What Are the Average Payday Loan Interest Rates?

average student loan interest rate 

If you’re borrowing money for school, it’s important to understand how student loan interest works and to shop around for loans with the lowest rates possible to avoid spending more than necessary on your educational debt.

Student loan interest rates can vary depending upon the type of loan you take, so when you research the average interest rate on student loans, you’ll need to look into whether the loan is a federal loan or a private loan and whether it’s available to undergraduates, graduate students, or parents.

At paydaynow is the information you need to know about different kinds of loans.

Average student loan interest rates today

When it comes to federal student loan interest rates, there technically is no “average” because rates are set by the government each year and do not change based on the characteristics of individual borrowers. This means there is just one set rate for each type of loan.

The average student loan rate varies only depending on the type of loan — including whether it’s a federal or private loan — and the type of degree.

The rates for private student loans, on the other hand, are determined by each lender and can vary depending on the qualifications of the borrower.

Federal student loan interest rates

The average student loan interest rate in 2017 ranges from 4.45% to 7.00%. Interest rates for different types of loans are as follows:

 

Lender Loan Rates (Min/Avg/Max)
Acumen Student Loans Acumen Private Student Loan 3M LIBOR + 2.99% to 3M LIBOR + 8.99%
Charter One TruFit Student Loan Variable: 1-month LIBOR + 2.50% 1-month LIBOR + 9.25%
Fixed: 5.75% to 11.75%
Citizens One Citizens One Student Loan™ Variable: 1-month LIBOR + 2.50% 1-month LIBOR + 9.25%
Fixed 5.75% to 11.75%
  Citizen One Student Loan™ for Parents Fixed: 6.69% to 6.79%
Citizens Bank Citizens Bank Student Loan™ Variable: 1-month LIBOR + 2.50% 1-month LIBOR + 9.25%
Fixed 5.75% to 11.75%
  Citizens Bank Student Loan™ for Parents Fixed: 6.69% to 6.79%
College Ave Student Loans College Ave Student Loan- Undergraduates Variable rates from 1M LIBOR + 1.93% to 1M LIBOR + 9.64%
  College Ave Student Loan- Graduates Variable rates from 1M LIBOR + 4.24% to 1M LIBOR + 6.24%
One fixed rate of 6.75%
Commerce Bank Your Future Education Loan Variable Rates: 1-month LIBOR + 2.00% (2.25% APR) to 1-month LIBOR + 8.875% (9.37% APR) Fixed Rates: 5.75% (5.74% APR) to 8.375% (8.56% APR)
Connecticut Higher Education Supplemental Loan Authority CHESLA Loan 4.95% fixed annual rate (non-tiered, simple interest)
Credit Union Student Choice Student Choice Education Loan Line of Credit 3M LIBOR + 3.00% to Prime +8%
cuStudentLoans.org cuScholar Private Student Loan 3M LIBOR + 2.99% 3M LIBOR + 8.99%
Dakota Education Alternative Loan School Certified — Fixed Rate FHLB 10-Year Advanced Rate + 2.00% (ND) or FHLB 10-Year Advanced Rate + 3% (otherwise)
  School Certified — Variable Rate 3-month LIBOR + 1.50% (ND) or 3-month LIBOR + 2.50% (otherwise)
Discover Student Loans Discover Undergraduate Loan Fixed Rates: 6.15% to 11.99% APR Variable Rates: 3-Month LIBOR + 2.62% to 3-Month LIBOR + 8.74% (starting rates range from 2.99% APR to 9.12% APR).
  Discover Graduate Loan Fixed Rates: 6.15% to 11.24% APR Variable Rates: 3-Month LIBOR + 2.62% to 3-Month LIBOR + 8.24% (starting rates range from 2.99% APR to 8.62% APR).
  Discover Health Professions Loan Fixed Rates: 6.15% to 9.99% APR Variable Rates: 3-Month LIBOR + 2.62% to 3-Month LIBOR + 7.24% (starting rates range from 2.99% APR to 7.62% APR).
