Anyone can face an emergency situation in his or her life.
For any such situation there are direct loan servicing organizations
and companies that are ready to give a hand. The problem is
to find a legitimate direct loan service lender that can give
the best rates.
Lenders without the interference of a third party give out
the direct loan. The schemes for the direct loan servicing vary
from one lender to another. The amount of loan that is given
depends on the capacity of the borrower to pay back the loan.
The direct loan servicing is available
with many lenders and financial companies. The federal government
also provides these loans. There are also non-profit organizations
that are ready to lend money to the borrowers. The private direct
loan servicing is easier to deal with if you have a good credit
history. However the interest rates for the private direct loan
servicing is more than the interest rates offered by the government.
Most of the direct loan servicing agencies
and companies also provide counseling for interested borrowers.
The counselors in the direct loan servicing would provide you
with the documents and the amount that you can borrow and the
repayment terms that would suit your situation. You can also
take advantage of the free counseling services to get to know
whether the direct loan servicing is the best option for you.
The loan is considered as default in case you are unable to pay the
loan even after the specified period gets over. But in case
you are unable to make the monthly payments then you can postpone
the repayment either through loan deferment or forbearance.
With loan deferment you can postpone the loan payment and if
the loan is subsidized then the interest rate is not accrued
during the extension.
In case you cannot keep up with the payments towards the direct
loan servicing and in case you dont qualify for the deferment
then you can make a request for forbearance of the loan payments.
In the forbearance period you can either make no payments or
little payments that the scheduled payment. You can request
for forbearance of the interest, principal or both. But despite
the forbearance on the interest the money would keep accumulating
and you would have to pay it as soon as the forbearance period
With the help of direct loans the financial difficulties of the people can be met easily and at convenient and flexible repayment terms.
When the repayment period starts the borrower is supposed to know that there are typically four repayment plans. These plans are discussed below.
Standard Repayment: with the standard repayment
plan you are supposed to make fixed payments every month till
the amount is paid off fully. You would have to pay a minimum
amount of $50 every month for 10 years. In case you can handle
higher amount of payments every month then the standard repayment
plan is a good option as you can repay the loan quickly. With
this plan your monthly payments would be higher as compared
to the payments with any other plan because the loans are paid
of in a shorter duration of time.
Extended Repayment: with extended repayment
the monthly payments would be $50 minimum but the repayment
period ranges from 20-30 years. In case you want to make smaller
payments every month then this is the ideal plan for you. But
with this option you would have to pay more interest as the
period of repayment is longer.
Graduated Repayment: with this payment plan
you are required top make smaller payments in the beginning
and the payments become higher later on. This is based on the
fact that your income would rise with time and you would be
able to meet the higher payments towards the direct loans.
Income Contingent Repayment: with this plan
you can meet the payments towards the direct loans without causing
much burden. With this option your monthly payments are calculated
every year based on your adjusted gross family income and the
amount of Direct Loan that is remaining to be repaid. In case
the payments that you make are unable to meet the interest that
has accumulated on the loan then the unpaid amount is capitalized
once every year. However the capitalization would not exceed
10% of the original amount that you were supposed to pay. The
interest would accumulate but would not be capitalized. The
maximum repayment period with this option is 25 years.
By giving out loans to people by keeping the amount limited the government can help as many people as possible. In taking business grants the loan terms are flexible but the government would not take any interest in sponsoring big ventures. This would mean that for bigger ventures private finance is the only option.
Once you know that there are government loans available for your finance then you should get to know how to apply for these loans. Most of the government agencies have their own websites where they would mention the contact information. There are many private web sites that would have details about the government grants. These private sites would explain all the details about how to apply for the grant and from where to get information.
For this reason you should search the net for getting more information on
the government loans and grants. You will find a number of websites
that would give you information as to how to apply for the government
loans. But when accessing these sites you should be careful,
as there are a number of sites that are scams and would ask
you for money and provide you with no information.
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