College Ave, the new and upcoming online private student loan provider, has a bit of history with Sallie Mae. Its origins can be traced back to two executives formerly employed at Sallie Mae.
The first executive, Joe DePaulo, was the executive vice president of banking and finances at Sallie Mae, and the second executive, Tim Staley, was the former chief information officer and senior vice president. These two left Sallie Mae and trekked out on their own by starting up private student loan and student loan consolidation lender College Ave.
Given their previous exploits (these men were involved in the founding of Credit One Financial Solutions) and experience (former MBNA executives), these men have secured the backing of Ohio’s Liberty Bank NA for their new loan business.
With the origins set straight, the special thing about College Ave is its new perspective on student loans: the borrower’s perspective. Through extensive experience in student loans, College Ave is crafted in a way that eliminated recurring issues in the student loan process.
Many of these issues have already directly affected the private student loan industry due to considerable drops in the number of private lenders; in fact, College Ave is one of the first new lenders to be founded in a while. Basically, debt has been building over the past decade without being paid off effectively.
The point of this startup is to combat this unpaid debt issue by providing ample information to customers before they take out a loan. By providing the maximum amount of information to the customer, they can make an informed decision on whether to borrow financial aid. More educated decisions can lead to a reduction in unpaid debt because borrowers can understand the terms of the loan more easily.
In addition to laying out all the information, there is quite a few ways to modify a loan, so there are multiple options if the standard loan deal is not going to work. This brainchild takes all of the experience of and lessons learned by DePaulo and Staley to provide a new and easy way to obtain, manage, and pay off student loans.