Author Archives: William Garcia

Student Forgiveness: A New Route


The combination of nick Carterijke debts and a shortage of boarding jobs has created a tough predicament for many of today’s graduates. But getting out of those loans is notoriously difficult, even if you file for bankruptcy. Traditionally, one of the few ways to perform repayment is to perform certain public service jobs that offer loan forgiveness.

Some recent graduates try a different approach, claiming that they have been deceived by the schools that they believe would be their ticket to a successful career. Last summer, the US Department of Education created a process that allowed hundreds of former students of the Corinthian Colleges – a now-defunct chain of profit-making schools – to ask for forgiveness. At night, a once obscure federal facility from the 1990s in the direct loan program, known as “Borrower Defense for Repayment,” took on a new level of importance.

To add to the pressure, on January 27, 2016, the Federal Trade Commission has sued DeVry University operators, discriminating against DeVry’s misleading consumers about the likelihood of Nick Carterheid students finding jobs in their field of study. On the same day, DeVry Department of Education reported that it should stop publishing such graduation employment claims in its s and that future claims should be reviewed by an independent auditor. DeVry refuted that it would “forcefully” dispute the FTC complaint and request a hearing on the DOE decision.


MarketWatch reported that Ted Mitchell, Deputy Minister of Education, told reporters that it was “still early” whether DeVry students would be able to use borrower defense to get out of their education credits. This is what everyone with student debt must know about this strategy.

New route to borrow forgiveness

New route to borrow forgiveness

According to federal regulations, the borrower can attend any act or negligence of the school in any proceeding concerning a direct loan as a repayment against repayment by the student who would give aaNick Cartereiding action against the school under applicable state law. “


What is a “cause of action” remains an open question, although accusations of recruitment based on inflated graduation rates and employment rates have so far supported many of the submissions.

At the end of January, the Wall Street Journal reported that the Obama administration has already abolished student loans for 1, 300 Corinthian students, totaling $ 28 million. This development has opened the locks for other dissatisfied graduates to also get a story.

An analysis of the magazine showed that more than 7. 500 people in the last six months had asked for $ 164 million in student loans alone. Before 2015, only five people had applied for an exemption under the program – and only three of them did that successfully, the Journal said.

Larger implications?

Larger implications?

Most borrowers who ask for forgiveness are from profit-making schools. Based on the data for these students, it is not difficult to see why.

A 2014 Ministry of Education report noted that the average student who obtained an associate’s degree at a for-profit college was saddled with $ 23,590 in federal loans. Yet 72% of them earned less than on average

high school leavers. This combination of factors has made it difficult for many of them to repay their debts. The department found that 22% of borrowers at profit-making institutions did not pay their loans within three years. At public colleges that was 13%.

One of the bigger questions is whether the wave of petitions will expand to more students at traditional universities. The regulatory language is not specifically targeted at profit-making colleges, although these schools have been chosen for what some experience as consistently misleading recruitment practices.

But the actions of the administration are already criticizing in some circles. In particular, some on political law warn that President Obama and Education Minister Arne Duncan are creating a slippery slope where almost every student who has finally made a bad financial decision can evade his or her responsibility to pay. That, they say, has the potential to get the taxpayers on the hook for maybe billions of dollars.

The Ministry of Education has started oNick Carterang’s discussions with various parties, including student groups and colleges, to more clearly define who is eligible and who is not. In the meantime, the administration has tried to streamline petitions. It has even created a borrower defense hotline

( 855) 279-6207 to help people learn more about the program and find out how to make a complaint. The bottom line

In recent years, the Obama administration has attempted to hold for-profit colleges responsible for their recruitment policies. By reinvigorating the Credit Lender program for repayment, the executive may have taken its boldest step to curb abuse. 

Debt forgiveness: how to get out of your student finance for more information. You may also be interested in

Student loans: quicker payment of your debt, 10 tips for managing your debt Nick Cartering loan and Time to consolidate your student loans?

Are Student Loans That Jeopardize Your Pension?


Here are two truths for graduates: the best time to save for retirement is in the 20s and the student loans are expensive. If you find yourself in front of these two realities, you may be unsure about how to start saving your pension if you have trouble paying off your student loan.

Student loans put many pension savings plans at risk for many individuals. When student loan repayments remove a large part of your salary, you have less chance of saving money and investing in your pension account. The money that you invest in your pension fund in your twentieth and early thirtieth year has the most potential to double and triple. If you start saving for your twentieth birthday, you can save less and earn more. If you start saving at 35-50, you must save more and you will receive less interest on the accrued interest. (Read for more information Why save for retirement in your 20s ?)