  Discover Law Loan Fixed Rates: 6.15% to 9.99% APR Variable Rates: 3-Month LIBOR + 2.62% to 3-Month LIBOR + 7.24% (starting rates range from 2.99% APR to 7.62% APR).
  Discover MBA Loan Fixed Rates: 6.15% to 9.99% APR Variable Rates: 3-Month LIBOR + 2.62% to 3-Month LIBOR + 7.24% (starting rates range from 2.99% APR to 7.62% APR).
  Discover Residency Loan Fixed Rates: 6.49% to 9.99% APR Variable Rates: 3-Month LIBOR + 3.74% to 3-Month LIBOR + 7.24% (starting rates range from 4.12% APR to 7.62% APR).
  Discover Bar Exam Loan Fixed Rates: 6.15% to 11.24% APR Variable Rates: 3-Month LIBOR + 3.74% to 3-Month LIBOR + 8.49% (starting rates range from 4.12% APR to 8.87% APR).
Graduate Leverage School-Certified Private Loans (Undergraduate) 1-month LIBOR + 1.75%
1-month LIBOR + 10.0%
  School-Certified Private Loans (Graduate) 1-month LIBOR + 1.75%
1-month LIBOR + 10.0%
  Medical Residency & Relocation Program 1-month LIBOR + 5.00%
1-month LIBOR + 8.00%
1% interest rate reduction upon entering repayment
  Dental Residency & Relocation Loan Program 1-month LIBOR + 5.00%
1-month LIBOR + 9.00%
1% interest rate reduction upon entering repayment
  Veterinary Internship & Relocation Loan Program 1-month LIBOR + 5.00%
1-month LIBOR + 9.00%
1% interest rate reduction upon entering repayment
  Bar Study Loan 1-month LIBOR + 3.00%
1-month LIBOR + 12.00%
1% interest rate reduction upon entering repayment
Higher Education Servicing Corp. (Texas) Texas Extra Credit Education loan Variable: 3M LIBOR + 2.99% to 3M LIBOR + 8.99%
Independent Community Bankers iHelp Student Loan 3M LIBOR + 2.50%
3M LIBOR + 6.80%
Maine Education Loan Authority The Maine Loan Immediate Repayment – 5.50% fixed, interest only – 6.50% fixed.
Full deferment- 7.50% fixed
  The Maine Medical Loan Immediate Repayment – 5.50% fixed, interest only – 6.50% fixed.
Full deferment- 7.50% fixed
Massachusetts Educational Financing MEFA Loan for Undergraduate Education 5.99% fixed during the anticipated in-school period, 7.24% thereafter (APR 7.26% – 7.83%)
  MEFA Loan for Undergraduate Education 6.29% fixed during the anticipated in-school period, 7.29% thereafter (APR 7.40% – 7.76%)
  MEFA Loan for Undergraduate Education Deferred Repayment / 15 Years 7.59% fixed (APR 7.52% – 8.18%
  MEFA Loan for Undergraduate Education Interest-Only Repayment / 15 Years 7.09% fixed during the anticipated in-school period, 8.09% thereafter (APR 8.15% – 8.55%)
  MEFA Loan for Undergraduate Education Student Loan Deferred Loan / 15 Years 8.00% fixed (APR 7.95% – 8.68%)
  MEFA Loan for Graduate Education Interest-Only Repayment 7.09% fixed during the anticipated in-school period, 8.09% thereafter
  MEFA Loan for Graduate Education Deferred Repayment 7.59% fixed (APR 7.89% – 8.18%)
Minnesota Office of Higher Education SELF Loan (cosigner required) Fixed 7.25% Variable 3M LIBOR + 3.00% rounded to nearest 10th of a percent, adjusted quarterly, 3.00% cap on interest rate changes in any 12 month period.
New York State Higher Education Services Corporation (HESC) NYHELP’s Principal & Interest Payments During In-School/Grace Period 7.55% fixed
  NYHELP’s Interest-Only Payments During In-School/Grace Period 8.25% fixed
  NYHELP’s Full Deferment of Principal and Interest During In-School/Grace Period 8.75% fixed
PNC Education Lending PNC Solution Loan for Undergraduate Students Variable Rate: 3.51% – 10.46% (APRs 3.43% to 10.45%) Based on LIBOR + 3.30% to LIBOR + 10.25%
  PNC Solution Loan for Graduate Students  
  PNC Solution Loan for Health Professionals  
  PNC Solution Loan for Health Professionals  
  PNC Solution Loan for Bar Study  
