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All about student loans

Loans have been around for decades, yet at this moment in time, there are numerous types of loans available on the market. One particular example of loans that have become extremely popular are student loans.

With this in mind, at this moment in time, for people from all around the world, graduating college doesn’t come with a job, but rather a pile of debt that has to be paid back as soon as possible. In fact, a recent study has shown that the average borrower for college-related purposes can have at least $33,000 worth of student debt, which at the same time, is also accompanied by credit card debt, and possible auto-related loans, in some cases, even a mortgage loan.

This issue continues to persist, considering the fact that the cost for higher education in the United States is one of the fastest-rising costs in the country. To put things better into perspective, since the year of 1980, costs at universities and colleges throughout the US have risen by around 757%, which is absolutely huge. Because of this aspect, numerous citizens choose to give up higher education for good, as dealing with the costs can turn out to be quite overwhelming.

The impact of student loans on young people

Studies that have recently been carried out have concluded the fact that over 70% of college graduates have student loan debts to deal with at the end of their higher education. Having this much debt at a very young age is both overwhelming psychologically, but also difficult to deal with, considering the fact that most graduates want to buy a car, home, get married, or start a business. This becomes considerably more difficult to do, given the huge student loan debt that has to be dealt with.

While there is also somewhat of a positive outcome involved, the benefits still do not outweigh the cons. With this in mind, more and more high-paying jobs require a college diploma, thus incentivizing US citizens to get a higher-education, and accumulate student debt which may be paid after graduation with a part of the salary being obtained. However, most of the times, the first year’s salary isn’t enough, judging by the fact that it’s also bound to cover living expenses, and other possible debts that students may be dealing with.

This has led to the appearance of numerous trends in student loans. While things are seemingly beginning to be better, with lower college fees, better ways of paying up debt etc., the trend is basically deemed useless due to the negative effects present in the last decade.

Fortunately, there are also a couple of alternatives to student loans, which consist of living your college life differently, in order to avoid accumulating it in the first place.

Based on this, living at home while studying for your degree may be the best decision to avoid accumulating debt. To kick things off, it is important to note the fact that community colleges are much cheaper, therefore you won’t need to invest too much money into the university itself. Secondly, as you’re living at home, chances are that you won’t have to pay rent, thus piling up more debt. By doing this, you may still need a small student loan, yet the sum that you’ll be spending may be considerably smaller when compared to the sums being spent by other students living away from their homes, or even abroad.

Another great alternative to avoiding the accumulation of student loans in the United States, would be to consider the idea of studying abroad. Numerous countries throughout Europe, but also in Asia, offer free higher education, if you attain high marks, with the help of grants that do not need to be paid back. Additionally, even if you do not get access to such a grant, the cost of higher education is considerably lower when compared to the one in the United States. As an example, normal higher education in the United Kingdom costs £9,000 per year, which is significantly less than in the United States. Other countries offer free higher education for anyone who fits the eligibility requirements.

Based on everything that has been outlined so far, while there is a positive trend in decreasing the amount of student debt that students have to deal with, the educational system remains very expensive, thus discouraging many people from all around the world. Luckily, there are numerous alternatives that can be considered in order to reduce your student loans, while also getting a higher education, which is great news from all the points of view.

The various types of payday loans available on the market

During the last couple of years, the market for payday loans has grown considerably. This is mostly due to the fact that nowadays, people from all around the world face a continuous need for more funds, which is definitely understandable given the state of the world’s economy.

To put things better into perspective, payday loans have only been around for a while, yet they are meant for people who are dealing with difficult financial situations, such as having to pay off debt immediately, having to deal with a medical emergency, needing to travel urgently, or even having to help others financially. Regardless of the reason, payday loans represent short-term loans, of varying sizes, given to those who can prove that they are employed and have a stable job. The maximum size of the loan can reach a few hundred, or even a thousand dollars, yet it depends on the situation that you are dealing with, and your monthly salary.
While things seem pretty straight-forward, there are a couple of different types of payday loans being offered on the market. Most of the payday loan agencies operating throughout the UK, but also in different other countries, will surely offer at least one or two of the payday loans mentioned below.

The One Hour Payday Loan

Online payday loans agencies have created a new trend on the market, which represents great news for those who want to get access to their funds as soon as possible. This service is usually being offered by payday loan agencies which also operate on the Internet, and are capable of crediting your account with the sum in question immediately. Therefore, potential clients for one hour payday loans can quickly get access to their funds, usually within an hour of applying. The process is quite simple, as you’ll simply have to submit your documents via an online application form, and wait for a response. If the loan is approved and no further discussion is required, then the agency will simply credit you the amount in question. Do keep in mind the fact that one hour loans may have higher processing fees, and interest rates, so this is worth taking into consideration. Do make sure to calculate your finances as well, in order to see whether you can afford paying the loan back once the lending term is up.

