>
Loans Government
| Disaster relief loans: The federal government administers the following loan programs to meet emergency expenses incurred after any natural disaster: 1. Economic Injury Disaster Loans These loans governement provide assistance to small businesses and agricultural cooperatives, which have incurred economic loss. The Small Business Administration (SBA) and the Federal Emergency Management Administration (FEMA) administer these loans. Once a Disaster is declared, FEMA makes public broadcasts mentioning its toll free tele- registration number. The applicant should dial this number and supply the relevant information to FEMA. 2. Farm Emergency Loans These loans, meant for farm and ranch owners, are advanced only if the applicant is denied any other financial assistance. These loans can be used to meet all farm operating and household expenses incurred due to the disaster. Maximum amount lent is $500,000. The loan terms vary. 3. Home and Property Disaster Loans These are long term 30 - year loans and cater to farmers, businesspersons, homeowners or personal-property owners. The interest rate is from 4% to 8%. The financial assistance goes up to $200,000 for Real Estate and $40,000 for Personal Property. The Small Business Administration administers these loans. 4. Military Reservist Economic Injury Disaster Loan Program This program caters to small business entrepreneurs to meet essential operating costs when an employee is called up to active duty as a military reservist. It is a long term 30 - year loan at an interest rate of 4%. Maximum amount advanced is $1.5 million. Borrowers who need more than $5,000 should produce a personal guarantee and a first or second mortgage as collateral to avail this loan, also administered by the Small Business Administration. 5. Physical Disaster Loans These loans are geared to businesses, which suffer physical damage of property. The maximum loan amount is $1.5 million. Charitable, religious and not-for-profit organizations are also eligible if they fulfill certain basic requirements. 6. Rural Disaster Housing Assistance Rural Development Office of the US Department of Agriculture provides this financial assistance for low and very low-income families in rural counties designated under a Presidential Disaster Declaration. The loan can be used to build or repair a house. These are 33-year or 38-year loans. All applications are processed at the local level. 7. Rural Housing: Natural Disaster Loans and Grants This program provides financial assistance to very low-income homeowners to repair or modernize their homes or to improve health and safety conditions in their dwelling. The applicants must own and occupy their homes. The maximum loan amount is $20,000 at 1% interest. The loans governement is repayable in 20 years. Some real estate mortgage is required for loans above $2,500. Grants are sanctioned to people who are 62 years of age or older who are unable to repay the loan. Grants of up to $7,500 are sanctioned on condition that the property is not sold for at least three years from the time the grant is sanctioned. Loans and grants can be combined for up to $27,500. Education loans 1. Education Consolidation Loans 1. Education Consolidation Loans Education Consolidation loans governement are available as Direct Consolidation Loans or Federal Consolidation Loans. Direct Consolidation Loans are funded by the U.S. Department of Education. Hence, borrowers should make their repayments to the U.S. Department of Education. Federal Consolidation Loans are provided private lenders, such as banks and credit unions from their own funds, which are subsidized by the U.S. Department of Education. Repayments are made to the private lender or to any agency designated by the lender. These are 30 - year loans in which the interest rate varies between 1% and 8.25%. There are no fees or prepayment penalties. These loans can be repaid monthly or quarterly. Useful additional sources of information for these loans governement are www.studentaid.ed.gov/ and U.S. Department of Education http://www.ed.gov . 2. PLUS Parent Loans These loans are advanced to credit worthy parents of postsecondary students working for a degree or certificate. Direct PLUS Loans are funded by the U.S. Department of Education. The borrower has to repay the loan directly to the U.S. Department of Education. Federal PLUS Loans are advanced by private lenders, such as banks and credit unions from their own funds, which are subsidized by the U.S. Department of Education. Repayments are made to the private lender or to its designated agency. Some colleges participate in Direct Plus and some, in Federal Plus loans. The terms of the loan are nearly the same. These loans complement other existing loans. For example, if the total cost of attendance is $5,000, and a student receives $2,000 in any other financial aid, the parent can borrow up to $3,000 as PLUS Loan. These are 30 - year loans with a maximum interest rate of 9%. The loan can be repaid monthly or quarterly. There are no prepayment penalties. There is a 4% fee that is deductible on proportionate basis, as disbursements are made. 3. Perkins Student Loans These loans are advanced to students who are pursuing a degree or certificate program at a tertiary institution. The maximum loan advance is $4,000 annually for undergraduate students (with a cumulative total of $20,000), and $6,000 annually for graduate students (up to $40,000 totally). There are no fees or prepayment penalties. These are 10 - year, 5% interest loans that can be repaid monthly or quarterly. Further information can be obtained from FAFSA. 4. Stafford Loans for Students These loans are available from two sources: Direct Stafford Loans, which are funded by the U.S. Department of Education and Federal Stafford Loans, made through Federal Family Education Loan (FFEL) Program, and funded by private lenders such as banks and credit unions. Repayment should be done to the US Department or Education or the respective lender, accordingly. The terms of both loans are nearly the same. The maximum loan amount is between $2,625 and $8,500 annually and depends on the program of study and the total cost of attendance. The interest rate is flexible and can go up to 8.25 %. Maximum loan length is 30 years. Repayment can be done monthly or quarterly. There are no prepayment penalties. Further information can be obtained from FAFSA. Related Articles: Corporate
Bonds
|
||