For The Lenders (Family)

So why is this a good deal for your family?

To finance your student's education at the lowest possible interest rate

Once savings and Stafford loan options are exhausted, most parents turn to private loans to fill the remaining gap. Many even borrow against home equity or retirement savings. But there’s a cheaper way. Consider a Federal Parent PLUS Loan from any lender you choose. Have a family meeting to decide how much of it you want your student to repay to you. Purchase Student Payback to formalize the agreement and see it through. You’ll know your family is getting the lowest possible rate and that you’ll see some of your money again. Unless of course, your student chooses an art major.

So your $$$ makes a lasting impression

You may be able to afford to pay the tuition bills, but want your student to shoulder part of the cost and appreciate the expense involved. Or, you may need your student to pay you back. In either case a thoughtfully structured Student Payback loan is a good fit. You can be extra supportive by charging low or no interest or forgiving payments if your borrower hits a cash crunch. It’s also a way to give your student an experience in borrowing, monthly payments, and how to handle payment difficulties. In other words, Financial Literacy 101 which probably won’t be on the course schedule.

To protect your relationship.

Friends and family lending is an age-old practice, but effective management of it is brand-spanking new. We're here to document your agreement, then service the repayments for the course of the loan. This way, everything is crystal clear, legally binding, with us handling the dirty work. If your student misses a payment, we get on the phone so you don't have to. Some people even say it has improved their relationship to have a successful loan repayment under their belt. Imagine that.