Travel Expenses – Corfulinas Travel http://corfulinastravel.com/ Thu, 23 Sep 2021 21:53:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://corfulinastravel.com/wp-content/uploads/2021/06/icon-5-150x150.png Travel Expenses – Corfulinas Travel http://corfulinastravel.com/ 32 32 Emergency cash loans can help during coronavirus crisis – where to get one? https://corfulinastravel.com/emergency-cash-loans-can-help-during-coronavirus-crisis-where-to-get-one/ Wed, 08 Sep 2021 10:13:42 +0000 https://corfulinastravel.com/?p=2215 If you need urgent funds to cover an unplanned expense such as a funeral or car repair, a bank application will not suffice. An emergency loan is a type of financing that can be quickly accessed. You can often get funds within days. However, convenience has its downsides. If you want to be financially secure in the future, […]]]>

If you need urgent funds to cover an unplanned expense such as a funeral or car repair, a bank application will not suffice.

An emergency loan is a type of financing that can be quickly accessed. You can often get funds within days. However, convenience has its downsides. If you want to be financially secure in the future, it is important to understand how these rates work when you need cash in an emergency.

Best loans for emergencies

There are many kinds of emergency loans that can quickly fund borrowers. Each type of emergency loan comes with its own pros and cons.

Unsecured Personal Loans

If you have excellent credit, an unsecured personal loan can be a great choice. This type of financing typically charges lower interest than emergency loans.

Some lenders may allow you to receive funds right away. PaydayChampion’s online tool will allow you to quickly locate the best personal loan rates.

Personal loans tend to be longer-term and the monthly payments are smaller. This makes it more manageable. If you have good credit, a $100,000 personal loan might be possible.

HOW TO GET A $100,000 PERSONAL LOAN

These online lenders, credit unions and banks can help you obtain a $100,000 loan.

Before you can be approved for a personal loan, lenders will review your credit. Personal loans may still have higher interest rates than emergency loans, but they can offer better terms. Rates can range from 6 to 36 per cent depending on your financial history and credit history.

Do you not know how much money you’ll need? The personal loan calculator can give you an instant estimate.

Cash Advances on Credit Cards

Cash advances are loans that can be taken against the available credit on your card. You can get the cash you need immediately if you have an immediate cash emergency. If you have credit cards, you don’t need to apply. If you have an urgent need for money due to a job loss, this can be helpful.

Cash advances usually have a higher interest rate than purchases made by credit card companies. Other companies charge a processing fee. Once the money has been received, interest will start accruing. If your interest rate is too high, this could quickly add up.

Payday Loan

Payday loans are short-term loans you can use against your future income. The loan must be repaid within the next payday. Many lenders provide cash and lending decisions in 24 hours. These loans are very easy to obtain. Payday loan lenders do not require that you have good credit ratings.

Payday loans, however, are the most costly type of financing. They have an average interest rate of 400 percent. Payday loans are not like other loans that require monthly installments. They are due in one lump sum. This arrangement can lead to borrowing cycles where you take out additional payday loans to repay your first one. According to the Consumer Financial Protection Bureau, four of five payday loans are reborrowed within a month. This can lead to debt traps.

Pawnshop loans

A pawnshop can lend you a temporary loan. They will however, keep the item you have as collateral. If you fail to repay the loan, the pawnshop may keep your asset. These loans offer two benefits: you don’t need to have a credit check and can get the money immediately.

Pawnshop loans can be short-term so you may not be able to pay the debt. Your item could also be lost. These interest rates can be very high. They can range between 15 and 240% per year. If you need a large sum, this loan might not be sufficient. The average pawnshop loan is $150, according to the National Pawnbrokers Association.

WHAT DOES APR LOOK LIKE on CREDIT CARDS AND LOANS?

Title loans

You can borrow money on a car if you own it. This short-term loan will typically provide cash in a matter of days. Lenders don’t conduct credit checks. You can keep your vehicle and drive it during the loan term.

High-interest rates are common for title loans. These loans typically have a 300 percent APR. The loan lender can take the car if they don’t pay the due amount. If it’s not possible to sell your vehicle or repay the loan balance, the title lender may be able to seize your car.

How do I get an emergency loan?

Think about how urgently your cash needs will be. While most options provide emergency cash fast, not all are available immediately. Compare the costs. Some lenders may charge fees. Consider the interest rate as well as the cumulative effect over time. Look for the lowest interest rate possible and make sure you have enough money to repay your loan.

HOW TO CHOOSE PERSONAL LENDS THAT FIT YOUR NEEDS BEST

Also, consider the reputation of your lender. If you fail to meet the terms, you might be considered prey lender.

What happens if you have poor credit and require an emergency loan?

You will almost always have to pay a high interest fee. Title and payday lenders do not require borrowers have clean credit histories, but they charge high interest and additional financing costs. If you need to get money fast, your bank and credit score may be affected.

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SBA asks for more emergency loan seekers, after dozens of business owners turn down https://corfulinastravel.com/sba-asks-for-more-emergency-loan-seekers-after-dozens-of-business-owners-turn-down/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/sba-asks-for-more-emergency-loan-seekers-after-dozens-of-business-owners-turn-down/ Before the pandemic, Dana Glosson and her husband Toby earned about $ 170,000 a year from Georgetown material hauler, Glosson Enterprises. But in May 2020, Toby caught the virus and spent months in the hospital. He died three months later. Before the pandemic, Dana Glosson and her husband Toby earned about $ 170,000 a year […]]]>

Before the pandemic, Dana Glosson and her husband Toby earned about $ 170,000 a year from Georgetown material hauler, Glosson Enterprises. But in May 2020, Toby caught the virus and spent months in the hospital. He died three months later. Before the pandemic, Dana Glosson and her husband Toby earned about $ 170,000 a year from Georgetown material hauler, Glosson Enterprises. But in May 2020, Toby caught the virus and spent months in the hospital. He died three months later.