Regions Bank Smart Option Student Loan — Interest Repayment Option Variable rates: 1-month LIBOR + 2.00% (2.25% APR) to 1-month LIBOR + 8.875% (9.11% APR) Fixed rates: 5.75% (5.74% APR) to 11.875% (11.95% APR)
  Smart Option Student Loan — Fixed Repayment Option Variable rates: 1-month LIBOR + 2.50% (2.75% APR) to 1-month LIBOR + 9.375% (9.09% APR) Fixed rates: 6.25% (5.74% APR) to 11.875% (11.85% APR)
  Smart Option Student Loan — Deferred Repayment Option Variable rates: 1-month LIBOR + 3.00% (3.17% APR) to 1-month LIBOR + 9.3875% (9.37% APR) Fixed rates: 6.75% (6.41% APR) to 12.875% (11.69% APR)
Rhode Island Student Loan Authority (RISLA) Rhode Island Family Education Loan (RIFEL) 6.39% fixed (immediate repayment) with a 10-year repayment term. 7.49% fixed (defer repayments up to 6 months after graduation; 54 months deferment limit unless borrower enrolled full-time in a 5-year program or graduate school) with a 15-year repayment term
Sallie Mae Smart Option Student Loan® Variable Rates: 1-month LIBOR + 2.00% (2.50% APR) to 1-month LIBOR + 9.88% (9.59% APR) Fixed Rates: 5.75% (5.74% APR) to 12.88% (11.85% APR)
  Career Training Smart Option Student Loan Variable Interest Rates: 1-month LIBOR + 4.25% (4.75% APR)
  Sallie Mae Bar Study Loan Variable Rates: 1-month LIBOR + 3.00% (3.50% APR) to 1-month LIBOR + 9.75% (10.20% APR)
  Sallie Mae Residency and Relocation Loan Variable Rates: 1-month LIBOR + 3.00% (3.46% APR) to 1-month LIBOR + 9.75% (9.85% APR)
SoFi, Inc. SoFi Fixed Rate Student Loan 6.45% (fixed)
South Carolina Student Loan Network Palmetto Assistance Loan 7.15% to 9.15% (fixed)
Student Loan Network Act Education Loan for Undergraduate Students LIBOR + 3.50% to LIBOR + 7.75%
  Act Education Loan for Graduate Students LIBOR + 3.50% to LIBOR + 7.75%
  Act Education Loan for Continuing Education LIBOR + 3.50% to LIBOR + 8.00%
  GradLoans.com Graduate Student Loan LIBOR + 4.95% to LIBOR + 7.75%
  GradLoans.com Medical Student Loan  
  GradLoans.com Dental School Loan  
  GradLoans.com Law School Loan  
  GradLoans.com MBA Student Loan  
  GradLoans.com Bar Exam Loan  
  GradLoans.com Medical Boards Exam Loan  
  GradLoans.com Medical Residency/Relocation Loan  
  GradLoans.com Dental Boards Exam Loan  
  GradLoans.com Dental Residency/Relocation Loan  
  InternationalStudents.com – Undergraduate LIBOR + 3.50% to LIBOR + 7.75%
  InternationalStudents.com – Graduate LIBOR + 3.50% to LIBOR + 7.75%
  StudyAbroadLoans.com – Undergraduate Students Studying Abroad LIBOR + 4.95% to LIBOR + 7.75%
  StudyAbroadLoans.com – Graduate Students Studying Abroad LIBOR + 4.95% to LIBOR + 7.75%
SunTrust Education Loans Custom Choice Loan Fixed 3.75% to 12.25% Variable: 1-month LIBOR + 2.25% to 1-month LIBOR + 12.25%
Union Federal Union Federal Private Student Loans 3M LIBOR + 2.60% to 3M LIBOR + 8.99%
Wells Fargo Private Student Loans Wells Fargo Collegiate Loan Variable Rates: PRIME + 0.25% to PRIME + 6.76% (Current APR: 3.402% to 9.242%) Fixed Rates: 6.99% to 13.74% (APR 6.62% to 12.36%)
  MedCAP Alternative Loan Variable Rates: PRIME + 1.50% to PRIME + 4.00% Fixed Rates: 7.79% to 9.99%
  MedCAP XTRA Variable Rates: PRIME +4.50% Fixed Rates: 7.79% to 9.99%
  Wells Fargo Graduate Loan Variable Rates: PRIME + 1.50% to PRIME + 5.00% (APR: 4.680% to 8.036%) Fixed Rates: 7.79% to 9.99% (APR 7.6% to 9.675%)
  Wells Fargo Bar Exam Loan Variable Rates: PRIME +4.50% Fixed Rates: 7.79% to 9.99%
  Wells Fargo Private Student Loan for Career and Community Colleges Variable Rates: PRIME + 2.25% to PRIME + 8.74% Fixed Rates: 8.99% to 15.74%
  Wells Fargo Private Student Loan for Parents Variable Rates: PRIME + 0.25% to PRIME + 6.49% Fixed Rates: 7.48% to 13.33%

