LOANS » Current Rates, News & Information

When in need of financial assistance, bank loans are available to help individuals through almost every big purchase made throughout their lives. Banks exist as secure places to store and manage the money we earn. However, banks are also in the business of giving out loans to their customers.

In overly simplified terms; banks sell money.

According to new statistics from TransUnion, student loan delinquencies have fallen in the first quarter, yet have increased year-over-year. More specifically, 30-day student loan delinquency rates dropped to 6.6 percent from 8.06 percent in third quarter 2009; however, year-over-year for the fourth quarter, 30- and 90-day delinquency rates are up from 2008 to 10.4 percent and 11.67 percent, respectively.

Additional Statistics from TransUnion

Car shoppers need to heed the old expression “There’s a sucker born every minute” as securing car dealership financing can feel like being a three-ring circus.

Although there are honorable dealers out there, there are others who rely on bait-and-switch techniques increase their profits. If you are about to take the plunge into the world of car ownership, you need to know about the most common car dealership financing tricks in advance. Some typical moves they may try on you include:

Free By 50 is blog about striving to be financially Free By age 50, and is written by Jim R who works as an engineer by day and blogs in his spare time. You can follow Jim on Twitter at @freeby50blog.

A 529 plan is a tax advantage college savings account. Choosing to save for college in a 529 plan might give you benefits on your state taxes, tuition rate guarantees and even matching funds from some states. However not all 529 plans are created equal. Some plans may give little benefit other than tax deferral and come with relatively high fees, poor selection of investment options and low performance. Your state may have one 529 plan or a few options so you may need to make a choice. It may even make sense to chose an out of state plan rather than going with your states plan.

In a meeting on Thursday, House members took a look at the bankruptcy laws associated with private student loans and considered making them a discharge possibility for those who are struggling to pay their debt. Under current law, private student loans fall under a category called nondischargeability; however, if changes are made, former students who can’t pay their debts may be able to get them liquidated with everything else.

Some Responsible Students Can’t Afford Their Loans

A recent study from FindLaw.com, a legal marketing and information site, has found that college graduates are struggling more than ever to obtain personal loans. After over 130 bank failures in 2009, many financial institutions have shied away from handing out personal loans unless they feel comfortable that they will get their money back. The only problem is that many college graduates have not had a chance to prove that they’re capable yet.

No Credit History, No Personal Loan

On March 30, President Barack Obama approved of  student loan reform that would change the way loans are distributed to students from this point forward. Because so many changes have come from this new reform, which was signed into law with the Health Care and Reconciliation Act, it’s good for students to take a look inside to see what to expect as it takes effect.

Government Is Now Top Dog

After the recent financial and housing crisis, getting piggyback loans has become very hard. The standard 80-10-10 structure (80% first mortgage, 10% piggyback loan and 10% down payment) is no longer offered in many states.

What are your options, then?

Banks usually ask you to put down 20% of the mortgage loan amount as a down payment. You may be unable to afford it, or may simply prefer to use your cash for other purposes. Regardless, if you’re not making the 20% down payment, you may be asked to purchase private mortgage insurance (PMI). The PMI cost adds a substantial amount to your monthly mortgage payment.

There is a way to avoid both PMI and the 20% down payment. It is called a piggyback loan; in fact, this situation is one of the biggest reasons homeowners take a piggyback loan.

As Congress struggles to agree over what is best for health care, they have another agenda to worry about that could affect millions of college students in 2011: student loans. Currently, an overhaul for student loans is being debated between Democrats and Republicans in Senate and President Barack Obama warns that if it isn’t passed, a lot of students may have to forgo a significant amount of student aid, including their Pell Grants, when seeking college funding.

What’s In the Student Loan Overhaul?