Been holding out to buy a car once post-lockdown? Well, it may be time to think about getting pre-approved for a car loan.

Not only could this speed up the process of buying a new or used vehicle, it can give you the peace of mind that you have already been approved for lending from a car loan provider.

Plus, it can give you a better idea of what car prices you can go for as well as how far you need to go if it comes to negotiating the price.

But what is car loan pre-approval?

Car loan pre-approval is when a lender conditionally agrees to loan you money before you purchase a vehicle.

Note the word ‘conditionally’. This means that the loan isn’t set in stone, rather the lender sets conditions in order to fully approve the loan for the purchase of a car. Conditions may include things like loan limits and vehicle types.

It’s also important to remember that pre-approvals only last for a certain amount of time before they expire – in Australia that’s usually around one to three months.

So with this in mind, if you are planning to go car shopping post-lockdown it may be a good idea to have a look online and see what’s available within your price range right now. That way you will have done your research and won’t waste time once you’ve been pre-approved.

Do pre-approvals affect credit score?

Like all lending, pre-approvals can impact your credit score. The golden rule when applying for a loan or pre-approval is not to make multiple applications at once. Other lenders and tax reporting agencies may see this as a negative.

Remember, to be granted pre-approval on a car loan you need to have a healthy credit rating as it gives a potential lender the indication that you are a trustworthy borrower. So if your credit score isn’t looking good right now, it may be worth focusing on repairing it by paying off your current debts, before seeking out more forms of credit.

So wait, does pre-approval guarantee a car loan?

As mentioned, in the case where a borrower receives pre-approval, there is no guarantee of a car loan.

Some of the reasons someone may not receive lending after pre-approval:

• The pre-approval period has expired
• The car they are looking to purchase is too expensive (above the pre-approved loan amount)
• The lender doesn’t cover a particular vehicle type

How do I apply for car loan pre-approval?

First off, you’ll have to find a lender that offers pre-approval, as not all of them do.

Once you have, like a normal car loan application, the lender will assess your finances and check over things like your credit history, transaction and savings accounts as well as your employment status. That way, the lender will be able to determine how much they think you can afford to repay over the life of the loan.

If you receive pre-approval on a car loan, you will then be provided with funds to make a vehicle purchase.

Ready to start comparing car loans? Have a look at these options or head to our car loan hub for even more!

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Business Car Loans

We make both purchasing and financing a car simple. Our finance experts will secure you a low rate from our panel of over 50 lenders, providing you the finance you need for your car purchase.

3 Simple Steps

1. Apply Now

Your finance specialist will take the information we need and search the market for the best finance package.

2. Choose Your Car

Already found a car? That’s great, just send us the details. If not, we can help source your new or used car from our network of contacts.

3. Sign And Collect

Once you’ve checked and signed the documents, we’ll settle the loan so you can collect your car. It’s that simple!

Can you buy a car with a business loan?

Yes you can! As long as you have an Australian business number (ABN), you can afford the loan repayments, and you will be using the vehicle in your business at least 51% of the time. The rest of the time you can drive the car for your personal private use if you want.

Vehicle finance for business use is very common in Australia, just like it is for cars that are solely for personal use. It enables you to get the car you need for your business now, rather than waiting.

What is a business car loan?

A business car loan gives you the finance you need to buy a vehicle to use in your business. It could be any type of car — like a ute, sedan, SUV, hatchback, station wagon, people mover or light commercial vehicle — whatever best suits your business needs

Different types of businesses have different car needs. Buying a vehicle for business purposes makes practical as well as financial sense.
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What are the benefits of a business car loan?

There are two main benefits of this loan. Besides the obvious one of helping you to get a vehicle to use now in your day-to-day business travel and tasks, a business car loan can also reduce the amount of tax you pay. Business car loan interest and lender fees are tax deductible.

You can claim up to 100% of your business car loan interest and fees, depending on how much you use the vehicle for business purposes. If you use it exclusively for your business, you can claim all of the loan interest and fees as a tax deduction.

If you drive your business vehicle for private use as well, you can claim the proportion of business use (a minimum of 51%). The government is basically subsidising the purchase of your business vehicle, so you may as well take advantage of any tax breaks you can get by getting your car on finance.

And if you’re quick, you may be able to write off the purchase price of your new business car as a tax deduction as well under the federal government’s temporary full expensing scheme. This scheme is available until 30 June 2023. You will need to structure your loan the right way to do this, so it’s best to contact one of our experts.

What is a business car loan term?

Business car loan terms range from 1 to 7 years to suit different business cash flow needs. If you want to lower your repayments or buy a more expensive business vehicle, it makes sense to take out a business car loan with a longer term.

On the flip side, if you can afford higher repayments or want to buy a less expensive vehicle, you can take out a shorter business car loan term to pay it off faster. You’ll own the car sooner and also save on interest.

Some lenders will only approve business loans for new vehicles, while others will approve finance for both new and used cars. However, used cars usually have shorter finance terms available.

Our business car loan experts know which ones approve business loans for used cars and which ones don’t, so once again it’s best to get in touch for advice. It will save you time and the hassle of researching the market yourself. We do it for our car buying clients for a living.
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What are business car loan rates?

There’s no simple answer to this question because there’s a huge range of lenders in the market. There are also different types of business car loans available with different interest rates, features and benefits.

For example, secured loans and unsecured loans. Secured loans have lower interest rates, but your vehicle can be repossessed by the lender if you don’t make your repayments. It can’t be repossessed if you take out an unsecured loan. There’s also fixed and variable interest rates. Fixed rates stay the same even when market rates move, so they give you repayment certainty.

Even when you are comparing the same type of loan from different lenders, you should always compare the comparison interest rate. This is the interest rate plus the cost of lender fees. The comparison rate shows you the real cost of any loan. Lenders must advertise it on their products to comply with Australia’s credit legislation.