Historical student loan interest rates

Though the interest on your student loans can accumulate and make it harder to pay down the principal, average student loan interest rates are pretty low today by historical standards.

Take a look at how federal rates have changed over the last 20 or so years, with some highlights:

1992-93, 6.94% average interest rate on student loans: This is the year that variable interest rates appeared for student loans. If close to 7.00% seems high enough, loans issued in the prior decade stay at a fixed rate of 8.00% to 10.00%!

1993-94, 6.22% rate: The federally-backed Direct Loan program was started by Congress to give borrowers more options apart from banks.

1998-99, 7.46% rate: Congress incorrectly predicted that direct loans would have entirely replaced private loans, even though they still represented more than half of all student loans.

2008-09, 6.00% interest rate: After a few years when the Stafford Loan interest rate was fixed at 6.8%, Congress approved a reduction to 6.00% for Federal Stafford Loans.

2010-11, 4.5% subsidized Federal Stafford Loans, 6.8% other loans: Lawmakers eliminated bank-based federal loans and made all loans available directly.

In 2013, President Obama signed the Bipartisan Student Loan Certainty Act, which marked a change in how student loan interest rates are calculated.

According to the Edvisors Network, APRs on all loans taken out after July 1, 2013, are linked to the current 10-year U.S. Treasury rate. The law also capped all Stafford Loans at 8.25% for undergrad students and 9.50% for grads.

Obama’s mandate also stipulated that while rates would remain fixed and there would be no more variable loans, each year’s student loan average interest rate could fluctuate depending on market conditions.

In 2017, Senator Richard Burr of North Carolina announced in a press release that student loan interest rates remained near historic lows because of the Bipartisan Student Loan Certainty Act. Burr stated the law has saved borrowers $58 billion in student loan interest since it went into effect.

However, loan interest rates did rise for the 2017 to 2018 school year for new borrowers. MarketWatch indicated the decision to raise rates was influenced by the Federal Reserve.

What does this mean for you?

If you took out your loans years ago when interest rates were much higher, or at a time when your credit score was lower than it is today, it might be worth looking into ways to lower your interest rate so you could save thousands of dollars over time.

By refinancing your student loans to lower your interest rate, you could potentially cut your repayment costs significantly. Our student loan refinancing calculator can help you determine if you could save money by lowering your rate.

Of course, refinancing isn’t for everyone, so do your homework to find out if it’s a good option for you. In fact, you can start with the 10 questions to ask before refinancing your student loans to find out if refinancing might be the right choice for you.

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How to differentiate a debt consolidation

Surely more than once you have thought that you are very indebted, to the extent of saying that you are what follows the debt: drugged. But is it really like that? Something that surely you had not put to think is that there are different types of debt and each one has its own characteristics.

It sounds weird, does not it? How will there be good debt and bad debt? The simple fact of listening to the word to many makes us the creeps. When things get worse, we even begin to say that we are in a broken bank, but it does not have to be that way. Think for a moment what you have acquired with your debts.

Surely part of your debt is destined to the payment of an asset that is profitable, for example, a house but, if your debt is rather destined to the payment of things that are not essential then why do you keep paying it? Of course, in order to continue, it would be important for us to define what the debt is about.

The debt is nothing else than the obligation that the person who borrows something contracts and, according to the agreed condition, he must reimburse the person who lent it.