Toby was still the driver, while Dana was the accountant. Now that she’s on her own, Dana, 57, has created a new business plan to buy a modified van so that she can be a medical transporter. She applied for a low-interest loan of $ 218,000 from the US Small Business Administration’s Economic Disaster Loan Program, created to boost small businesses and nonprofits that experience loss of money. COVID-related revenues.

“It’s one after the other, and I can’t even lift my head into the water and overcome one loss to reach the next loss,” said Dana.

Almost a year after her husband died, her loan application was turned down. Last week, she started a remote customer service job to help her survive.

Glosson is far from the only one. There was a massive wave of rejections sent in July for the EIDL program with generic language that frustrated many business owners. They were told they could reapply, but were not told what to correct in their request.

“There is sadness in our government because it passed a law to make the money there, and why can’t they give it to people like me who have the motivation and a business plan ? ” she said.

The EIDL is meant to replace lost sales to new businesses, but that’s not the reason Dana was turned down. His request for an EIDL increase was sent in December and there is nowhere on the app to say how you plan to use the money. And since she plans to continue in the transportation business, this is not a violation of EIDL terms. Now she wonders what she did wrong.

Veronica Pugin, senior advisor to the SBA’s Access to Capital Office on EIDL applications, said the loans were turned down for a variety of reasons, including failure to meet credit score requirements or errors on creditors. requests. She said the agency was working to provide more details in future rejection emails to applicants.

“We noticed that a lot of applicants were looking for a more detailed explanation than the broader category around unverifiable information, so we’re going to make an improvement on that,” she said. The SBA has “a lot” of funds left in the EIDL program, and business owners with 500 or fewer employees can apply until Dec. 31, Pugin said. Small businesses make up 99.9% of U.S. businesses and employ 47.1% of U.S. employees, according to the SBA.

In June and July, the main complaint about the program was that applications were not being processed quickly enough, given that it was “emergency” funds for struggling businesses. The SBA has since hired more staff and increased training at all levels, Pugin said. The agency went from less than 2,000 requests per day on June 28 to more than 37,000 requests per day on July 28.

“With this expedited process, you’re going to see a higher volume of approvals and denials,” she said. Nationally approved EIDL loans reached $ 3.8 million for a total of $ 258.5 billion on August 19, the last time the data was updated. This includes 326,330 loans approved in Texas, for a total of $ 22.2 billion. The SBA did not know how many loans were turned down.

Connecticut consultant Trevor Curran called the massive wave of loan denials “utter shame” because it looked like the SBA had swept a load of files into the trash when it changed the internal office to review new demands. The SBA should have let the new team review the applications instead of turning them down, said Curran, who runs Aurora Consulting with his partner, Linda Rey. They help business owners apply for EIDL loans, each charging up to $ 2,500.

The reasons given – “unverifiable information” or “unfounded economic harm” – are “insane and leave candidates ashamed and scratch their heads,” Curran said. In one case, a request he submitted for a client was refused for “inactivity and lack of interest from the requester,” even though he says he responded to every SBA request within hours. The SBA has touted the improvements to the program, but Curran said these are “minimal at best.” There was a day in late August when the SBA portal was inaccessible, he said. There has been some increase in responsiveness to requests. But there’s always a backing of loan and reconsideration requests “languishing” in the SBA’s processing systems, Curran said.

Summary of the news:

  • SBA asks for more emergency loan seekers, after dozens of business owners turn down
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‘Unprecedented’ fraud has penetrated COVID-19 small business loan rollout, watchdog warns https://corfulinastravel.com/unprecedented-fraud-has-penetrated-covid-19-small-business-loan-rollout-watchdog-warns/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/unprecedented-fraud-has-penetrated-covid-19-small-business-loan-rollout-watchdog-warns/ On the cusp of the COVID-19 pandemic, when offices and restaurants began to close, the federal government worked to keep small businesses afloat – ultimately spending more than $ 1 trillion to help protect the American dream of millions of workers and business owners. But even before the first checks, the alarm bells went off. […]]]>

On the cusp of the COVID-19 pandemic, when offices and restaurants began to close, the federal government worked to keep small businesses afloat – ultimately spending more than $ 1 trillion to help protect the American dream of millions of workers and business owners.

But even before the first checks, the alarm bells went off.

The person who rang those bells the loudest was Hannibal “Mike” Ware, the Inspector General of the Small Business Administration. The veteran internal watchdog says he attended a series of meetings with Trump administration officials and SBA analysts that were interspersed with “difficult discussions” on how to quickly distribute funds without leaving them vulnerable fraudulent claims.

His warnings have gone unheeded, Ware said, and the fallout has “transformed him from a black-haired man to a gray-haired man.”

“My level of frustration was extremely high,” Ware told ABC News in a recent interview. And now, a year and a half later, he has declared that “the scale of the fraud we are witnessing is unprecedented – unprecedented”.

As small businesses emerge from the pandemic, the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), two key relief programs passed under the CARES Act of Congress, are drawing to a close. But for all the jobs they saved, their legacy can be tarnished by unprecedented amounts of fraud – a reality that experts say could hamper efforts to adopt future emergency relief programs.

