As a student who intends to get a loan, you’re exposed to several options. One of those options is Aspire student loan, and we will tell you all you need to know about it. Stay glued to your screen!
Overview of Aspire Student Loan
Aspire student loan is a loan issued by Aspire Resources Inc. Aspire is a for-profit subsidiary of the nonprofit company. As a nonprofit company, it handles repayments on federal and private student loans.
This company is Iowa Student Loan and services loans as Aspire Service Center. The company was contracted with the federal government. The contract was to service loans from the Direct Loan program.
Furthermore, Aspire is a little old school though. Thus, you have to fax or mail in a form to sign up for autopay. But it’s one of the few services that allow you to pay with a debit card. This is as long as your bank participates in an ATM bill pay service.
Challenges with Aspire Student Loan
Everything good has its troubles. Therefore, below are some issues associated with Aspire student loan:
Phantom Student Loan Balances
Paying off your student loans can be a thrilling experience. However, the excitement can go off when this happens. If you think you’ve completely paid down your debt only to discover that somehow you still owe something.
As an Aspire borrower, you might experience this. One of the issues with Aspire is an unusual remaining balance after fully paying off the debt. This is what some users stated in the consumer complaint database.
This is another problem with Aspire’s student loan. Auto-pay can be a huge boon to both borrowers and servicers. For the borrower, auto-pay means they don’t have to remember each month to pay their loan.
Also, it reduces the risk of being late with a payment. Additionally, borrowers may get a discount on interest rates for enrolling in an auto-pay feature. However, this depends on the type of loan and the servicer.
Thus, for the servicer, auto-pay is as close to a guaranteed payment as they are likely to get. But when auto-pay goes wrong, it can be frustrating to the borrower. Also, it can be antithetical to the reason it’s there in the first place.
Duplicate or Triplicate Payments
This is another problem with Aspire’s student loan. Apparently, getting overcharged on a payment is one thing. However, getting your payment tripled can be frustrating. This happened to at least one Aspire borrower.
If you have an Aspire student loan this will be annoying. Just imagine setting a payment that is already a considerable percentage of your salary. And then you find out that Aspire has charged the same amount twice. And even three times in a single month.
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Aspire Services for Private Loans
When considering Aspire services for private loans, please note. Private loans are provided to meet the education fund needs of the students. These loans require credit score approval and a co-signer. Though the cosigner requirement is in some cases.
Also, note. Aspire provides services to various clients/lenders of private loans. The following are some of the loans provided by these partner lenders:
Iowa Student Loan Programs
This is available for students, parents, or any family member. The available loans here are Partnership Advance Education Loans. Also, there is a College Family Loan.
Credit Union Programs
When considering Aspire services for private loans, please note. The eligibility criteria for this loan are this. The borrower must be a member or become a member of the credit union.
The available loans here are Alliant Credit Union and Private Student Loans. And Ascentra Credit Union Private Student Loan Program. It is important you know this. Both loans have different criteria for becoming a member anyway.
When considering Aspire services for private loans, please note. The eligibility criteria are to become a current bank customer. Also, along with other criteria that will be provided by the bank.
The loan offered here is the American State Bank Private Student Loan Program.
How to Refinance Aspire Student Loans
It is important you know this. Aspire Student Loans can be refinanced by acquiring another private loan with a lower interest rate. You can explore the market and get a loan with better rates and terms.
That is if you have a good credit score. Also, if you have a low debt ratio. And if you meet the underwriting criteria. This will give you the option of changing your servicer. That is if you’re not comfortable with your present servicer.
Please take of this as well. Federal loans have various benefits. Benefits like loan forgiveness and income-based repayment plans.
This is the one that people have to give up on if they choose to refinance their loans. Those who do not want to give up on such benefits can have their loans consolidated instead. This makes sure that the loans stay as they are even if the servicer is changed.
Aspire Student Loan Repayment Options
It is necessary you know Aspire student loan repayment options when considering it. Please note this. Aspire provides different repayment options.
However, some plans allow you to make payments as soon as possible. And other plans allow you to make monthly payments at a lower rate. Also, others extend your loan repayment term.
For Federal Loan Repayment Plans the options are: Standard repayment plan, graduated repayment plan, and extended repayment plans. Also, we have an income-based repayment plan and an income-sensitive repayment Plan.
For Private Loans, the repayment plan options are: Reducing the accrued interest plan and standard repayment plan. Also, there is the graduated repayment plan and select 2 repayment plans.
Aspire Student Loan Forgiveness
There is student loan forgiveness with Aspire. The following are some cases in which the loan can be forgiven:
- If the borrower uses an Income-based Repayment Plan then the loan balance remaining after 25 years will be forgiven.
- Rare incidences. Incidences like the closure of the school. Or, it falsely certified your eligibility before completion of the program. Or someone stole your identity to take a loan in your name. Also, the school didn’t provide a refund when you withdrew from it.
- Workers in the public services department, nurses, and doctors.
- Also, in case of bankruptcy.
- Workers in the public services department, nurses, and doctors.
- In case the borrower, student, or co-signer died or suffered from permanent disability.
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In a Nutshell
From the above, therefore, please note. Though taking a student loan may be advisable, you should be aware of the shortcomings associated with it.
Thus, when choosing the Aspire student loan, make sure you carry out thorough research on it. This will guide you in your decision-making process.