In this case, the one that requested is the debtor while the one that lent is the creditor. The debt itself is not the amount borrowed or what is owed, but in the end, both elements make up our “debt”.

For example, in a bank loan the one who asks for the money is the debtor while the bank that loans are the creditor, the amount is the amount of the loan or the capital, the term and the interest rate are the conditions of the loan, and the debt is nothing more than returning the capital within the agreed term and with the interest rate fixed.

Note: the amount owed is no longer the amount initially requested but the sum of the requested capital plus the interest that corresponds. So, although it sounds crude, if you have asked for a loan or had a credit card you have acquired a commitment that implies a debt with you.

But, suppose everything is in order. You pay your bills on time, and your debt level is healthy and optimal. If so, you have nothing to worry about, but you would be surprised to know how many people there are whose main goal is to end their debts or at least not to borrow more.

It is more: there are people who hire another debt to get rid of one or other that put lower quotas and much longer terms but, unknowingly, with more interests.

Thus, credit has become the way we acquire most of our assets, but how can we know if this is completely healthy?

Throughout the following article, we will propose a list of those things that can be considered as a good debt and a bad debt. In reality, none is bad in itself, but it is true that there are some that can lead to hundreds of problems if you do not commit to liquidate.

Bad debt

One of the great advantages of credit is that they allow the acquisition of products that would be very difficult to pay in one fell swoop, for example, a refrigerator or a washing machine. However, it is very easy to fall into debt at any moment when we begin to purchase products with our credit card.

The temptation is present everywhere: rebates here and there, months without interest in the purchase of products that you do not need and superfluous expenses that ultimately end up beating our ability to pay. The bad debt is nothing other than the one that we paid off because after all there is nowhere to recover it.

Generally, this debt finances pure consumption and many analysts indicate it as the debt of poor people, those who generally try to finance a lifestyle that does not belong to them because they buy only the appearance of wealth.

In addition, this debt is ranked as the most expensive in the world because once consummated, it jeopardizes the income of the future. To make matters worse, the bad debt is one that does not produce economic benefits for you but only loss.

The answer is obvious: the bank is getting rich with what you pay interest and although that is part of the business, just because you wanted to have something fast now you live paying a debt that you created yourself.

Another characteristic of bad debts is that you need a large amount of money to be able to cancel them. In this way, bad debt includes things that we do not need or that we should not allow at some point.

For example, suppose you see a 60-inch TV on sale for months. Your current TV works well and is a little smaller do you take the new offer?

If your answer was yes, it is most likely that you are one of those people who like to acquire “bad debt”. Later we will see some keys to avoid this type of problem, but for now, let’s review what a good debt is about.

Good debt

Now that you know that you buy things without control or without care, you probably feel limited and think about what your money is for if in the end, you can not spend it on whatever you want.

The good news is that there is “good debt”. Imagine: if in general terms it makes sense to get into debt for the acquisition of goods and services, how to know what is worth it?

The important thing is to find out what we are going to get in exchange for the debt, and it is not just a television. A good debt increases its value over time so that in the future the acquired good is worth more than the price it had initially, for example, a property.

In addition, good debt can generate income or reduce expenses for the concept of amounts that exceed the costs of the debt. What do we mean?

There are hundreds of things that can be bought and which we can take advantage of, such as a car, a house or apartment, the education of our children or the opening of a business.

Good debts are paid on their own, they are investment calls and they provide money through the impulse of other companies. For example, if you buy an apartment and put it on rent you can obtain resources that can help you liquidate the bank’s mortgage, and also, give you a significant profit.

To make matters worse, the good debt benefits the two contracting parties: the bank receives its interest and the person who acquired the debt “leverages” to grow its capital. So, now that you know what debt consolidation services are about, why not start using it to your advantage?

Remember to always settle your commitments on time, and if you have a business in mind, consider the option of acquiring a loan so you can start it at the same time that the debt is paid alone.

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Annulled in Cantabria the first clause of expenses that makes reference to the condition of buyer of the client

The Court of First Instance and Instruction No. 1 of Santander has issued a pioneering judgment in Spain for the annulment, for the first time in our country, of the clause of expenses of a deed of sale of housing with subrogation and mortgage novation (the conditions financial statements are referred to a previous loan to which some modification is added) referring to the status of buyer and not of the customer’s borrower.