“In terms of dollar value, the amount of fraud in these COVID relief programs will be greater than any government program that came before it,” Ware said.

All government programs suffer from some fraud, experts say. And emergency programs are even more sensitive, due to the inherent tension between the pressure to approve loans quickly and the need to screen applications and maintain other fraud prevention measures that can prolong the process.

In an October 2020 report, Ware’s office found that “to speed up the process, the SBA” lowered safeguards “or relaxed internal controls, which significantly increased the risk of program fraud.”

A senior SBA official in the Biden administration concurred with Ware’s analysis, noting that “it shouldn’t be an expectation that we have to sacrifice speed for certainty – you can do both.”

“The story of 2020 for PPP and EIDL is the fact that the leadership of the previous administration did not have enough controls in place to determine individual identity or corporate identity,” the official said. . “There are absolutely different choices that could have been made to limit vulnerabilities to fraud.”

“With limited staff, few technological tools to perform prepayment verification, and an overwhelming need, the SBA and other agencies have abandoned many traditional checks and simply approved applicants with little or no verification of self-reported information. “, according to Linda Miller, the former assistant manager. director of the Pandemic Response Accountability Committee, a government task force established under the CARES Act.

“Best practices require upstream due diligence to avoid making the fraudulent or improper payment in the first place,” Miller wrote in June, after leaving the PRAC. “But in the rush to quickly distribute pandemic relief, we failed to do so and so are continuing now [funds that were fraudulently granted] … but the funds recovered will be a fraction of what was stolen. “

Ware said this is precisely what his office seeks to avoid. Even before PPP and EIDL were finalized, the SBA Inspector General’s office submitted three reports to the SBA “detailing the importance of the initial checks,” according to Ware. During the grueling exchanges of spring 2020, he said he warned the SBA to “pump the brakes” on the process.

“Scammers are going to do what scammers are going to do,” Ware said. “But the initial controls mitigate exposure to fraud, and that would have saved taxpayers a lot of downline heartache. Unfortunately, heartache was not avoided because of the way these programs were implemented from the start. departure.”

Jovita Carranza, the former SBA administrator who resigned when President Trump stepped down, could not be reached by ABC News for comment. Last October, in a letter in response to Ware’s report, Carranza wrote that the Inspector General “failed to recognize the improved and effective system checks and validations that the SBA uses” to eliminate fraudulent claims and “overestimate grossly the risk of fraud, waste and abuse. “

Carranza’s successor as SBA administrator – Biden candidate Isabella Casillas Guzman – said “reducing the risk of fraud, waste and abuse” in the distribution of relief loans and grants is a top priority . She said a series of measures implemented in December – including initial verifications and claimant tax information – had already produced “a sharp drop” in fraud, and that she was working closely with Ware to further improve safeguards and vigorously track and recover previous fraudulent dispersions.

Ware agreed that the controls put in place late last year helped fight fraud, but said the efforts were too weak, too late.

“At that point, well, you already know how much money is gone,” he said. “A lot of money was out.”

Among the relief programs, the deployment of the EIDL of the previous administration was given special consideration. James W. Cooper, a former federal prosecutor who now works for the law firm Arnold & Porter, called the program a “fraud magnet,” citing a provision that allowed beneficiaries to receive up to $ 10,000 in ‘advance “without any conditions”.

“That money is gone,” Cooper said.

But that didn’t stop Ware from trying to get him back. Its investigative efforts have resulted in 307 indictments, 205 arrests and 69 convictions related to PPP and EIDL fraud, which has raised more than $ 600 million to date.

This figure, however, only reflects a fraction of what experts believe was defrauded. Of the more than $ 1,000 billion distributed, Ware and others estimate that more than 5% of transactions were fraudulent – a staggering rate that would suggest tens of billions of dollars lost.

The first accusations of PPP fraud came just weeks after the program was launched, Ware said, and will continue for years to come. Fraudsters have used a range of strategies to illegally obtain the relief funds, including identity theft and setting up bogus companies to submit loan applications.

Those charged include a former “Love & Hip Hop: Atlanta” reality star accused of defrauding PPP to the tune of $ 2 million, and a former New York Jets football player who allegedly obtained a loan. PPP of $ 1.2 million and spent a large chunk of the money on jewelry and Gucci and Dior items. Other fraudsters are accused of spending their loot on Tesla shares and a 40-foot catamaran sailboat.

A NASA executive recently pleaded guilty to submitting fraudulent loan applications to PPP and EIDL seeking more than $ 350,000 and then spending the money on various personal expenses, including a swimming pool and a breeder. dogs. Prosecutors said the executive “views COVID-19 relief programs as a personal piggy bank.”

For those found guilty, prosecutors call for severe penalties; Last week, a Texas man who submitted false documents and received over $ 17 million in PPP loans was sentenced to 11 years in prison and ordered to repay $ 17 million in restitution. He had used the illicit funds to buy several houses and a fleet of luxury cars, including a convertible Bentley, a Corvette Stingray and a Porsche Macan.

But experts fear these bold and expensive cases are just the tip of the iceberg – and they warn that over time investigators will uncover even more complex scams.

“This first round of lawsuits targets the fruits at hand – clear cases of fraud involving large sums of money that are relatively easy to trace,” said Cooper, the former federal prosecutor. “What will be interesting to see is whether investigators will end up turning their attention to more nuanced and sophisticated fraud cases.”

