There is no question that student lending is a massive market and several companies in the online lending industry have been extremely successful at lowering the rates of borrowers through student loan refinancing. There are also companies like Credible who seek to educate borrowers on what student loan refinancing and private student loan options are available by presenting a variety of different loan options from different originators. Today, Credible announced that they are adding another originator to the mix with Sallie Mae, which will enable borrowers to take out loans through Credible’s platform. Bringing on the nation’s largest private student lender is a huge win for Credible.
But there is another opportunity for the originators themselves which is the employee benefits space and there are an increasing number of online lenders showing interest in the space.
The premise of combining student lending with employee benefits typically falls into the below categories of increasing involvement by the employer:
- Providing educational support to employees with student loans.
- Partnering with a platform to offer student loan refinancing.
- Partnering with a platform to offer student loan refinancing and offering a defined contribution to the employee’s loan.
As graduates enter the workforce with high levels of student debt, offering assistance to help pay off loans is very attractive from a prospective employee’s perspective. At this point, offering student loan assistance is a competitive advantage but it eventually could be the norm for larger employers.
We reached out to Stephen Dash, Founder and CEO of Credible to get his take on this new trend: [Read more…]