The Basics Of Student Loans And Grants

Since the cost of good quality education is rising higher by the day, it becomes increasingly necessary for students to apply for loans and grants to meet this cost. These student loans and grants have several charges to them, which operate differently. A loan is given with certain regulations such as repayment period and mode of payment as well as eligibility criteria. Student’s grants are given for a specific purpose such as research, though they are usually given in bits, and they may not cover the entire cost of the project. Grants are usually given by organizations such as the government or charities, and they are to aid the institution in running their learning affairs. The beauty of these is that they are not repaid and are given as a gift.

Loans attract an interest rate that is dependent on the lending institution. Usually federal student loans attract a much lower interest rate as compared to those from other private financial institutions. Apart from the interest rates, loans also have other charges who are either paid on application or are incorporated to the principal. Loans are also either paid through the college or directly to the student. Institutions that offer grants as a form of the financial aid monitor the use of these monies to ensure that there is no misappropriation and that the intended purpose is fulfilled. In such cases, they either has someone stationed permanently on the ground to do this, or they send in assessors from time to time for appraisal.

A similarity between student loans and grants is that the individual student can apply for either to cover expenses for their education. Loans are applied by the student either through the learning institution or directly and privately to the student. All federal loans go through the school before reaching the student. Private loans can either be channeled through the school or awarded directly to the student. A student may apply for a grant to fund projects that are part of the course work. Learning institutions can also apply for grants to fund the learning activities for their students. Since research ultimately enhances learning, grants can also be offered to fund these so that the quality of education for college students is richer.

Student’s scholarships are a form of grant that is awarded to deserving students. Usually this is a form of education financing that most overlooks and one that is readily available and easily accessible. It is so amazing that most students opt for costly and constraining loans while this option is ignored. Most institutions that offer these only require the applicant to write an essay that may not take up more than an hour or so. And on the up side is that it is not a loan, so there are no interest rates and no repayment. It is a free funding program that is aimed at making learning easier and accessible to all. This is surely an avenue that should be pursued before taking the student loans and grants route.

Auto Loans And Bad Credit – 5 Steps To Coming Out Ahead

Credit scores today are a pretty powerful thing. If yours is above 700 or 750, those three little digits can help you come out with a sweet deal on a mortgage, car loan, or credit card interest rate. Alternatively, if your score is at the low end of the spectrum, it can wreak havoc on your financial life.

This is particularly true when it comes to taking out an auto loan. For anybody who has ever gone through the auto lending process, you know how much of a roller coaster ride it can be. One minute, you are on an emotional high as you find that car of your dreams out on the dealer lot, just waiting for you to buy it. The next minute, you are down in the dumps while sitting across the desk from the dealer’s finance manager who is telling you that he cannot work out a loan for you. That’s the pits.

It is no secret that the rate you get on auto loans and your credit score have a deep relationship to each other. The question is: what can you do about it? If you are wondering about auto loans and bad credit, here are 5 steps to coming out ahead despite your bad credit score:

1. Ignore conventional wisdom about auto loans and bad credit:

Convention car loan wisdom says that you will necessarily get offered a bad deal on your loan if you have a FICO score below 600. However, what conventional wisdom conveniently leaves out is that this is only true with traditional lenders. However, there is a special class of auto lenders who specialize in working with bad credit individuals. These lenders do not care much about your credit score. Instead, they look at other details about your financial history when considering you for a loan.

2. Increase your chances of qualifying for a low-interest auto loan:

To increase your chances of qualifying for a low-interest auto loan when you have a bad credit score, you will benefit from only approaching bad credit auto lenders to apply for a loan. Remember, your chances of loan approval are much higher when you choose to work with companies that specialize in bad credit borrowers.

3. Learn to work with bad credit auto lenders:

The best way to work with these special lenders is to be totally honest and open with them about your credit history. Remember, just like a medical doctor, these lenders have “seen it all.” There is no aspect of your credit or financial history that you should consider too embarrassing to discuss with them. And, make sure to disclose everything, because they are going to find out anyway – and honesty builds trust.

4. Practice how you will answer any tough questions about your past credit decisions:

Go through your latest credit reports and make sure you are able to answer any potential questions from your lender about your past. Again, just be honest and hope for the best; you will likely get what you want.

5. Have the self-discipline to follow through in applying to at least 4-5 lenders:

Even if you strike up a good working relationship with one of the lenders, have the self-discipline to follow through and apply to more than one. Preferably, you will be submitting an auto loan application to 5 lenders in all. Why not work to increase your chances of loan approval?

Why Use an Equipment Leasing and Finance Company?

In today’s tough economic environment, many start up businesses are turning to a leasing and financing company when they need new equipment to run their business. When entrepreneurs begin a new endeavor, there are many expenses associated with starting a company, such as leasing or purchasing commercial space, deposits required for utilities, telephone and internet service, furnishings, business licenses, supplies, advertising and employee salaries.

These expenses, along with a plethora of unforeseen costs, require a great deal of capital outlay, sometimes not leaving much money in the company coffers to cover the cost of necessary equipment. When additional capital is needed, entrepreneurs must turn to other options to get the equipment they need.

When expenses run over budget but equipment is still needed to run the business, equipment leasing or equipment financing can be of great appeal. Equipment leasing is a good way for a start up company to obtain the equipment it needs without having to pay a large amount of cash out of pocket. An added benefit to leasing is that maintenance of the equipment is often included in the monthly cost, eliminating the need to pay for a separate maintenance contract on the equipment. Leasing is also an excellent option for equipment that is needed only for a short while, as leases can be negotiated for variable amounts of time, with both short and long-term leases often available. In the event that a business does not succeed, leases offer an option for returning the equipment with no detrimental effect on the company’s credit rating.

When equipment will be needed long term or permanently, equipment financing is often a more prudent option than leasing as the payments will be over a period of a few years rather than ongoing. This is also a good option for companies that have on site maintenance personnel who can repair or maintain the equipment. Financing allows a company to purchase needed equipment while coming out of pocket with only a small down payment.

Financing is also an excellent option when a company experiences fast growth and has an immediate need for more equipment but does not have the necessary capital for purchasing the equipment outright. When a company finances the equipment, it becomes an asset of the company, adding to the company’s net worth. Financing equipment also has a benefit to the company in that the interest paid on the loan is often tax deductible.