A story by American Banker highlights a potential legislation that will change how Americans pay for college; many people familiar with the Promoting Real Opportunity, Success and Prosperity through Education Reform Act believe it will benefit lenders and loan servicers. Source
Household debt levels are now approaching pre-crisis levels; instead of housing debt, consumers have accumulated more student and auto debt; student debt totaled $1.3 trillion at the end of 2016, an increase of 170% over the last 10 years; contributing factors include more students taking out loans, increased loan amounts and slowing borrower repayments; Lend Academy discusses the mounting defaults in student loan debt and the platforms that are aiming to solve the problem through various products. Source
Quoting data from Transunion the Wall Street Journal is reporting that 106 million loans have been enrolled in forbearance, deferment...
Harrison Hochman and Devin Cintron recently launched a pilot of an online loan marketplace that is called Sparrow Lending; Sparrow...
CommonBond’s study highlights the disconnect between what employees desire and what companies currently offer as benefits; CommonBond focuses on helping those...
US legislators have proposed that student loan debt be discharged in the case of bankruptcy; the current law gives added protection to student loan lenders by requiring the debt to be repaid in bankruptcy; lawmakers and lobbyists are also considering other provisions that would provide debt relief to student loan borrowers who have filed for bankruptcy; while the debt relief initiatives will benefit borrowers, the effects will add increased default risk for investors in private student loans and private student loan securitizations. Source
LendKey is a lending-as-a-service technology provider for banks and credit unions; the company has released a Student Loan Refinance Report discussing borrower trends at banks and credit unions; provides statistics on borrower demographics, lending preferences and loan performance; finds that the student loan refinance market is healthy and that borrowers are saving an average 2.2% in annual interest expense after refinancing. Source
MPOWER Financing, which provides funding for international students attending US universities, secured $6 million in funding; the round was led by private equity firm, Zephyr Peacock India; the company will use the capital to enhance its technology and expand marketing efforts in emerging markets, especially India; in addition to providing loans the company also helps to build credit history of students and provides them with personal finance education to use in life after college. Source
Student loan startup Savi has raised a $6mn series A round led by Nyca Partners; the company is coming along...
The Founder and CEO of FutureFuel.io and the Head of Fintech for Fiserv discuss the massive student debt problem. They have come together to help banks and credit unions provide solutions for their customers around student loans.