As the cost of college continues to rise, more and more students are taking out student loans to help finance their education. Actually, 7 out of 10 students graduate with some form of student loan debt. The student loan crisis is gathering media attention almost every day and people are starting to realize how big of a problem it really is.
Many students don’t understand their loans and have no plan for repayment after graduation. This is why Andy Josuweit started Student Loan Hero. He had $104,000 in student loan debt from over 16 different loans and struggled to find help with his repayment himself. Andy didn’t want any borrower to have to walk the same path he did, so he made a resource that helps its users organize, manage, and repay their student loans.
How Does Student Loan Hero Work?
Student Loan Hero allows borrowers to connect their account to all of their student loan accounts. Student Loan Hero downloads the loan information so the user can see it all in one place. Users then can input other financial information such as income, expenses, and other debt that they hold.
Once Student Loan Hero downloads your loan information, they analyze it and offer advice on how you can save money and make your repayment more manageable. Most of the options Student Loan Hero suggests are free options for the borrower, such as student loan forgiveness.
How Does Student Loan Hero Help?
Student Loan Hero recommends a variety of strategies based on the individual user. Some of these include general advice on loan repayment, some federal programs, and refinancing through a private lender. Each of the suggestions includes pros and cons as well as a recommendation based on your individual situation.
Some of the federal programs Student Loan Hero suggests include Direct Loan Consolidation, Income Based Repayment Plans, and different student loan forgiveness programs. All of these programs are free for the borrower but can help save thousands over the life of the loan.
It is also quite obvious that Student Loan Hero is trying to push its users to refinance their student loans. Refinancing is the process of turning in your old loans for one new one with either a lower interest rate or lower monthly payment.
No matter which tab you explore in the dashboard, you will see a box that has different refinance lenders, like SoFi or Earnest, and has a big button saying “Save Money Now”. It is important to consider the federal benefits you will lose, such as forgiveness and certain repayment plans, if you refinance your federal loans with a private lender.
What Else Does Student Loan Hero Do?
Student Loan Hero also has sophisticated student loan calculators that allow users to determine what their best option is—whether that is federal consolidation, refinancing, changing repayment plans, or maybe even nothing at all! Users can see how much their monthly payments and interest rates will change if they decide to take pursue one of these options.
Furthermore, Student Loan Hero may even suggest whether it is smarter to prepay your student loans or invest that money. Because they have an algorithm that can automatically analyze your loan information, they can calculate how you can save the most money over the life of your loan or loans.
Aside from refinancing, the company also helps readers compare private student loans via their marketplace and on specific pages. Note that you should always exhaust all scholarships, grants, and federal student loans which are usually more favorable than even the best private student loans.
Aside from the calculators, Student Loan Hero also has a “Must Reads” section, a.k.a. their blog. The blog has a myriad of articles ranging from discharging your loans in bankruptcy to guides to refinancing and consolidation. If you need to know more about one of the options you are considering, Student Loan Hero most likely has a specific guide just for that topic.
There is no doubt that student loan debt is a huge problem in the United States today. Borrowers are uneducated and don’t truly realize the implications of the debt they are taking on. Student Loan Hero is a great tool for students looking to save money or to make their loans more manageable. If you are interested in trying Student Loan Hero out for yourself, check them out here.