Direct lenders – Direct Vanqex Fri, 04 Jun 2021 22:15:23 +0000 en-US hourly 1 Direct lenders – Direct Vanqex 32 32 Get help with questions about PPP and EIDL / Nav loans Fri, 04 Jun 2021 18:42:39 +0000

Covid relief loans, such as Economic Disaster Loans (EIDL) and Paycheck Protection Plan (PPP) loans, have provided millions of businesses with essential financing. But with hundreds of pages of ever-changing advice on these loans and grants, it’s no surprise that many business owners find themselves confused and unsure where to turn for help with their questions. PPP and EIDL.

At Nav, we’ve written extensively about the Paycheck Protection Program and the EIDL, and as a result, we’ve answered hundreds of questions about these programs. Some of these questions are easy to answer, for example:

“Can I get a PPP loan if I am an independent contractor? “
Answer: Yes, based on the income declared on your Schedule C tax form.

“How do I apply for the Targeted EIDL scholarship?” “
Answer: You must wait for the SBA to send you an email to apply. You will only receive an invitation if you have applied for an EIDL scholarship in 2020.

Others may be more complicated, like the one we recently received on our blog:

“I own 100% of an S corporation and take a paycheck. I am trying to apply for the 2nd PPP loan, but the bank is asking for Q1 2020 form 941 to show the number of employees and see if I was in business. I was in business for the whole of 2020, but I did not take a paycheck for the first quarter of 2020, so I declared a zero on the 941 form. Since there was no pay for January-March 2020, but I am using my 2019 numbers to apply, this zero return disqualifies me for the 2nd PPP round? My gross sales have dropped by the required 25%. “

(Note: We don’t have all the answers. For this question, we’ve encouraged our reader to explore some of the options below.)

If you’re looking for answers to your EIDL and PPP questions, here are five places to get help:

1. Your lender

If you have submitted your PPP loan application, specific questions regarding your application should be directed to your lender. Of course, most lenders face massive loan volumes and some are more responsive than others to questions from borrowers.

Try to be patient and respond to requests for additional information, even if it seems redundant. (They also deal with changing guidelines.) Your lender will ultimately be responsible for driving your application throughout the process.

If you have applied for an EIDL or the Targeted EIDL advance, questions should be directed to the Small Business Administration (SBA) as they make these loans and grants.

2. Your local SBA office

The SBA has offices across the country, and many have held events to answer questions from small business owners about Covid loans and other relief programs. These offices can be a useful source of information and assistance if you have questions about PPPs and EIDL. Find your local SBA office here.

3. SBA resource partners

Taxpayer money helps fund valuable programs that can come in handy as you try to navigate the economic downturn. SBA resource partners include:

  • Small Business Development Centers (SBDC)
  • SCORE (volunteer mentors)
  • Women’s Business Centers (WBC)
  • Business Outreach Centers for Veterans (VBOC)

The people involved in these organizations have worked tirelessly over the past year to help small business owners take advantage of federal assistance programs. As an added bonus, they may be able to direct you to state or local aid and grant programs. Find your local SBA resource partners here.

4. Your accounting professional

There are several reasons why accounting professionals can be crucial in helping you secure a Covid relief loan or grant:

  • To apply for a PPP or EIDL loan, you must have completed your tax returns.
  • Your claim may require calculations (such as income reductions) that you may not be comfortable calculating on your own.
  • PPP forgiveness requests can be incredibly difficult, even for the most detail-oriented entrepreneur. Your accountant or accountant can help you or refer you to someone who can. (Accounting professionals may have access to forgiveness calculator software.)

Realize that this is already an insanely busy year for accountants and bookkeepers, so try to be understanding and patient with your requests for help. Organizing your financial information will allow them to help you more effectively, so make sure you’ve done your part!

5. Other business owners

Shortly after the passage of the CARES Act in March 2020, Nav created a Facebook group for business owners to ask questions and share their experiences with EIDL and PPP. It exploded. Business Lending and Financing Information Center – PPP, EIDL and more Facebook now has nearly 20,000 members, many of whom share their experiences with these programs.

Of course, you have to be extra careful when following the advice of a Facebook post, but one thing many business owners have found helpful about this community is to hear from others about their progress in this community. obtaining financing through these stimulus programs.

This article was originally written on June 4, 2021.

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Covid relief loans injected $ 3.2 billion into Montana small businesses Fri, 04 Jun 2021 00:41:01 +0000

HELENA – Editor’s note: This is the second in a three-part series on federal Covid relief funds in Montana – which will exceed $ 7 billion.

For Paul Mabie, co-owner of Restaurant and Hostel Helena, federal Covid relief loans likely saved his businesses, which were launched just months before the pandemic began in early 2020.

“We put everything on the line to open this project in July 2019 and when Covid hit we thought we were going to lose everything,” he said this week. “And we are here today, prosperous, vaccinated and ready to open our businesses to receive the roar of hospitality that Montana is enjoying because of the funding that has come through these programs.”

Mabie’s Oddfellow Inn & Farm and two other Helena Airport restaurants received funding through the Paycheck Protection Program (PPP) and emergency disaster loans – and they were certainly not the only businesses in the Montana to get help.

Mike Dennison-MTN News

Paul Mabie, co-owner of Oddfellow Inn & Farm in Helena.

In Montana, PPP – which was closed for applications this week alone – has made 47,000 loans totaling more than $ 2.6 billion, since April 2020.

And disaster loans, extended by Congress during the pandemic, have provided an additional $ 630 million to small businesses in Montana since last year. Companies affected by the pandemic still have until the end of this year to apply for these low-interest loans, which are repaid over 30 years.

