One wonders if anything can fix the U.S. student loan system, in which many students carry massive borrowing for a credential that is often considered essential.
Student loan marketplace Credible is trying to connect students to the best deal available.
“In ten seconds, a recent graduate can use Credible’s comparison tool to find out if they are overpaying on their student loans,” founder and CEO Stephen Dash told VentureBeat via email.
In five minutes, he added, a student borrower can complete a Profile that enables lenders to offer personalized quotes with exact rates for private loans.
Dash pointed to an actual 2010 Babson College graduate named Cole who reduced the interest rate on his loan from 8.90 percent to 3.75 percent and saved more than $40,000 over the life of the loan.
The site focuses on helping borrowers in the refinancing of existing loans – as opposed to their initial college loans – because “This is where borrowers can save the most money by comparing lenders‘ offers,” Dash said.
A few weeks ago, personal and student loan lender Earnest announced it had closed a $17 million Series A round.