Private student lending solutions provider ReliaMax announced this week its subsidiary ReliaMax Surety Company has introduced two new features.
ReliaMax Risk Grades offers tiered pricing for private student loan insurance premiums based on individual loan risk level. The proprietary scorecard uses more granular criteria to manage risk and allow for more diverse loan offerings based on type of degree and career path.
Basis Points Pricing gives lenders the option to offer monthly payments on insurance premiums based on outstanding principal balance over the life of a loan.
“The education financing market has shifted,” CEO Mike VanErdewyk explained. “Seven years ago, there was very little student loan consolidation and refinance activity and private student loans contributed $5 to $7 billion in new loans each year. Now, private student loan originations have grown to approximately $10 billion per year, more than $100 billion in total loans outstanding of today’s $1.4 trillion market, and lenders are offering great variety in their loan programs.
“The goal of ReliaMax is to bring more lenders into the private student loan asset class in order to help more students with their education financing needs. Today we work with over 500 financial institutions, and we believe that if more private lenders join the market, education financing will become more affordable and accessible. These two initiatives are helping us deliver on our clients’ needs and meet these goals head on.”