Brent Donnelly, Montana District Director for the US Small Business Administration, says both programs have been well received by businesses – and, he says, successful.

“A lot of the companies I’ve spoken to have said to us, hey, PPP was something that gave us a bit of breath and like, ‘OK, how are we going to deal with the pandemic?’ “he told MTN News. “They looked for new customers, they looked for new markets, they changed their business locations. “

The PPP targeted businesses with 500 or fewer employees, to help them retain their employees, pay rent and cover other costs to help them weather the pandemic.

It started as part of the first massive Covid-19 federal aid plan approved in March 2020, at $ 350 billion nationwide. It has now reached $ 800 billion as Congress extended the program as the pandemic lasted much longer than expected.

Some or all of the loans will be forfeited if companies meet certain requirements, such as retaining at least 60 percent of their employees.

As of this week, about 63% of Montana’s 24,000 P3s approved in 2020 have gone through the forgiveness process, Donnelly said, and nearly all of them have been approved.


Mike Dennison-MTN News

Brent Donnelly, Montana District Manager for the US Small Business Administration.

The SBA maintains a public database listing all approved PPP loans and recipients. The Montana database reveals awards given to businesses in nearly every community in the state, large and small, and to multi-million dollar businesses as well as sole proprietorships.

Highlights include:

· The largest prize was $ 10 million, to Missoula’s Consumer Direct Care Network home health care company. Eleven companies had loans of $ 5 million or more, and 281 loans totaled at least $ 1 million.

· Almost 21,000 of the loans were made to businesses with only one employee, for an average of $ 11,200 per loan.

· Almost 39,000 of the loans – 85% – went to businesses with 10 or fewer employees.

· Almost $ 1.6 billion in loans went to businesses in the state’s seven largest cities – although small towns often also have large recipients. For example, in Little Alzada in the southeastern state, 46 businesses had loans totaling $ 832,000.

But, in the other extreme corner of the state – Yaak, in northwestern Montana – no one had a loan.

The largest loans have gone to construction and engineering companies, a mental health center in Missoula, manufacturers, hotel companies and mid-sized hospitals.

Rich Rasmussen, president of the Montana Hospital Association, told MTN that small hospitals were losing revenue at the start of the pandemic as elective surgeries were canceled, but had to keep staff and even step up efforts to respond to patients in need. emergency.


MTN News

Rich Rasmussen, president of the Montana Hospital Association.

The PPP program was their only source of help at the start of the pandemic, he said.

“Small hospitals don’t have the same level of reserves as large hospitals,” Rasmussen said. “PPP loans have therefore enabled them to retain all their staff throughout the duration of the pandemic. …

“It was really a bridge to bring us to where we could bring elective procedures back, so that we could continue to remain financially viable through the summer and fall when we saw our biggest patient crush. . “

Sidney hospital had the largest PPP loan of any hospital, at $ 5.8 million, while hospitals in Anaconda, Livingston, Glendive, Glasgow, Lewistown and Dillon all had loans of at least 2 , $ 8 million.

Billings-based architecture and engineering firm Cushing-Terrell secured the second largest loan with $ 7.2 million, while Dick Anderson Construction from Helena secured the third loan with $ 6.8 million.

Corey McGreevey, CEO of Dick Anderson Construction, said he was able to maintain most of its 350-plus employees even if he had “important projects” canceled, postponed or delayed by the pandemic.

“We feel a strong responsibility to our employees and the communities we serve,” he said. “A significant portion of the loan proceeds flowed back into our local communities through our employees, which we were able to keep. “

Cushing-Terrell declined to comment on his loan.

Ben Bledsoe, CEO of Consumer Direct Care Network, said he was able to qualify under “alternative sizing guidelines” even though he has more than 500 employees, and get the maximum loan of 10 millions of dollars.

The Missoula-based company has several thousand workers in 15 states, providing home health care and assistance to the elderly and disabled.

The company has seen a sharp drop in revenue and demand for its services as many people did not want others to enter their homes during the pandemic, Bledsoe said.

“(The loan) was very helpful; we are grateful for the support, ”he told MTN News. “I think everyone we serve in all of these communities will also be grateful. “

He said the company was working through the approval process to see what part of the loan could be canceled.

Much of this process is handled by the private lenders who approved the loans, Donnelly said.

“If there was a hero in this whole process, I think it’s our Montana lenders and bankers,” he said. “We are a very rural state. … Our banks know our borrowers and vice versa.

However, Donnelly said some “bad actors” certainly exist, trying to get loans they don’t qualify for, and that the SBA’s Office of the Inspector General has investigated possible fraud. Data on the surveys are not yet available, he said.

But Donnelly said he was confident the vast majority of loans went to businesses that badly needed and appreciated the money.

Mabie, the owner of the Helena restaurant and hostel, said without the loans the company would have had to lay off 22 people. Instead, many of those workers stayed – and now have health coverage, he said.

Additionally, the company has hired more people and invested in additional projects, which appear to be paying off as the tourism economy rebounds, he said.

“It was a bit of a gamble and a doubling, but we’re glad we did it now as we have a fully trained staff and we continue to hire, all thanks to the PPP money,” Mabie said. . .

Mabie’s business also secured an emergency disaster loan, which has gone to more than 10,000 Montana businesses.

Next week: Plans to strengthen Montana’s access to high speed Internet service.

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Federal student loan interest rates to increase on July 1 Wed, 02 Jun 2021 14:30:00 +0000

By Colin Beresford | Nerdwallet

Federal student loans will be more expensive for the 2021-22 school year. Even so, borrowers will still see some of the lowest student loan interest rates of the past decade.

