Christian Student Loans For Bad Credit
Christian student loans for bad credit are available and accessible for people who are attending college and are in need of financing, but have little to no history with debt or a less than desirable history with debt. The Stafford program offers financing that anyone can obtain, regardless of debt history. A student loan for bad credit can help an individual gain an education, get a better job, and therefore eventually repair his or her borrowing history. The U.S. government funds this type of financing in the form of direct funding, also known as Stafford. Many students rely on this money in order to help finance their college education. A Stafford offers excellent advantages including simple qualification guidelines, very competitive interest rates, and flexible repayment plans. If a scholar is attending or planning on attending college, but are concerned that their poor repayment history (or nonexistent borrowing history for that matter) will keep them from qualifying, think again. "Labour not to be rich: cease from thine own wisdom. Wilt thou set thine eyes upon that which is not? For riches certainly make themselves wings; they fly away as an eagle toward heaven" (Proverbs 23:4-5).
Stafford financing is available and accessible to most scholars in need. Although there are a few requirements that a borrower needs to meet in order to obtain a student loan for bad credit, none of the requirements have anything to do with income or debt related issues. Stafford comes in two versions: subsidized and unsubsidized. The funds for the subsidized come directly from the federal government. The interest on these student loans for bad credit is paid (subsidized) by the U.S. government. Students pay the interest on the unsubsidized themselves, but they can opt not to pay anything until they have completed their schooling. To apply for one of these government sponsored programs, an applicant need to file the Free Application for Federal Student Aid (FAFSA) form. Although approval of the unsubsidized portion is not linked to financial need, the government still needs to get a completed form.
One can find this form online or in the college's financial aid office. All lenders offer the same variable interest rate for Stafford financing and the rate is currently capped at 8.25%. However, a borrower may find it beneficial to shop around before signing a promissory note because some lenders offer slight discounts if, for example, the applicant agrees to automatic online payment withdrawal. In addition to student loans for bad credit through the Stafford program; many banks, credit unions, and other lenders offer supplemental, private programs that might be worth exploring. Don't let a history of poor financial decisions stand in the way of pursuing a college education. Instead, take advantage of a student loan for bad credit and plan for a better future! Attending college and preparing for the future is exciting. Be sure you plan the financing of a college education wisely. Speak with the college's financial aid officers and a tax adviser or accountant if there are any questions about qualifying for the myriad of programs available to scholars.
Bankruptcy student loans occur when people attempt to get out of repaying the money borrowed to pay for college. It is serious business, because thousands of dollars are loaned to students for their education. Those who think they can get out of paying them back will find that it is close to impossible. Bankruptcy in general has been affected by changes in the code in that a person can no longer discharge their student debt obligations. For the person who has a bankruptcy student loan, the best they can hope for is that the discharge of the other debts will make it easier to repay their education debt.
Student loans are contracts like any other debt a person would take on. However, whereas most debts can be discharged when someone files Chapter 11, bankruptcy student loans do not fall into that category. They can only be discharged if the debtor can prove that repayment will create an undue hardship, meaning that the debtor cannot maintain a minimum adequate standard of living and repay the loan. Bankruptcy student loans can cost a bundle of money far in excess of the original amount borrowed. People who default, can find themselves being charged collection fees and commission fees that the collection agencies charge the Department of Education and that are, in turn, passed on to the debtor.
Further action can be taken for those who try to get out of repaying their educational debt. With a bankruptcy student loan, a person's wages can be garnished. In addition, the lender has the right to intercept Federal Tax Refunds and apply them to the debt. On the other hand, there are only a couple of ways to get around repaying educational debt. Other than proving that repayment would cause undue hardship, someone may be able to prove that they dropped out of school and that the school owes them a refund. A person also may be exempt from repayment if they become totally and permanently disabled.