Don’t let your student loans ruin your financial stability before you retire. Do not postpone retirement savings, because you don’t think you can pay with your student loans. By postponing retirement saving, you now run the risk that you can no longer afford it at the age of 65. Here are some solutions to prevent your debt in your loan loans from reducing your retirement savings.

Benefit from company 401 (k) Benefits

Benefit from company 401 (k) Benefits

Look at the 401 (k) options and benefits of your company. If your company offers a match for savings, make the most of it. Even if the match of your company seems small with a match of one to three percent, this can easily amount to $ 1, 000 or more per year.

When you sign up for the 401 (k) option of your company, you can have the money taken directly from your paycheck. This allows you to make saving a priority, and you don’t even think about saving for your pension. It just happens automatically. In addition, your contributions are not taxed as income, which means that you can fall into a lower tax bracket and be useful when filing tax returns.

(work for a company that does not offer 401 (k), be sure to read My employer does not offer 401 (k). Do I care?) <Minimizing student loan payments

Do not be complacent about the debt of your student loan. You may have 10-20 years to pay it off, but the sooner you pay it, the better. The first thing you want to take advantage of is forgiveness from student Reconsideration or cancellation programs. Those with federal loans can receive loan forgiveness through volunteering through AmeriCorps and other approved programs. Working in a function of general interest or non-profit organization, such as teaching in a low-income area, can also provide you with Federal Direct Loan forgiveness. Take advantage of these programs while you are young or have no family that depends on your income. Not only with these programs, erase a lot of debts, but these positions can also be used in your resume.

Another way to minimize student student loans is to refinance high-interest private loans. Refinance to guarantee a lower interest rate and a lower monthly payment. Avoid extending the life of your loan, because this will only cost you more in accrued interest. Also check before applying for a refinancing whether your credit score is as high as possible. (Also see,

How can I improve my credit score? ) Look into Federal Repayment Plans

There are various repayment plans available for federal loans. Income-driven repayment plans are available and can allocate people with payment limits based on their income and family size. Call your lender for more information about income-related repayment plans. 

Student loans: what to do if you cannot repay them .) Reduce flexible costs

Loans for studentBackbacks are not flexible costs that you can save on your budget. However, there are many other costs that you can minimize. It is not easy or desirable to live well under your means, but it helps you pay off your debt and save faster for your retirement. Look at your current budget. It is possible to shave $ 25, $ 50 or $ 100 every week.

Many people are surprised that they can save up to $ 100 a week by reducing the consumption of fast food and coffee, lowering the cable or gym bill or getting a roommate. Some may even save a lot of money by using a driving service, such as Uber or Lyft, instead of owning a car.

It is crucial not to take on any more debts while you pay the debt of your student. More debts make your budget even thinner, making it almost impossible to contribute as much as possible to your pension fund.

The bottom line

Repaying the debt of student Reconsideration puts you under financial pressure. However, the debt of your student loan does not prevent your pension savings. This is the time to save for your retirement, so take full advantage of the time you have. Even contributing $ 100-200 per month to your pension fund is better than nothing. Do not write off pension savings for when you earn more or when you have repaid all your student loans. When that time comes, you are already far behind in the pension saving game.


Direct multi-year loans for retired employees

Different needs, different loans. In most cases the salary assignment is ideal to satisfy the needs of those who want to keep their pension intact.

The fifth assignment, in fact, is an advantageous formula for pensioners: it affects a minimum part of the sum (precisely, one fifth) and allows one to obtain loans without justifying the use of money.

There is an equally valid alternative which can also be requested by pensioners registered with INPS: direct multi-year loans . The substantial difference between the long-term direct loans and the normal salary-backed loan is the need to justify the loan . Or at least it must be included in the cases indicated by the INPS.

To obtain a direct Multi-year Loan, you must be a pensioner enrolled in the unitary management of credit and social benefits . The loan can have a duration of five or ten years with monthly compensation divided into 60 or 120 quotas that are repaid through the classic system of the assignment of the fifth.

What are the procedures to follow?

You must deliver a documentation through the online service: a question dedicated to long-term direct loans, the certification related to the state of need and the justification of the expenditure.

In addition, a medical certificate must be provided which certifies the healthy physical constitution of those requesting the loan. the debt can be extinguished at any time and it is not possible to make a second application before the twelve months: a year must pass between one request and another.

What do you pay each installment?

What do you pay each installment?

A part of the loan given (divided into 60 or 120 installments), a nominal annual interest rate of 3.5%, administration fees of 0.50% and a risk fund bonus (find all the details on the last page of this document ).

Payment is automatic because everything is based on the sale of the fifth. That is, on a mechanism that does not provide for the active function of the borrower: the pension is collected with a loss of one fifth, or the sum necessary to repay the loan.


