Category Archives: Loans

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.

Measures To Prevent Loan Scams And Frauds

Often personal finances might not be sufficient enough to start a new business. In such a case, you often have to rely on other external sources of finance to move out on your venture. Some of the most common sources of funds include friends and family, banks loans, venture capital etc. However, if you are unable to manage finance from any of these sources, you might want to get your source of finance elsewhere. Unfortunately, currently there are many scams in the market. They tempt the business owners in availing loans for starting their business. Ultimately, it turns out to be a great trap at the end.

Going By Advertisements:

There are many a time when you will find advertisements in TV, newspapers or websites. They offer a toll free numbers where the interested customers can call. You might have thought of making such calls to meet your financial requirements. If you make a call, there will be a loan official who will take your credit application directly over the phone or send you papers to fill them up. In any way, you are required to submit some crucial information ranging from your financial status, your employment records, your bank account, your social security number and even your credit card details.

Loan Approval:

The process of approval of loan takes step by step. This is applicable even in case of scams. When you apply for such loans and submit your information, you will be informed after few days about your eon loans approval. They will also inform that you will receive the money after submitting a mandatory fee. This is generally not the case with a reliable institution. The mandatory fee that they ask for is required immediately for covering the first loan payment or for the purpose of insurance. Different companies label it differently.

Forget The Loan:

Once you have paid the mandatory fee, which can even be an advance up to three months, you will never receive your loan. In addition to that, it also implies that your financial losses will never be covered. This is not the end. There are high chances that you are the victim of identity theft, especially when you have provided the credit card details or bank account details. This identity can be used by the scammers for carrying out transactions from your account. Therefore, if you ever fall prey to such scams, make sure that you inform the bank immediately.

Loan fraud is quite common in the recent years. Therefore, while availing a loan, it is extremely important that you go for a reliable institution. Moreover, you should also try to avoid any kinds of ads that come in various places without any valid evidence. You should be careful when any lender is asking a deposit fee from you because this is the first indication of fraud. Such scammers never provide any location information or you will never find any reviews about them. These are few of the signs by means of which you can prevent yourself from the threat of scams.

Loan modification- is it the right option for your budgeting?

Budgeting surely indicates a new way of life.  Your shopping habits will be different and quite new.  You will adopt different yardsticks when you have to purchase during ‘sales.’  If the expenditure on a particular item is big, you will think twice, however tempting the deal may be. But such restrictions on your part will cut down the expenditure only to certain extent. The more important ones, where you have to concentrate, are expenses on car, health insurance, telephone, mobile, television, internet, etc. Expenses on these should be curtailed to the extent possible, by limiting the use of these. Alternatively, you can try to get better deals from the providers of these services.

Loan modification
If you are on a budget, the best thing for you will be loan modification. By this method, your monthly payments will get reduced. The term of the loan could be cut short and the balance due could also be got reduced. However, getting approval for loan modification may be difficult. Lenders, generally, may not give their approval for loan modification.  They will approve only when you are not at all in a position to pay the loan. In case you only want to bring down your monthly payments, you can contact one of the loan modification companies. They are very understanding and will offer you a suitable deal.

Prepare your monthly budget first and then contact loan modification company, because the moment you contact them, they will ask you to give details on this. You should have sufficient income to meet your general expenses, besides the payment on the proposed mortgage. If you give details of your regular monthly expenses on car fuel, insurance and other things, they will give an indication of your income. If there is no income, there is no need to worry at all about this.

You may have to mention, in detail, all the sufferings you are undergoing, like illness, losing the job, the large adjustment in payment which has led to your inability to afford. You can simply write on a paper, giving complete and specific details regarding your sufferings, even including the death of any member in the family.

Approach the mortgage loan providers
You can get in touch with the loan modification department of your lenders. They will guide you to get through the process. All details, such as payment deferment, modification of interest rate, bringing down the principal amount of installment loan lenders to the current market level, could be discussed with them. Even you can get the first and second mortgage combined into one, if you have a second mortgage with them. It depends on the company you are dealing with. It is very necessary that you should follow up the matter on a regular basis.  If necessary, you can ask them to assign someone to work with you.

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