LOANS » Current Rates, News & Information

Every day, we alert visitors to the awesome savings and CD account interest rate deals that banks have to offer, and even dig up the best checking, auto loan and money market account rates every week. However, one area that doesn’t receive a lot of focus is the personal loan.

That’s why we’re shining the spotlight on them today. Personal loans are a great financial tool that can help you accomplish so many things. Lots of people take out small personal loans to build their credit, while others obtain them to cover their expenses when payday isn’t soon enough. If you’re interested in securing a personal loan of your own, be sure you understand both the risks and rewards, as well as where to find affordable loan rates.

President Barack Obama recently set a goal to have the federal government help 8 million more students graduate from college by 2020. He noted that the United States has dropped from first to 12th in ranking among countries that have the highest rates of young adults who graduate from college.

To solve the issue, his administration is planning to redirect $60 billion in subsidies to community colleges and universities as a part of the student loan overhaul. He hopes this effort, along with streamlining the application process for financial aid, will help more students afford to walk across the stage by 2020 (Smart Money).

Your credit history is often considered a barometer for your financial health. A lender will use your credit score number to determine your risk as a borrower. The lender will then decide the total amount for a personal loan you qualify to obtain. Lenders also take into consideration the length of the loan and the amount of money they will loan out–this may be reflected in the interest rates.

For example, those with low credit scores will only qualify for bad credit personal loans that are smaller, have a higher interest rates and a very concrete payment schedule. Those with a good credit history will be able to get the best rates, the highest loan amounts, and the most flexible repayment schedules available. 

It may be difficult deciding between using a line of credit from a credit card or securing a personal loan of some type to help get through the rough patch when the time comes. Every now and then people need access to money quickly to cover unexpected expenses.  Each option has both advantages and disadvantages associated with them based on what you need to use the money for and how you plan on paying back the debt in general.

What Type of Loan?

A new report from Wall Street Journal has revealed that many family members have to pay their deceased loved-one’s private student loan debt years after death, which is usually not a requirement for federal student loans.

According to the report, individuals who have co-signed a student loan under Sallie Mae, Citibank or Wells Fargo and have had the primary borrower pass away have often been on the hook for the remaining debt. Further, while Sallie Mae has recently introduced forgiveness for death with its Smart Option Student Loan, others note that their policies fall in line with the industry’s standard (Wall Street Journal).

If you’re a liberal arts major, or have been thinking about becoming one, you have probably heard from more than one person that there will be very few job prospects waiting for you when you graduate. In fact, some don’t even consider liberal arts to be a form of higher learning.

However, others rally behind the liberal arts major and its benefits. To explore this idea further, let’s look at whether obtaining a B.A. in liberal arts is truly worth the money you’ll spend on student loans.

It took months of negotiation, but the Department of Education has finally decided on a “gainful employment” rule that would crack down on for-profit colleges, as well as public and non-profit vocational colleges, that have encouraged students to take on excessive student loan debt that they couldn’t pay back.

These colleges and universities were recently under fire for their questionable practices that resulted in the schools increasing their flow of federal money. Now, restrictions will be placed on programs that don’t allow students to earn enough money to pay back their loans. It is expected the for-profit industry, where students are most likely to default on their loans, will see the biggest impact (City Town Info).

New data from peer-to-peer lenders like Lending Club and Prosper Marketplace shows that many borrowers are taking on unsecured personal loans in this arena to avoid the high interest rates they’re facing with other lenders. While peer-to-peer lending is still a relatively new concept, it is gaining ground in popularity due to its low interest rates and simple processes.

What is Peer-to-Peer Lending?

It is true, with a personal loan you can get the financial resources to buy whatever you want or need whether in either good or bad times.

Perhaps you are a consumer who is having problems managing an ever-growing mountain of debt. A personal loan is a fast way of borrowing cash and to set up a debt consolidation program. Or maybe you have been working as a consultant and forgot to put aside a portion of your paychecks to cover your income taxes, this type of loan can provide you with the resources you need to stay on the IRS’ good side.

Uses of Personal Loans

A new J.D. Power and Associates survey explains that among specific classes of cars, American cars are the most liked. For instance, according to the survey, the new Chevrolet Camaro is the most satisfying car in the sporty midsize category, while the Ford Fusion and Buick LaCrosse were both favorites in the standard midsize category.

The study found that on average, owners of new American cars liked their cars better than owners of Asian and European models and were more interested in acquiring an American new car loan. The survey noted that this is the first time this has occurred in 13 years (CNN Money).