It’s best to contact one of our experts for advice on the right business car loan for your specific situation. They know all the latest lender offers and they can help you to do a business car loan comparison. This can help you to decide the best business car loan for your needs.
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Business car loan calculator

You can use our business car loan calculator to work out your repayments for different loan terms, amount, interest rates and repayment schedules (weekly or monthly). You should choose a repayment schedule that suits your business cash flow. Dividing a monthly repayment amount into weekly payments can help you to pay off your loan faster and save interest.

The more you borrow, the higher your repayments will be for the same loan term at the same interest rate. Besides increasing your loan term or buying a cheaper vehicle, the other way you can reduce your business car loan repayments is by including a balloon payment. This is a larger final payment at the end of your loan term that reduces your regular repayments.
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This article will answer and expand on the most common questions you might have about car loan pre-approvals.

What is a car loan pre-approval?

A pre-approved car loan is when a potential lender agrees in principle to give you a loan before you buy a car. Like other loan application processes, the lender will review your credit profile along with all required documentation. It’s important to know that a pre-approval doesn’t mean the loan is a guarantee.

In Australia, car loan pre-approval is usually only valid for a limited time, generally ranging from one to three months. Given this timeframe, it is essential to do some research and be ready to start looking for a car as soon as you get the pre-approval. Going to a car dealership or showroom with car loan pre-approval will help to speed up the car buying process, as both parties are aware of what you have to spend.

How do I get a car loan pre-approval?

Depending on the lender you choose, you may be able to apply for a pre-approved car loan online, over the phone, or in a branch. Reviewing your credit report and researching lenders is good practice before starting the loan process. Also make sure you understand what credit score is required to get a loan pre approval.

Compare your options to help ensure you get a good deal on a loan that suits your financial situation. It is worth looking at the interest rate and fees for any loans you’re considering, as well as the flexibility in how you make repayments. If you fail to do your due diligence, you could reduce your chance of getting pre-approved. It’s also essential to get in touch with the lender you wish to apply for pre-approval with, well ahead of the intended purchase.

How can car loan pre-approval help buyers?

Car loan pre-approval comes with a lot of benefits that make acquiring a car simpler and smarter. It allows you to search for a new vehicle with confidence. Pre-approved car loan helps you avoid using the dealership’s designated finance options which may not be as competitive.

By getting pre-approval, you can find a loan that works better for you, instead of accepting the terms presented to you only after you’ve selected a car. In a nutshell, car loan pre-approval gives you the peace of mind that finance is sorted before you start looking for a vehicle.

Another benefit of car loan pre-approval is that it gives you far more bargaining power. As you’re effectively a cash buyer with a pre-approved loan, there’s no reason to discuss financing with a car dealer. This means you’ll be in a more powerful position that allows you to focus on negotiating a good price.

Pre-approved car loans can be used to buy vehicles at private sales, at auction and through traditional dealerships. This means you’ll still have the same range of options, but you have more freedom to choose the car that’s best for you.

Does pre-approval guarantee a car loan?

A car loan pre-approval is only a conditional approval. While it increases the likeliness to have a loan approved, it isn’t a guarantee. Unconditional approval will be given once all documentation has been accepted, and a final credit assessment has been administered.

Some factors that can affect your application include failure to meet pre-approval conditions, changes to your circumstances or government regulations, a negative valuation of a property, or a change in the property’s condition.

When and How do I get my money?

Once your chosen lender has received your signed loan documents and the loan has settled, the money will arrive in the following 24 – 48 hours. Time frames may still vary depending on your bank.

Can I get a pre-approval while still looking for a car?

Yes, you can get finance pre-approval even though you haven’t decided which car you should get. You can get pre-approved for an amount so you’ll have confidence looking for a suitable vehicle at the dealerships, knowing you already have a loan approved for it.

Get Pre-Approved with Aussie

Getting pre-approved car finance is the way to go if you’re about to purchase a car, either privately or for business.

Aussie Car Loans can help you get you a pre-approval for a car loan as soon as submissions are back up again. We can also assist you in getting the best loan suited for you with the lowest rate and flexible loan terms.

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We are pleased to have you and your student as part of our UCF community. To ensure the financial aid process is simple and clear, we offer resources to help parents help their students apply for, receive and manage financial aid. Below you will find information about financial aid that may be helpful.

Your Student’s Rights

FERPA, the Family Educational Rights and Privacy Act of 1974, as amended, protects the privacy of student educational records. Any information provided is kept in strict confidence. Please rest assured that we are very aware of concerns for safekeeping of your information. We want you to know that we strictly adhere to FERPA. Although it does limit what we can share with you about your student, it protects your student. Students can authorize the release of their records via the Registrar’s Office or the myUCF portal. For more information regarding FERPA, please see the Registrar’s Office website.

Beware of Scams

By now, your mailbox may be receiving an influx of financial aid marketing pieces from outside organizations. Please know that UCF has a “school initiated” application process, which means you must apply directly with our office to receive a federal student loan, rather than through an outside organization.

You should not pay to process financial aid applications, and we recommend that you do not pay for scholarship searches. You should not pay an agency or business that “guarantees” you will be eligible for financial aid and you should not pay to have your FAFSA completed for you. After all, the first F in FAFSA stands for Free.

Tips for Success

We created an Apply for Financial Assistance Checklist, which we recommend you review and share with your student.

In addition to monitoring the To-Do List, it is important for students to read the Financial Aid Bulletins, found on the myUCF Student Center, for current and updated information throughout the year.

You may want to remind your student to review the scholarship listing on our website. Our scholarship search database is updated monthly and there are a number of scholarship opportunities listed. Find information about the types of Bright Futures scholarship programs, eligibility and requirements.

