Leading student loan refinancing platform Credible is hoping a pair of recent moves will greatly expand its reach in the student loan marketplace.
This week Credible announced it has partnered with NerdWallet to provide student loan education to NerdWallet’s more than 30 million users, including information on refinancing and credit offers from multiple lenders.
Credible CEO Stephen Dash is excited about what the NerdWallet partnership means for both students and Credible.
“It’s validation for Credible, in that NerdWallet looked at the student loan market and saw us as a leader.”
The NerdWallet partnership will help bring awareness to a larger audience coming to NerdWallet to increase their financial smarts.
“Many people are not even aware they can actually refinance their student loans,” Mr. Dash said.
“Student loans — the fastest-growing type of debt in the U.S. — are crippling the finances of many Americans. NerdWallet wants to empower graduates to successfully repay their debt,” said Henry Hsu, General Manager of Growth and New Markets at NerdWallet. “Refinancing can be a great option for some, yet less than two percent of estimated eligible student loans have been refinanced.”
Credible has also launched a private student loan marketplace as a complement to their student loan refinancing marketplace.
Mr. Dash said this was a natural extension for Credible as they seek to simplify what can be a confusing marketplace for student loan borrowers.
“This provides clarity and transparency for people looking at taking out loans while at school,” Mr. Dash said. “It is the same concept as our student loan refinancing options.”
The decision to take a student loan is the first major financial decision many people make, he added. Credible aims to simplify the application process by having applicants complete one simple form and then compare offers side-by-side like they would on Kayak and Expedia. Early returns have seen borrowers save more than 1.5 percent, Mr. Dash said.
Mr. Dash added that it is important for students to have an independent place they know will provide honest information, one without a hidden agenda of directing them to a particular option.
The rates borrowers see are the ones they will actually pay, Mr. Dash said. Other comparison tools can present a rate range from a particular company, he explained.
Borrowers can also apply different filters to see what impact those decisions will have on their payments, Mr. Dash added.
“Some look at interest rate, while others look at their monthly repayment amount.”
Mr. Dash said the latter is important because a borrower may be more willing to take on an additional 20 percent on their monthly payment if they see their overall amount due drop by 35 percent, for example.
“This is really complex information for the average person,” Mr. Dash acknowledged. “We are trying to simplify it.”
“We provide all the information someone needs to make a good decision.”
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