Students have a reason to celebrate with ReliMaxs new announcement.
There is some good news for ReliaMax customers. While interest rates on federal student loans are going up on July 1, the company announced that interest rates on loans in its Connext Private Student Loan program will actually be lowered on June 1 according to a press release from ReliaMax.
Rates on student loans with both variable and fixed interest rates drop down to 2.87 percent for undergrad loans and 5.40 percent for graduate loans. Borrowers will not have to pay an origination fee.
These new interest rates are considerably lower than what students with federal loans will be seeing for the 2017-18 school year according to The Student Loan Report. Rates on those undergrad loans will increase to 4.45 percent, graduate loans will go up to 6 percent, and Graduate PLUS and Parent PLUS loans will surge to 7 percent. Contrary to ReliaMax customers, federal borrowers with undergraduate and PLUS loans will also be subjected to origination fees.
According to ReliaMax’s CEO, the new interest rates offered through the Connext program serve as proof of the company’s commitment to make sure its customers can pay for college and graduate school without taking on the burden of massive student loan debt.
This development follows up on another promising idea from ReliaMax. In April this year, ReliaMax rolled out a new system that aids private lenders with providing information to borrowers as well as pricing private student loans. More accurate information and pricing could contribute to a streamlined lending and repayment process which should only help borrowers.
The loans offered through ReliaMax are backed by banks and alternative lenders and can cover all school-certified educational costs. Borrowers also have access to a lending specialist until they have paid off the entire loan. The company urges students and their parents to research all loan and financial aid options before committing to a program.
Despite a rising interest rate environment, other institutions have lowered rates within the last month or two. The Alaska Commission on Postsecondary Education recently announced reduced interest rates for the upcoming academic year. While not as competitive as ReliaMax, the Alaskan institution is offering rates at 4.45, 6.00, and 7.00 percent for undergraduate, graduate, and Parent PLUS loans, respectively.
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