Regular, agency payday loans

These are basically the traditional type of payday loans, as you’ll have to walk into an agency with your documents, discuss things over with the clerk and then proceed to sign the application alongside with the other documents which are needed. Once your loan is approved, chances are that you will get it the next business day, as soon as the bank processes the payment. As there is more effort from your side in this case, chances are that the processing fees alongside with the interest rate will be somewhat lower, which is great news in case you are not in desperate need of the money, and also want to save a few dollars from the entire affair.

Cash Advances

The lending market is also home to a couple of payday loan agencies that offer something known as a cash advance. Although these are a bit rarer when compared to the traditional types of loans, it is important to point out the fact that interest rates are also higher from time to time. The main difference between cash advances and the other two types of payday loans, consists in the fact that once you have signed the application form, alongside with the other documents in the payday loan agency’s office, the clerk will give you the sum of money in cash, within a couple of minutes. This is also great for those who live near a payday loan agency, and who are in immediate need of the funds being offered, which can be great news for some people.

Regardless of the type of payday loan that you decide to choose, do make sure that you are in need of the money, and that you can afford to pay the sum back once the loan term expires. If not, this will likely put into further into debt, while also damaging your credit score.

Based on everything that has been outlined so far, the lending market offers a variety of solutions for those who are in need of an emergency source of money, in the form of payday loans, which is absolutely great news from all the points of view.

The most popular types of loans explained

Loans have been around for numerous years, which is the main reason why the lending market has evolved, and now offers a variety of solutions for all types of clients. With this in mind, in case you’re in need of a specific item, need to deal with a financial emergency, or plan on going on a trip, or even buying a house or a car, chances are that there is a perfect type of loan for you that will most likely suit you and all of your needs.

Before we get into the various types of loans being offered on the market, it is worth pointing out that regardless of the size of the loan, or its type, or even company where you have gotten it from, all loans and their institutions are governed by a set of laws, and conditions for achieving the loan, but also for repayment. This can help protect you against unsavoury practices from the financial institutions, which is great news, as you can always initiate legal action in case your rights are not being respected.

To kick things off, here is a list of some of the most common types of loans available on the market:

Student Loans

These are perfect for college students, alongside with their families, in order to allow them to afford the cost of purchasing higher education. In the US, there are both federal and private student loans being offered.

Mortgages

Buying a house is a big event in the life of any person, yet it can be quite expensive, and having all of the money to pay for it upfront can be quite difficult as well. With this in mind, mortgages are loans given out by banks, and meant to allow people to purchase a house upfront. However, if you don’t pay back the money on time, then you risk something known as foreclosure, which is basically having your house taken away from you, and sold on the market to the highest bidder.

Auto Loans

Auto loans are quite similar to mortgage loans, and are tied to the car that you purchase upfront with the auto loan in store. With this in mind, if you are not able to pay back the money on time, you will lose the car that you have just bought. The main benefit of mortgage and auto loans consists of very low interest rates, when compared to other types of loans on the market.

Personal Loans

Chances are that these likely are the most popular types of loans being given on the market. With this in mind, they can be used for just about any personal expense, hence not having a designated purpose. They vary in size based on your credit score, but also on your needs. Interest fees tend to vary, yet aren’t too high given the long processing times, and the lack of an emergency on the funds.

Small Business Loans

In case you’re considering the idea of starting up a business, then chances are that you’ll be looking for a small business loan. These are basically meant to help entrepreneurs start or expand you’re a business, have normal interest rates, and are given by banks after negotiation.

Consolidated Loans

Consolidates loans are an entire new category on their own, considering the fact that their main purpose is to simplify all finances. With this in mind, a consolidated loan has the potential of paying several, or all of your other debts, at the same time. This means lower interest fees, but also fewer monthly payments that you have to make.

The idea of borrowing from friends and families

While most people don’t consider this a loan, speaking on the exact term, it is a loan. While it is frowned upon, borrowing from friends and family can be a solution in case you’re dealing with a financial crisis, and don’t want to resort to using a traditional loan.

Payday loans

In case you’re not particularly fond of the idea of borrowing from friends or families, then chances are that you might want to try payday loans out. These are short-term loans, mostly designed for those who are dealing with financial emergencies, which vary in size from around £50 to a few hundred, or thousand, depending on what your monthly salary is. Credit score is usually not taken into consideration by most payday loan agencies, given the small size of the loans that you are taking.

Based on everything that has been outlined so far, these are some of the main forms of loans that you will find on the lending market. There are a few more, which are more specialized, and cannot be accessed by the general public with ease, or are designed for certain people only. Regardless, it is highly-likely that you will find a loan that suit your current needs in this list.