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Meaning / Definition of

Graduate Plus Loans

Categories: Loan and Mortgage,

Federally guaranteed loans that are available to graduate and professional students. A version of the Parent Loan for Undergraduate Students (PLUS).You might want to choose a Gradplus loan if:You like the certainty that a fixed-rate loan provides.Your credit is good, fair, or poor (your cost will likely be lower than through a private loan).You like the protection that the greater deferment and forbearance options provideThe repayment incentives offered may bring the repayment interest rate cost to a lower rate than currently available from private loans.You might want to choose a private loan instead if:You are comfortable with the possibility of interest rates increasing beyond the interest rate cap of the Gradplus loanYou have an excellent credit score. Such borrowers may be charged a lower interest rate than that of the fixed-rate GradPLUS program, but if interest rates climb, this benefit decreases or disappears altogether.You believe that there is little possibility that you would use the deferment or forbearance options.You plan to repay the loan within a short period of time.A credit check is required, but only for adverse credit history - not for credit score. Compare Graduate plus loan options.

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Definition / Meaning of

Savings Bonds

Categories: Finance,

The US government issues two types of savings bonds: Series EE and Series I.You buy electronic series ee bonds through a treasury direct account for face value and paper series EE for half their face value. You earn a fixed rate of interest for the 30-year term of these bonds, and they are guaranteed to double in value in 20 years. series ee bonds issued before May 2005 earn interest at variable rates set twice a year.series i bonds are sold at face value and earn a real rate of return that's guaranteed to exceed the rate of inflation during the term of the bond. Existing series hh bonds earn interest to maturity, but no new series hh bonds are being issued.The biggest difference between savings bonds and us treasury issues is that there's no secondary market for savings bonds since they cannot be traded among investors. You buy them in your own name or as a gift for someone else and redeem them by turning them back to the government, usually through a bank or other financial intermediary.The interest on us savings bonds is exempt from state and local taxes and is federally tax deferred until the bonds are cashed in. At that point, the interest may be tax exempt if you use the bond proceeds to pay qualified higher education expenses, provided that your adjusted gross income (AGI) falls in the range set by federal guidelines and you meet the other conditions to qualify.

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