Evening star., 1946-03-31

This should be the last article on
loans. I've been trying to explain
how the GI Bill amendments
changed the old loan-guarantee set
Iup.
The bill contains completely new
4 section, headed Insurance of
Loans" Note the distinction. This
new section allows for the insurance
of loans.
had talk with a man at the
VA and he seemed to think the In
surance Of Loans" section could be
Of considerable interest to veterans
Under the CT Bill, both now and
before 1t was amended, the Veterans
Administration can guarantee so
per cent Of q loan vet can get from
q private lending institution. The
top guarantee on real estate loans is
$4,000.
This means that If the veteran
can't keep up his payments on the
loan. and the lender has to foreclose,
the VA can pay the lender $4,000 or
the amount guaranteed.
The idea Is that the $4,000 guar
antee sort Of acts as a down pay
ment, or security for the lender, thus
making 1t easier for the vet to bor-
row the money he needs. The lender
Is certain to get back at least the
guaranteed portion of the loan,
should the veteran fail to meet his
payments.
VA Can Insure Loans.
Now, the VA can also insure GI
loans. 1t works this way. Suppose
your banker makes leans to several
veterans. He can elect to have this
group Of loans insured, instead of
guaranteed. The VA will insure Is
per cent of the total amount of all
the loans he makes.
II the lender does elect to have
the VA insure his GI Bill loans,
you're going to come out head.
Here's why:
Suppose you're interested in buy
ing an $4,000 house. If the lender
elects to handle your loan under the
original GI Bill plan-that is, get so
per cent of it guaranteed by the
VA-you'l automatically use up
your entire $4,000 guarantee on the
$4,000 house. You won't be eligible
for any more CT loans.
But, If the lender will group your
$4,000 loan with some other GI
loans and then insure them with the
VA, there1l be a different result.
! The VA insures Is per cent of the
value of the loans. In your case.
this would be Is per cent of $1,000.
or 81 200. 1t contracts to pay the
lender 81 200 if you fall behind in
your payments and the lender has
to foreclose.
| But under the law you're eligible
for $4,000 guarantee. This means
you'll have $4,000 left to use up on
other loans.
| The Veterans Administration
thinks lending institutions will go
for this insurance of loans" plan
That's what they told me. I'm
afraid I can't explain why, because
I don't know.
There's another nice feature about
the amended GI Bill. It's the part
which remarks that vets can get
GI loan to take care of delinquent
indebtedness" when it will help him
in his economic readjustment."
To be eligible for this type of loan.
you have to be behind in your pay
ments on some debt you may owe.
In short, you have to be in default
on some debt-you have to be de-
linquent.
So, if any time during the 10
years after the war you get into
debt trouble, look into this delin-
quent Indebtedness loan business.
The debt must be connected with
your home, farm or business-not
a personal expense debt, such as
your grocery bill.
Questions Answered.
! A letter received from exit. l..
E. F.. of Tuscaloosa, Ala, is too long
to print here. but let me condense it.
i He says he contracted asthma
while in the service, went before a
retiring board but was not given
retirement pay. He added that his
disability was obviously service-con-
nected because the VA has given
him disability rating of 10 per cent
and disability pension of s11.5O a
month.
! He says he hears he has a wear
to appeal under the proper appeal
| snnfinrt nf tho cT hill fC11%;1,.
and asks if I don't think he should
have been granted retirement pay
instead of just being sent to inactive
status.
Here are the things he should
keep in mind!
Any officer has IS years (not Just
one year, after relief to inactive
status to file an appeal under Sec
ton 302.
/ Retiring boards and the review
boards do not look favorably on
granting retired pay to any officer,
unless his disability is obviously
permanent. Asthma and malaria
are possibly not permanent dis
abilities. Most neuropsychiatric dis
abilities disappear within a year.
! I'm told.
Another thing-boards are loathe
to grant retirement pay, if the dis
ability is slight.
Therefore, if an officer has a dis
ability which at the moment is
minor, or which is not of a perma-
nent nature, he can we'll afford to
wait for more definite developments
/ To win an appeal under Section
302 of the CT bill, the case must be
IT oco1 Mocon,o No-,