Financial aid disbursements begin after Add/Drop (the period of time when a student may adjust their class schedule) has ended, usually two to three weeks into the semester. Review our Receive Aid Checklist to familiarize yourself with the process.

The Florida Prepaid program is administered by the UCF Student Accounts Office. The phone number for the Florida Prepaid College Plan is 1-800-552-GRAD (4723). For more information, please go to Student Accounts.

The Federal Parent PLUS Loan is a credit-based federal loan for parents (biological, adoptive, or in some cases stepparent) of eligible dependent students. Interest that accrues on the loan is not subsidized by the federal government.

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The Family Home Guarantee can be used to purchase a new or existing home with a deposit of as little as 2%. Picture: Getty.

The Family Home Guarantee, which was first announced in the 2021 federal budget, allows eligible single parents to buy a property with a deposit as low as 2%, without having to pay lenders mortgage insurance. Under the scheme, 5,000 places will be available per year until June 2025.

Here’s what you need to know.

How the Family Home Guarantee works

Under the Family Home Guarantee, single parents could build a new home or purchase an existing home with a deposit of as little as 2%, plus costs, with the government guaranteeing up to 18% of the value of the property.

Usually, buyers who haven’t saved up a full 20% deposit, on top of other upfront costs, will generally need to pay for lenders mortgage insurance.

This could help single parents to enter, or re-enter, the housing market much sooner and save thousands of dollars in LMI costs.

How it could help a single parent family

To explain how it may help, let’s look at an example:

A single parent hoping to purchase a $460,000 home would typically need to save a 20% deposit of $92,000 to avoid paying lenders mortgage insurance.

Under the Family Home Guarantee, and on the success of their application with a lender, they could secure the property with a 2% deposit of $9200 – on top of other upfront costs, such as stamp duty and conveyancing fees.

Who is eligible?

Single parents with at least one dependent child can access the scheme regardless of whether they’ve owned a property before or not, however there are restrictions on income and property value.

You may be eligible for the Family Home Guarantee if:

• You’re an Australian citizen who is at least 18 years of age.
• You’re a single parent with at least one dependent child.
• You didn’t earn more than $125,000 in the previous financial year, excluding child support payments.
• You have a deposit of at least 2% to put towards the property, on top of other upfront costs such as stamp duty.

What types of properties are eligible?

The Family Home Guarantee is limited to residential properties, and you must live in the property you intend to purchase. The scheme cannot be used for an investment property.

Eligible properties under the Family Home Guarantee

They must be residential properties, including:

• An existing house, townhouse or apartment
• A house and land package
• Land and a separate contract to build a home
• An off-the-plan apartment or townhouse.

Price caps for the Family Home Guarantee in each state and territory

There are also price thresholds for properties that can be purchased under the Family Home Guarantee, which vary in each state and territory, and whether you live in a metropolitan or regional area.

These caps are reviewed annually by the National Housing Finance and Investment Corporation (NHFIC) with the most recent thresholds set in July 2022.

Price caps effective from 1 July 2022.

You can search the property price threshold for a suburb or postcode on the NHFIC website.

How to apply for the Family Home Guarantee

Applications for the Family Home Guarantee can be made through participating lenders or mortgage brokers.

A full list of participating lenders can be found on the National Housing Finance and Investment Corporation’s website.

There are no costs or repayments associated with the guarantee, however eligible single parents are responsible for meeting all costs and repayments for the home loan associated with the guarantee.

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When you play the game of loans, you win or you… work very hard for very long time just to pay it off.

Not that Cersei Lannister had any issues with spending frivolously (shame!), but us mere mortals and non-fictional characters actually have to pay our debts. Sometimes they work out in our favor, sometimes they put an enormous financial strain.

How do we know whether student loans are worth it? This article will try to highlight the most common misconceptions and potential pitfalls of taking out a loan to finance your studies.

Rules of the Loan Game

So, what are loans? Basically, a loan provider gives you an amount of money, which you return in installments, increased by the interest rate. Sounds simple? In theory, it is.

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However – and this is where the trouble sometimes kicks in – the interest rate can sometimes grow to become even bigger than the loan. We are humans, and therefore emotional beings, so – not always the most rational. We spend, we find it hard to stick to long-term plans, we indulge our every whim, and guess what – sometimes we can’t afford to pay installment in time, sometimes for months.

To spin the matter just a little, federal government affects the loan policy and is heavily involved with the whole venture.

Advantages and Disadvantages of Loans

Not following the repayment plan is a huge problem, because the loan is then reprogrammed, penalty points are added, your credit score is affected. And the interest compounds. Compounding may work very well when you are the one lending money, but in case you are borrowing – um, bad news.

Of course, not everything is black. Typically, loans are more accessible – you don’t need to be a valedictorian to get them, you don’t even have to be top of your class – that’s what makes them so appealing.

Yet, student loans are a big industry and present one of the biggest debt-producers in the USA. Student debt in the USA is currently close to 1.6 trillion dollars. Whew, talk about the golden goose!

Mistakes to Avoid

One of the biggest mistakes in getting loans, and we can’t stress this enough – people don’t do their research.

Make sure you explore and get acquainted with loan provider(s), and get full knowledge of their conditions and repayment plans. Currently, in the USA, there are eight ways to repay loans. Most people opt for what “sounds best” which is, more often than not, the worst option in the long run.

Doing things haphazardly in terms of loans can lead to a lot of suffering and financial issues in the future.

Make sure you inform yourself about all the repayment plans. In some cases, you might even be eligible for loan forgiveness. Talk to different people and try not to limit your source of information to only one person, especially not just one company representative.

What They Don’t Tell You

A big issue with repayment is delaying it and/or not following through. This is where personal responsibility comes in. Don’t delude yourself – it is your job to do thorough research and fulfill the conditions you agreed to.