Interest rates on new federal undergraduate student loans will drop from 2.75% to 3.73% for 2021-22. Undergraduate, graduate and PLUS loan interest rates are determined by the results of the US Treasury Department’s 10-year note auction in May, according to New America, a policy think tank. public. The Treasury sells 10-year notes to raise funds.

PLUS loans, or direct parent loans for undergraduate students, are federal student loans that parents can receive to help pay for their education. Graduate students can also receive PLUS loans.

Interest rates on 10-year notes plunged last year as investors aggressively sought the safety of federal debt as the coronavirus pandemic unfolded. As a result, federal student loan interest rates fell to an all-time low in 2020.

Since the end of last year, investors have diverted their money from federal debt, pushing up interest rates, according to the Financial Times.

The interest rate on federal student loans is set by adding the interest rate on the May 10 to 10-year note, 1.68%, to the margins set by Congress. Lawmakers vote on the margins every year and while these have yet to be set for 2021-2022, the margins are not expected to change from last year.

For undergraduate student loans, 2.05 percentage points will be added to the interest rate. For other loans, 3.6 points will be added for graduate student loans and 4.6 points for PLUS loans. Here are the highest rates for each type of federal student loan:

  • Direct Undergraduate Loans: 3.73%.
  • Direct graduate loans: 5.28%.
  • PLUS loans: 6.28%.

Although student loan interest rates are increasing, rates are low compared to the past decade, when rates reached as high as 5.05% for undergraduates in 2018-19.

Federal student loan interest rates are fixed for the life of the loan, so loans taken out before July 1 will still have the 2.75% interest rate for that academic year. Currently, under the first COVID-19 relief bill, federal student loan interest rates are at 0% and are forborne until October 2021.

Impact of rising interest rates

Borrowing $ 5,500 in federal loans for 2021-2022 – the maximum loan amount for dependent undergraduates – for a standard 10-year term will cost $ 1,098 in interest with monthly payments of $ 55. That’s $ 3 more per month and $ 301 more in total interest compared to the same loan taken out at this year’s rates.

The increase in interest rates will have a greater impact on borrowers who take out PLUS loans given the higher interest rates on these loans. There are also no specific limits on the amount of a loan; rather, it is determined by the cost of attending school.

If a parent borrows around the average for a PLUS loan, or $ 16,500, for 10 years at 6.28% next year, the cost would be $ 186 per month and $ 5,762 in total interest. That’s $ 9 more per month and $ 969 more in total interest for the same loan this year.

Federal student loans vs private student loans

While federal student loan interest rates will rise next year, borrowers should still pursue and exhaust federal loans before turning to private lenders. Unlike private student loans, federal student loans do not require co-signers, and all borrowers receive the same interest rate.

Interest rates on private student loans are generally higher than those on federal loans and depend on the borrower’s credit history and the length of the term. Private student loans are not included in any student loan waiver programs and are excluded from the current suspension of federal student loan payments.

But students shouldn’t turn to loans until they’ve completed the free application for federal student aid – the FAFSA – and heard from their college about scholarships, grants, and other aid that doesn’t. do not need to be reimbursed.

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Colin Beresford writes for NerdWallet. E-mail:

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CFPB alleges unfair acts with the complementary automatic financing product Tue, 01 Jun 2021 22:08:36 +0000

On May 21, 2021, the Consumer Financial Protection Bureau (CFPB) and 3rd Generation, Inc. d / b / a California Auto Finance entered into an agreement Consent order in which the CFPB has alleged acts or unfair practices in connection with a complementary auto finance product.

What was the complementary product?

According to the consent order, the 3rd generation purchases and manages “subprime auto loans by accepting the assignment of retail installment contracts that auto dealers make with borrowers”. As part of its loan agreement, 3rd Generation requires consumers to use its Loss Damage Waiver (LDW) product. The 3rd generation places the LDW product on the consumer’s account when the latter does not have sufficient insurance; it “covers the cancellation of the borrower’s debt in the event of total loss of the vehicle, or the cost of repair if the vehicle is not a total loss”. Adding the LDW product to the consumer’s account incurs a monthly LDW fee.

The addition of the LDW product may result in an increase in the loan principal and repayment of the amortized loan, and in some cases this increase in principal amounted to thousands of dollars, according to the CFPB order. Although consumer claims and notices disclose LDW charges, 3rd Generation does not “disclose to consumers that interest accrues on late payments of these charges.” The CFPB found that many of the 3rd Generation customers had poor or no credit scores, made late payments and incurred interest charges. During the relevant review period, the CFPB identified 5,782 clients who paid a total of $ 565,813 in interest on late payments of LDW fees.

What was the alleged violation and the remedy ordered by the CFPB?

The CFPB argues that by charging consumers interest on late payments of LDW fees without disclosing the accumulation of interest on those late payments in the loan agreement or consumer notices, 3e Generation violated the Consumer Financial Protection Act 2010 by engaging in unfair acts or practices.

The consent order prohibits 3rd Generation from charging interest on LDW fees without first disclosing “clearly and conspicuously” that term. For the purposes of the consent order, “clearly and visibly” means “hard to miss” and “easily understood by the ordinary consumer.[s]. In addition, 3rd Generation must set aside $ 168,162 to pay off customers who have paid off their loans and provide additional credit of $ 117,582 to current customers. 3rd Generation must also pay a civil fine of $ 50,000. more, 3e Generation must ask credit bureaus to correct inaccurate information it has reported about certain customers whose loans have been written off.

