Almost 7 of every 10 school graduates are going to have some amount of student loan debt to repay. The typical 2016 college borrower owes approximately $28,000. Student loans are a crucial financial resource for many students to afford a college diploma. Due to this, choosing a credible loan provider and student loan servicing company is very important. That is the reason Firstmark is a leading presence in the student loan servicing sector since 1997.
What is Firstmark Services?
Firstmark Is a student loan servicer division of Nelnet, a bigger student loan servicer that functions more than 5 million creditors. As a student loan servicer, Firstmark doesn’t really lend money to students. Instead, the bank that originated the loan will have a service company like Firstmark be responsible for collecting monthly payments, serving as the customer service contact, and coverage all payment information to the credit bureaus. This allows banks to concentrate on their specialty of discovering and lending to qualified borrowers without needing to allocate funds to the routine administrative responsibilities connected with student loan obligations, which can be where Firstmark enters the picture.
Firstmark Primarily services brand new and refinanced private student loans. While they support loans from many lending institutions, one of the largest clients is Citizens Bank which is one of the leaders in supplying refinancing services to students all over the nation.
Whatever the lender, borrowers have the ability to schedule automatic obligations and Firstmark will automatically deduct the monthly payment from a designated bank account on the same date each month when registering in the KwikPay service. Depending on the lender guidelines, borrowers can also have the choice to make payments with credit or debit cards. Besides internet payments, a borrower may also mail a check or initiate a payment via phone by calling 1-888-538-7378.
Borrowers Can’t apply for financing through Firstmark, however, they can have their loan secured by Firstmark when using a partnered lender. In comparison to a federal student loan, private loans have a few more factors to decide upon throughout the application procedure.
Personal Student loans do not have annual borrowing limitations like their federal counterparts and students may borrow more than tuition and living costs should they desire, however, most private lenders require a co-signor for approval regardless of the amount borrowed. Borrowers also have the option to submit an application for a 5, 10, 15, or 20-year repayment duration, while national loans come with a typical 10-year repayment term.
Possibly The largest difference between both kinds of loans is that private lenders offer fixed and variable rates of interest. A variable rate could be cheaper than the fixed federal rate and can allow borrowers that plan on repaying their loans at the smallest amount of time possible to save hundreds or even thousands of dollars in additional interest charges that stem from a higher rate of interest.
Present Interest rates for new personal student loans range from 2.60% to 9.60% for a variable rate and 5.25% to 11.75 percent for a fixed rate based on the applicant and co-signor’s creditworthiness and duration of repayment. Enrolling in automatic payments can reduce the interest rate 0.25% for most lenders.