That is why people often take forbearance to mean divine intervention and mercy on the loan providers’ part. Guess what – everyone’s in it for the profit. Forbearance in simplest terms means suspending your repayment for a period of time, BUT the interest often continues to accrue. Use it wisely.

Can you declare bankruptcy and get out of it? Not with student loans – you basically owe the money to the federal government, and the state always gets what it’s due.

So, sometimes it seems a good idea to consolidate. Basically, people take out another loan to finance the current one – and they are consolidated, the new interest rate being the average of two respective rates. The problem is – this rate is rounded, and, although the difference might seem ridiculous, in the long-term, it could significantly increase your debt.

Scholarships VS Loans

People often forget the possibility of scholarships – they get wrapped up in the loan mentality and cut off any other options. It is often a matter of ‘tunnel vision’ – when you are so focused on the pressure at hand (i.e. the debt) that you forget to even look at other options.

Why not use scholarships, for example, to refinance your existing loan? Scholarships are given for various reasons: academic merit, field of study, demographics. You could easily be eligible for several scholarships right now on ScholarshipOwl. We specialize in matching generous scholarships to your specific profile and criteria. Easy as 1,2,3. And no repayment!

ScholarshipOwl also communicates and co-operates with several serious loan providers. If, for whatever reason, you need that loan, make sure you check out our reputable partners: Sallie Mae Loans, CommonBond, and College Ave Loans. They offer fair conditions and expert advice.

New Look at an Old Game

Compared to 1978, tuition fees have increased 1334%, whereas the prices of food and beverages 3 have gone up “only” 265%. Average student borrower is in debt of 28,500 USD 4 . And only 60% of enrolled students actually graduate 5 . Let’s not even go into prospective employment.

All of this paints a bleak picture of short-term, disastrous policy for student loans, especially when viewed along current employment opportunities and wages. Although the policy makers and loan providers are secured, and get their investments back eventually, it leaves a big question: who cares about the borrowers?

Maybe Cersei Lannister would have been more forgiving, after all – you would just have to fight the Dragon Queen. In the meantime, though, make sure you check out ScholarshipOwl and apply for numerous scholarships. They could alleviate a lot of your worries with repayment.

Let’s set you on the right, easier track of financial opportunities.

***We might be compensated a referral fee by some of the companies mentioned in this article.

David Tabachnikov is the CEO of ScholarshipOwl. Formerly at Waze and Google, David is an experienced CTO/R&D manager with over 10 years of experience of leading tech teams. David fervently believes that students should have greater access to education, and is passionate about using technology to help them achieve that goal.

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At the urging of thousands of borrowers and over 220 organizations representing students, workers, and people of color, the Biden-Harris administration just announced an eighth extension to the federal student loan repayment pause. Payments were set to resume in January 2023, after a Trump-appointed judge’s federal injunction blocked the administration’s planned student debt relief program. Now, despite the plan’s popularity, a right-wing backlash takes the case to a conservative Supreme Court next year, where the plan is unlikely to survive.

Why are some politicians and their functionaries so opposed to debt relief? Because debt sustains racial capitalism, through which the powerful maintain white supremacy by creating and exploiting crises for profit. And student loans are the second-largest type of US personal debt, next to mortgages: approximately 45 million borrowers hold $1.74 trillion in student loan debt.

Amid growing debt and a stagnant economy, 2022 has seen a resurgence of student debt activism pushing for total cancellation. After a decade of organizing to move debt cancellation from the margins to the center of national policy debates, the movement to cancel student debt continues to gain ground, as NPQ’s Rithika Ramamurthy documented earlier this year. Debtor-activists, policy scholars, and education advocates all understand that student loans are a growing part of a predatory lending industry that extracts wealth from Black borrowers—especially Black women—and their families and communities. The data is clear: student debt is a racialized form of social control that perpetuates inequality—and cancelling it is necessary for racial and gender justice.

The Problem of Student Loan Debt

As a result of decades of state disinvestment from public education, deregulation of the lending industry, and financialization, student debt has ballooned. The US’ $1.74 trillion in student debt is nearly 8.5 times what it was in 2000. And it’s worsened over the past decade, during which $700 billion—over 40 percent—of student debt accumulated.

For decades, student loans have been a huge moneymaker for the federal government, which holds over 90 percent of all student debt in the US. Given this, it’s unsurprising that the student loan market is notoriously opaque, as Marian Conway observed recently in NPQ, resulting in complicated terms that capitalize on borrowers’ unpaid interest.

Education is promised as a path out of poverty—but it’s also a means of extraction under racial capitalism.

The Biden administration’s broad-based plan—to cancel up to $10,000 for federal student loan borrowers, and up to double that amount for Pell Grant recipients—could relieve millions of borrowers from some or all of the student debt they’ve accrued. In an announcement, the White House said it would “provide relief to up to 43 million borrowers, including cancelling the full remaining balance for roughly 20 million borrowers.”

Jim Crow Debt: How Student Debt Impacts Black Borrowers and Communities

Education is promised as a path out of poverty—but it’s also a means of extraction under racial capitalism. Black borrowers hold the most student loan debt across all racial groups. According to the Education Trust (Ed Trust), a national nonprofit engaged in research and advocacy for educational equity, “Black students are more likely to borrow, borrow more, struggle with repayment, and default on their student loans than their peers.”

Their National Black Student Loan Debt Study outlines the enormity of the student debt crisis for Black borrowers—and why addressing it is critical for racial justice. Led by Dr. Jalil B. Mustaffa, the study was based on a nationwide survey of 1,300 Black borrowers and 100 in-depth interviews with borrowers in various life stages. It was designed to situate the crisis—and proposed solutions—in the lived realities, perspectives, and stories of Black student loan borrowers. Listening to these stories was important because, as Dr. Mustaffa notes as co-author of the NAACP’s Legislation, Policy, and the Black Student Debt Crisis report, even though the prospect of student debt cancellation has entered mainstream policy debates, few—if any—studies have centered the experiences of Black student debtors. In a country that has a growing Black-white racial wealth divide, this is a serious and telling exclusion.

