Sometimes senior citizens need money and it could be more many different purposes. Some seniors need money to fix their homes, some need money to pay their living expenses, and some may want money to go back to school. Whatever the reason may be for needing money, seniors can usually get loans for senior citizens.
If you own a home and are over the age of 62, you may want to look into reverse mortgages. Reverse mortgages would be available to you if you have equity in your home. The equity would be turned into cash and paid to you on a monthly basis. You could also take a lump sum payment as well. The good thing about reverse mortgages is that the money you receive is not taxable because it is an advance. The loan is due which includes the principal and the interest if you die, sell the property, or move out of the house. The maximum amount that you can take out on the loan cannot exceed $625,500. Once you take out the loan, you can use the money towards anything you want. There are no restrictions.
For seniors that want to go back to school or continue their education but have no money, you can get federal subsidized loans for school. The most well known federal loan is the Stafford loan which is for people that intend to pursue an undergraduate or graduate degree. There are two types of Stafford loans. The first type is subsidized and the second is unsubsidized. With the subsidized loan, it would not accrue any interest as long as you are enrolled in school for half time. This type of loan is based on financial need. The unsubsidized loan is not based on financial need and it will begin accruing interest as soon as you take out the loan. Both loans do not require credit checks and they have low fixed interest rates which are guaranteed by the government. However, the subsidized loan does have a lower interest rate than the unsubsidized loan. In order to apply for the Stafford loan, you have to fill out the Free Application for Federal Student Aid (FAFSA). You can also get student loans for college through other private sources. However, since they are not guaranteed by the government, they will carry a higher interest rate than the Stafford loans.
For seniors that need short term loans, you may want to think about getting payday loans. These loans are unsecured notes where you have to pay back the loan and fees when you get your pay the next time around. Therefore, you would have to pay back the loan within two weeks to a month. You won’t be able to borrow a lot of money. Typically you can expect to get up to a couple thousand dollars. These loans are meant to be used for emergencies. For example, say your car broke down and you don’t have enough money to fix it until the next pay period. You could then get a payday loan to hold you over until your next pay day.
Before you take out a loan, evaluate the amount of money that you need and consider your ability to pay back the loan. Be sure to do your homework and compare the fees and interest on any loan that you plan to take out.