Archive for May, 2009
What is The Financial World Without The Many Different Types of Bank Loans?
May 31st
Banks originated as an alternative to burying your money in a clay pot out in the sheepfold. In most ancient records, the concept of a bank as anything other than a communal effort to protect wealth from raiders is spotty.
The next major change in banking was the concept of charging interest for a loan. For the longest period of time, laws against Usury kept this from happening in Christian countries – an interpretation of the Bible forbade charging interest on loans. Later, this expanded to paying people interest to hold deposits within the bank.
There is no bank in the world that does not issue loans; it’s their primary reason for existence. Modern banks offer a wide array of loan products for every consumer (and business) need.
All of which comes at a nice interest though! Speaking for myself, my first relationship with a bank was when I opened my first savings account. But it has been the bank loans that have made me dependent on the bank for my survival.
In fact, my first loan was for the purchase of my first new car. After this, I took a home mortgage loan to purchase a condo.
Nobody in the present day and age (unless they are born to money) has enough money lying around to make big ticket purchases like a condo or house, without having to resort to a bank loan.
These mortgages are usually made with low interest and long repayment terms (it works out nicely for both parties that way), with payment terms that run for 10 to 30 years depending on the loan.
Beyond secured auto and mortgage loans, banks also issue personal loans. These are for consumers to pay for any number of things – ranging from medical emergencies to marriages to vacations. Any time where you need to pay for something suddenly and don’t have the cash on hand is a candidate for this type of loan product.
This type of loan is also sometimes used to buy things like computers and home renovations; basically anything that doesn’t require a significant portion of the borrowers income is a valid target for this kind of loan.
Broadly speaking, even credit cards are a form of a bank loan that you can repay. And some banks even offer you loans to pay up other loans you may have taken in the past!
Bank loans issued to individuals for the purpose of housing are probably the vast majority of loans issued by banks. But they may not compare in volume or value to bank loans issued to businesses worldwide.
Most businesses rely on having short term credit terms to make shortfalls in payroll, slow sales periods, or capital investments. More than 99.99% of all lending is made by banks to businesses. This is why investment banks got a bailout and you didn’t. If those loans dry up
Without business loans and credit, the vast majority of businesses would collapse. This business loan mentality is what drives the modern financial world.
Student Loan Programs Options
May 31st
Most students will not be able to get their entire college tuition paid for using only grants and scholarships. That does not mean the high costs of college tuition has to keep a student from getting his or her education. There are different types of student loan programs that can help fund a student through their college years. The following are a few options that students have when picking a student loan program.
A lot of students end up using Sallie Mae’s student loan program. Sallie Mae is considered the top student loan provider in the United States. If a student needs a Private student loan or a Federal student loan Sallie Mae is the place to start. It does not matter if the student is already in college or is getting ready to start a new college degree Sallie Mae will most likely be able to provide them with a student loan.
Federal loans that are received from Sallie Mae can usually be used for living expenses as well as paying for college tuition. Living expenses for college usually includes things like a place to live (rent), a computer for school use, and even food. These federal loans offer a lower interest rate than private loans and usually have limited fees.
Undergraduates will also find many private student loans from Sallie Mae, including the Sallie Mae Smart Option Student Loan. This loan is for students that still need money after using all scholarships and grants and allows students to borrow up to the full cost of education.
Worried about leaving the country to further your education? There is no need with Sallie Mae. They offer international student loan programs as well. So, a student planning on studying overseas (studying abroad) can get a student loan to help cover the costs of their education. With decent rates and minimal fees the international student loan program from Sallie Mae gives you flexible repayment options.
The United States Governments can also help out a student in need of money for their college tuition. They provide another option apart from Sallie Mae, but it could be more difficult to get enough funds to cover a students entire education costs. These other two options are PLUS loans ans Stafford loans.
If a student needs money for tuition and a Stafford loan is available the student should take because they are usually the best case scenario repayment wise. With fixed interests rates reaching a low 6% and the fact that these student loans can be used for any type of college expense Stafford loans are a popular choice when available. A student will need to fill out a FAFSA in order to be able to receive a Stafford loan.
PLUS loans are the second type of student loan that the U.S. Government gives to students. Like most processes for getting money for college a completed FAFSA is required in order to be in consideration for a PLUS loan. PLUS loans are like other loans in that they are given to undergraduate students, but they can also be taken out by graduate students or parents of a student. As with Stafford loans, PLUS loans offer a low interest rate which makes them easier for the student pay off.
These are a few student loan programs that are available to students. Finding a student loan can seem like a daunting task especially when looking at all the costs and numbers, but not everyone can get their education cost completely covered by scholarships and grants. Student loan programs help you pay for a student’s education costs so they can focus on learning and not on paying.
How is the Hong Kong Educational Situation?
May 29th
It is middle of May now. That means the Hong Kong Advanced Level Examination and Hong Kong Certificate of Education Examination will come to the end soon. However, what students and other can get from attaining these public exams?
Students may get an offer in university or secondary six. However, they may also get great pressure. Besides, they may be disappointed because their, like drawing and music, may be not approved by exams. Anyway, attaining public exam must be an unforgettable experience.
It seems that the Hong Kong educational system cannot fulfill people wants. Firstly, the system is too examination-orientated. In current educational system, primary school students need good academic result to enter a good or EMI secondary school; secondary school students need to use their public examination result to enter a good university,
Besides, in recent years, the educational system shift to a more interactive way which require students to do many group projects, study outside classroom, presentation, etc. No matter students pay how many efforts on these activities, academic result is still the main course of our educational system.
We can see that, actually, there is a contradiction. On one hard, people want the next generation become an all-rounder. On the other hand, people, including employers and university interviewers, usually only focus on the examination result of students.
But, using the exam result to distinguish good students and the bad one may not be fair enough. Some university graduates are complained by their employers because they finish their job poorly. That means some qualities like communication skills and sense of responsibility can not be determined by exams.
The aim of education should be equipped students for their future. This aim should be a long-term one. But, students only focus on what grade they can get in exams. Neither can students achieve the aim of education nor can students have a happy and low-pressure school life.
In order to improve the Hong Kong educational system, people minds should be changed first. They should not only focus on exam results. An all-round developed next generation is what our society need. But not the one who scored good grades in public exam but always complained by his employer.