Student Loan Management: What About Private Loans?

Much of what has been written about dealing with student loans have to do with spending, support, and administration by the federal government or in some cases a government agency. And regulations and programs that can be applied to federal loans are generally not available to private lenders.

Federal student loan debt

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Federal student loan debt is estimated at up to $ 1 trillion. At the end of 2011, the total outstanding student loan debt was estimated at $ 165 billion.

This can be an understatement as there is no central repository for private student loan information.

Private student loans are a growing market, primarily used by students with higher debt needs, such as students with little or no family contribution, students at private universities and those seeking graduate and professional degrees.

The Department of Education has no role in regulating lending to private students. These loans are issued by banks and other financial institutions and in some cases not-for-profit agencies. They set their terms.

Although private student loans are not regulated by the Department of Education, private lenders must still comply with other federal and state laws that apply to lending in general.

For example, loans cannot exceed interest rates set by state law. In addition, federal law also requires certain disclosure requirements for private student loans that are designed to ensure that borrowers understand the costs and conditions.

These disclosures are made during the loan application phase, the approval phase and the loan disbursement phase. These disclosures include information on late payment rates, fees and costs, repayment terms and eligibility requirements for schooling, as well as the availability of student alternatives.

Borrowers are also required to complete a “self-report form” explaining that cheaper federal loans are available to the student.

When preparing to manage your private student loans, it is important to understand what you can expect and what a private lender can offer you. Here are some facts and general guidelines for dealing with private lenders:

When considering a private student loan. . .

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  • Interest rates for private student loans tend to be higher than for federal support loans.
  • Some lenders may offer reduced interest rates or extended payments.
  • Many private lenders require you to provide a co-signer who will be equally responsible for the loan if you cannot or do not make the payments.
  • Most private lenders require you and your vice president to be creditworthy, have a certain credit score, paycheck or debt-to-income ratio.
  • Many private lenders charge application, origination or payment fees.
  • Some private lenders offer repayment periods of up to 20 years, depending on the amount financed.

When you have trouble making private payments for students. . .

  • To change your payment or payment terms, you must negotiate directly with the lender. Many lenders offer some type of consolidation for private student loans or will refinance private student loans.
  • Some private lenders offer programs to defer payments during periods of unemployment or illness.
  • Private study loans cannot be consolidated with federal student loans in a federal consolidation program such as direct loan consolidation.
  • Private student loans are not eligible for federal repayment solutions 
  • Some lenders may offer to consolidate your federal student loans into a private consolidation loan. If you choose this route, your federal student loans will be paid off and federal consolidation will no longer be available. Ever.
  • Rehabilitation options for unpaid private loans are at the discretion of the lender.
  • Private lenders are subject to the standards set out in the Federal Debt Collection Practices Act, which governs the relationship between borrowers and third-party collection agencies and the standards required by the Fair Credit Reporting Act. You have rights if the collector engages in dishonest practices or harasses you for payment or if the collector, servicer or loan holder incorrectly reports your payment history to credit bureaus.

Bankruptcy Private Student Loans. . .

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  • Private student loans are subject to the same standard for bankruptcy dismissals as student loans from the Federation.
  • Some private student loans can be discharged in bankruptcy if they are made in excess of the amount needed to cover the regular cost of college.
  • Private student loans can be managed through Chapter 13 repayment plans.
  • Unlike federal student loans, which do not have a statute of limitations on collection, private student loans are subject to the statute of limitations, which is set – usually – by the borrower’s residency.

For much more information on student loan management during difficult financial times, see our articles on the following issues:

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Consolidation Loans

Bank debt consolidation: is the single installment convenient?

Capital Lender (joint-stock company formed following the merger between the financial Capital Lender and the Ducato) is one of the financial companies with the widest territorial coverage within our peninsula. This is accompanied by a strong online offer, especially for the ease of calculating estimates directly from the website through the use of the tool accessible without the need for registration. Among the loans it offers, within the personal loans section, we also find Capital Lender debt consolidation.

Before seeing the characteristics of this loan, we remind you that Capital Lender is currently a financial company owned by 61% of the French company Fine Bank (indirectly through Fine Bank Consumer Finance) and 39% by Cream bank.

What does debt consolidation offer offer?

What does debt consolidation offer offer?