A notable challenge for investigators will be to identify the organizers of large-scale schemes that have been a pervasive source of fraud. This includes schemes in which a small number of people enlist others to submit a high volume of low-cost loan applications and then take a share of the proceeds – a kind of fraudulent crowdsourcing, experts said.

“In many cases, individuals have obtained these loans at the request of one or more people who sought multiple advances using straw applicants,” Cooper said. “It will be very difficult for investigators to identify the real perpetrators.

These complex cases require more time and energy to investigate, straining already depleted resources. Brandon Brockmyer, research director at Project on Government Oversight, a nonprofit watchdog group, said investigators will likely have to prioritize the most egregious cases.

“Official watchdogs are trying to slice up and slice up the data to figure out where to spend their time and resources because they are overwhelmed,” Brockmyer said. “These are a huge number of deals. They have no choice but to be strategic about where they are looking.”

In light of the challenges, Ware predicts that the investigative work will continue for years to come. And experts fear more and more that there is more at stake than unrecovered money.

“It comes down to the public’s confidence in government to administer programs of this magnitude,” said Brockmyer. “The rate of fraud in these COVID relief programs will have an impact the next time a major emergency rescue program is needed.”

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Disability loans | The bank rate https://corfulinastravel.com/disability-loans-the-bank-rate/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/disability-loans-the-bank-rate/ Disability loans can be useful tools to help bridge the financial gap between applying for government disability benefits and getting approval, which in some cases can take months. However, loans for people with disabilities come with some potential risks and these loans are not suitable for everyone. If you are considering applying for a disability […]]]>

Disability loans can be useful tools to help bridge the financial gap between applying for government disability benefits and getting approval, which in some cases can take months. However, loans for people with disabilities come with some potential risks and these loans are not suitable for everyone.

If you are considering applying for a disability loan, you need to know what it is, who is eligible, and the factors that will make it beneficial or not for your financial situation.

What is a disability loan?

A disability loan is a personal loan that you can use for necessary daily expenses like groceries, bills, or mortgage payments if your disability has made you unable to work. These loans are used as a short-term funding tool for the few months it takes for the Social Security Administration (SSA) to process your application, and they should not be used to replace disability benefits.

Emergency advance payments

Before applying for a disability loan, find out if you qualify for an emergency prepayment. The SSA provides advanced disability benefits to qualified individuals based on the severity of their condition, type and likelihood of being approved for disability benefits. Also known as deemed disability or blindness payments, they are used to help fund the gap of up to six months between application and approval in emergency situations. Unlike loans for people with disabilities, they only have to be repaid in the event of an overpayment and have no interest rate.

You will need to prove that you are currently in an emergency to qualify, and payments will be refunded by subtracting the amount of the emergency advance you received from the amount you are expected to receive in the event of disability.

If you cannot qualify for emergency early placement, you may want to consider disability loans.

Who is eligible for a disability loan?

Because a disability loan is a personal loan, approval will be based on the lender and your financial history. The eligibility requirements vary from one lender to another. If you don’t meet the requirements, most lenders will give you the option to apply with a co-signer to increase the chances of approval. Your interest rate will also be determined by your credit history, so the better the score, the lower the interest rate.

Disability loans are not treated by SSA like disability benefits. Instead, loans for people with disabilities go through a private lender. Therefore, they should only be taken out as a last resort and if you have a repayment plan in place to pay off the balance. Keep in mind that it may not be the best idea to rely on disability benefits to pay off your loan, as the government may deny your application.

Before applying for a loan, make sure that you have already applied for disability through SSA, as loans are a short-term solution, not a long-term solution.

How does the government determine who is eligible for a disability?

After completing the online application, the SSA determines who is entitled to disability benefits using a process that takes 3 to 5 months and includes the following five questions:

  1. Do you work? If you are currently working in 2021 and your average monthly income is over $ 1,310, you probably will not be considered disabled.
  2. Is your condition considered “serious”? To be eligible, your condition must be severe enough to limit your ability to work and perform basic work-related physical tasks for at least 12 months.
  3. Is it in the list of disabling conditions? The SSA has a list of medical conditions that are considered eligible for disability benefits. If your condition is not listed, it is up to the SSA to decide whether the condition is considered serious enough to qualify.
  4. Can you still do the job you used to do? If you can still complete your work with your medical impairment (s), you are not considered eligible.
  5. Do you have the capacity to do any other type of work? If you are rendered unable to work, the SSA will take into consideration factors such as your age, health, education, and past work experience to determine if you have the capacity to work at another job. Otherwise, you may be eligible for benefits, but if there is other work that you could successfully complete, you may be refused.

How to apply for a disability loan

You can apply for a disability loan through an online lender, bank, or credit union. With an online lender, the application process is usually done entirely online and can be the fastest and easiest way to get the money you need. However, if you are a member of a credit union or have used a certain bank before, you might want to see if that financial institution offers fees or reduced rates to its customers.

Compare lenders before applying for a disability loan to find the best deal for your financial situation. Many online lenders now offer prequalification tools that let you see if you meet the eligibility requirements before applying to help you avoid a credit check on a loan you might not be on. eligible.

Pros and Cons of Disability Loans

While any type of emergency loan can be a useful way to quickly get the cash you need when you need it, there are always downsides to be aware of before applying.

Advantages

  • Convenience: With some lenders, you could get approved in minutes and complete the entire application process from your home.
  • Options: There are a plethora of lenders, banks, or credit unions to choose from when it comes to finding a loan that’s right for you.
  • Quick relief: If you can’t work and wait for your application to be processed, disability loans fill this gap.