In a report and series of briefs released over the past year, Ed Trust researchers analyzed student debt’s impact on Black borrowers. The report, Jim Crow Debt: How Black Borrowers Experience Student Debt, highlighted four top-level findings:

1. Student loans are not “good debt”: While student loan debt is typically conceived of as a pathway to higher incomes, wealth, and social mobility, the gains have not been equal for Black borrowers. Credentialization has had a particularly negative impact on Black and Brown borrowers. In Ed Trust’s study, 58 percent of respondents disagreed with the claim that “student loans contribute to racial equality for Black student borrowers,” with many noting “the irony of Black people having to borrow to gain entree to institutions that promise educational opportunity but have racially excluded them for generations.”

1. Income-driven repayment (IDR) plans feel like a lifetime sentence: IDR plans provide qualified borrowers with an extended payment plan of 20–25 years instead of the standard 10 and are also used for cancellation through public service loan forgiveness (PSLF). While IDR plans reduce borrowers’ monthly payments, the administrative process is cumbersome and confusing, leading to greater debt—a problem that past reforms haven’t solved. Interviewees described the plans as “shackles on their ankle” or “like Jim Crow,” with the debt preventing them from having full freedom. Ed Trust’s latest brief, How Income-Driven Repayment Plans Fail Black Borrowers, explores this problem in greater detail.

One story underscores the lifelong impact of student debt on Black borrowers and why repayment plans don’t solve the crisis: Georgia says, “I have worked at a nonprofit for 27 years and have tried to work with my multiple loan servicers to get public service forgiveness. I only get the run around … I tried the Department of Education, my congressmembers. I am 62 years old and do not know how I will retire.” Georgia borrowed $24,000 in 1990. Today, after working throughout her adult life, she owes $125,000.

1. Limiting student debt cancellation would harm Black borrowers most: Debt cancellation debates frequently center on the question of “fairness” in determining debt relief, with opponents arguing for means-testing by income limits or pointing to graduate degrees as markers of economic prosperity. As Ed Trust points out, however, different racial groups do not have equal access to the same financial means and opportunities. Systemic racism has limited and stolen wealth from Black families, and the push for credentials has increased such families’ debt burden. As a result, many Black borrowers who’ve gone to graduate school in pursuit of higher-paying jobs are set back even further—and without cancellation, they have little hope of ever catching up.
2. The federal government should cancel all student debt: 80 percent of Black borrowers interviewed supported full cancellation, more than any other type of intervention, as borrowers noted that the system is designed to reproduce racial and economic inequality—a point underscored by their experiences with debt.

In addition to addressing borrowers’ immediate needs, student debt cancellation is vital for racial equity and justice because student debt impacts students’ career choices, denying marginalized communities of color access to critical services like legal aid. As the executive director of the East Bay Community Law Center, Zoe Polk, wrote recently for NPQ about the PSLF program, “Legal aid attorneys like me work to ensure that millions of low-income people of color stay in their homes, are paid fair compensation, expunge faulty criminal records, and access immigration relief. We must be afforded simple, comprehensive pathways to cancel our debt.” Polk’s argument provides an important counterpoint to the twisted logic of state attorney generals, whose lawsuits reveal how they tax young debtors and coerce workers into public service jobs with lower pay by promising to offset the cost of graduate school with loan forgiveness.

Black Women Borrowers and Student Debt

Because of inequitable access to capital, women and people of color hold more student loan debt. The American Association of University Women notes that women hold two-thirds of all US student loan debt. Living at the intersection of racial and gender inequities, Black women are especially impacted by the student debt crisis. According to a Momentive survey for CNBC earlier this year, Black women have the highest rate of student debt at 31 percent, compared to 11 percent of white men, 17 percent of white women, 15 percent of Black men, 10 percent of Latinx men, and 19 percent of Latinx women.

In pursuing higher education’s promise of social mobility, Black women have become the most highly educated demographic group in the US—and the most indebted. Of this, Ed Trust observes the following:

• Black women are most burdened by the high cost of college, according to Ed Trust’s analysis of data from the US Department of Education, National Center for Education Statistics, and other sources: the cumulative amount of federal undergraduate loans owed by Black women, including principal and interest, is $38,800 and the federal graduate loan amount owed is $58,252.
• Black women struggle to manage repayment. Black people are the only group that owes more than the amount borrowed on their federal loans 12 years after starting college. Black men owed 111 percent of the amount borrowed. The rate is highest for Black women, whose amount owed is 113 percent of the amount borrowed—double the ratio for white men borrowers (56 percent) and Asians (47 percent for women and 45 percent for men).

Ultimately, as the Education Trust argues, “Student debt is not just a crisis for Black borrowers but the whole country. Racist public policy created it, and we will need bold structural solutions to fix it.” They make several recommendations for addressing the crisis, including the following:

• The Biden administration should enact broad-based student debt cancellation, which means $50,000 of federal student debt forgiveness, with no limits on eligibility for cancellation.
• The administration should improve income-driven repayment plans to make payments more affordable, reduce negative amortization, and shorten time-to-forgiveness.
• Congress should make college more affordable by doubling the Pell grant and making public college free through federal-state partnerships.