The debt consolidation loan with Capital Lender offers the same possibility that similar loans offer, namely that of compacting all the loans that are already in progress in a single loan, so as to have to face a single installment and a single maturity. It is therefore a product that can be requested not as a first and only loan. As for the main features, let’s briefly summarize them:

  • fixed single Tan rate, which therefore remains unchanged for the entire duration of the loan (the Tan and therefore also the Taeg depend on the sum chosen and the duration of the repayment plan);
  • possibility of flexibility with the Skip Installment (allows you to skip an installment by reimbursing it at the end of the plan) and Modify Installment (consequently varying the duration of the plan);
  • duration of the repayment plan, even long, up to a maximum of 120 installments.

The refund can be made by postal order or direct debit from the current account (with SDD).

How to request information

How to request information

For more information on debt consolidation, you can:

  • call the Capital Lender toll-free number 
  • make your reservation online and request an appointment at the most convenient or nearby Capital Lender branch to reach.

In this second case it will be enough:

    • connect to the official website;
    • search for the area of ​​interest thanks to the insertion of the zip code or city name;
  • identify the branch with which you want the appointment through the interactive map;
  • click on “Request appointment”.

At this point you will arrive at the appropriate page where the various items required to make an appointment must be completed.

How to get an online quote

How to get an online quote

It is possible to make a simulation or request a quote also online, so as to have a first idea on the conditions that would have, depending on the amount chosen and the repayment duration. To take advantage of the tool, simply click on the red ” Request Now ” button which sends to the page that gives access to the compilation of the data necessary to make a first calculation of the conditions:

Now we see two examples, being able to choose between 500 and 30 thousand USD as amounts that can be entered. The first concerns the request for debt consolidation for 10 thousand USD while the other for the maximum amount contemplated by the system (equal to 30 thousand USD):

The system will provide us with the various assumptions related to the duration, being able to view and print the ‘SECCI’ form of each alternative: Choosing in the example the one with 120 installments, it can be seen that the Tan is set at 6.92% while the Taeg at 8.10%.

In the specific case we repeat the same procedure changing the amount: Always opting for the 120 installments we arrive at a Tan in line with the previous case (equal to 6.91%) and Taeg in slight ‘contraction’ equal to 7.69%. Those who want to use the remote quote request management can also take advantage of the special App that can be downloaded for free.

Conclusions

Conclusions

The debt consolidation loan with Capital Lender can be a solution to evaluate if you have various installments of various loans to be repaid. Obviously, it is always advisable to have more than one quote made to compare with similar products offered by other financial companies or by some other bank.

Categories
Debt

From the mortgage with the bank to the debt: when can I use the balance and excerpt?

In this period of economic crisis, you will have repeatedly heard of Balance and Excerpt. If you are a debtor in difficulty or a creditor who needs to collect his credit quickly, the Balance and Excerpt could prove to be a convenient solution for both parties.

What it is forced recovery of the credit

What it is forced recovery of the credit

Due to a series of events, they cannot pay his due. At this point his, in order to assert his reasons, would find himself forced to initiate through a lawyer the procedures for a forced recovery of the credit. This, however, can be risky for the times are often long and the legal costs expensive. It could therefore be advantageous for both parties to agree alternatively. They can propose to his to pay $ 20,000 immediately against the initial debt of $ 30,000 and thus see his debt situation definitively resolved with a debt savings of around 30%. In turn, his, accepting this proposal, would see a large part of the credit return, saving the money necessary for legal expenses.

This method of agreement takes the name of Balance and excerpt, precisely because the payment of an agreed part of the debt (balance) definitively cancels the debt situation (excerpt).

The Balance and Excerpt is an agreement that can be entered into both between private individuals, and between one or more private individuals and a bank, and between the private individual and the State, in the event that the debt concerns taxes due and not paid.

Balance and excerpt between private individuals

Balance and excerpt between private individuals

There is no precise methodology for carrying out a Balance and Excerpt proposal between individuals, nor a minimum or maximum allowed reduction of the debt. However, it is advisable to prefer the written form and the channel of the registered letter with return receipt or pec, so as to be able to leave a trace.

To protect itself, the creditor can add a clause in which the debtor is informed that, in the event of non-payment even of the agreed reduced amount, he may return to demand the original sum. This is not possible if the two parties have agreed by replacing the previous contract with a new contract in which only the amount due has changed. In this case the creditor, in the event of non-collection of the amount due, will be able to recover by legal means only the reduced credit agreed with the new contract, no longer the original sum. Better then to be followed in this procedure by an expert in the field, because the pitfalls are around the corner.

