Extremely individuals lay goals to get rid of these finance. Merging federal funds decrease rates of interest. Government loans also are entitled to earnings-situated installment arrangements, that are applied by the mortgage servicers instance Cornerstone Financing. Straight down rates of interest can be obtained thanks to personal education loan loan providers, through refinancing out-of a federal mortgage so you’re able to a personal mortgage can make the newest borrower ineligible to possess earnings-based cost arrangements.
Before provided refinancing a student loan, you should understand the difference in government and private figuratively speaking. On this page, we have a look at government education loan servicer Cornerstone Education loan Attributes and you may compare it to three individual education loan people. Individuals should think about the costs cautiously when selecting loan words and you may see the pros and risks of refinancing having a personal student loan financial.
Cornerstone Student loan Functions
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 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 personal loan Georgia. 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.
Holistic Customer service Apps
Just before college students enter into university, Foundation Loan will bring financial and student loan knowledge. While doing so, Foundation Mortgage also offers advice and you will direction inside the grant and you can give apps. The firm performs this to help youngsters borrow wisely and relieve their financial obligation levels.
Through the 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.
Just after Graduation
After pupils graduate, they could believe Cornerstone Loan to assist them to during their change out-of college student- so you’re able to working life. The firm also offers complete support service that will help students purchase the most beneficial percentage package and create a sustainable funds. Cornerstone’s proactive approach contributes to an extremely low level out of non-payments towards the loans it features. Whenever borrower’s sense economic stress, Foundation Mortgage will bring help in reorganizing funds so they will still be in balance. Today’s employees is much more fluid than ever before, causing quicker employment defense. To comply with this new ecosystem, the us government has generated programs so you can restructure student loans plus in infrequent cases terminate him or her. Foundation Mortgage has good-sized inspiration to greatly help their consumers attain the reorganizing you to definitely gurus them one particular. Since the good nonprofit, Foundation Mortgage comes with the freedom to your workplace on desires of its scholar consumers.