Because repaying school loans can be difficult, people should consider carefully whether to borrow money for school, and if so, how much money they realistically need to borrow. There are other options that students can consider such as applying for scholarships or working part-time in order to pay for school, or at least to cut down the amount of money needed to borrow. Furthermore, before a person thinks of bankruptcy student loans, they need to consider the excess fees that will be charged, as well as the blemishes that will remain on their credit for up to ten years. Bankruptcy student loan is an option that should be avoided at all costs if possible. Romans 13:8 says to "owe no man any thing." Therefore, a Christian should seek to repay any money borrowed, in a timely fashion.
Christian Student Loan DefaultA student loan default happens because of a non-payment of educational debts that are to collection agencies, starting the beginning of a bad credit record. It is important to know that there is a choice to arrange for a student loan default and therefore avoid further problems. There are many situations that can arise unexpectedly, but do not have to cause bigger and bigger problems with debt if the problem is addressed head on. Knowing how to do this is the first step to making sure credit does not get tarnished.
Whatever the reason for non-payment of the debt, it's important to understand what will happen. When student loans default, the debt will still incur interest, but the responsibility for payments won't be there. This helps people when they are in real financial strife. If default occurs because of nonpayment, aside from the report going to a collection agency, the credit score will be adversely affected as well as the possibility of having to pay grants back that were previously gifts.
An easy way to avoid default is to make sure to have a realistic budget and follow it. This means making room in the budget for loan payments. If a budget can be created and followed, default can be avoided. Any steps taken to avoid letting student loans default is the best decision that can be made. If that means having to cancel spring break or walk to class or work, instead of driving, then this is what needs to be done. If student loans default then they can affect life for a very long time.
If there is no way to avoid letting a student loan default, speak to a financial professional. This person should be able to advise where the budget comes out short and how small lifestyle changes can be made in order to meet financial goals. It would be a smart thing to meet with this type of person before being forced into student loan default. This will help to avoid problems that can show up on the credit report. Also be aware that there may have been charges and fees added to the debt account to prepare the company for surviving nonpayment. Remember that we are entrusted with the amount of money that God believes we can handle and if we listen to His direction we will prevail. "But seek ye first the kingdom of God and His righteousness and all these things shall be added to you." (Matthew 6:33)
Student loan relief is available for students or college graduates who are having problems making their loan payments. There are many reasons and hardships that can keep a consumer from taking care of their debt in a timely manner. As a result, there are a variety of relief programs that aid consumers in such times and circumstances. Bankruptcy is a last resort for financial trauma, and student loans are not dischargeable, making some type of assistance crucial for even those filing bankruptcy. Getting information on student loans relief can be helpful as graduates seek to take care of debt, but get help in difficult times. College graduates often finish their programs of study with a sizeable debt in addition to their chosen degrees; assistance is often needed to help these graduates find a practical way to address and manage this debt.
There are several options that can be considered when looking for student loan relief. First, and foremost, college graduates wanting assistance should contact the lending agency or school where the financial aid was administered, and report that there is a problem. Ignoring bills, or letting an unpaid debt accumulate simply compound the debt and financial trouble. Communication is key and is always best. Contacting the financial department will give the financial department the opportunity to suggest help and identify appropriate assistance programs.
If a lending agency does not offer a student loans relief program when a borrower reports a situation of financial difficulty, another option to ask about is a deferment possibility. Deferment is a suspension of payments for a specific amount of time, and many lenders are willing to offer this assistance for a set amount of time, enabling the borrower to get back on their feet and then resume loan payments. Another student loan relief option is forbearance. With forbearance, the consumer will pay a reduced monthly payment amount, for a period of determined time, after which the monthly payment will return to the original amount. Both of these relief options can get the consumer through a rough financial time, and back on payment track at a later date, avoiding late fees and penalties.
Debt consolidation is another option for Christians looking for student loans relief. Consolidating debt into one payment monthly can help control the income and outgo of cash and often reduce the total interest charges. There are loan companies available online which offer various terms and conditions for debt consolidation. Whichever relief program one considers, remember to turn to God, who wants to help and give His peace. Cry out to Him and let His hope fill your heart. "But I will hope continually, and will yet praise thee more and more. My mouth will shew forth thy righteousness and thy salvation all the day; for I know not the numbers there of." (Psalm 71:14-15)