Author: Drew Cloud

15 Crazy Things Graduates Would Do For Student Loan Forgiveness

Student loan debt is a growing and an impactful issue in the United States. Today, 69% of graduates leave campus with student debt. And on average, borrowers are asked to repay about $28,000 in student debt, before interest. As a whole, there are now more than 43 million Americans working to repay an estimated $1.3 trillion in student debt.Student loans heavily weigh on a generation of millennials in the United States. The impact of student debt is broad and deep. According to our own data, student loan debt is causing 63% of debtors to delay buying a house, 73%...

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Congressman Garamendi Unveils New Student Loan Refinancing Bill

One popular topic in politics is the student loan debt issue.  Given recent trends, it is not surprising anymore to hear that the amount of debt from higher education aid is increasing.  Each and every year, the record for average student loan debt upon graduation is broken as the overall debt tally rises to over $1.3 trillion. With that being said, there are several politicians looking to introduce legislation with the intention to somehow stymie the growth of debt. Student loan refinancing is an option for indebted graduates that helps lower overall interest owed on a student loan, and this option has been growing in popularity since restrictions were lifted on federal loans.  While the government has improved the student loan refinancing system, there are politicians who call for further action. One such politician is John Garamendi who is a Democratic congressman out of California.  He announced his solution at the a UC student community center which is known as the Student Loan Refinancing and Recalculating Act. This act has four main points.  The first point is to refinance existing loans to reduce interest rates.  The second point is to recalculate new student loans in order to lower interest rates.  The third is to reduce the overall debt for college students, and the fourth point is to reinvest in the economy with new savings from borrowers. It basically calls...

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CommonBond Announces $150M Securitization

In recent news, CommonBond has announced the completion of a hefty securitization of student loans which is the second successful transaction in the past year.  The student loan consolidation lender sold $150 million in student loan assets to Goldman Sachs and Barclays.  The previous year in June saw a $100 million transaction in securities; in all, CommonBond has securitized $250 million in student loan assets. The two involved banks, Barclays and Goldman Sachs, co-led the securitization transaction with CommonBond.  The final recipients of these securities were banks, asset managers, credit funds, and other insurance companies.  The deal has received plenty of positive press; for instance, one of the world’s leading credit rating agencies, DBRS, rated the transaction highly. CommonBond has continued to make moves which is evident from its funding announcement in January of 2016.  A grand total of $625 million has been raised through debt financing and equity.  This puts CommonBond on track to breach over a billion dollars in loans before the end of 2016. The tech-enabled lender has proven its success with a 0% borrower default rate; additionally, CommonBond saves its users approximately $15,000 on refinanced student loans.  It is not much of a surprise that the refinancing company is on track to surpass $1 billion in loans. At any rate, there seems to be a movement in business towards online tech-oriented lending companies when it comes...

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CordiaGrad Relaunches as Purefy

Following a separation from the Bank of Virginia and Cordia Bancorp, CordiaGrad has announced a company name change in order to establish separation from its parent companies.  Now known as Purefy, the former CordiaGrad was the leading student loan servicer in the nation. The separation was caused by company founder Jack Zoeller who purchased the newly branded Purefy from the large bank and parent company.  The previous set up with the Bank of Virginia and Cordia Bancorp was not heading in the right direction, and the founder explained the need to “match our values, direction, and commitment to young adults and parents.”  Zoeller intends to take the reins on student loan refinancing in order to improve options for students in need of financial assistance. One of the major characteristics of loan refinancing from Purefy is the transparency and ease of its services.  The refinancing company is aiming to brand itself as a “pure” company with no hidden tricks or scheming loan options. This is accomplished in several ways.  First, Purefy reveals what kind of interest rate a potential borrower is eligible for before any final application is submitted.  This offers quite a bit of transparency on the types of services offered to its beneficiaries.  In addition to interest rate previews, Purefy offers several different payment terms to choose from; for instance, refinancers can choose between five, eight, or twelve...

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DRB Lending Finds New Home in Manhattan

One of the leading lenders of student loan consolidation has announced an expansion into Manhattan.  Darien Rowayton Bank Lending is the company occupying the new office space in New York City.  Darien Rowayton Bank Lending is an affiliate of the parent company, Darien Rowayton Bank (DRB).  So far the affiliate and parent companies are some of the fastest growing student loan lenders since they were the first organizations to reach over a billion dollars in student loan refinancing. The move comes shortly after DRB closed its fifth securitization deal. As of now, the expansion is accommodating 20 new employees with DRB lending, but the office lease pertains to over 4,500 square feet of space on Broadway, Manhattan.  In the future, this space will be home to more than just 20 employees since Darien Rowayton Bank intends to expand further into the New York area.  The new office is meant to work on expanding the technological platforms and marketing capacity of DRB lending. This is not the only expansion by DRB Lending.  A new office in Bridgeport, Connecticut is opening up with almost 12,000 square feet of space for over 100 employees.  This office is going to be a main hub for underwriting, operations, and customer service. These expansions are products of the growing business of DRB lending; for instance, earlier it was mentioned that they were the fastest lender to...

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