Know About History of Loans

The history of lending can be traced back to around 2000 BC when merchants would give out grain loans to traders/ farmers in Babylonia and Assyria. The grains would then be paid back during the harvesting season. Later, some changes were introduced by the Roman law where borrowers were required to sign off ownership of their property but they would later regain full ownership after clearing their debts.

Establishment of bank loans

The idea of money lending was started by Italians who would set up stalls in various local markets and then use them as lending spots. The lenders would then sit on benches that were locally known as “banca” and this is where the word bank came from. At the time, there were no laws or rules controlling the lending process and the loan terms would greatly vary from one lender to the other.

The banking industry has undergone significant changes since then and the services offered are now centrally controlled to protect the interest of consumers. Some of the common services being offered today include saving, financing and insurance. Apart from banks, borrowers can also access credit financing from private lenders, credit unions and government sponsored programs.

Secured and unsecured loans

In secured loans, an applicant is supposed to pledge some valuable property as collateral and this is meant to protect the lender in cases of missed payments or defaulting. You can pledge assets like your house, car or business assets. There are benefits associated with secured offers including:

  • Obtaining huge financing with ease
  • Qualifying for reduced interest rates
  • Flexible repayment plan

There are also lenders who offer unsecured loans where applications are considered without the need to pledge collateral. Borrowers usually rely on unsecured offers for short term financial problems since they carry smaller amounts. Unsecured loans have some common features like quick processing, higher interest rates and shorter repayment periods.

Online lending

As a way of bringing financing closer to consumers, lenders are now offering lending services online and this is a move that has been adopted even by banking institutions. The online application process is pretty convenient since it involves completion of a simple electronic form. The applicant is then provided with quotes after an automated matching process that takes just a couple of minutes.

Borrowers using the online process are required to have checking accounts to facilitate wire transfer of approved funds. In some cases, the lenders may request for additional details or documents before releasing the required financing. Most online applications are processed pretty fast making it possible to conveniently handle even emergency situations like medical bills and quick auto repairs.

Bad credit and no history loans

The needs of persons with low credit standings are now well catered for in the modern lending sector and there are numerous programs that they can qualify for. This is also the same case with people with no credit history. However, bad credit or no credit loans are availed at higher interest rates especially where no security is required. They also carry smaller amounts and shorter repayment periods.

Eligibility for Teacher Loan Forgiveness Texas  

Entire Process of Teacher Loan Forgiveness Texas

Teachers in Texas can now rely on Teacher Loan Forgiveness Program to enjoy some reduction on debts owed to loan providers. The applicable reduction falls between $5,000 to 17,500 and the debt can be completely forgiven after 10 years. The program was designed to move more people to join the teaching profession and raise the morale of those who are already there.

Application process

You can choose to handle the entire application process on your own by downloading the electronic form and printing it in order to fill out the required information. There are sections that should be handled by an approved administrative officer working at the school where you qualified as a teacher. Such a person can be the principal, superintendant, director or head of human resources.

There are also third parties that can help you to send in your application and you can opt for their services to avoid the involved hassles. The completed form should be sent to a guarantor and a decision to approve or deny loan forgiveness is made within 45 days. In case of a rejection, you will be informed of the reasons why your application was not successful.

Eligibility criteria

In order to get approved for the program, you shouldn’t have any unsettled payments on Direct or federal loan. Those who may have missed some payments should first make repayment plans that should be approved by the involved loan holder. There are other easy requirements including:

  • Completing five concurrent years in qualifying for teaching service
  • Practicing in a school approved for the program
  • Should be working in low-income schools

Loan Cancellation

Teachers practicing in Texas are also eligible for cancellation of amounts that they may not have settled on Federal Perkins Loan Program. This is available to those who have worked full time in elementary or schools working with students from low-income regions and those teaching in fields that are found to have shortage of teachers. There are still other eligible teachers like those working with special groups like children, infants, toddlers or youths.

The teacher should have worked for a whole academic year although there are no specified number of hours to be satisfied. This decision should be made by the school involved. It is also possible to have your debt cancelled even if you are working in multiple schools. However, this has to be confirmed by an official from one of the schools.

Teach for Texas Loan Repayment Assistance Program (TFTLRAP)

TFTLRAP is a program that was launched to assist communities facing shortage of teachers handling certain subjects. The biggest award that can be obtained in 2017 has been set at $2,500 and applications should be submitted online. There are some fields that are considered to have shortage of staff such as mathematics, science, special education, computer studies and bilingual education.

Individuals teaching in Texas can choose to apply for any of the three mentioned programs. However, they should be keen on eligibility requirements to raise the chances of their applications going through.