What does this action tell us about the CFPB’s scrutiny of auto loans and complementary products?

The survey of 3rd The generation that gave rise to this consent order was likely born before former manager Kathleen Kraninger left. Therefore, this action itself is not necessarily conclusive of the priorities and approach of CFPB under the leadership of Acting Director David Uejio. However, the leadership and direction of the CFPB has changed dramatically, and we expect a more in-depth review of auto loans in general in the coming years, especially as it relates to subprime auto loans.

Additionally, Acting Director Uejio has made it clear that tackling the economic impact of the coronavirus pandemic is a top priority. A gradual reduction in government stimulus payments should lead to an increase in subprime delinquencies. We expect the CFPB to use its UDAAP enforcement authority more aggressively in all sectors, including subprime auto loans. This could lead to increased scrutiny of not only loan origination, but also add-on products and service issues – especially where there is a perceived link between pandemic-related challenges and practices of concern to the CFPB.

The most direct conclusion from this recent consent order might be that lenders and service providers closely scrutinize loan agreements and subsequent consumer reviews to ensure adequate disclosure of fees and costs. However, for some businesses or practices, a more comprehensive UDAAP risk assessment may be useful in light of the expected increase in CFPB review.

© 2021 Bradley Arant Boult Cummings LLPRevue nationale de droit, volume XI, number 152

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Monsoon rains in India expected to reach 101% of average in 2021 Tue, 01 Jun 2021 07:29:31 +0000


China Huarong’s journey, from safe bet to bad news: a timeline

(Bloomberg) – It has been nearly two months since turmoil erupted around China Huarong Asset Management Co. At the end of March, its 4% perpetual bond in dollars was trading at 102 cents to the dollar as investors thought about it. execution in January of former President Lai Xiaomin. for corruption, put a line under past capricious behavior. But the company’s failure to release 2020 results before the March 31 deadline, and a subsequent report from mainland media Caixin that the company will restructure, sparked weeks of unrest. The same bond is now at 57 cents. The crux of the matter is whether the central government will rescue a state-owned enterprise that is integral to the proper functioning of the financial system. While there are signs that Beijing wants to ensure that China Huarong can repay its debts on time, uncertainty prevails.Here is an overview of key events for China Huarong: May 28 The company wired funds to repay 978 million dollars in notes maturing the following week, according to Bloomberg News, the biggest bond payment since the postponement of 2020 results May 27 Liang Qiang, who currently heads another bad debt manager, is set to become chairman from China Huarong, Bloomberg News reports. May 24China Huarong’s dollar bonds climb after management Caixin Media editor-in-chief wrote in op-ed that asset manager is “far from” in default on its more than $ 20 billion in offshore tickets. May 21 Some of China Huarong’s onshore bonds collapse after outperforming the company’s dollar-denominated bonds. notes, signaling growing concern about the financial health of the company. May 18, China Huarong transferred funds to repay a $ 300 million note due May 20, Bloomberg News reports, the first dollar bond to mature since the delayed 2020 results. The prices of the company’s dollar bonds fell earlier in the day after the New York Times reported that China is considering an overhaul that would inflict “significant losses” on domestic and foreign Chinese Huarong bond holders. May 17 The company has entered into financing deals with state-owned banks to ensure it can repay its debt at least until the end of August, when China Huarong aims to complete its 2020 financial statements, according to a report. from Bloomberg News. As at least two of its onshore bonds have seen sharp price declines in recent days, which worries some investors. local media reports that regulators have hesitated over China Hurarong’s restructuring plan. May 6 The company said it transferred funds to pay off five offshore bond coupons due the next day, its latest move to honor debts amid lingering doubts over its financial health. April 30 China Huarong breaks its silence, with an executive telling the media that he is ready to make his bond payments and state support remains intact. The official also said the week’s rating downgrades “have no factual basis” and are “too pessimistic”. April 29 Moody’s Investor Service downgrades China Huarong a notch to Baa1, adding that the company remains on the lookout for further downgrade. The reduction reflects the company’s weakened financing capacity due to market volatility and increased uncertainty about its future, the statement said. The S $ 600 million ($ 450 million) bond was repaid with funds provided by China’s largest state-owned bank, according to a Bloomberg News report. On April 26, Fitch Ratings downgrades China’s rating. Huarong moved three notches to BBB while abandoning the company’s perpetual bonds in junk territory. The lack of transparency about the government’s support for the company could hamper its ability to refinance its debt in offshore markets, Fitch said. more time to complete a transaction the company first reported on April 1. Securities and asset management units have said in previous days that they will not release 2020 results at the end of the month. Huarong’s upcoming loans of at least six months, according to REDD, citing two bankers from major Chinese commercial lenders April 21 China is considering a plan that would see its central bank assume more than 100 billion yuan ($ 15 billion) in ‘assets in Huarong China to help clean up the company’s balance sheet, according to a Bloomberg News report. Peer China Cinda Asset Management Co. reportedly expects the sale of perpetual bonds in the second quarter. April 20 China Huarong’s main offshore finance unit said it had returned to profitability in the first quarter and laid a “solid” foundation for the transformation. Reorg Research Reports Regulators Are Considering Options Including Unit Debt Restructuring, China Huarong International Holdings Ltd., April 19 Huarong Securities Co. Says It Wired Funds To Pay Off Local $ 2.5 Billion yuan. that the company has sufficient liquidity. These are the first official comments on the company’s problems. Reuters reports that Chinese banks have been told not to refuse to lend to Huarong. The finance ministry, which holds a majority of Huarong, is considering transferring its stake to a unit of the country’s sovereign wealth fund, Bloomberg News reports. Chinese officials are signaling that they want failed local government funding vehicles to restructure or go bankrupt if debts cannot be repaid. April 9 China Huarong says it paid its debt “on time” and that its operations are “normal.” Bloomberg News reports that the company intends to retain Huarong International as part of a potential overhaul that would avoid the need for debt restructuring or government recapitalization. S&P Global Ratings is putting China Huarong’s credit ratings on watch for possible downgrade. April 8 China Huarong prepares to get rid of non-core and loss-making units as part of a broad profitability stimulus package that would avoid the need for debt restructuring or government recapitalization Selling the bonds in Huarong dollars in China, Bloomberg News reports, April 6, after a holiday in China. Huarong Securities says there has been no major change in its operations, in response to the drop in prices of its local 3 billion yuan bond. On April 1, China Huarong announced a delay in releasing 2020 results, claiming that its auditor is unable to complete a transaction. Equity trading is on hold and spreads are climbing on the company’s dollar bonds as China Huarong tells investors that its business is business as usual. Caixin reports that the company has submitted restructuring plans and other major reform projects to government officials and shareholders. More stories like this are available at

