Making Financial Aid More Accessible

I will not hide the fact that I support loans and their use. But, frankly speaking, the whole of America is based on loans, and there is, perhaps, not a single person who has not applied to them at least once. And it seems to me that loans are a great opportunity to get what we need today and pay for it sometime later.

After all, we usually turn to loans when we need to make a big purchase or when we need money externally. In both cases, borrowing money helps to either improve the standard of living or at least maintain it at the usual level. And this is exactly what I would like for the residents of our district.

Let's start with the loans available in the state.

Payday loans are short-term loans for a limited amount. Usually, you can borrow from $100 to $1,000 for 14 days or a month. They are easy to apply for and easy enough to get, even for people with bad credit. But they have a drawback - high-interest rates.

Personal loans - financial assistance, thanks to which you can get from $ 1,000 or more. The "ceiling" can be up to $100,000 but is usually less. The repayment terms of such loans are quite large - from 12 to 74 months, although there are more. Typically, interest rates on such loans are quite comfortable but subject to an excellent credit history. Such loans will cost more for people whose credit score is below 680.

An auto loan is a loan that helps you buy a car, motorcycle, boat, or any other vehicle. These loans have low-interest rates. You can also get an auto loan to buy a used vehicle. However, interest rates on new vehicles are usually lower than used ones.

Student loans are financial aid for those who want to go to college but don't have the savings to do so. They are federal and private. Federal, of course, is more profitable. Some of them even have a grace period. To get a private student loan, you need a good credit history - you will have to impress the lender.

Home equity loans are great for those who need a large sum. Using this loan, you can get up to 80% of the market value of your home. But do not forget that the house will act as collateral for such a loan. This means that in case of non-payment, you can lose your home.

A mortgage is a loan to buy a home. You cannot use this money in any other way. Mortgages usually offer reasonable interest rates but require a high credit score from the borrower.

The list above is incomplete; there are many smaller loans, but it reflects the essence. After that, I want to move on to initiatives that will help make life easier and better in our state.

Affordable Payday Loans

In fact, payday loans are a great way to get money fast. They could help out in emergencies or simply support the borrowers if they had unplanned expenses this month. The main problem with such loans is their high cost. I believe that lowering the interest rate on payday loans will make them more affordable, and therefore more popular. Everyone will benefit from this: lenders will have more customers, and it will become easier for borrowers to wait for the next paycheck or pay external expenses.

Easy Access to Student Loans

At the moment, student loans are not the kind of financial aid that is easy to get. If we are talking about federal loans, subsidized (the most profitable) loans can only be received by families with difficult financial situations that can prove this "difficulty." On the other hand, private loans require an excellent credit history. But what about families that fall between these two extremes?

I advocate that as many people as possible have access to student loans. Children are our future, and if they want to get a higher education, then we must help them do it and not slow them down. In addition, for student loans, a grace period is needed, at least two years, as a maximum - until the end of education. After that, students should be able to focus on their studies instead of thinking about where to get the money for the next monthly loan payment.

Reasonable Mortgage Requirements

Of course, mortgages are a big risk for lenders. This is because they provide borrowers with huge sums of money and do not want to risk losing them. Again, this is due to stringent mortgage requirements.

But at the same time, I believe that everyone needs a house; this is a basic need and necessity. Therefore, lenders who provide mortgage loans need to provide people with imperfect credit histories with access to money. After all, before the mortgage is paid in full, the home does not belong to its owner. Therefore, this should be enough insurance for lenders to provide money to those who need it.