Marina ThomasHigh education in America is becoming more expensive with each passing year. However, young people still work very hard to earn their university and college degree. Many of them don’t think twice about burning the midnight oil. After all, they feel taking such a step can open up new opportunities for them. It’ll be easier for them to secure a lucrative job or establish their own start-up business. Prominent educational and financial experts say they aren’t wrong.
Unfortunately, the majority of them end up taking loans from commercial banks to finance their studies. Only can they pay for their tuition, course fees, dormitory rent, living expenses, and textbooks. Over time, repaying this debt becomes a tall order for them.
How severe is the problem of outstanding student loan in America?
These professionals go on to explain that recent research in the area reveals a startling fact. Outstanding student loans stand at almost $ 1.4 trillion. 63% of the student population has a deal with this complex problem.They consider it to be the second largest source of consumer debt in the country. The experts don’t expect this figure to decrease any time in the near future.
Moreover, studies show borrowers have a very tough time repaying what they owe. Even after secure a lucrative job after graduation, they can’t make ends meet. Some of them even consider declaring themselves bankrupt as a last resort. However, the specialists state they shouldn’t take this course of action. It can ruin their reputation in the market. This is obviously the last thing they want.
How are entrepreneurs of fintech companies helping students repay their outstanding loans?
The specialists say fortunately there is a ray of hope for these borrowers. In recent years, there is a massive growth of fintech companies.These organizations use the latest technology when conducting their business activities in the market. Many of themspecializing in the area of refinancing, debt settlement, and consolidation. The entrepreneurs of such concerns are now giving traditional lenders a run for their money.
On top of this, they don’t have to follow the same regulations which govern commercial banks. They offer superior services to the public at nominal fees in comparison to their competitors. These include providing mobile payment facilities, asset management, online money transfers, and leading. This is one of the most important reasons for its popularity.Most of these proprietors also are focusing their activities on helping students pay off their outstanding dues.
The experts admit these corporate enterprises can provide students with outstanding debts the lifeline they need. The borrowers can enjoy the following 3 important benefits when they hire the services of these concerns:
1. Enhancing financial literacy among their clients
The entrepreneurs of these companies have come to recognize a common problem among college freshmen.Many of them don’t know how to manage their finances prudently even after obtaining their loans.The owners provide assistance totheir clients on this vital aspect.They regard knowledge to be the key to the financial security of their clients. Many of them have been successful in establishing online platforms on their business websites.
Borrowers need to upload their personal and loan details on such sites. They only need to enter the relevant data.They’ll get notifications on due dates of their repayments and tips on minimizes their expenses. In many cases, such information is also available on their smartphones.It can help them save a lot of money through their college or university tenure. This is a fact which they can’t afford to dismiss outright.
2. Increasing awareness of refinancing, debt consolidation, and settlement options
This is one area where fintech companies have succeeded in making a significant contribution. Many students may want to opt for debt settlement or consolidation solutions for obvious reasons. It makes it easier for them to pay off what they owe in the shortest possible time. In the process, they’ll be getting their finances back in order.
However, they may not be aware of what options are available to them. This is where the owners of such concerns can help them out. The proprietors provide a transparent process where their clients can choose schemes which suit their needs. They won’t get this type of service from traditional lenders. The borrowers need to browse through positive online settlement debt reviews of these businessmen. It won’t take them long to realize it is the right course of action to take. It takes them one step closer to breaking through a vicious cycle of indebtedness.
3. Introducing attractive in-house loan schemes
The proprietors of many fintech companies are now introducing their own loan schemes for students. Unlike traditional lenders, these owners don’t have stringent eligibility criteria for their clients. The borrowers also don’t have to provide collateral for the amounts they ask for. This is no doubt a boon for many students pursuing their college degrees. On top of this, the entrepreneurs have a hassle-free approval process for sanctioning such sums. Many of them even offer their customers multiple repayment options to pay off their dues. This makes it easier for them to clear their outstanding debts within the shortest possible time. After all, this is what they want at the end of the day.
What do students need to consider when opting for loan scheme?
The entrepreneurs of fintech companies insist their clients keep in mind the following fact: they should only opt for a student loan when absolutely necessary. Even when selecting the right scheme, they should always read the fine print of the scheme document. They need to ensure the duration, interest rate, repayment options, penalty clauses are favorable to them. Otherwise, they are better off keeping their options open. This ensures they won’t end up making the wrong decisions.
The emergent of fintech companies is revolutionizing the financial markets. The owners of these organizations decrease the influence and business of traditional lenders. They offer attractive loan and debt settlement schemes to all their clients especially students. These borrowers need to look at the above 3 important advantages of hiring these establishments. They’ll come to know it is the right decision to take. They won’t regret taking it.