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What Happens When You Don’t Pay Your Federal Student Loans? Mon, 31 May 2021 14:00:01 +0000

Student debt relief has helped millions of Americans during the pandemic. As of March 27, 2020, federal interest rates on student loans have been set at 0% and payments have been suspended.

But the policy will currently expire on October 1, 2021, and many borrowers are still struggling financially, leaving many wondering: what if I can’t repay my student loan?

Private student loans do not have federal protections and have specific contracts that dictate the consequences of not paying a payment. However, the consequences of non-payment of federal student loans often follow a common pattern.

Here’s a step-by-step guide to what happens when a borrower misses a federal student loan payment:

After graduation

Federal student loans are repaid when a borrower graduates or leaves school. However, most federal student loan borrowers receive a Grace period.

Borrowers on Directly Subsidized, Non-Directly Subsidized, or Federal Family Education Loans have a six-month grace period before they begin making payments.

Borrowers with Perkins loans are granted a nine-month grace period.

After the grace period, borrowers are expected to make regular payments in accordance with their selected repayment plan.

15 days after payment is due

Persis Yu, director of the NCLC’s Student Loan Assistance Project, says most federal student loans give borrowers a grace period of about 15 days after their normal due date to make a payment. This means that if you are less than 15 days late in making a federal student loan payment, there will likely be little consequence.

However, if a borrower has not made a payment after the end of this window, their loans will be considered past due and may start to impact borrowers’ credit rating, which can have significant consequences in the long run. term, like making it more difficult to buy a car or a home. Bad credit can also affect work opportunities when an employer performs a credit check.

“But at this point you still have time to get back on your feet. You can always make a payment and get back on track, “Yu said.” Really, really bad things don’t start happening until a little later. “

270 days after payment is due

After 270 days, the federal student loans are in arrears. Once federal student debt is in default, the government is able to garnish borrower salaries, Social Security checks, federal tax refunds, and disability benefits. In some states, borrowers with past due student loans may professional licenses revoked as well as their driver’s license.

“Private lenders have to get a court order before they can garnish your paycheck. The Department of Education is not obligated to do this, ”says Ashley Harrington, Federal Director of Advocacy and Senior Counsel at the Center for Responsible Lending. “All they need to do is send you a notice 30 days before the garnishment begins and give you the opportunity to appeal.”

“The government has extraordinary collection powers under the aegis of the Debt Collection Improvement ActYu says, listing all of the different ways the federal government can collect missed student loan payments. “The most common collection activity is that people will have tax refunds seized. When Social Security benefits or wages are garnished, they’ll typically take about 15% of those payments, but for tax refunds, they’ll actually grab the full amount. “

She adds that garnishing tax refunds, like the earned income tax credit, can have a detrimental effect on families and children.

“A lot of research has been done to show that the earned income tax credit is the most effective anti-poverty measure that we have in this country, ”Yu said.“ And so the impacts of taking this money are actually intergenerational. ”

Yu adds that default borrowers “can apply for what is called a” forbearance after 270 days “in which you can retroactively erase [the delinquency]. You must contact your service agent and you must complete a specific form. “

One year after payment is due

If a borrower hasn’t made a payment for more than a year, federal student loans will often transfer to a collection agency by default, Harrington says.

The Department of Education works with third-party collection agencies that will charge penalties and fees for not making a payment, sometimes up to 18% the balance of your loan.

Collection agencies “harass people with calls and texts, which can add to the mental stress of debt,” says Harrington, noting that at that time, the impact of default on a borrower’s credit would be. important. “Default loans impact your credit score, can limit access to credit, and make credit more expensive overall. This makes your life even more difficult.”

At this point, Harrington recommends borrowers contact their administrators to see if they are eligible for postponement of economic difficulties or if they can switch to a repayment plan that works best for them so they can get back on track. But ultimately, she says some borrowers have their hands tied.

“Failure to pay your federal student loans and going bankrupt and in arrears can have truly dire consequences. Consequences that can make your life more difficult in many ways and we need to be clear about that, ”says Harrington. “But it’s also important to note that a lot of people are really struggling and student loan repayments are one of them. Some do not make the decision not to pay their debts, but they have many other commitments: they have to pay rent, we are in a pandemic, there are job losses, there is underemployment, there are child care needs, there are all these other things that student borrowers have to deal with.

“And they have to keep the lights on.”