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A Stronger Power

Though it falls short of activists’ demands for total debt cancellation, the announced Biden-Harris plan was a significant victory for the growing movement to cancel student debt. Racial and economic justice organizers—including groups like Dream Defenders, Movement for Black Lives, and Debt Collective, a debtors’ union advocating for debt abolition—have been at the forefront of this movement. According to Braxton Brewington, press secretary for the Debt Collective, Biden sided with creditors and bankers throughout his career as a senator for Delaware—the epicenter of the US credit card industry. By bringing debtors together and elevating their stories, organizers were able to shift public narratives about debt, mobilize progressive political leaders, and change policy.

With the Biden-Harris plan now stalled in the courts, what can be done to address the student debt crisis?

To ensure that student debtors obtain this long-awaited relief, activists are pushing the Biden administration to go further by using a stronger authority—one that it’s had all along—to cancel all student debt. “Anything less than total cancellation is dragging your feet,” said Brewington. “It paves the way for people on the right to file these frivolous lawsuits that get held up in court—in a system that we know today is illegitimate,” he continued, referring to the US’s politicized judiciary.

That is exactly what happened. The Debt Collective foresaw the challenges the administration would face when relying on the authority of the HEROES Act, which grants the president special powers in the wake of a national crisis—in this case, the pandemic. “The Biden administration has not used all the tools in their toolbox,” says Brewington, who argues that the Higher Education Act of 1965 presents a stronger legal authority for the administration’s debt relief plan—and for total cancellation altogether. Under this act, the owner of the debt, the Secretary of Education on the government’s behalf, has the right to compromise on and settle these debts. As Brewington pointed out in conversation, doing so wouldn’t be unprecedented: the Obama and Trump administrations used this broad and more established authority to provide minor relief to specific groups of student debtors. Short of such sweeping action, debtor-activists are leveraging the power of their collective debts—by refusing to pay them.

Debt Strike: Striking Out Debts for Racial Justice

In response to the debt relief injunction, the Debt Collective has called for a nationwide Debt Strike, encouraging student debtors to join by signing a petition that reads, “I refuse to pay a debt the President promised to cancel. Until the President uses his executive power through the Higher Education Act to cancel student debt for EVERYONE, I am going on debt strike.”

A few days later, Dream Defenders, which organizes Black and Brown youth to build power for their communities in Florida, hosted a Cancel the Loans Now, Joe call to mobilize and share lessons from their organizing. Participants discussed the injunction on student debt relief and what it would mean for them. Diana, a Dream Defenders organizer, reminded the group of how many people were in the same boat: according to federal data, 26 million people applied for the Biden-Harris student debt relief program before the injunction came down, and 16 million were already approved.

The organizers were joined by members of the Debt Collective and representative-elect for Florida’s 10 th congressional district, Maxwell Alejandro Frost. A 25-year-old recent two-year college graduate and former national organizing director for March for Our Lives, Frost ran as a progressive Democrat and is the first Gen Z member of the next Congress.

Though their strategies and policy recommendations vary, education policy advocates and debt activists agree on one thing: eligibility limits for debt cancellation and income-driven repayment plans are racially inequitable. As the Brookings Institution’s Andre M. Perry and Carl Romer write, for Black Americans, “a lack of generational wealth risks making student debt a long-term financial burden.” Income is not wealth, and Black women and other marginalized groups are often denied access to credit, as Dr. Shamell Bell, an education professor and Debt Collective organizer, pointed out—alongside advocates from Black Girls Vote, Higher Heights for America, and the National Alliance for Mental Illness—in an Ed Trust webinar last August on Black women’s student debt and its impact on mental health. This lack of credit along with debt prevents Black women and their families from building wealth through savings and assets that serve as investments, like homes—as discussed extensively in NPQ.

As activists also pointed out, incomes aren’t “individual” for many BIPOC: those who earn higher wages often provide financial support to their families that isn’t tax-deductible, as “dependents” and “charitable” contributions are for white owning-class taxpayers.

Failing to follow through on broad-based debt cancellation will have a significant economic and political impact for years to come. In the report, Voters Demand Student Debt Cancellation, Data for Progress and the Student Borrower Protection Center polling shows that, if payments resume, debtors anticipate spending less on necessities like food and housing, while saving less for short-term emergencies and long-term goals. Without savings, debtors are forced to accrue additional debt—credit card, auto, mortgage, medical—to cover everyday needs while paying down loans. This prevents communities of color from saving and transferring wealth across generations. To this end, Perry and Romer argue:

The Biden plan would have significant impact for many families (according to a study done by the Obama White House, two-thirds of defaults occurred in households with less than $10,000 in student debt), but it would not have the ameliorative racial wealth effects that larger cancellation policies would have. Because the effects of student debt disproportionately lie along lines of race and wealth, any debt cancellation effort would do well to consider the effect of intergenerational wealth on student debt. If implemented correctly, student debt cancellation could be a powerful tool in dismantling institutional discrimination by shrinking racial wealth disparities.

Finally, these social and economic considerations are also tied up with a political one that progressive Democrats can use to push President Biden to ensure that student debt relief isn’t just a footnote in the story of 2022. As filmmaker and Debt Collective organizer Astra Taylor writes in The Guardian, failing to deliver on a major promise that energized and drove young voters and voters of color to the polls during the presidential and midterm elections will undermine the Democratic Party—and democracy’s future—in 2024.

Conclusion: Who owes what to whom?

Cancelling student debt is a concrete step towards redressing the havoc wreaked by the federal student loan monster—and its perpetuation of the US’ racial wealth divide.

Student debt cancellation doesn’t fix racial capitalism. Wiping out current debts doesn’t eliminate the racist policies and systems that created the crisis, nor does it end the debt-financing of education, housing, and healthcare. Without further measures—such as making public higher education free, as AlI Bustamante of the Roosevelt Institute argues in a recent NPQ article—future graduates will contend with another trillion dollars of debt.

