Category Archives: Loans

Features of an unsubsidized student loan program

Subsidized and unsubsidized student loans come under the well known Stafford student loan program. Stafford loans are offered to students in two different forms and unsubsidized Stafford loan is one of those. Student loans are offered to students based on the type of course for which they are enrolled. Stafford loans are offered to both undergraduate and graduate courses. Subsidized Stafford loan is made available only for undergraduate students whereas unsubsidized Stafford installment loans bad credit can be availed by undergraduate as well as graduate students. A brief explanation about the unsubsidized Stafford loan is provided further.

Unsubsidized Stafford loans – Overview

As mentioned earlier, unsubsidized Stafford loans are approved for both undergraduate and graduate students. But, this particular loan is mainly focused towards graduate students. Undergraduate students would be able to obtain a better loan package from the subsidized Stafford loan program. Thus, most of the undergraduate students seem to stay away from unsubsidized Stafford loan.

Interest rate charges

For graduate students, the interest rate charged on the unsubsidized Stafford loan seem to be slightly on the higher end when compared to the interest rate charged on the subsidized Stafford loan program. But, this is quite normal. The main difference between a subsidized and unsubsidized Stafford loan lies in the interest rate factor that would be charged during the period of schooling.

In the case of subsidized Stafford loan, the interest rate charged on the loan when the borrower is still studying would be paid by the federal government directly and the borrower need not pay the interest rate charged during schooling and also until the repayment period gets initiated. But, with respect to unsubsidized Stafford loan, the interest rate charged during schooling would have to be paid back by the borrower. The borrower can choose to sum up the interest rate charged during that period and add it along with the principal loan amount.

Once, the monthly repayment period gets initiated after 6 months from the point of graduation, the borrower should repay the unsecured personal loans bad credit interest rate charged on the loan and also the interest rate factor charged during schooling. This is the only main difference between the two types of Stafford loans.

Loan amount approved under unsubsidized Stafford loan

Loan amount offered under any federal student loan would be based on the education fee charged to the borrower. Unsubsidized Stafford loans are no different from this either. But, when compared to a subsidized Stafford loan, the amount of money one would be able to obtain from an unsubsidized Stafford loan would be lesser.


Similar to that of a subsidized Stafford loan program, the terms associated with an unsubsidized Stafford loan are flexible. Deferment period can be applied by unsubsidized Stafford loan borrowers too. Apart from this, borrowers can even go for student loan consolidation, loan forgiveness programs etc. Unsubsidized Stafford loans would be eligible for all the benefits which would be offered to most of the federal student loans offered in the market. Graduate students would not be able to get a better loan package than unsubsidized Stafford loan.

Refund Anticipation Loan- Beneficial to the lenders or the borrowers?

The loans sanctioned based on the assurance of tax refund amount of an individual are termed as tax refund loans. These short term loans are also known as ‘Refund Anticipation Loans’. The loan amount is lesser than the refund amount and the loan is easily accessible. The offer can be considered for emergency expenses that cannot be deferred till you get your refund amount from the IRS. The tax preparers who offer this loan takes the entire tax refund amount of the borrower. However, it is not advisable to apply for the loans if your requirements can wait till you get your tax refund.

Features of the loan

The borrowers are charged origination fee for the loan and there are charges for electronic filing as well. The origination fees and all the charges associated with the offer are deducted from the loan amount. Visit our website and Some of the borrowers consider this option as there is no financial stress due to monthly payments or due to the need to settle the loans. Since there is no need for documentation, the task is also simplified. The lender is not reluctant to offer approval for the tax refund loan as the loan amount is secured by the tax payer’s signature.

The tax payer commits for the loan by signing the form which allows the tax preparer to cash out the tax refund check to cover the loan amount. The loan term is short and considering this factor, the interest amount charged for the loan is very short. This is why the financial experts are not for tax refund loans. If the tax payers can wait till it is time to get access to the tax refund, it is better to keep away from the loan. The waiting period is mostly around two weeks. Considering the high interest rates and short term, the loan resembles payday loan which aggravates the financial crisis of the borrowers at

The high interest rates are justified by the lenders as there is risk in lending refund anticipation loan. There is the possibility for the tax payers to encounter issues with the IRS officials and this might lead to a lower amount of tax refund than expected or there might even be the denial of the entire amount due to various reasons. Although the tax preparers, who are the lenders here, justify the high cost of the loan, the profit that is realized is the attraction for the lenders. The loan is more in favor of the lenders than the borrowers who are the tax payers.

When you file the income tax refund, you receive the confirmation instantly and you are notified that your tax return is free of mistakes or wrong entries. And this leads to the availability of full refund amount and this is highly advantageous to the lenders who offer loans anticipating your refund amount. Though you get financial support during urgent needs, financial experts advise you to keep away from the loan if you can manage your urgent requirements with some other alternative financial sources. 

Federal Perkins Loans – Education for Everyone

Federal Perkins Loan is provided by the government through the U.S. Department of Education for students in order to pursue their under-graduation or post-graduation studies. These loans are issued by the school and from the government funds however, you will have to pay back the loan to your school. There is no fee taken for issuing the loan. But if you do not pay back the loan, repay fewer amounts or make delayed payment then you would be penalized by the lender. Consequently skipping payments will also lead you to pay collection costs at .


Though Perkins Loan helps lot of students who are unable to pursue studies because of their financial background, not all can apply for these loans. The eligibility criteria for Perkins loan are listed as follows:

  • Admitted as a student for a full time or part time degree program.
  • Should be a citizen of the U.S, a permanent resident or should hold non-citizen status.
  • Should have showed fair academic betterment.
  • Should not possess history of unpaid debts on other educational loans and grants in the past.
  • Should satisfy all Selection requirements to qualify for the loan.

Duties when you borrow Perkins Loan

  • You should endorse a promissory note agreeing to the terms and conditions associated with the loan program.
  • You should pay back the loan even if you quit the study program in between.
  • Even if you are not satisfied with the education provided at your school, you should repay the loan.
  • Pay back the loan amount according to the agreement schedule which was endorsed before you accepted the loan.
  • You should inform the Federal Perkins no credit check loans Coordinator about your graduation, withdrawal, absence, transfer, name and address change, etc.
  • Display appropriate documents about your delayed payments and loan cancellation.

Privileges of Federal Perkins Loan

  • The promissory note which you endorse should be returned to you when the loan is fully paid.
  • A mercy period is granted for the repayment and that should be shown in the agreement.
  • You should be educated with all the details regarding your principle amount, interest rate, penalty charges if you fail to repay the debt, etc.
  • The list of loan cancellation and delayed payment rules should be given if you opt.
  • The loan repayment terms, duration, etc. should be known to you.
  • Most importantly, you should have knowledge regarding where you repay the loan.
  • Proper reasoning about penalty-free advance.

Calling Off of Perkins Loan

Perkins loan can be cancelled under some circumstances which are legally accepted by the government as well as the lending medium (i.e. the school or university). The loan can be called off only if the borrower qualifies for the cancellation procedure listed below:

  • Death of the student.
  • If you join a non-profit institution, or serve as a law enforcement officer.
  • If you become physically challenged.
  • If you work in a government organization and serve the country.
  • If you work as a doctor, nurse or an allied health professional serving the public.
  • If you work as faculty in a low-income school.
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