“One of the things that is really unique about federal student loans is that there is no limitation period,” Yu says. The consequences can therefore last a very long time. ”

Fortunately, unlike some private student loans, federal student loans are discharged upon death.

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Sri Lanka’s economic situation is a warning to Bangladesh Sat, 29 May 2021 18:00:00 +0000

The fact that Bangladesh is able to bail out Sri Lanka, a middle-income country according to the World Bank classification since 1997, by extending up to $ 500 million – is a good morale booster.

But this episode is also an edifying tale for Bangladesh: if the government does not react now, the country could very well be in the place of Sri Lanka in a few years.

For all the latest news, follow the Daily Star’s Google News channel.

The Achilles heel of both economies is the same: low tax base, overreliance on a single item for exports, and insignificant foreign direct investment.

What Bangladesh has on its side is time.

It is still a less developed country, which means that it has access to concessional loans from multilateral and bilateral lenders like the World Bank, the International Monetary Fund, the Asian Development Bank and the Japan International Cooperation Agency.

The loans have an extended term of 25 to 40 years as well as a reasonable grace period and an interest rate of less than 2%.

The victim of a civil war that lasted for a quarter of a century, Sri Lanka has relied heavily on this external debt to build its infrastructure – an economic practice, for the most part.

But by the turn of the century, following its transition to lower-middle-income country status in 1997, Sri Lanka’s access to these loans had declined, meaning it had to seek funds elsewhere.

In 2007, Sri Lanka issued its first International Sovereign Bond (ISB) – valued at $ 500 million – and increasingly began to turn to this channel of commercial borrowing.

BSIs have a 5-10 year repayment period, carry interest rates over 6%, and no grace period.

To complicate matters, there are principal payments: the total amount borrowed from an ISB is settled all at once on the bond’s maturity date; repayment is not spread over several years, as is the case with concessional loans.

Thus, when an ISB matures, a country’s foreign currency reserves are severely affected.

By the end of 2020, up to 50% of Sri Lanka’s outstanding external debt was tied to BSIs, according to its central bank data.

This would not have been a problem if the Sri Lankan government had the means to repay, if it had remedied the structural weakness of its economy when it began to rely heavily on commercial borrowing.

In 2019, Sri Lanka’s tax-to-GDP ratio stood at 12.2%, which is not too much better than Bangladesh’s at around 10%.

Its foreign direct investment figure fluctuates in the millions, while that of Bangladesh is in the first billions.

Its $ 88 billion economy is heavily dependent on tourism and clothing exports, leaving it at the mercy of external factors.

Bangladesh’s strong foreign exchange reserves are due to clothing exports and remittances sent by unskilled workers, both of whom are highly exposed to external shocks.

Sri Lanka has $ 3.7 billion in external debt maturing this year and around $ 4 billion in foreign exchange reserves at the end of April, hence the desperate rush for dollars.

To make matters worse for Sri Lanka, global credit rating agencies have unilaterally lowered its sovereign rating, so the option of issuing more BSIs to serve those maturing this year is irrelevant.

Fitch downgraded Sri Lanka’s sovereign credit rating to “CCC” last year, saying the country’s chances of default are “a real possibility.”

Rival rating agency Moody’s also downgraded Sri Lanka to an equivalent level.

“The problems Sri Lanka and Pakistan are currently facing did not emerge overnight,” said Ahsan H Mansur, executive director of the Policy Research Institute, a private think tank.

Bangladesh should therefore closely monitor developments in the crisis in both countries and learn from them.

In fiscal year 2018-2019, which is the latest data available from the Economic Relations Division, Bangladesh’s external debt-to-GDP ratio was 14.7%, compared to 13.2% in the 2015-2016 fiscal year.

While the ratio is well below the 40 percent threshold, Bangladesh’s external lending is on the rise.

“When a car loses control on an uphill climb, it is descending at an accelerated pace and there is nothing we can do about it. We’re not at that point yet,” said Mansur, a former economist with the International Monetary Fund.

Bangladesh is on track to become a middle-income country by 2024, so its concessional financing window will be closed by 2027. This is another aspect the government needs to consider.

Up to 84 percent of Bangladesh’s exports come from apparel shipments largely to developed countries in the west.

“We will be in trouble if we cannot diversify our exports sooner rather than later. Just because of the remittances, our reserves are high and we are comfortable on the external front.”

But the current dramatic trend in remittances is not sustainable, Mansur said.

“Once people start to travel freely, this trend will collapse and our foreign exchange reserves will contract.”

Bangladesh’s domestic position is very uncomfortable: the government’s debt service to revenue is high, according to Mansur, also chairman of Brac Bank.

“Our ability to pay cannot be assessed in terms of GDP because the private sector is taken into account. Debt must be paid by income and our income base is low. Our tax-to-GDP ratio is one of the worst. in the world.”

Mansur went on to urge the government not to borrow for every project.

“Except for very productive companies, the decision to borrow must be considered with rigor. Borrowing does not make sense for every project,” he said, citing the Rooppur nuclear power plant as an example. project that does not justify a loan.

But for projects like the Padma Bridge and the Karnaphuli Tunnel, the loan is valid because these would be able to pay back their costs during their lifetime.

