Companies That Want to Help With Your Student Loans

Student Loan Right Arrow SignThe US education system is wading into uncharted territory. The total amount of student loan debt has now surpassed $1.4 trillion and it continues to rise. Young millennial workers are reporting a lack of well paying jobs across the country. Analysts are now becoming concerned that the combination of low paying jobs and massive student loans will cripple the economy. People cannot engage the economy by purchasing products, paying taxes and applying for mortgages if they are crushed by student debt.

Fortunately, some companies are attempting to come to the rescue. Businesses have often times played the role of problem solvers. One of the tenets of running a successful business is “solve a problem for your customers.” These companies recognize the struggles that many young people are facing today. Now many younger firms are cropping up to help those with massive student loans, or those who are looking to fund their college education with loans. If you’re struggling with student debt, you may want to take a look at our list. With the rapid growth in the student debt market, so too have companies grown to solve this problem for their customers. Here’s our list of companies helping people with student loans.

Climb Credit

Climb Credit is a young startup that is helping students finance their education and find employment after graduating. So far, Climb Credit helps provide funding to students at over 60 campuses in the US. The firm focuses on schools that are able to justify their tuition costs based on graduates’ earning potential after leaving the school.  “We’ve started Climb to fund what we call high ROI [return on investment],” said co-founder and chief executive Zander Rafael. “It’s education that actually works and benefits the student.” Climb Credit helps students make their educational decisions similar to an investor. If the school can actually help you get a decent paying job after graduation, it’ll be worth the investment.”

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Earnest

Earnest is yet another startup offering affordable financing to students. The firm offers merit-based loans to individuals deemed “financially responsible”. Earnest uses data analytics to look past just credit scores to each person’s background, financial picture and potential earning power in the future. When using autopay, fixed interest rate loans are between 3.5 percent and 7.3 percent while variable interest rates are between 2.13 percent and 5.6 percent. That’s compared to the current 4.66 percent interest rate offered on direct subsidized loans. The company appears to be gaining traction after securing a $275 million equity and financing round. According to Earnest, their average client saved close to $17,900 after using the company’s refinancing feature.

Tuition.io

Another innovative company providing student debt solutions is Tuition.io. This firm offers companies packages and resources to help their employees who have student loans. Tuition.io helps companies across the globe manage what are known as company-sponsored programs. Not only do the employees receive help with their debt loads, Tuition.io also helps companies retain younger and more talented employees. Tuition.io handles all of the payments and taxation requirements for the employer. Companies like Tuition.io are attempting to benefit the labor market in two ways: by reducing the burden of student debt while also connecting firms with top-tier employees.

Posted on May 9, 2016 by in Personal Loans, Student Loans

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