The inconvenients

  • Potentially high interest rates: Depending on your credit, you could end up with a high rate, which could lead to high interest rate debt down the road.
  • Payday risk: Many payday loans are for people with disabilities, but they usually come with astronomically high interest rates that can keep you in debt for years.
  • Short repayment terms: Depending on the lender, you may benefit from a shorter repayment period, which means you might have a larger monthly payment with a shorter repayment term than with other types of debt.

Alternatives to a disability loan

If you do not meet the eligibility requirements or do not wish to take out a long-term loan, you have alternatives to help you finance the processing time of your disability application:

  • Government assistance: This includes programs such as cash assistance, SNAP, social assistance and unemployment benefits. You can apply for government assistance and see if you qualify with your state’s social service or social service agency.
  • Workers compensation: If you suffer from an occupational injury or illness, you may be eligible for Workers’ Compensation. The process for filing a claim can differ from state to state, so research the process and follow all the necessary steps. In addition, depending on your state’s regulations, you may be entitled to additional disability benefits if your injury has made you unable to work.
  • Cash advances: A cash advance is a short-term loan that allows you to use your credit card to borrow the money you need. This can be done at an ATM or through a bank that offers cash advances. Cash advances are a form of credit card debt, and the money you borrow will need to be paid back.
  • Disability insurance: Disability insurance pays part of your income if you are disabled and unable to work. There are two forms: short and long term, which come with different coverage amounts and waiting periods. You may be able to purchase an employer sponsored plan or purchase an individual plan from an insurance broker or company.
  • Loans from families or friends: As a last resort, you can ask a trusted friend or family member to lend you money for your necessities. If you choose this method, keep in mind that it could lead to relationship breakdowns if you are not able to repay them as promised.

At the end of the line

After considering all of your options, if you decide that a disability loan is the way to go, make sure you have a solid plan in place and the money to pay off the loan. It’s also important to make sure you do your research to find the lender who offers you the best rates and terms for your financial needs.

Learn more

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Current student loan news for the week of August 2, 2021 https://corfulinastravel.com/current-student-loan-news-for-the-week-of-august-2-2021/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/current-student-loan-news-for-the-week-of-august-2-2021/ Last week, House Speaker Nancy Pelosi said President Biden will not be able to write off student loan debt without congressional approval. Here’s how Pelosi’s statement and the student loan cancellation conversation could impact your student loan debt. 1 current trend in student loans for the week of August 2, 2021 1. Nancy Pelosi argues […]]]>

Last week, House Speaker Nancy Pelosi said President Biden will not be able to write off student loan debt without congressional approval. Here’s how Pelosi’s statement and the student loan cancellation conversation could impact your student loan debt.

1 current trend in student loans for the week of August 2, 2021

1. Nancy Pelosi argues that Biden cannot cancel student loan debt through executive action

As President Biden awaits the results of a legal review of his power to cancel student loan debt through executive action, House Speaker Nancy Pelosi told reporters that ‘she didn’t believe that was possible.

According to Pelosi, the president can “postpone, delay but not forgive” student loans. While many Democrats pushed Biden to use his executive power to write off debt, Pelosi said it would take an act of Congress.

In the same interview, Pelosi also raised concerns about the ethics of mass forgiveness, saying it wouldn’t be fair for childless families in college to see their taxes increase because of mass forgiveness. The cancellation of this debt “must be viewed fairly when we have something that offers an opportunity – that’s the big word, an opportunity – to all American families,” she said.

How it affects student loans

The administration’s official legal review on student loan cancellation has been underway since April, so any final possibility of student loan cancellation will have to await the conclusion of the US Department of Education. Pelosi’s comments signal that the Democratic Party is still divided on the issue; progressives like Chuck Schumer and Elizabeth Warren, as well as some student loan legal experts, have argued that widespread student loan cancellation is in Biden’s power.

Either way, borrowers should not rely on the legislation; even if the cancellation of the student loan does eventually occur, it is best to stay up to date with the payments in the meantime. There are already programs that help federal student loan borrowers get partial forgiveness, and borrowers struggling to make their payments may request a forbearance or a different repayment plan.

Here’s how to prepare

Whether you’re new to the area of ​​student loans or already in advanced repayment, it’s wise to stay on top of how your student loan rates might change. As 2021 continues, more opportunities for cheaper loans or loan cancellation may open up; Keep an eye on the Bankrate student loan news center for the latest trends.

Learn more:

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34% of those in abstention mostly used cash https://corfulinastravel.com/34-of-those-in-abstention-mostly-used-cash/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/34-of-those-in-abstention-mostly-used-cash/ One of the lifelines for homeowners during the COVID-19 pandemic has been forbearance, an ability to skip or make smaller monthly payments on mortgages under the CARES Act, leaving them with more money. money for emergencies. Still, the majority of people who have gone forborne remain stressed to get – and stay – on track […]]]>
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Lebanon’s lights could go out as electricity money runs out https://corfulinastravel.com/lebanons-lights-could-go-out-as-electricity-money-runs-out/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/lebanons-lights-could-go-out-as-electricity-money-runs-out/ BEIRUT, May 6 (Reuters) – Lebanon’s lights could go out this month as funds for power generation run out, a lawmaker said on Thursday, as the country grapples with deep economic crisis. Lebanon’s parliament approved an emergency loan of $ 200 million to finance imports of fuel for power generation in March, but a loan […]]]>

BEIRUT, May 6 (Reuters) – Lebanon’s lights could go out this month as funds for power generation run out, a lawmaker said on Thursday, as the country grapples with deep economic crisis.