Home loan: what to know

You have finally decided to renovate your home and are looking for less expensive financing. In other words, you want an alternative to the mortgage, too expensive to maintain. The first home loan could be the ideal solution because it requires lower costs .

What is the home loan

What is the home loan


The first home loan is a form of personal guarantee that is used to purchase a specific good or service, it is normally provided by the banks and is very useful for obtaining liquidity quickly . It is particularly suitable for dealing with minor expenses such as maintenance.

It can also be used to acquire a property if the amount to be paid is less than € 50,000 . The home loan is aimed at employees and but also atypical workers, since too specific references are not fundamental.

Is the home loan cheaper than the mortgage?

Is the home loan cheaper than the mortgage?

The answer is yes, my advice is to evaluate according to your needs. Compared to the mortgage, the first home loan has higher interests but does not impose any mortgage to guarantee the property.

It is also a card to play if you are in a hurry, as the concession times are fast, ranging from 24 hours to 15 days. For the loan you could wait up to 60 days. I know what you’re wondering: how long are both of them? The first home loan has a rather short duration while for the mortgage it takes medium to long times, even up to 30 years.

Characteristics of the contract

When you decide to sign this small personal loan, carefully consider all the elements that make up the contract. Do you know what they are? Here are the main ones:

  • The number, amounts and expiry of the individual installments
  • The annual rate (APR)
  • The amount of the charges that are excluded from the TAEG count
  • Any guarantees and insurance required
  • Interest rate applied

And if I wanted to split the contract, what happens? Well, in this case you can choose to pay off the loan early . However, there are consequences: you must repay the remaining capital and pay a penalty equal to 1% of the loan.

The bank’s valuation parameters


We agree, getting a first home loan is much simpler than the mortgage hypothesis. But don’t sing victory, don’t think you already have it in your pocket.

On the other hand, banks do not trust immediately, before they grant you a loan they need to make their assessments. Credit institutions take into account two main aspects before granting the loan:

  • The level of income : before accepting the application, the bank will reserve the right to check the level of your income and on the basis of this will subsequently determine the repayment rate.
  • Creditworthiness : the approval of the request is subject to your credit history. The credit institution will make inquiries at the Central Bank of Risks, if you will be a bad payer with outstanding debts it could reject your request. It will almost certainly do so, make sure you have the accounts in order before submitting the loan application. For the banks the magic word is trust .

To sum up: the optimal conditions for accessing the first home loan are: a certain income and a clear credit position.

The bank did not consider you a trustworthy subject and denied the provision of the home loan, what to do in these cases? Is the mortgage out of the question for you? Don’t despair because the possibilities are endless, just knowing how to look for them: you can resort to the sale of the fifth : with this funding the evaluation criteria are more flexible.

The sale of the fifth for the purchase of a first home

Home Loan


As you well know, the fifth assignment is a personal loan which consists in the deduction of a fifth of the salary or pension forfeited directly by the bank. If you are a public employee or you are part of a consolidated SRL, the bank can also provide large sums for the purchase of your first home .

The advantages available are many if you have opted for the assignment of the fifth : you will not have to spend sums of money from the notary first of all, because you will only sign the deed of sale so no taxes, fees and registrations.



Loans to protested and foreclosed pensioners

A delicate question. One of the most difficult conditions for obtaining loans is that of the pensioner because, in most cases, the sum of monthly money can lead to complex situations for the payment of the monthly installment.

And it is precisely in this way that the conditions are born for obtaining another condition that complicates the situation of those requesting the loan: protested , bad payers, foreclosures in progress. Returning to one of these characteristics means closing the doors to the loan almost certainly.

Can a pensioner who has been seized or protested get a loan worthy of the name?

Euro Money

Other credit formulas ask for certifications, securities, motivations: those who make loans through the assignment of the fifth can ensure a total refund of the sum even when the subjects are at risk.

Although a protested pensioner struck by foreclosure is a person at risk, he has an element that can guarantee the repayment of the credit through precise and deferred installments over time: the pension . That is a constant amount of money that enters the individual’s coffers every month.

Yes, just choose a loan based on the sale of the fifth


The sale of the fifth operates on two fronts: on the one hand it affects only a small part on the monthly revenues (precisely, ⅕) guaranteeing the dignity of the individual. On the other hand it ensures compliance with the agreements by withdrawing the monthly sum from the pension.

Through the loans of the fifth assignment the pensioner can get an immediate sum of money , without obligations, correlated with his pension and repayable in several months according to the agreements. And all this regardless of the initial condition of the applicant: through this method there are no differences , there are no limits.

The protested pensioner who faces an attachment is similar to any other person because the return of the money does not depend on his act . Payment of the installment is done automatically, without human intervention. In this way, therefore, the pensioner who requests the loan can find a valid alternative.