In the resolution, which may affect “thousands” of mortgaged who are in a similar situation, the judge rejects the bank’s argument that it was not entitled to be sued because it was not a seller, but a lender. The magistrate has “no doubt” that the clause “covers the attribution to the borrowing buyer not only of the purchase and sale expenses but also those of subrogation and novation, since (the clause) expressly refers to all the expenses and taxes that are derived from the present grant “.

In sales with subrogation – with or without novation 

In sales with subrogation - with or without novation 

the clauses of expenditure are usually shorter than in mortgage loans, and no reference is made to the borrowing party, but to the buyer and the seller, which in principle seemed to make it impossible to claim of the clause since the expenses of the sale are not refundable. Thus, the banks alleged that they were not entitled to be sued since the clause referred to the expenses of the sale, which should be claimed from the selling party and not from the lender.

However, in this new ruling, which has been accessed by Europa Press, the judge of the First Instance body of Santander Javier Gómez Hernández considers that Liberbank is legitimized in this judicial process as regards the nullity of the clause referring to the expenses originated by the subrogation and novation of the loan, clause with which “all” of the operation “without exception” is “moved” on the consumer, while the bank “does not assume any expense”.

“The entity had to proceed to make an equitable distribution” but “it did not” and this caused a “significant imbalance” in the client that had not accepted these conditions in an “individualized” negotiation, according to the ruling, which condemns the bank in which integrates the old Caja Cantabria to return 785 euros for notary fees, registration and management of subrogation and novation of the loan to a man who in December 2010 signed the deed with a nominal 185,200 euros.

The loan to which the applicant was subrogated dated February 2008 and two years later was subject to an extension in which a ground clause was established, which has also been declared void by the judge, considering it abusive, and which involves a refund € 3,725 to the client, defended by the lawyer Juan Manuel Brun Murillo.

COST AND SOIL CLAUSE

The ruling, derived from a double claim, fully estimates the request that the floor clause of the mortgage loan be declared void, and partially accepts the same request for the expenses derived from the deed of sale as it accepts the return of the notaries, registration and of management, but not the Tax of Documented Legal Acts, on which the Provincial Court of Cantabria decided last November that must be paid by the client.

The judge considers the clause of expenses of the deed of sale

The judge considers the clause of expenses of the deed of sale

mortgage subrogation and novation “abusive” and declares it “null in its entirety”, because “widely attributed to the consumer all expenses arising from the operation without distinction causing an imbalance important in the rights and obligations of the parties that derive from the contract “. In this regard, it adds that the same arguments of the judgment of the Supreme Court of December 2015 regarding the constitution of the mortgage loan can apply to the novation, since in this case also the “principal” interested in the documentation and its registration in the registry is the lender- main url.

And on the fact that the client has accepted the expenses “without objection”, the magistrate reasons that his acceptance cannot be derived from it, given the situation of “inferiority” in which he was: he had “no choice but to accept a conditioned prerequired to be granted the loan, “he defends. “The payments do not imply acquiescence”, sentence. Thus, Liberbank will have to return 433.5 euros of notarial expenses, 227.2 of registration in the register and 124.2 of the agency, which add 785 euros, to which we must add 3,725 more of the floor clause, which is declared equally null for lack of “transparency” and for being “abusive”.

“The appearance prevails that the type is variable when

, in fact, it would be exclusively upwards,” the judge points out, which does not include “sufficient and extensive” information from the bank’s employees to the client, who imposed a “clear imbalance in the distribution of risks “on the variability of interest rates.

Finally, regarding the procedural costs, and after clarifying that when there is an accumulation of proceedings – as in this case – all are resolved in the same sentence but separately, the judge also pronounces independently on them, and condemns to its payment to Liberbank for the claim relating to the floor clause, fully estimated, and resolves instead that it is not appropriate to order costs in the case of the expense clause, partially accepted. The judgment, handed down on January 24, is not final, and an appeal can be lodged against it within 20 days.