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Athlete Direct’s Brandon Steiner explains how the platform helps college athletes sell their merchandise and collectibles Fri, 28 May 2021 21:19:11 +0000


Investment firms bet against Cathie Wood’s best ETF as technology falters

(Bloomberg) – Cathie Wood’s recent troubles have been a boon to some of her peers in the financial management arena. About two dozen investment advisers, including Balyasny Asset Management and a unit of Blackstone Group Inc., have purchased bearish put options during the first quarter on the Ark. Although fund managers often buy put options on ETFs to protect their portfolios against market downturns, the options are typically tied to passively managed index funds such as the SPDR S&P 500 ETF Trust. Yet tech-driven Ark Innovation has grown so rapidly – to $ 28 billion in mid-February from $ 1.9 billion at the end of 2019 – that some managers saw the fund actively managed as a better alternative to protect against a fall in shares Big Take: Cathie Wood’s bad spring is a blip when the future is so bright “The Ark Innovation fund has had a tremendous run during 2020 and early 2021” Efrem Kamen, director of New York-based Pura Vida Investments, said in an email. “However, the level of fund flow to the ETF appeared to be extreme.” Representatives of Wood’s Ark Investment Management did not respond to telephone and email messages seeking comment. Ark Innovation, with the stock symbol ARKK, posted a return of 153% last year, supported by investments such as Tesla Inc. and Zoom Video Communications Inc., his fortunes started to deteriorate in mid-February, as signs of inflation have prompted investors to ditch tech stocks in favor of value games that would benefit from higher prices, like banking and mining ETF has been found to be more volatile than some of the index funds which have traditionally served as a proxy for the tech industry, making it a more profitable way to bet against such stocks or hedge other holdings. ARKK fell 29% on Wednesday from its February 12 high, while ETF Invesco QQQ, which tracks the Nasdaq 100, fell 0.7%. it was a successful strategy, ”said Chris Murphy, Co-Director of Derivatives Strategy at Susquehanna International Group, of the ARKK put purchase. ETF to another investor in the future at a fixed price. While some managers and market makers hold a combination of ARKK shares with put and call options, the companies Bloomberg analyzed held those options exclusively or primarily Deer Park Road Management Co., a Steamboat Springs-based company , Colorado, which trades in assets. – and mortgage-backed securities and corporate debt, bought put options during the first quarter on 2.15 million ARKK shares, according to its 13F quarterly filing with the Securities and Exchange Commission. The stocks covered by the put options had a face value of nearly $ 258 million at the end of March and the put options were priced too low given the ETF’s past volatility. that made them more attractive as a risk hedging tool, Deer Park Chief Investment Officer Scott Burg said in a telephone interview. Deer Park bought them to protect against rising interest rates, he said. “You can see it in the first trimester.” Read more: Cathie Wood fans buckle down as ETF assets FallPura Vida acquired put options on 622,500 ARKK shares with a par value of nearly $ 75 million in the first quarter, according to his file. The hedge fund’s portfolio was exposed to some of the same areas as the ETF, including genomics and telemedicine, according to Kamen. Factors refer to the characteristics of a stock, such as being growth or value play.Blackstone Alternative Solutions revealed that it bought puts options on 1.3 million ARKK shares in the first quarter, while Balyasny acquired put options on 436,500 shares with a par value of $ 52 million as at March 31. Other buyers of the puts during the period included Taconic Capital Advisors, Ikarian Capital and Davidson Kempner Capital Management. get a kill here, ”said Eric Balchunas, ETF analyst for Bloomberg Intelligence. “If you’ve done a few of these trades, you’ve probably done well in the past few months.” More articles like this are available at Subscribe now to stay ahead with the most trusted source of business information. © 2021 Bloomberg LP

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Ahead of Memorial Day, BBB warns of bogus charity scams targeting veterans Fri, 28 May 2021 02:16:01 +0000

ROANOKE, Va. (WFXR) – As Memorial Day approaches, the Better Business Bureau (BBB) ​​Serving Western Virginia warns of bogus charities that often defraud those who serve or who have served their nation.

In 2020, active duty members lost more than $ 190,000 to scammers across the United States, according to reports generated by BBB Scam Tracker. Veterans across the country have been hit even harder, with more than $ 270,000 lost due to fraudulent business practices. In addition, 49% of fraud victims were over 55 years old.

Consumers should also be aware of deceptive military charities which often adopt names and outreach practices similar to trusted nonprofits, such as emails, direct mail, phone calls, and text messages. These military organizations use emotionally appealing words to fill in their fundraising arguments such as “warriors”, “heroes” and “disabled”.

In 2019, the FTC shutdown American Veterans Foundation, which has raised nearly $ 6.5 million from donors. The foundation said the donations provided care packages and other aid to deployed troops and homeless veterans. Instead, the foundation used 92% of the money it raised for telemarketing and administrative costs.

“When you donate to a charity claiming to represent military personnel, always check to see that the organization meets BBB charity standards, especially around Memorial Day. Lawyers who do not meet BBB standards often call and say they are helping veterans, military personnel, or their families, but little money donated will go towards that end.

Julie Wheeler, President and CEO of BBB serving West Virginia

BBB cautions against the following scams that typically target service members:

  • Expensive military loans – Ads for loans that promise collateral, instant approval or no credit check will often come with hidden fees and extremely high interest rates. Remember, legitimate lenders will never guarantee a loan until you apply, and loans that require an upfront fee are likely a scam.
  • Veterans Benefits Buyback Plans – This buy-back plan will offer a cash payment in exchange for future benefits or pension payments from a disabled veteran. The cash amount is only about 30-40% of what the veteran is entitled to receive. These buyout plans can be structured in a number of different ways, so do your research thoroughly before signing anything.
  • False rental property – Stolen photos of legitimate rental properties are used in advertisements that promise military discounts and other incentives. Service members will have to pay a wire transfer fee for security payments or a key to the property – in the end, they will not receive anything.
  • Deceptive car sales – Websites displaying classified ads will offer bogus discounts for military personnel or pretend to be from soldiers who need to sell their vehicle quickly since deployment. There will be an initial charge by bank transfer or the car will have problems after purchase.
  • Expensive life insurance policies – The military are often the target of pressurized sales arguments that offer unnecessary and expensive life insurance policies. Lawyers can make false claims about the benefits these policies offer.