Lebanon’s parliament approved an emergency loan of $ 200 million to finance imports of fuel for power generation in March, but a loan review committee has yet to approve it.

“We must not forget that from May 15, a progressive darkness will begin,” said Nazih Negm, member of parliament, according to a government statement issued after his meeting with the interim finance and energy ministers.

The Lebanese have long learned to live with regular blackouts that last at least three hours a day in the capital and much longer in other neighborhoods, as the state’s power plants cannot meet the demand. demand. Many people depend on private generators.

But the financial crisis has exacerbated the heavily indebted country’s problems, as the government struggles to find enough hard currency to pay for fuel and other basic imports.

The loan, approved by lawmakers in March, is under review by a constitutional committee, which is studying its legality. The government resigned after a massive explosion in Beirut in August and is now acting on an interim basis.

“We hope that the constitutional committee will not take a month to make its decision because the situation cannot wait,” Negm said, according to the government statement.

Lebanon usually retains enough fuel for about two months because it is too expensive to keep strategic reserves any longer.

The economic collapse, the biggest crisis since the end of the Lebanese civil war of 1975-1990, fueled unrest, blocked depositors from their accounts and hammered the currency, which lost about 90% of its value against to the dollar.

Reporting by Laila Bassam and Maha El Dahan; Editing by Alex Richardson

Our Standards: Thomson Reuters Trust Principles.

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Home equity loan vs cash-out refinancing: pros and cons https://corfulinastravel.com/home-equity-loan-vs-cash-out-refinancing-pros-and-cons/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/home-equity-loan-vs-cash-out-refinancing-pros-and-cons/ Many Americans are suddenly wealthy at home. On paper anyway. Soaring home prices have resulted in a record amount of home equity. At the end of last year, around 46 million homeowners had a total of $ 7.3 trillion in equity to operate, the highest amount on record, according to Black Knight, a mortgage research […]]]>

Many Americans are suddenly wealthy at home. On paper anyway.

Soaring home prices have resulted in a record amount of home equity. At the end of last year, around 46 million homeowners had a total of $ 7.3 trillion in equity to operate, the highest amount on record, according to Black Knight, a mortgage research and technology company – the equivalent of approximately $ 158,000, on average, per owner. .

This, along with near-bottom mortgage interest rates, has prompted a growing number of borrowers to withdraw money from their homes.

In the first quarter of 2021, the amount of home equity collected reached $ 49.6 billion, the highest level since 2007, during the last real estate boom. Including home equity lines of credit, Americans have withdrawn a total of $ 70.4 billion in recent months, according to the most recent data from Freddie Mac.

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Although the volume of withdrawals was the highest in almost 15 years, considering owners’ equity, “the amount cashed out is quite modest,” said Len Kiefer, deputy chief economist at Freddie Mac.

However, it is not always easy to access this money. Since the start of the Covid pandemic, the entire industry has tightened access to mortgages and several major banks have completely stopped offering home equity lines of credit and cash refinances to reduce their exposure – or their risk – in times of economic uncertainty.

How a HELOC and a cash-out refinancing differ

Until last year, a HELOC, which is a revolving line of credit but with better rates than a credit card, was a popular way to borrow against the equity you have built up in your home.

The average interest rate on this type of credit is 4.86%, according to Bankrate.com. Meanwhile, credit cards charge almost 16% on average.

Some banks still offer this option, although most have tightened their standards, at least somewhat. This means that homeowners must have higher credit scores and lower debt-to-income ratios.

“Generally, the higher your credit score, the easier it will be to access home equity,” said Tendayi Kapfidze, chief economist at LendingTree.

There is a better way to free some of that money, however, he added.

“Because the interest rates are so low, your best bet will be cash refinancing,” Kapfidze said. “The rates are lower than a home equity loan and lower than your current mortgage rate.”

Homeowners can also deduct interest on the first $ 750,000 of the new mortgage if the withdrawal funds are used to make capital improvements (although fewer people are detailing now, most households will not benefit from this write-off) .

This works well when mortgage rates go down, because even if you refinance your current mortgage and take out a bigger mortgage, you’re lowering your interest payments at the same time.

“Substantial opportunities continue to exist today as nearly $ 2 trillion in compliant mortgages have the capacity to refinance and reduce their interest rates by at least half a percentage point,” Freddie Mac chief economist Sam Khater said in a recent statement.

“If you haven’t looked at interest rates in the past year, now would be a great time to check this out,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York City.

On a 30-year mortgage, rates below 3% are still widely available. “Even those who received fairly low rates now find themselves refinancing at lower rates,” Bonparth said.

Still, the most preferable terms go to borrowers with high credit scores. “Most people have pretty good credit, but the best rates go to those with 740 or more,” added Greg McBride, chief financial analyst at Bankrate.com.

It’s not 2005, you can’t take every penny you have at home.

Greg McBride

Chief Financial Analyst at Bankrate.com

Of course, there are also some limitations for cash refinances.

For starters, most lenders will require that you keep at least 20% of the equity in your home, if not more, as a cushion against falling home prices.

“It’s not 2005, you can’t take every penny you have in the house,” McBride added.

Additionally, refinancing with withdrawal often means an extension of your repayment term, which can reduce your monthly budget in the long run, as well as having to pay closing costs up front.

As a rule of thumb, “if you can cut your rate from half to three-quarters of a percentage point, it’s worth thinking about,” McBride said. “This is usually the tipping point.”

