Get A Refinancing Mortgage Loan To Erase Off Debts And Avoid Foreclosures

A refinancing mortgage loan allows borrowers to roll over excessive debts arising out of credit cards, student loans, car loans, etc. But while obtaining one you need to make sure that you would lead a more responsible life that is free from any kind of new debts.

The process of refinance debt consolidation seems to be gathering more and more popularity with every passing day. On account of the current phase of economic downturn, many people have lost their jobs as well as homes. There could be few who have even been laid off by their employers. In such situations, finding a new job could be a further challenging task since the chances of getting a better pay than the earlier source of employment are grim. Nevertheless, one can always do something to reduce his liabilities and make life much easier. After all, you simply can't afford to keep on doing the same thing again and again! All that is required is just do it once and embark upon a more responsible life that is free from any kind of new debts. That could certainly help you to avoid being homeless in near future.

You may have heard of refinancing mortgage loan solutions being secured for erasing off debts through a process of debt consolidation. People usually obtain home refinance loans when mortgage rates are low specifically with the purpose of paying off existing high interest mortgage loans. The primary objective behind this is to take advantage of lower rates of interest and save tens of thousands of dollars that were otherwise being dished out on current mortgage debts. It might sound to be quite unrealistic but the good news is that it's actually real these days! Equally true is the fact that interest rates will not keep on dropping to new lows forever. Thereby, there is a need to refinance your home at the right time and the decision has to be a judicious one in order to help you attain the objective of living a completely debt free life.

It's possible to consolidate excessive debts by obtaining a refinancing mortgage loan with much lower interest rates. If you have debts accrued from credit cards, auto loans, student or education loans, etc., you could roll them all into one single debt with a refinance home loan. As a result, you could be only required to handle one debtor and one amount besides being helped to analyze your own financial situation. Such a process of debt consolidation could enable you completely get rid of your overall secured and unsecured debts. But there could be a word of caution. If you default in paying even the new lower monthly installments, your home could still be foreclosed as mortgage refinancing requires borrowers to pledge their home or home equity against the financial credit facility provided.

To get more useful information on your low interest rate debt consolidation options, it is strongly recommended to utilize the professional services offered by reputed online service providers like DebtConsolidation123.

The Partisan Battle Over For-Profit Education

When Republicans seized control of the United States House of Representatives in last November's elections, there was wide speculation that it was a victory for the for-profit education industry. Analysts understood that a Republican House would likely stand in the way of legislation calling for the type of stringent regulations commonly advocated by several Democratic lawmakers.

Sen. Tom Harkin, Democrat from Iowa and chairman of the Health, Education, Labor, and Pensions Committee, held a series of high-profile hearings in 2010, accusing for-profit schools (many of which are predominantly online universities like the University of Phoenix, Kaplan University, and Strayer University) of abusing taxpayer-funded federal student loan dollars for the sake of their bottom lines.

Sector analysts are confident that any standalone legislation calling for further regulation of the for-profit education industry from Harkin and allies in the Senate won't carry as much momentum as it might have in 2010. "I don't think that any legislation that's proposed by Harkin or Dick Durbin (D-Ill.) has any chance even of making it out of the Senate, much less getting through the House," says Trace Urdan, a for-profit education analyst and managing director at investment bank Signal Hill Capital. 

[Learn more about online education.] 

While Democrats hoping to further regulate the for-profit education industry may not be able to pass sweeping legislation, they do have a significant amount of leverage thanks to an exemption critical to for-profit schools that expires in July. The schools are currently exempt from a rule that requires at least 10 percent of their revenue to come from sources outside of federal aid. Most major for-profit schools rely on the exemption for survival and will need an extension, or else they'll be forced to raise tuition prices and risk running afoul of new gainful employment regulations designed to keep the cost of college commiserate with potential earnings, analysts say. 

Jarrel Price, an analyst and vice president at research firm Height Analytics feels Senate Democrats, who could stand in the way of this extension, will ultimately concede to the industry because schools like the University of Phoenix, which boasts more than 380,000 students according to the Department of Education, are "too big to fail." However, Democrats won't concede without making demands of their own, knowing that many for-profit schools would falter without an extension. "Tom Harkin will demand his pound of flesh," says Urdan. What that regulatory pound of flesh might be, is unclear, both analysts say. 

[Read about last year's government crackdown on for-profit schools.] 

Democratic lawmakers have pushed for regulation in hopes of benefiting consumers like Shannon Croteau, who wanted her husband, a truck driver, to scale back his working hours so he could spend more time with her and their three children. However, if he reduced his hours, she knew she would have to go back to school to earn a job that would pay enough to make ends meet. She enrolled in a Kaplan University Online program in paralegal studies in 2008 in the hopes of boosting her income. She claims Kaplan recruiters told her that the program was accredited, but maintains that before she could finish her degree she learned that the program wasn't accredited in her home state—New Hampshire—and that she amassed more than $30,000 in student loan debt with no degree to show for it. "Financially, it's a huge, huge impact because now [my husband] has got to work even harder," she says. "[Plus], I couldn't walk into a paralegal's office right now and do what they're supposed to do." 

Kaplan maintains that Croteau's plight is of her own making because of prior debts. "This student incurred a significant part of her debt before she enrolled at Kaplan University, and she reached her federal loan limit," according to a Kaplan University statement. "Although Kaplan cannot forgive loans to the federal government, we have forgiven her financial obligations to Kaplan. As we do with all students, we have tried to work with her to allow her to complete her degree, but she has resisted all of our efforts."