Personal Loans

Written by Chris S in Resources For Loans

Personal Loans

Below are additional resources to help you with your personal loans:

Home Loans

HUD (U.S. Department of Housing and Urban Development) – Created in 1965, HUD is a United States federal department that administers federal programs dealing with better housing and urban renewal.  Visit http://portal.hud.gov/portal/page/portal/HUD for more information.

Federal Housing Agency (FHA) – FHA is a United States federal department that provides supervision, regulation, and housing oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to support housing finance and affordable housing, and support a stable and liquid mortgage market. Visit http://www.fhfa.gov for more information.

Fannie Mae – A government-sponsored enterprise (GSE) chartered by Congress provides liquidity, stability, and affordability to the U.S. housing and mortgage markets. Fannie Mae operates in the U.S. secondary mortgage market and works with mortgage bankers, brokers, and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates. Visit http://www.fanniemae.com for more information.

Freddie Mac – A stockholder-owned corporation chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing by providing liquidity, stability, and affordability to the U.S. housing market.

Freddie Mac participates in the secondary mortgage market to provide their credit guarantee for residential mortgages originated by mortgage lenders and invests in mortgage loans and mortgage securities. Visit http://www.freddiemac.com for more information.

Search for the best mortgage rates – MSN has a nice search engine allowing you to find the best mortgage rates.  You can choose various parameters to find the best loans which include your state or zip code, type of loan (purchase, refinance, home equity), loan amount, discount points, fixed-rate, adjustable-rate, or interest-only rate.  Visit http://financialtools.money.msn.com/best-home-mortgage-rates/ for more information.

Student Loans

Student Aid on the Web – This is a source of free information from the U.S. Department of education on preparing for and funding education beyond high school.  Visit http://studentaid.ed.gov/PORTALSWebApp/students/english/index.jsp for more information.

Free Application for Federal Student Aid (FAFSA) Application –  Most students complete the FAFSA online to apply for federal student loans.  Schools use the information from the FAFSA to determine how much money (loan) students will receive.  Visit http://www.fafsa.ed.gov/ for more information.

Master Promissory Note (MPN) – When you receive a federal loan you must complete an MPN which is a legal document stating that you promise to repay your loan and any accrued interest and fees.

The MPN also explains the terms and conditions associated with your loan.  The same MPN can be used for future loans that you may receive over several years in school.  Visit http://www.studentloans.gov/ for more information.

U.S. Department of Education’s National Student Loan Data System (NSLDS) – If you are uncertain as to the type of federal student loan you have visit www.nslds.ed.gov/nslds_SA.

U.S. Department of Education – If you need help in determining which plan is good for you, use the DOE’s interactive calculators at www.ed.gov/offices/OSFAP/DirectLoan/calc.html.

Poverty Guidelines Chart –  This chart is issued annually by the U.S. Department of Health and Human Services shows. The Monthly discretionary income equals your AGI minus the poverty level for your state of residence and family size, divided by 12.  Visit http://www.direct.ed.gov/RepayCalc/poverty.html for more information.

Student Loan Calculators :

  • Budget calculator

  • Standard, extended and graduated repayment plan calculator

  • Income contingent repayment plan calculator

  • Income-based repayment plan calculator

  • Direct consolidation loan calculator

Other Loans

Small Business Administration (SBA) –  If you are looking to start your own business and need a loan and help consider the SBA.  The SBA was started in 1953 by the federal government as an independent agency that help, counsel, assist and protect the interests of small business concerns, preserve free competitive enterprise, and maintains and strengthen the overall economy of our nation. For more information visit http://sba.gov for more information.

Glossary

  • Borrower – Person responsible for repaying a loan who has signed and agreed to the terms in the promissory note.
  • Capitalization – Adding unpaid interest to the loan principal. Capitalization increases the principal amount of the loan and its total cost.
  • Default – Failure to repay a loan according to the terms of the promissory note. This failure must persist for 270 days.
  • Deferment – A postponement of payment on a loan that is allowed under certain conditions and during which interest does not accrue for subsidized loans.
  • Dependent student – A student who does not meet any of the criteria for an independent student (see below).
  • Disbursement – A payment of loan money to the student or parent borrower.
  • Discharge – The release of a borrower from the obligation to repay his or her loan.
  • Direct Loan Program – The William D. Ford Federal Direct Loan Program provides loans to student and parent borrowers directly through the U.S. Department of Education rather than through a bank or other lender.
  • Direct Loan Servicing Center – The U.S. Department of Education’s agent contracted to collect Direct Loans and handle deferments, repayment options, and consolidation.
  • Direct Subsidized Stafford Loan – A loan for students with financial need as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period, and during deferment periods.
  • Direct Unsubsidized Stafford Loan – A student loan that is not based on financial need. Interest is charged during all periods.
  • Expected Family Contribution (EFC) – The EFC is a measure of the financial strength of a student’s family. The U.S. Department of Education calculates a student’s EFC based on information provided on the Free Application for Federal Student Aid (FAFSA).
  • Forbearance – A postponement of payment on a loan, typically if the borrower doesn’t qualify for a deferment and is unable to make payments for a reason such as poor health. Interest continues to accrue during forbearance.
  • Grace period – A six-month period before the first payment must be made on a subsidized or unsubsidized Stafford loan. The grace period begins the day after the borrower ceases to be enrolled at least half time.
  • Independent student – A student who is at least 24 years old, married, a graduate or professional student, a veteran or on active duty in the military for other than training or state purposes, an orphan, a ward of the court, or who has legal dependents other than a spouse.
  • Interest – An expense of borrowing money that is calculated as a percentage of the amount borrowed.
  • Loan – Money borrowed that must be repaid.
  • Loan fee – An expense of borrowing deducted proportionately from each loan disbursement.
  • Principal balance – The amount owed on a loan, which includes any capitalized interest.
  • Promissory note – A legally binding contract between a lender and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.
  • Repayment period – The period during which a borrower is obligated to make payments on his or her loan(s).
  • Repayment schedule – A statement provided by the Direct Loan Servicing Center to the borrower that lists the amount borrowed, the number of monthly payments, and the date payments are due.
  • Variable interest – Rate of interest on a loan that is tied to a stated index and changes annually every July 1 as the index changes.

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