Still, cancelling student debt is a concrete step towards redressing the havoc wreaked by the federal student loan monster—and its perpetuation of the US’ racial wealth divide through predatory loans that entrap communities of color in a never-ending cycle of debt. The hypocrisy of the US government requiring loan repayment in a country built by enslaved Black people on lands stolen from Indigenous people is not lost on debtor-activists and policy advocates. “Reparations is a debt that needs to be paid,” says Brewington.

Student debtors cannot wait any longer—not for the pious charity of a payment “pause” or even partial, temporary “forgiveness.” To achieve racial justice for Black, Brown, and Indigenous communities, the time to cancel student debt is now.

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Since 1944, VA loans have helped more than 24 million service members become homeowners. If you are currently serving or are a veteran that aspires to buy a home, a VA loan could be a great place to start.

The VA loan was designed by the United States Department of Veterans Affairs to make the home buying process easier and more affordable for our veterans. Each state has its own set of rules and standards for VA loan eligibility, including North Carolina. Read on to learn everything you need to know about VA home loans in North Carolina.

Average Value of a VA Home Loan in North Carolina

As of 2020, the average VA home loan in North Carolina is $245,976. Without the protections of a VA loan, a mortgage could be hard to obtain for many home buyers.

There are over 665,000 veterans living in North Carolina, accounting for 8.3% of the state’s population. With the median listing price for a home in the state’s capital of Raleigh landing at $325,000, the VA loan’s no down payment benefit is a notable advantage for North Carolina homebuyers.

What Is a VA Loan & What Can It Be Used For?

A VA loan is a mortgage option offered from private lenders that are fully backed by the U.S. Department of Veteran Affairs. With the guarantee of the federal government, VA mortgages require no private mortgage insurance and make the qualification process easier.

These loans require $0 down to help make the home buying process easier and more affordable for veterans. However, keep in mind that while there is no credit score requirement, you should still check with your mortgage lender for their requirements.

According to the U.S. Department of Veteran’s Affairs, VA loans can be used for the following purchases:

• Buying a home or condominium unit in a VA-approved project
• Building a home
• Purchasing and renovating a home
• Improving a home by installing energy-efficient features or making energy-efficient upgrades
• Buying a manufactured home and/or lot
• Refinancing an existing VA-guaranteed or direct loan for the purpose of a lower interest rate
• Refinancing an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the veteran as a home

VA Loan Benefits

There are numerous advantages to applying for a VA loan as a prospective home buyer. For those looking to buy in North Carolina, some benefits of the VA loan include:

• 100% financed, meaning no down payment
• No cash reserves
• No application fee
• No monthly mortgage insurance premiums
• VA funding fee may be financed
• Reusable
• Seller can pay certain closing costs, thus decreasing closing costs for the borrower
• Low monthly interest rates compared to other loans
• Similar qualification standards to conventional loans
• You don’t have to be a first time home buyer to qualify

Are you ready to apply for a VA home loan in North Carolina? Contact us and and we’ll start the process together.

Types of VA Loans

Although VA loans are most commonly used for the traditional mortgage, there are four different variations of financing for veterans.

1. Purchase loan: Standard home loan for veterans and active service members that can be used to purchase a home in North Carolina without a down payment.
2. Refinancing loan: These loans enable you to refinance and access funds equal to your home’s equity up to 100% to put toward things such as college tuition, home renovations, or medical bills.
3. Renovation loan: This financing option enables you to simultaneously purchase and renovate a home with funds guaranteed by the VA. Added benefits include that the financing amount is based on the “after-improvement” expected value of the property, and borrowers can finance 100% of the projected home equity.
4. Interest Rate Reduction Refinance loan (IRRRL): This loan allows borrowers with a current VA loan to obtain a line of credit without a home appraisal or income documentation.

Qualifying for a VA Home Loan in North Carolina

The VA loan program was established to offer long-term financing for American veterans and active service members. However, VA loans are also available for spouses and/or citizens who served in other federal organizations.

When applying, you must first verify your eligibility with a Certificate of Eligibility (COE).

To obtain a COE, you must meet the following VA loan eligibility requirements:

• Served for 90 days during a time of war
• Served for 181 days during a time of peace
• Served for 6 years or more in the National Guard or Reserves
• You are the spouse of a serviceman or servicewoman killed in the line of duty or as the result of a service-related incident

If this sounds like you, allow Blue Water Mortgage to guide you through the next steps of securing a mortgage in North Carolina — request a rate today.

North Carolina VA Loan Limits

In North Carolina, there are no limits to VA loan maximum dollar amounts. For loans purchased on the secondary market, there are limitations as prescribed by Ginnie Mae (GNMA).

Here is a county-by-county breakdown of the current VA mortgage rates in North Carolina: (Source: VA Mortgage Center)

Let’s Get Started

Not sure whether you’re eligible for a VA loan or require assistance applying for one in the state of North Carolina? Our team has 150 years of combined experience helping service members and veterans apply for and get qualified for VA home loans through a variety of private lenders and local banks. Reach out to a VA loan specialist today to get started on your journey to homeownership.

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When you’re poised to scale, but short on cash, there are few options:

1. Sell assets.
2. Sign for a high-interest loan.
3. Give up equity in your business.

None of these options are particularly appealing to cash-strapped founders, especially when they feel backed into a corner by investors hungry for a piece of their pie. But before you cave to debt financing and equity deals, there’s another option: non-equity capital.

In contrast to venture capital funding and angel investors, non-equity funding is a way of raising money that doesn't require you to give up control or sell shares in exchange for working capital. With non-equity funding, a founder gets funds to scale and keeps control of their business. A real win-win. As with all types of financing—save for options like crowdfunding—the funds will need to be repaid at some point. Other forms of non-dilutive (non-equity) capital include bank loans, government grants (or voucher programs), and royalty financing.

Non-equity funding is attractive to business owners because it allows them to keep 100% ownership over the companies they’ve invested blood, sweat, and tears into (not to mention their own hard-earned money).