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Economy / Legal.- The president of the notaries asks to humanize the Mortgage Law and more controls to avoid abuses

“Contracts that are fairer, more effective”, says José Ángel Martínez Sanchiz, who proposes to set a limit interest rate

"Contracts that are fairer, more effective", says José Ángel Martínez Sanchiz, who proposes to set a limit interest rate

 MADRID, 12 (EUROPA PRESS)

The president of the General Council of Notaries, José Ángel Martínez Sanchiz, is in favor of humanizing the Mortgage Law and providing the legislation with more controls to avoid abuses that have to be resolved through the courts.

In an interview with the magazine ‘Escritura Pública’ published by Europa Press, Martínez Sanchiz states that one of the needs he believes should be a priority for the Minister of Justice, Rafael Catalá, is “a reform of the Mortgage Law that humanizes the procedures of foreclosure. “

In this sense, he believes that the regulatory change must combine the protection of the people who are immersed in this procedure “without there being a reduction in the effectiveness of the procedure”. “Thanks to these loans, we Spaniards have been able to buy our houses in a proportion that is unparalleled in the rest of Europe,” defends the president of the notaries.

Martínez Sanchiz stresses that “the contracts, the fairer, the more effective”. “It is not incompatible to defend the consumer and the contact balance with the effectiveness of the mortgage credit, which is what, logically, banking must always pursue,” he adds.

A LIMIT FOR INTEREST?

Image result for limit

“I think it would be very convenient a legal reform that imposes clarity in the matter,” Martínez Sanchiz, who proposes the establishment of a limit interest rate that would invalidate loans with higher interest, in line with what happens in France or Italy, and extrapolate it also to moratorium interests, also censored in abusive circumstances by Brussels.

The president of the Spanish notaries believes that judges are being the ones who are marking the limits of a regulation whose reform he believes necessary. “We should not let these issues be resolved through jurisprudence, because, although very well intended sentences and try to restore balance and justice, cause a great uncertainty and legal uncertainty,” says.

“WE CAN NOT CONTROL THE LEGALITY”

Regarding its capacity to prevent abuses and protect people at risk of exclusion, the president of the General Council of Notaries laments the legal limitations that, according to his defense, restrict his work. “For example, in front of abusive clauses, we can not carry out an effective control of legality, because this is exclusively attributed to the courts”, abounds.

“We can only deny those abusive clauses that have been declared as such in a final judgment and registered in the Register of general conditions,” Martínz Sanchiz adds, in this sense, believes that after the latest rulings issued by the Court of Justice of the Union European notaries must “rethink” their “performance” regarding the principle of effectiveness.

Thus, it pleads to take into account the jurisprudence marked in these judgments although these are not registered in the Registry. A measure that, he announces, will be raised through an agreement with the Council of the Judiciary, so that notaries know “immediately the final sentences that declare an abusive clause” and so keep this in mind when formalizing a deed.

Martínez Sanchiz has acknowledged that, if a judgment is not final, they are obliged to authorize a document even if they contain abusive clauses. “The only thing we can do is inform and warn the consumer,” he says, even aware that “in the area of ​​mortgage loans and loans, unfortunately, many times the need of people is imperative.”

“For them it is more important to receive the money than the prevention they may have regarding certain clauses, sometimes we find ourselves in very difficult situations,” he says.

PROPOSES PRIOR AND FREE NOTARIAL ADVICE

Image result for notaryThe president of the notaries rejects that during these years they have been negligent before the deficiencies evidenced years later by the courts – “I do not believe that the notaries have failed”, he defends himself – and, before the deficit of information and clarity before signing the contracts denounced by the Supreme Court in its judgments, offers the notarial advice. “Notaries would like to be able to advise in this phase, before the binding offer is signed,” he says.

In fact, remember that it is mandatory that the drafts of the deeds of the mortgage loans are three days before their signature in the notary, available to the consumer. “But this is very little known by private individuals and there are few occasions when they come to consult their doubts with the notary,” he laments.

“It would be very interesting, given the importance that both the EU legislation and the Supreme Court has given to pre-contractual information, that the citizen had a thorough knowledge of the different loan possibilities available to him and of the exact conditions of what is It offers all the content, not only economic, but also legal.It would be a prior and free notarial advice, “he concludes.

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Councilor for the Economy: The financing reform does not admit any further delays

Image result for reformSeville, June 28 (EFE) .- The Minister of Economy and Finance, Antonio Ramírez de Arellano, has argued that the reform of the regional financing model “does not admit any delays or delays” because Andalusia can not “continue to support indefinitely” underfunding of the fundamental services.

