Most consumers put requires to avoid these types of fund. Merging federal money minimizes interest levels. Government finance are eligible for earnings-founded installment agreements, which happen to be given by mortgage servicers for example Cornerstone Loan. Straight down rates of interest can be acquired because of private student loan loan providers, through refinancing from a federal mortgage to a personal loan produces the new debtor ineligible to possess money-centered repayment arrangements.

In advance of provided refinancing an educatonal loan, it’s important to understand the difference in government and private figuratively speaking. On this page, i have a look at government student loan servicer Foundation Student loan Attributes and you will compare it to 3 private student loan people. Borrowers should think about its finances very carefully when selecting mortgage terminology and you will see the advantages and you can risks of refinancing which have a private student loan bank.

Cornerstone Education loan Features

As a Department of Education approved student loan
servicer, Cornerstone Education Loan Services owns many types of federal student
loan debt. The company does not handle private student loans or other types of
debt, such as credit cards personal loans New York or auto loans. In this way, Cornerstone differs from
many other student loan servicers. Cornerstone Loan’s specialization in student
loans makes it an especially good choice for borrowers. Banks that dabble in student loans lack the focus on the market segment needed for excellent customer service. They tend to take a passive approach to customer service. Their goal is to service the loans with as little expense as possible. Customer service initiatives aimed at helping borrowers cuts into their profits. As a nonprofit, Cornerstone Education Services funnels its resources back into fulfilling its mission rather than extracting profits for the benefit of shareholders. Cornerstone Loan has grown popular because of its customer service philosophy. The company has been in business since 1983. In that time, it has developed programs that assist students and their families throughout the entire education financing process.

Alternative Support service Programs

Prior to students enter university, Foundation Loan brings economic and you can student loan knowledge. While doing so, Foundation Loan offers recommendations and you may guidance for the scholarship and you will grant software. The business does this to help children use intelligently and reduce the obligations accounts.

During Schooling

During schooling, Cornerstone Loan continues providing financial education and helps students stay on track with their loans. Many students forget the principles of wise borrowing and money management once they get on campus. College is an exciting time for young adults who are on their own for the first time. With their new found freedom comes responsibilities they are still learning to manage.
Traditional students have limited income and no experience with money management. As a result, they are prone to getting into debt. With the rising cost of post-secondary education and the high cost of living in many areas, students are finding themselves squeezed. Often, they turn to credit cards and other high interest loans to fill the gap without realizing the harmful impact these types of debts can have on their future. Cornerstone Loan continues its financial and debt education initiatives to help students manage their finances better and avoid these pitfalls. Because of its nonprofit business model, the interest payments made to the company are invested for the benefit of students. The company provides some of the most robust education and student borrower support in the nation.

Immediately after Graduation

Immediately following pupils scholar, they are able to depend on Foundation Loan to assist them during their changeover of pupil- so you’re able to functioning lifetime. The company also provides comprehensive customer support that helps students choose the most appropriate fee bundle and build a sustainable finances. Cornerstone’s call to action results in a highly low-level out-of non-payments toward fund it features. When borrower’s experience monetary stress, Cornerstone Mortgage provides help in reorganizing money so they really will always be down. The current workforce is more liquid than ever, ultimately causing smaller occupations defense. In order to conform to the new environment, the federal government has generated applications so you’re able to reconstitute student loans and also in rare cases terminate them. Cornerstone Financing enjoys big determination to assist the people attain the restructuring that gurus him or her the absolute most. Just like the good nonprofit, Cornerstone Loan has the liberty to be hired on best interests of their college student borrowers.