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Another major change that occurred is that all approved projects would be required to be recertified every two years.  This was to verify that the project dynamics haven't changed to the point where it now poses a risk to HUD. They do note, however that “A $500 loan from Magnum Cash Advance set-up for 4 bi-weekly installment payments will have an approximate APR of 604.06%.” That’s one of the higher APRs you’ll see for this sort of loan, and nearly double the 391% average usually seen in the payday loan industry. It should serve as a flashing, red light: stay away. Tips to avoid becoming a victim of this scam:
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State loans for higher education are not available everywhere, but provide valuable resources for students attending college in states that do sponsor student lending. Research done by the Clemson University Department of Economics concluded that payday lending does not lead to increased bankruptcy rates. A payday loan will not lead you into bankruptcy. Check Your Bank Account!
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