ReliaMax expanding their headquarters in Sioux Falls, South Dakota.
The student loan market has changed a great deal over the past decade. While private student loans contributed between $5 and $7 billion in new loans annually just seven years ago, it now contributes $10 billion per year as well as a portfolio numbering more than $100 billion in outstanding loans.
With that in mind, student loan lenders are looking to more accurately assess and price private student loans. And ReliaMax has announced that its subsidiary, ReliaMax Surety Company, has launched two new initiatives that will give all lenders more accuracy and flexibility in insurance pricing and payments for student loans.
The first offering is ReliaMax Risk Grades which is a scoring system that uses traditional credit scoring criteria with additional dimensions. It allows lenders to more accurately identify risk and price private student loan insurance. This initiative could potentially benefit borrowers since lenders will be able to offer a variety of loan options that include fixed and variable rate pricing; international, medical, or MBA degrees; professional education, and more.
And Basis Points Pricing is a monthly option for paying insurance premiums during the course of the loan instead of all up front, which will enable lenders to better manage their loan portfolios and improve cash flow.
ReliaMax’s CEO said that the goal of both initiatives is to bring additional lenders into the market so that more students will be able to finance their education. After all, the average cost for private college for the 2016-17 school year was $33,480, and many students are barred from both private or public options unless they are able to secure a loan.
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