Why would founders want non-equity capital over VC money?

Using non-equity capital, founders can keep their business true to their original vision and brand values. Investors may not have quite the same passion or expertise in your industry as you do. Instead of giving up equity, founders can still grow while avoiding investors who want to make a profit no matter the cost. You could even go a step further and partner with a company like Clearco to keep funding your marketing, inventory, and other operational activities. With access to non-equity capital, founders can finally stop worrying about running out of money during those precarious scaling stages.

Sadly, non-equity funding does come with its drawbacks. Some forms of capital require you to pay upfront, and the amount given could be less than what a venture capitalist may offer in exchange for taking over a portion of your business. Because the amount may be slightly less up front, scaling, living comfortably, and making a profit could take a fair amount of time.

Today, non-equity funding is more popular than ever, especially for founders who can't afford to fully bootstrap their businesses. The US alone produces more startups and unicorns each year than any other country. Sadly 90% of all startups fail, with cash flow being cited as the number one business challenge. Accessing non-equity capital is important for founders who want to grow their businesses before being stymied by cash flow woes.

Who gives non-equity capital to businesses?

1) Banks don’t require equity in order to give out loans to businesses and individuals. But from the bank's perspective, it’s risky to fund new and untested business ideas. If you plan on going the bank-funding route, come prepared with a good credit history and pay close attention to the interest rates, fees, and repayment structures.

Bank funding options include:

Non-equity financing

• Loans
• Lines of credit
• Credit cards

2) Alternative lenders are private firms outside of banks. In some cases, they may be able to use A.I. to make funding decisions. This provides a competitive advantage to non-bank lenders, as funds are more accessible to businesses and startups that show strong business potential.

Alternative lending options include:

Non-equity financing

• Debt financing
• Loans
• Credit cards

Equity financing

• Peer-to peer lending
• Venture capital financing
• Angel investors

3) Crowdfunding websites are another option that allow businesses to reach audiences via platforms like Kickstarter and Indiegogo. These platforms help founders create awareness on their products and services before they officially launch. Founders can pursue both equity and non-equity crowdfunding.

How businesses can get non-equity capital fast

As with most research, the internet is a wonderful place to start learning about non-dilutive funding options. If maintaining full control and ownership of your business aligns with your future vision, we recommend comparing the different revenue-based financing options for your company. Be sure to assess all the different requirements before applying; for instance, whether a high credit score is required, and whether or not you meet minimum profitability requirements. Some of the most successful founders in the world have multiple sources of funding, and there's no reason you can’t have the same.

Clearco provides e-commerce capital so be sure to check out our no-obligation qualification process that takes less than ten minutes to complete. Simply connect your accounts to prove business viability and get a bird's-eye view on your revenue projections for the next few months. Once you submit your data you can get invaluable feedback on your sales and marketing initiatives, as well as get funded. Zero equity required.

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But the solution is only a few clicks away: The VVK Volkskredit!

Already from a credit sum of 3.000 EUR the VVK Volkskredit is disbursed, and that quite simply and uncomplicatedly. Of course, the credit application is free of charge and without obligation, if the information is correct and in accordance with the contract, there is an immediate online confirmation of the payment of the loan.

Up to 3.500 EUR credit without Schufa!

For all those who would like to receive their loan discreetly and without entry in the personal SCHUFA file, the VVK Volkskredit without SCHUFA is offered for a sum of 3.500 EUR to. In this case, the applicant must be employed full-time by his current employer for at least twelve months. The granting of the credit takes place then without information with the SCHUFA to catch up and/or. without a corresponding entry in the SCHUFA file of the borrower.

The conditions of the VVK people's credit

The repayment of the VVK Volkskredits begins in principle four weeks after the disbursement of the credit sum and takes place (alternatively) in each case on the 1st day after the disbursement of the credit sum. or 15. of a month over the contractually agreed term.

The APR depends on creditworthiness and is 7.99% in the most favorable case, the range extends to an interest rate of 15.95% p. a. The debit interest rate is thus from 6.35 %. The borrower can choose the term of the loan between 12 and 120 months.

Let's move on to the net loan amount: as already mentioned, the loan starts from a net amount of 3.000 EUR and usually reaches up to an amount of 50.000 EUR. However, much higher credit amounts are possible upon request (up to 150.000 EUR).

Requirements for obtaining the VVK Volkskredit

In principle, everyone can receive the VVK Volkskredit, provided that he is already for at least six months (exception: the already mentioned credit free of credit history) in a non-terminated employment relationship in full time with his present employer. Pensioners and civil servants can also apply for the loan, provided that they also receive regular benefits. The granting of this loan takes place as a so-called side loan, therefore existing financial obligations do not play a role with regard to the taking out of the loan.

How to apply for the VVK Volkskredit?

A special online form is available for quick and easy application of the VVK Volkskredits. Fill out this completely and truthfully and send it off. Within a few minutes, the data will be checked and, if the check is positive, the bank partner will approve the payment. The form guarantees secure transmission of all data through SSL encryption, so that no one can view them.

Alternatively, the Volkskredit can also be applied for by mail. In this case, print out the application form, fill in your complete data, sign it and send it by mail together with your personal documents. Here, too, the loan request is processed immediately and (in the case of a positive review) a direct disbursement commitment is made by the bank partner.

The documents to be sent with the credit application consist of a copy of the identity card (front and back) and a current certificate of earnings, or. the same pension certificate as an original document.

In both cases, you will then receive a personal loan agreement by email or mail. In this contract all conditions are written and legally secure, you only have to sign it and send it in afterwards. The loan is then paid out within a few days by transfer to your bank account. For the disbursement of the VVK Volkskredits no additional collateral, guarantors, etc. are required. necessary.

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