Financial Preparation Services, a loan service provider based out of Irvine, California has already made a name for itself. It has carved a niche for itself as a reliable and responsible company. The company is chiefly renowned for helping individuals sort out issues with their student loan debts. The experienced and knowledgeable representatives of the company perform a financial assessment for their clients. They come up with the best bespoke repayment solution for each client. They help their clients with the complex jobs of document preparation and filing, yearly recertification and so on.
Now, it is due to the high reputation of Financial Preparation Services (FPS) inside the loan service provider industry that they often receive a host of different questions, especially regarding student loans and different options for them. Now, according to various blog posts of FPS, there’s a typical question that students ask pretty much all the time. It is, whether it is beneficial for them to opt for federal student loans. And, true to form, FPS, always eager to assist students, has answered this question in detail. And to go by what they say; it IS beneficial for students. This is particularly more if they applied for one or more federal student loans than applying from some private company.
Below are the reasons provided by the FPS in support of their opinion.
Your Credit History Matters Little
Normally, students applying for loans happen to be first-time borrowers. This means they have little in the way of credit history. Now, in such a scenario, a private loan provider will ask for a lien on the loan. Or, it can also happen that the person applying for the loan already has a credit history. In such a case, if the credit score doesn’t favor him, he will be denied the loan. Or, if the debt does get approved, he will still have to agree to unreasonable terms.
However, the present scenario of a federal student loan is almost radically different. Usually, first-time borrowers have no credit history to speak of anyway, it tends to matter little. And therefore, normally, they will get their loan application approved without too much difficulty. At most, the loan providers can ask for providing any form of security. Still, it is nothing too hefty compared to those requested by private companies.
A Customized Repayment Is a Valid Option
It is always pleasant to get approved for a loan. However, the difficulties normally start to arise when it’s time to repay the loan. Here again, federal student loans come with a big advantage. The repayment terms on these loans can be customized based on the borrower’s present income. Sometimes, especially at the start of your career, you may earn just about enough to make ends meet. Having to pay off loans at such a time can be extremely stressful to one’s financial position.
Now, even with federal student loans, the borrower will be offered a standard repayment plan initially. However, these repayment terms can be altered in case of a federal student loan. But this depends on the present income and financial liabilities of an individual. On the other hand, no private loan provider will offer you altered repayment plans. And, it’s irrespective of your current situation.
Federal Student Loans (Or Parts of Them) Can Be Forgiven
Loan forgiveness is a common enough topic especially when it comes to student loan debts. Now, you really may need a federal student loan. Still, your qualification for loan forgiveness depends on what you are doing once you’ve finished school. For instance, the chances for this redemption increase when the borrower joins public service after finishing school. Most commonly, loan forgiveness favors a person once he has put in a good few years in public service. In this regard, the providers may find that during this period the debtor has made timely payments on his loan. Hence often, they waive off the remaining balance. Thus you get an opportunity for making big savings.
To learn more on this subject, please visit the Financial Preparation Services website at https://www.financialpreparationservices.com/ or call their customer support at (877)707-0795.
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