“The great priority in the remainder of the term will be to start negotiations, dialogue about the reform of the model, which does not allow for further delays or delays,” he said during his appearance before the Economy and Finance Commission of the Andalusian Parliament to inform on the lines of action of his department until the end of the legislature.

He recalled that the only proposal that is on the table at the moment about the reform of the model is the document approved by the Parliament of Andalusia with the support of all political groups, except Citizens, and has ensured that it is “perfectly transferable” to the rest of the autonomous communities.

“We hope that once the processing of the State Budgets is completed, we will begin to address this issue, which is of vital importance for Andalusia,” he remarked.

At the insistence of the opposition groups, the counselor has indicated in the turns of reply and rejoinder that he expects that the call of the Fiscal and Financial Policy Council (CPFF) is “immediate”, and has ensured that if it were not so They will ask, although he recalled that the Finance Minister, María Jesús Montero, has said that there will be two meetings before August.

In his opinion, there are “expectations” that the dialogue will start immediately “because the minister said she will” work tirelessly to try to provide adequate funding for the “fundamental services, although she added that” obviously, can guarantee that there will be an agreement. “

For this reason, he has relied on the Andalusian Parliament to “reaffirm” the need for a negotiation “with urgency” and that this contributes to its occurrence “with the utmost speed”.

At the same time, he has proposed that all groups ask their political forces in Madrid to “get involved” and move their approaches because they are “absolutely fair”.

“Delaying a response harms Andalusia and, as a result, harms Spain,” he stressed, after which he has guaranteed that in future negotiations, the Board will “insist on the same criteria” contained in the document approved by Parliament .

He clarified, in view of the concern expressed by some opposition groups, that the Board does not share “bilaterality” in the negotiation of the financing model, as opposed to what has been argued that “a broad agreement on the definition of the portfolio of public services to guarantee social cohesion “.

On the challenges of his department until the end of the legislature, has indicated that it will “take advantage until the last minute” to complete the “roadmap” marked, so that the budgets for 2019 will “concentrate” resources in health, education and social services, while policies aimed at improving competitiveness will be reinforced.

Balanced Distribution

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The Ministry of Economy is also working to achieve a “balanced distribution” of regional allocations of European funds of the new financial framework, while has promised that imminently will launch the Office against tax fraud, pending the opinion of the Advisory Council.

He has also confirmed that the Board will soon return to the financial markets to “diversify” the funding sources and obtain “sufficient financial autonomy”.

PP spokesman, José Antonio Miranda, has questioned whether the Board will accept a bilateral negotiation of the financing model and if it will require the minister to convene the CPFF.

It has also been interested in whether they will request a different distribution of the deficit targets, as claimed by Montero, and a methodology on the expenditure rule, as well as whether the exit to the financial markets will be “at any cost”.

The spokeswoman of Podemos, Carmen Lizárraga, after lamenting that the president of the Government, Pedro Sanchez, has ruled out the approval of a new model in this legislature, has criticized that “it leaves now with the bilateral history, with a rain of million that do not go to solve the structural problem of financing common system communities. “

On the draft Budget of Andalusia for 2019, has underlined the willingness to dialogue of Podemos after considering that “the chosen path, the partner chosen in these three years to take forward budgets, is not appropriate.”

Yes has agreed that without knowing the data of deliveries on account can not develop a “rigorous” budget, although he has confessed that his feeling is that “what is behind this change (in terms) is that they do not have a pact with Citizens closed because there is no money to make more tax rebates. “

The spokesman for Citizens, Carlos Hernandez, has focused his speech on the negotiation of the Budget project to underline that “there is nothing that prevents” the dialogue with political groups from being opened.

“Neither last year was known the cost ceiling,” said Hernandez, who has advocated advancing the dialogue and, after emphasizing that orange training “is on the side of stability,” stressed that to reach an agreement you have to “take more steps” in the reduction of taxes.

IU spokeswoman, Elena Cortés, has called “fiasco” the decision not to address the reform in this term, which has been considered “tremendously damaging” for Andalusia.

“It is an absolutely disappointing decision,” said Cortés, who at another point in his speech criticized the “fiscal regressivity” in Andalusia.

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