Student loans are an inevitable aspect of higher education for most students, and doctors in particular face a sizeable debt load upon graduation.
In an effort to tackle this reality, two forward-thinking organizations have come together to create a workable solution for managing student debt.
As part of a recent partnership with LendKey, a leading online lending platform, doctors across the United States now have the opportunity to alleviate some of their debt burden through loan refinancing to the tune of $34,000 in average savings.
LendKey recently announced the exclusive partnership with The American Professional Practice Association (APPA), which will allow APPA members to refinance existing private and federal graduate and undergraduate loans at lower rates by connecting them with community lenders across the country.
“We’re always looking for organizations that are looking to improve their membership quality of life,” said LendKey CEO Vince Passione. “When you look at APPA, they have a large membership base of over 7,000 members that have significant student loan debt. They raised it as a major stress point. It made sense as a partnership.”
In its release, LendKey said doctors, on average, spend $176,000 on student loans. It’s a noteworthy departure from the average amount of student debt in the US, which Mr. Passione estimates to be around $30,000.
The APPA works with its member base of medical, dental and osteopathic doctors to provide information to enhance their quality of life. Enabling members to save money through student loan refinancing is just one of the ways it sets out to do this.
“This relationship with LendKey will directly relieve that pressure for our members and provide them with access to lower rate loans from an organization that matches our passion for service and member satisfaction,” said APPA Corporate Vice President Marisol Dioses.
As part of the new partnership, doctors looking to refinance their loans will have the chance to choose from an array of lenders and evaluate rates, loan features, geographic location, and other criteria to determine which community lender is the right fit for them. As an added benefit, all APPA members will also receive a $100 APPA Member Gift when refinancing with LendKey.
LendKey, which works with credit unions and banks to secure low-interest loans, views student lending as a significant opportunity for community lending partners and said that they have been receptive to date. The organization currently boasts over 40,000 borrowers and over 300 community lenders to support a number of loan types including student, auto and home improvement.
“Banks are really looking to target millennials,” said Mr. Passione. “A student loan is the perfect product to begin forming a relationship with this group. They’re at a point where this is probably the first relationship they’ll have with the bank aside from a credit card.”
With the partnership in early stages, Mr. Passione is confident that it will be popular with doctors given the large debt load and the lending profiles seen on the platform in the past.