Lenders Offering Private Student Loans Get SafeStart from BridgeSpan Financial LLC
eWorldWire
November 03, 2009
Financial hardship after graduation: SafeStart covers borrowers with deferred monthly loan payments
ARLINGTON, Va./ BridgeSpan Financial LLC today announced that it will now offer its SafeStart program to lenders that originate private student loans.
The new product will allow lenders offering private loans to provide a comprehensive student loan management program that helps prevent borrower delinquency. The SafeStart program allows borrowers the ability to defer their monthly loan payments by up to three years if they graduate and find themselves in financial hardship. College graduates with SafeStart-protected private student loans receive access to a no-interest line of credit that they can use to make up to 36 months of loan payments if their student loan payments exceed a percentage of their monthly income.
In addition to the loan repayment protection, the company provides those borrowers with financial literacy training while they are in school and personalized debt counseling after they leave school.
"As college costs continue to rise and greater numbers of students take out loans to finance their education, offering borrower protections on private loans that parallel the benefits offered on federal student loans is just good sense," said Carlo Salerno, one of the principals with the company. "What we're offering - delinquency prevention - is a step beyond what's currently out there. For lenders, that means keeping borrowers on track before delinquencies even start pushing up servicing costs and affecting their balance sheets. For students, it's about proactively keeping them out of the debt spiral before they even start suffering from the consequences of damaged credit ratings and ballooning loan balances."
The company currently offers SafeStart to borrowers that take out federal student loans.
BridgeSpan provides college students with solutions that make it easier to finance a college education. The company offers a suite of debt management, financial literacy training and financial services products for students, families, lenders and postsecondary education institutions. For more information visit click here
ARLINGTON, Va./ BridgeSpan Financial LLC today announced that it will now offer its SafeStart program to lenders that originate private student loans.
The new product will allow lenders offering private loans to provide a comprehensive student loan management program that helps prevent borrower delinquency. The SafeStart program allows borrowers the ability to defer their monthly loan payments by up to three years if they graduate and find themselves in financial hardship. College graduates with SafeStart-protected private student loans receive access to a no-interest line of credit that they can use to make up to 36 months of loan payments if their student loan payments exceed a percentage of their monthly income.
In addition to the loan repayment protection, the company provides those borrowers with financial literacy training while they are in school and personalized debt counseling after they leave school.
"As college costs continue to rise and greater numbers of students take out loans to finance their education, offering borrower protections on private loans that parallel the benefits offered on federal student loans is just good sense," said Carlo Salerno, one of the principals with the company. "What we're offering - delinquency prevention - is a step beyond what's currently out there. For lenders, that means keeping borrowers on track before delinquencies even start pushing up servicing costs and affecting their balance sheets. For students, it's about proactively keeping them out of the debt spiral before they even start suffering from the consequences of damaged credit ratings and ballooning loan balances."
The company currently offers SafeStart to borrowers that take out federal student loans.
BridgeSpan provides college students with solutions that make it easier to finance a college education. The company offers a suite of debt management, financial literacy training and financial services products for students, families, lenders and postsecondary education institutions. For more information visit click here
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