Balance and excerpt with a bank

Balance and excerpt with a bank

A little more difficult is to be able to reach an agreement with a bank through Balance and Excerpt. Before considering this possibility, the credit institution will have initiated a bad debts procedure and reported the debtor to the Crif and the Central Bank of Italy. Furthermore, if there are debt guarantors, the bank is unlikely to be willing to accept a reduction, unless the forced recovery procedure is particularly complex and unfavorable.

The situation is simplified if the bank in question has sold its credit to a debt collection agency. These agencies purchase the bank’s loans at a much lower amount and subsequently have every interest in agreeing with the debtor to obtain a small profit margin as soon as possible.

Let’s take an example: He has a debt with the bank of $ 80,000, the bank sells it to a debt collection agency (often linked to the bank itself) for $ 20,000. At this point if He offers the agency a balance and excerpt of $ 35,000, the agency will be well inclined to accept it, because he will still have earned $ 15,000, without having to resort to the lawyer.

The Court of Cassation with the judgment 22231/134 also established that, in the event that there are multiple debtors, if only one chooses to make use of the balance and excerpt, the others are also benefited. For example, He and She have a debt with the bank for $ 100,000 ($ 50,000 apiece, therefore), and She resolves her debt situation with Balance and excerpt for $ 30,000. At this point, He will not owe the remaining $ 70,000 to the bank, but only his share which will remain unchanged, $ 50,000, because She has agreed with the bank that his $ 50,000 share is resolved by paying only $ 30,000 immediately.

Balance and excerpt with the state

Balance and excerpt with the state

The 2019 budget law provides for the possibility of adhering to the so-called Tax Peace, which allows all those citizens in “serious and proven” economic difficulties to resolve their debt situation with Balance and excerpt of their tax collection documents (for example VAT payments or Social Welfare not paid), by submitting an application to the Inland Revenue by July 31, 2019. The debts that can be resolved with Balance and Excerpt are those relating to the period from January 1, 2000 to December 31, 2017, relating to taxes or unpaid social security contributions. The requirements to be able to join this tax peace are:

  • a family Isee of no more than $ 20,000;
  • liquidation procedure open at the time of submitting the application.

The application to be submitted must contain the “SA-ST” form which can be downloaded from the website www.agenziaentrateriscossione.gov.it filled in in all its parts and the documentation relating to the requirements necessary to return to the amnesty. This application must also specify whether you intend to pay in one installment or in installments. You can present the material online, via PEC or directly at the counter.

If all the requisites are met, the debt will be reduced based on the amount of your Isee:

  • with an ISEE not exceeding $ 8,500, 16% debt will be due;
  • with an Isee between $ 8,500 and $ 12,500, 20% of the debt will have to be paid;
  • with an Isee from $ 12,500 to $ 20,000 you will resolve your pending situation by paying 35% of the amount due.

Swiss credit for everyone

 

If you do not get a loan in Germany for a variety of reasons, you will quickly see that you can take out this loan in another way. Many then look abroad and try their luck there. You can find this in Switzerland. Because a Swiss loan for everyone is possible under certain circumstances. Even if you had no luck in Germany until then.

When a Swiss loan is possible for everyone

When a Swiss loan is possible for everyone

A Swiss loan for everyone is given quite often. It is always an option if the Credit Bureau is not quite as good, but the income and employment of the borrower are in a positive range. The Credit Bureau is not relevant in Switzerland because the banks in the beautiful Alpine country have no access to the data of the protection community.

A lot of luck for many consumers, because they can hide their financial “mistakes” and the bank has no prejudices against the borrower. You can only convince the bank with your own advantages and pave the way to Swiss credit for everyone with a high income and a fixed employment contract.

How to apply for the loan

How to apply for the loan

You can apply for a Swiss loan for everyone in different ways. Most borrowers go directly to Switzerland and personally contact a bank. This is particularly worthwhile if you live near the border or if you are in Switzerland for a vacation or something similar. If you have a long journey, you can also look around the Internet for the corresponding offers.

Many banks offer an online application form, saving their customers the long journey. The form must be completed and sent to the bank with the requested documents. The bank will then examine the application and approve it if it pleases. The money is then transferred to an account and is freely available.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.

Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.