Archive for September, 2015

Defaulted Student Loans: Don’t Take Them Lightly

Saturday, September 26th, 2015

By Wade Robins

One of the terms you agree to when you accept a student loan is that you will be required to start repaying your loan either when your status as a full-time student changes, or at some specified point following your graduation. If you reach either of those milestones and do not make your required loan repayments, you will have defaulted on your student loans. And having defaulted student loans on your credit history can negatively affect your financial future for years, so you should avoid defaulting if at all possible.

The inclusion of defaulted student loans on your credit history will be a red flag for all future lenders to whom you apply for loans, be they automobile loans, home mortgages, or credit cards. Your defaulted student loans are a sign that you are not serious about your financial obligations, and you may not realize that having a poor credit rating can result in your not qualifying for certain jobs. You can even be turned down for some types of insurance, or by some landlords, if your credit rating is poor.

As unfair as it may seem, your credit score has a direct and significant effect on your quality of life. Having a record of defaulted student loans can not only interfere with your finding a job, housing, or insurance; it could end with your being sued for repayment and having to pay back not only what you owe on the loans but accumulated interest and penalties as well.

Defaulted Student Loans Will Cost You Dearly

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You may think that because you are still young, and have plenty of time to build your credit record so that the defaulted student loans do not weigh so heavily against it, you will not be adversely affected for very long. But simply because of those defaulted student loans your opportunities to prove yourself creditworthy with other lenders are apt to be few and far between, so you need to figure out how to get rid of the defaults as quickly as you can.

Your Solutions

The first line of defense against defaulted student loans is simply to pay your payments consistently and on time. But if you have a legitimate financial crisis which eliminates this option, there are alternatives available to help you avoid defaulting.

You should definitely investigate your student loan deferral options, which is designed expressly to let your extend your repayment grace period during times of financial difficulty, or in other situations which may make repayment difficult, as long as they are not of your doing.

If, you see the possibility of defaulted student loans in your future, you should let your lender know before you start missing your payments. Contact the board of education in your state to find out if there are any payment deferral options. If a student loan consolidation will help, investigate the possibilities. You may find that by consolidating your student loans you will lower your total monthly payments, so that the possibility of having to default disappears.

Defaulted student loans will be a black mark on your financial history for years to come, so do whatever you can to get your repayment plan under control!

About the Author: You can also find more info on education loans and is a comprehensive resource to get your all financial solutions.


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South African prosecutors charge ANC leader Jacob Zuma with corruption

Saturday, September 26th, 2015

Saturday, December 29, 2007 


Corruption-related charges have been brought against Jacob Zuma, the newly-elected leader of the African National Congress (ANC), according to his lawyer. A trial is scheduled to begin on August 14, 2008.

The charges stem from an arms deal with a French company, which is alleged to have involved bribes and fraud. Zuma’s financial adviser at the time, Schabir Shaik, was convicted in 2005 of attempting to solicit a bribe of US$72,500 per year from the arms company on Zuma’s behalf and was sentenced to 15 years in prison. Zuma was fired as deputy president in 2005 by South African President Thabo Mbeki due to the scandal.

Two-term ANC leader Mbeki recently lost an ANC leadership contest to Jacob Zuma, who garnered about 60 percent of delegate votes in his win.

Zuma had been charged with corruption in 2005, but the case was dismissed on procedural grounds. Michael Hulley, Zuma’s defence lawyer, indicated that they will strongly contest the new charges in court. Hulley also suggested that the South African government’s National Prosecuting Authority (NPA) and its anti-organised crime division known as The Scorpions, have carried out a smear campaign against Zuma.

“These charges will be vigorously defended, in the context of the belief that the Scorpions (NPA) have acted wrongly and with improper motive calculated to discredit Mr. Zuma and ensure that he play no leadership role in the political future of our country,” said Michael Hulley in a statement.

Given that the ANC has been the governing party in South Africa since the end of apartheid in 1994, it is likely that Jacob Zuma could become the next president after general elections in 2009. Zuma has said, however, that he would resign if he was found guilty by the courts.

Commonwealth Bank of Australia CEO apologies for financial planning scandal

Saturday, September 26th, 2015

Thursday, July 3, 2014 

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.