The borrower never knows that they're put in that type of loan.
In countries with large Islamic populations, even the idea of mortgages (or any type of loan with interest), is viewed with suspicion.
FORBES: Mortgage Interest Deduction: Take My Toaster Oven. Please.
Beyond awareness, microloans and a specific type of loan called 504 loans have to be made through nonprofit organizations, both faith-based and secular.
But the bottom line is more simple than that: Bonds are a type of loan for which you can expect the return of your principal in time.
Both private and government loans, however, lack "the most fundamental protections we take for granted with every other type of loan, " says Alan Collinge, founder of StudentLoanJustice.org, an advocacy group.
There are questions that need to be asked in every single one of our financial dealings going forward whether it is for an investment, insurance or any type of loan.
FORBES: Your Financial Advisor's Payday: Are Commissions Contrary to Your Financial Well-Being?
Others allegedly were steered into costly subprime loans, even though they could have qualified for a prime mortgage, the type of loan offered to borrowers with the best credit histories.
Foreclosure can take up to 12 years with a traditional mortgage, but a newish type of loan, which withholds full control of the property until it is paid off, cuts the time of repossession to 12-18 months.
ECONOMIST: Lower inflation has done wonders for finance and industry
While no one wants to file for bankruptcy protections on student loans (or any other type of loan for that matter), their removal from student loans has clearly caused a systemically predatory lending system the likes of which this country has never seen, and has also enabled the intolerable tuition inflation already mentioned.
FORBES: Note for "Super Wednesday" - Either Party Can Occupy the Student Loan Issue
More student borrowers turn to subsidized Stafford loans than any other type of college loan.
"They're not looking for any type of exotic loan that wasn't available in the past, " says Gingold.
The last time interest on either loan type hit those kinds of lows was the late 1930s during the Great Depression.
Mr. Obama's plan is purely for fixed, not floating, rates at the 10-year Treasury rate plus 0.93% or 2.93% depending on the type of Stafford loan, and it has no rate cap.
Since 2005, even private, unsubsidized student loans -- the fastest-growing, highest-cost type of student loan, tantamount to putting college on your credit card -- have been immune to bankruptcy claims, as well.
In short, investors are dealing with a new set of complex securities, based on loans to a new type of borrower, where the loan terms and conditions may not be clear and at a time when house prices are falling nationally for the first time in living memory.
In many cases, banks are now requiring this type of protection to approve a small business loan.
If your new company has debt on the books, regardless of the type of debt, you will be denied a loan.
It was that we turn a corner away from the type of excessive risk-taking that got us into having to ask the taxpayers to loan banks hundreds of billions of dollars.
应用推荐