The word debt often carries negative connotations, but there are times when debt is considered a good thing. Student loans, for instance, can be considered good debts. It would, of course, be preferable not to have to borrow money to pay for college, but not everyone can finance a higher education with private funds, scholarships or grants. For many, student loans are the next best way to finance an education.

Perkins loan

There are several different kinds of student loans. One familiar type is the Perkins loan, which is funded by the federal government. This loan generally carries a low interest rate, but it also is one of the smaller loans. Perkins loans are small, low-interest loans available to students who demonstrate exceptional financial need.

Stafford loan

The Stafford loan is another popular student loan option. A Stafford loan is also variously known as a Federal Family Education Loan (FFEL), a direct loan, and a Ford loan. Stafford loans can be funded by banks, colleges, or the government. They may or may not be federally subsidized, depending upon a student’s individual circumstances.

PLUS loans

Parents’ Loans for Undergraduate Students (PLUS loans) are another common type of educational loan. PLUS loans are not made directly to students. Rather, as the name implies, PLUS loans are made to the parents of students. A PLUS loan carries a low interest rate and the loan amount is based directly on the student’s actual cost of attending school. Loans amounts are calculated based on the cost of tuition, books, supplies, fees, and transportation costs, after deducting the amount of any other financial aid obtained by the student. A PLUS loan helps bridge the gap between the actual costs of education and other available financial aid obtained by the student.

Student loans and bad credit

Students and their parents are sometimes hesitant to apply for educational financial aid because of bad credit histories. Often, however, student loans can be obtained even with poor credit. Generally speaking, bad credit does not automatically preclude an applicant from qualifying for financial aid so long as the credit history does not include previous defaults on student loans.

Basic lending requirements

• Basic lending requirements for a Perkins loan or a Stafford loan may  include:
• A valid social security number
• U.S. citizenship or be legal non-citizenship
• High school diploma or GED
• Enrollment in or acceptance to a college offering a degree or certificate
• Demonstrable financial need

Individual qualifications and financial need vary widely from person t person, and no one can guarantee that a loan request will be approved. However, students who meet these basic requirements are encouraged to apply for loans as needed.

Tax deductions

Student loans are considered to be good debts for a several reasons. Obviously, a student-loan borrower is investing in his or her own future. Additionally, the interest paid on student loans may be deductible for income tax purposes. To find out more about potential tax benefits, student-loan borrowers should get advice from a tax professional.

An investment in yourself

In the long run, there is no better investment than an education. Although most people work hard to avoid borrowing large amounts of money, some debts – and student loans in particular — are worth incurring. Even for people with bad credit, student loans are available to help those people who are interested in achieving high academic goals do exactly that.

Amid record foreclosures, home prices continue to fall at record rates.

Homeowners who lost their homes or fell behind on mortgage payments may be comforted to know that no credit check payday loans can help them in times of financial crisis. However, homeowners who are still paying off their houses probably won’t like what I have to say next: The value of your home has fallen, and it is still going down.

Home prices in the U.S. broke records in November, when they fell 18.2 percent. That is the largest month-over-month  drop the U.S. housing market has seen.

A new reality

Composite data from cities that Standard and Poor has tracked show that home prices have fallen every month for 28 months. It used to be that homes represented good debt, meaning debt that would later create a profit or return on an investment. No credit check payday loans can represent a lucky break for people who have fallen victim to bad debt and gotten black marks on their credit reports.

However, now it seems that homes are in the same boat as cars: they drop in value as soon as you drive them off the lot. Or, in the case of homes, they drop in value as soon as  you sign the mortgage papers. Now would be a great time to buy a home in cash, but we all know that about 1 percent of the population has enough money to do that.

A little help

For homeowners who are in danger of foreclosure, there is a glimmer of hope. The Federal Reserve today adopted some new policies to prevent foreclosures. Specifically, the Fed will modify mortgages that were “rescued” from Bear Stearns Cos. and American International Group Inc.

For people with touchy credit who need to be rescued from overdrawing their bank accounts, no credit check payday loans can save the day.