Knowledge Center
Student Loans are only confusing if you don’t have the resources you need to help you understand your options. FlexxPrep is here to be that resource for you.
How does it work?
Most of the income driven repayment plans have forgiveness built into them. These repayment programs allow you to base your monthly payment of your loans on your income and household size with a set repayment term. Once you have completed your term of qualified payments, the remaining unpaid principal balance and accrued interest will be completely forgiven by the U.S. Department of Education.
What about a deferment or forbearance?
Deferments and forbearances are both just temporary postponements of the payments of your loan. Once that period of time is up, you still owe the balance of your loan. However, if you’re eligible for a $0 payment on an Income Driven Repayment Program, the unpaid balance at the end of your term is forgiven by the U.S. Department of Education.
How long does it take?
After your initial financial analysis and loan review, your enrollment advisor will assist you with better understanding the different programs you’re eligible for so that you can make a knowledgeable decision on which will work best for you. Once you’ve chosen a program, FlexxPrep will begin the document preparation required to submit your application to the Department of Education and your loan servicer. The normal timeline for a loan consolidation or entering an Income Driven Repayment Program is between 30 and 90 days, however, there may be situations that can cause the process to lengthen.
What if I'm disabled?
Total and Permanent Disability Discharges are available to borrowers who qualify based on several factors including when you became disabled, how long you’ve been disabled and whether or not you’re totally and permanently disabled or partially disabled. Speaking with a FlexxPrep advisor will allow you to understand whether or not a TPD is the right choice for you.
What are the disadvantages of consolidation?
While there are a large number of benefits that come with consolidating your student loans or going into different repayment and forgiveness programs, there are a few situations that could possible affect you negatively. For example, if you are considering challenging the loan, the most common situation being fraud, a consolidation may waive some defenses. If you are considering appealing your loan or bankruptcy, consult with your lawyer before applying for a loan consolidation.
How is my interest rate calculated?
Consolidating your loan will allow you to switch any variable-rate loans to a fixed interest rate. This interest rate then becomes the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent.
Who do I make payments to?
FlexxPrep is a third party document preparation company that assists student loan borrowers with their enrollments into federal repayment and forgiveness programs. You will continue making payments to your current loan servicer or a new loan servicer, depending on your specific situation.
What if I'm a public service employee?
In September of 2018, tens of thousands of borrowers applied for Public Service Loan Forgiveness and less than 1% of applicants were approved. FlexxPrep will help you understand what needs to be done in order for you to qualify.