Then “you can recoup your costs in a year and a half,” he said, and “the refinancing becomes very convincing.”

Finally, the refinancing opportunities could be short-lived. Mortgage rates will not stay low indefinitely, especially as inflation rises.

“This should add some urgency to getting refinancing as soon as possible,” McBride said. “The economy is heating up – these are the conditions that are producing higher mortgage rates.”

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3 things to do with your emergency savings to prepare for an emergency https://corfulinastravel.com/3-things-to-do-with-your-emergency-savings-to-prepare-for-an-emergency/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/3-things-to-do-with-your-emergency-savings-to-prepare-for-an-emergency/ Financial planners say that three to six months of spending is up to a good emergency savings goal. But, if you’re self-employed or in a high-turnover job, consider saving up to a year in expenses. To save quickly, put the child tax credit and suspended student loan payments in your emergency fund. Read more stories […]]]>
  • Financial planners say that three to six months of spending is up to a good emergency savings goal.
  • But, if you’re self-employed or in a high-turnover job, consider saving up to a year in expenses.
  • To save quickly, put the child tax credit and suspended student loan payments in your emergency fund.
  • Read more stories from Personal Finance Insider.

When the pandemic hit in March 2020, I felt a sense of panic take hold in my life. I was terrified of getting sick, scared of losing clients and my business (in the wedding industry), and nervous about the unknown state of the world.

One of the things that made me breathe a little easier was knowing that I had a decent amount of money in my emergency savings account. After being laid off from my full-time job in 2015 and officially released on my own as a solopreneur, having an emergency fund was a necessity. I knew I needed to have some cash in reserve that could be used for big life challenges, business issues, or unforeseen expenses. I started putting $ 100 per month into this emergency fund and increased it over time as much as I could.

Experts advise single earners to save at least six months of spending, and those living in two-earner families to save at least three months of spending. However, after the pandemic caused people to dip into their emergency funds (or savings accounts in general), I began to wonder if financial experts would recommend putting even more into those funds.

Here’s what financial experts shared when I asked them if people should increase their emergency fund amount in the event of a new pandemic or an emergency.

1. The amount you save is personal

When it comes to how much to have in your emergency fund, a person should make that decision based on the state of their finances.

Jason Dall’Acqua, a financial planner, says your emergency fund balance should be based on your specific situation and your tolerance for risk.

“A general rule of thumb is to keep three to six months of living expenses in an emergency fund, but that’s just a general guideline,” explains Dall’Acqua. “If you have very high job security you may not need a large emergency fund balance, but if you are in a position with a high turnover rate or are a self-employed, it may be a good idea to have a larger emergency fund, such as a year of living expenses.

2. Save too much money, it does exist

When planning how much money to put in your emergency savings account, Dall’Acqua says it might not be good to have too much money in that account.

“Be careful not to have too much money in your emergency fund. This money can give you peace of mind knowing that you have a great safety net in case of financial hardship, but there is also an opportunity cost to having too much money, ”says Dall’Acqua. “Money in the bank doesn’t even keep pace with inflation given the current low interest rate environment. As a result, your emergency fund loses value over time.”

Instead, keep the money in a taxable brokerage account where it can grow over time while still remaining liquid in case you need it to cover an emergency expense.

3. Take into account any stimuli you have received.

If your emergency fund was depleted during the pandemic, Dall’Acqua says maybe you should take advantage of the stimulus programs in place.

“For example, if you have federal student loans and have suspended payments, which have just been extended until January 2022, consider transferring those monthly savings to your emergency fund to replenish that balance. have children and you have started receiving the Child Tax Credit advance in monthly installments, then direct this additional income to your emergency fund, ”says Dall’Acqua.

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SBA pandemic loans are rejected for common mistakes. Here’s how to avoid them https://corfulinastravel.com/sba-pandemic-loans-are-rejected-for-common-mistakes-heres-how-to-avoid-them/ Wed, 08 Sep 2021 08:05:49 +0000 https://corfulinastravel.com/sba-pandemic-loans-are-rejected-for-common-mistakes-heres-how-to-avoid-them/ “A nightmare” is how many business owners describe the process for applying for a COVID-19 emergency loan this year to the US Small Business Administration. This is because last year the agency did not require any backup documentation. It was a cinch to get an economic disaster loan, a low-interest loan for small businesses negatively […]]]>

“A nightmare” is how many business owners describe the process for applying for a COVID-19 emergency loan this year to the US Small Business Administration.

This is because last year the agency did not require any backup documentation. It was a cinch to get an economic disaster loan, a low-interest loan for small businesses negatively affected by the pandemic.

This year, however, the SBA requires that each “t” be crossed out and “i” dotted to reduce fraud. Over 1.1 million EIDL requests are blocked for impersonation reasons.

But the SBA says it still has plenty of loan money left over and encourages business owners to keep applying. This will require understanding the common mistakes leading to loan rejections and how to avoid them.

The EIDL program is a loan directly from the SBA that must be repaid and is limited to businesses and private associations with 500 or fewer employees. The loan term is 30 years with fixed interest rates of 3.75% for businesses or 2.75% for private non-profit organizations. Payments can be deferred by 18 months for loans made in 2021, although interest accrues during this period.

Loans are capped at 24 months of economic harm, up to a maximum of $ 500,000. The maximum loan amount for each business is determined using the 2019 average monthly sales to calculate 24 months of injury.

