19 mar Tuition.IO Offers the Gift of Student Loan Repayment
Interested borrowers select the Switch Lenders Now button, download their actual loan info through account aggregation technology (the demo showed Intuit powering an account scrape of Sallie Mae), complete a short loan, and upload a scan of their drivers license and last pay stub.
That info is sent off to student lenders who make actual credit offers to the user within two to three days (see screenshot #2).
In the demo, using an actual student from their beta launch, the three competing lenders shown were (may not be real quotes however):
As proven by the success of Sofi ($400 million funded) and the buzz around Finovate alum , the student loan market is ripe for new thinking (I won't say disruption, because debt consolidation is hardly a new concept)
- Wells Fargo at 3.75%
- SoFI at 5.88%
- CU Student Loans at 4.90%
As proven by the success of Sofi ($400 million funded) and the buzz around Finovate alum , the student loan market is ripe for new thinking (I won't say disruption, because debt consolidation is hardly a new concept)
- San Francisco-based startup launched in
- Raised $500,000
- 30,000 borrowers registered during its beta test (carried out under previous incarnation, JoinStampede)
- Founder Stephen Dash worked at JP Morgan Chase
- Its goal is to move beyond student loans into every bank and insurance service.
That said, existing financial institutions can play in this game, and win if they want to. We believe customers would be more likely to refi if it was delivered by their primary financial institution within the secure online (or mobile) environment.
And the great thing about saving your up-and-coming customers a few grand each year is that they are hardly going to jump ship to save $5 per month on a checking account.
This time of year I'm always on the lookout for financial companies doing something interesting for the holidays.