In order to avoid these scams, BBB gives these tips:

  • Do your research – Get as much information as possible about a business or charity before you pay or donate. A great start to your research would be to take a look at a company’s BBB business profile and see if BBB has a report on the charity.
  • Never transfer money to someone you don’t know – Money sent by wire transfer is virtually impossible to track. Pay or donate by credit card whenever possible, as you can dispute the charge more easily.
  • Protect your computer – Do not click on links contained in unsolicited e-mails. Do not enter personal information on unknown websites. Make sure you have updated antivirus software installed and use a firewall at all times.
  • Put an Active-Duty alert on your credit reports once deployed – This will minimize the risk of identity theft as creditors and businesses cannot issue or extend credit until the identity has been verified.

Before making a charitable donation:

  • Get the correct name of the charity – With so many charities out there, mistaken identity is a common problem.
  • Avoid heartbreaking calls – It is not a wise choice to make a decision under high pressure. You always have the option of requesting information about an organization and making a donation.
  • Check the website for the basics – A charity’s mission, program and finances should be easily accessible on its website. Otherwise, search for a report at
  • Find out if the charity meets BBB charity standards – Look for a report on the BBB Wise Giving Alliance website.
  • Check with state government officials. Most states require charities to register to solicit with their attorney general’s office or the Secretary of State.

BBB says members of the military often face unique challenges when they return to civilian life and re-enter the workforce. The organization recommends starting with these trustworthy organizations to avoid scams:

  • BBB Information for military and veteran consumersBBB Information for military and veteran consumers provide free consumer education and financial literacy resources for military families and veterans.
  • US Department of Veterans Affairs (VA), the official website of the US Department of Veterans Affairs, is a hub for documents on all aspects that may impact the transition to civilian life. Information on education benefits, pensions and life insurance are all available on the official website of the Department of Veterans Affairs.
  • Veterans Employment Services Office (VESO)VESO provides resources on career opportunities within the Department of Veterans Affairs, facilitating the transition from active service to civilian life.
  • United States military assistance – Like the VA, USA Military Assistance guides a wide variety of areas. For those on active duty, military tax advice and free credit monitoring are also available at
  • Veterans Health Administration – An extension of the VA, Veterans Health Administration is a health care system specifically for veterans. The administration is also providing resources to veterans during the COVID-19 crisis.

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Online car retailer Vroom offers last mile concierge service Thu, 27 May 2021 13:30:00 +0000

DALLAS, May 27, 2021 (GLOBE NEWSWIRE) – Vroom, Inc. (Nasdaq: VRM), a leading ecommerce platform for buying and selling used vehicles, today announced the opening of a new Dallas hub and experience of More personalized access for nearly 7 million people in more than 1,000 zip codes within a 70 mile radius. Vroom has delivered to the Dallas area since the company was founded in 2012 and now offers an experience that includes a more personalized concierge service where the customer advocates transporting cars directly to the aisles of car buyers on Vroom brand trucks. and show them how to use their new vehicles. Vroom’s Dallas Last Mile hub is located in Euless, Texas.

Vroom’s mission is to provide the best possible access experience for delivery and pickup, especially as the pandemic has increased consumers’ appetite for remote car buying and selling. Car purchases by Vroom customers in the Dallas area increased 16% year-over-year from 2020 to 2021, and cars sold to Vroom by consumers were up 254%. With a focus on customer service, Vroom takes a unique approach by recruiting employees with hospitality and customer service backgrounds. Reinforced by Vroom Logistics Director Mary Kay Wegner and her logistics leadership team, led by new VP of Transportation John Piatak, who manages Vroom’s delivery centers nationwide and has joined Vroom after leading logistics at Carvana, the company recently completed its 1000th last mile delivery.

“With our valued customers in mind, creating a more personalized access experience and deploying more local hubs across the country has been a priority for us at Vroom and we are excited to launch this offering in Dallas, the one of the largest cities in Texas. and is home to the second-highest number of licensed drivers in the United States, ”Wegner said. “As we prioritize expanding the Last Mile experience nationwide, we will continue to grow and invest in our senior logistics team to support these efforts.”

Using its e-commerce platform and data-driven technology, Vroom offers thousands of low-mileage reconditioned vehicles with delivery to consumers anywhere in the U.S. It also arranges fundraising from leading lenders and offers collateral and other value-added products that provide convenience to customers. Besides providing a better way to buy a car, Vroom’s Sell us your car® This offer enables customers who want to sell or trade in their vehicles to receive appraisals in minutes, attractive market-based prices, hassle-free loan repayments and convenient vehicle pick-up.

For more information on Vroom’s car buying and selling options, visit

About Vroom:
Vroom is an innovative end-to-end e-commerce platform designed to provide a better way to buy and a better way to sell used vehicles. The company’s scalable, data-driven technology brings all phases of the vehicle buying and selling process to consumers wherever they are and offers a wide selection of vehicles, transparent pricing, competitive financing, as well as as home pickup and delivery. Vroom is based in New York and Houston and also operates the Texas Direct Auto and CarStory brands.

Media contact:
Moxie Communications Group
Alyssa galella
(562) 294-6261

Source: Vroom, Inc.

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