Small businesses can use the loans to make regular payments for operating expenses, such as paying off debts; pay the payroll, rent or mortgage; public services; and other “ordinary and necessary” expenses, the SBA said. The loan is not intended to develop a business or start a new one.

Business owners can apply for EIDL loans on the official SBA website. There is no charge to apply, so don’t be fooled by scammers.

Applications will be accepted until December 31st. To apply, you must have your last 12 months of sales, your business bank account, and your routing number.

Once your application is approved, the SBA will email you the documents to sign. Once you’ve returned them electronically, the funds should be in your bank account within five to 10 business days. If it takes longer, there may be a problem with your banking information and you should contact your local office, which is located at sba.gov/about-sba/sba-locations.

If your business has previously received an EIDL loan, you may be entitled to an increase determined by the amount you are entitled to today minus the loan amount you have already received. The first EIDL loan program was based on six months of spending, but that number increased to 24 months of eligible spending.

If your request was denied, your only option is to follow the reconsideration instructions in the denial letter. You can contact your local SBA office to see if a representative can help you review your revised application to make sure it is eligible and correct. While the agency’s customer service team has been criticized for their lack of knowledge, you also have the option of contacting them by phone at 800-659-2955 (800-877-8339 for the deaf and hard of hearing) or by email to DisasterCustomerService @ sba.gov.

If you’ve been rejected in the past and you don’t know why or are about to apply, you should know the most common reasons why applications are rejected. The following list is from SBA resources, as well as EIDL COVID experts.

keyboard typos

Applicants are probably used to websites that allow you to change your name or address on forms if you get it wrong. The SBA website is not sophisticated enough for this. So, if you want the cash fast, you’d better take a few extra minutes to review everything rather than rushing around and having to wait months for a rejection letter and then reapply. This includes everything from your business name to your email address.

More often than not, the problem with the SBA reconsideration process is with the claimant, not the SBA, said Trevor Curran, who runs an EIDL COVID consulting firm called Aurora Consulting in Connecticut with his partner, Linda Rey. . People rush applications and their mistakes lead to delays, discrepancies and rejections, he wrote in their EIDL COVID loan assistance booklet.

Enter your old address if you have moved

The SBA requires business owners to fill out an IRS 4506 form themselves. If you have moved, put your old address from your last tax return or the system will recognize it as an error and you will be rejected. Also, be sure to date your tax form, otherwise it will be rejected in the IRS verification process.

Not meeting the credit score requirement

A minimum credit score of 570 is required to be approved for a loan. If your credit score was damaged during the pandemic, go to annualcreditreport.com to access your report every six months, said Matt Ridge, director of business development at Solaire Capital in New York City.

You can then ask the SBA if you can submit additional financial information to show that you’ll be able to repay the loan, said Ridge, who previously worked at the SBA and personally processed between 5,000 and 10,000 loan applications. in the event of a disaster.

The business was not in operation on or before January 31, 2020

This is the date that the SBA officially declared to be the start of the COVID-19 disaster.

Rakkasan Tea Company co-founders and veterans Terrence Kamauf (left) and Brandon Friedman should know how to get approval for an SBA loan from Friedman's experience in the federal bureaucracy.  But like many businesses, they waited three months for a life-changing loan before being turned down.

Enter bad gross receipts, cost of goods sold, or expense information

“More often than not what I see as the main reason for the denial is the revenue and cost of goods sold data entered in the original claim is incorrect and does not match the 2019 tax return,” Curran said.

This is arguably the most complex part of the application. First of all, you want to be sure that you are using the information from your 2019 income tax returns. The information you enter for gross receipts, costs of goods sold, and expenses on the EIDL COVID app will differ depending on the type of. tax return. Here’s a helpful chart from the SBA on what to use, depending on your situation.

Unproven economic damage

There must be documented economic harm by comparing 2019 sales and operating data with 2020.

Your type of business is not eligible

Loans are not intended for businesses in the following industries: payday loans, check cashing, gambling, adult entertainment, pawn shops, real estate developers or insurance companies. If you believe you were wrongly dismissed, you can provide documents about your business operations to request a review.

“This has been a problem for many clients in real estate related services,” Ridge said. “As the design and engineering companies bearing the name of ABC” Development Group “would be summarily declined as a real estate developer. “

Non-eligible non-U.S. Citizen status

Each owner of 20% or more of a business must be a U.S. citizen, non-national, or qualified alien. Documents that establish a legal basis for being in the United States, such as a visa document, generally do not confer Qualified Alien status. For more information, a qualified alien is defined in Section 8 USC 1641.

Do not respond quickly

The SBA may request additional documents during the loan review process. If you do not respond within seven days, the request will be withdrawn until you request that it be reactivated. Periodically check your inbox to verify that critical SBA emails did not go to your Junk Email folder.

“Respond as soon as possible, even if it’s to tell them you just need more time to put the documents together,” Ridge said.

Unverifiable information

“Unverifiable information” is a common reason applicants are turned down, according to denial emails business owners receive. This is a broad term that can cover everything from failed identity verification at an international IP address to a client device associated with corporate fraud reaching its total federal loan limit of 2. millions of dollars.

The most common cause for this type of rejection is that the IRS 4506 used to verify your tax returns was refused, Ridge said. If the tax returns cannot be verified due to an address error or a missing date, the IRS rejects the request and the loan is denied.

You are not a small business by definition

This one is simple. Your business must have 500 or fewer employees.

Nearly 500 Texas banks are vying for ground in the pro-business state which is attracting record numbers of people and businesses.  (Illustration by artist Michael Hogue)
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