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Archive for February, 2012

Debt Consolidation and Credit Counseling

Prior to 1991, unpaid student loans could only be collected for six years after they were due. In 1991, the Higher US Department of Education Act was amended and the time limit for collection was lifted. In addition to applying to current and future loans, the retroactive amendment called in the debts of past delinquent student loans, making them collectible once again. The seriousness of paying off student loans was further enforced in 1998 when a federal law caused the practical impossibility of transforming student debt into a claim for bankruptcy.

If you have delinquent student loans continuing to haunt you and your credit score, there are several recommended credit negotiation options: debt consolidation, credit counseling or debt settlement. Debt consolidation and credit counseling halt the activity of collectors, lower your interest rates and payment requirements, and re-establish your ability to borrow money again in the future. Credit counseling has no required level of income and there are no credit qualifications to utilize these credit settlement options. However, a debt consolidation program does. Understanding your options is critical to finding your way back to better credit scores.

Since not everyone may qualify for a debt consolidation loan, another alternative may be to enroll into a debt settlement program which over the coarse of 12 to 48 months you may settle your bebt for pennies on the dollar. With this type of service comes the downside of collection calls and the potential for lawsuits but if successfully completed the savings (pros) may out weight the cons.

Credit repair is the final step in restoring your credit rating and earning the ability to qualify for the lowest rates and gaining financial stability. This service is most often performed after you have completed any of the negotiation options mentioned above.

Student Loans With Bad Credit – There Are Options To Help

This section will shine a light on still other sources of student loans with bad credit “blindness.”

There are a number of major lenders in the Student Loans markets – here are some characteristics of the bigger players…

Chase Student Loans

The executives at Chase offer student loans. They do not really have students with debt “blindness.” They offer student loans with bad credit options. Most students, unless they are working full time, must use those options.

A student applying for a Chase loan normally needs to find someone who will agree to co-sign for the loan. While locating a co-signor can be difficult, a student who finds a trustworthy co-signor can obtain certain benefits.

A student with a co-signor qualifies for lower rates on his or her Chase loan. A student with a co-signer stands a better chance at being approved for that Chase loan.

GE Loans

General Electric is yet another source of bad credit “blindness” loans. Like Chase, the lenders at GE encourage students to find a co-signor. Unlike the lenders at Chase, the lenders at GE reach out to students off all ages.

While Chase and other companies target student loans for those with bad credit on college and graduate students, GE makes literature on its loans available to students at every grade level.

The following paragraphs will examine some of the people who can use the GE student loans with bad credit options.

Suppose that you are a parent of meager means, and one with a child born during the month of January. Suppose that your child is about to turn 5; you would like to see him starting kindergarten in the near future.

You could enroll him in a private school, if you could get one of the GE bad credit option student loans.

Suppose that you have emigrated into the U.S. You have attended Adult School, and you have obtained your GED. In the meantime, you have been saddled with lots of debt. Now you would like to pursue some continuing education classes.

You might be able to pay for those classes by obtaining one of the GE student loans with bad credit options.

Loans from Citizens Bank

Citizens Bank offers students who have bad credit yet another way to obtain student loans with bad credit options. Like Chase and GE, the lenders at Citizens Bank request a co-signor on the loan.

Citizens Bank offers one option that cannot be found among the offerings of Chase and GE.

The lenders at Citizens Bank appreciate the difficulties that a borrower might encounter while trying to repay his or her student loan. Even student loans with bad credit options can be difficult to repay.

The lenders at Citizens Bank defer payment on their student loans during the first 6 months after the student has graduated, or has otherwise stopped attending classes.

That proviso gives a student borrower extra time in which to find a job and initiate the needed series of loan payments. Students who cannot meet the payment demands must study the information in the following section.