had missed the boat. This time, however, the couple called their mortgage officer at MBA bank and locked in the 5%, 15-year rate. Nothing was going to stop them from reducing the costs of paying...
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...Dear Student/Parent, Enclosed is your proposed student financial plan. You have been approved for the PLUS loan; it is up to you if you would like to take it out for the first academic year. Please review your charges and estimated financial aid for the program along with the PLUS loan requested loan amount form that will need to be sing by your parent so that we may certify the PLUS loan. Please note you ultimately have the option to accept or refuse the plus loan. If you choose to accept the plus loan, then sign the financial aid plan and the plus loan requested amount form and send them back to me as soon as possible. If you choose not to accept, we will provide you with alternative loans options. Alternative loans require that either the student is credit worthy or the student obtains a credit worthy co-signer. Most students will need a credit worthy co-signer. Should you have any questions or concerns, please feel free to contact me at 1-800-275-2474 ext: 6380 or via e-mail at chatten@aii.edu. Thank you for your time and immediate consideration to this paperwork. Dear Parent, I have applied you for the Federal Parent PLUS Loan on Sallie Mae’s website. However, your credit decision is in a pending status. This means that you need to call Sallie Mae’s Parent Answer Service at 1-800-891-1410 as soon as possible and give them any personal information that they need....
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...student loan debt through their years at college. Approximately 40 million people across America have student loan debt to pay off. People wonder how does one pay off all of their debt without freaking out, and worrying how am I going to decently live, and also pay off my debt? Paying student debt off can be extremely difficult, and stressful. The trick is to just stay calm, and pay off a little every month even if it is over 100,000 dollars. An example is becoming a history major. How would one become, and then pay off all of their debt? Becoming a history major will give people more than one option on what they what specific time period they would like to study. All over the United...
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