First-of-its-Kind Student Loan Guarantee Will Cover Up to 6 Months of Payments After College
BOSTON, June 10, 2021 /PRNewswire/ -- Edmit, now used by millions of students and families to demystify the financial aid process and make better-informed decisions about college, today announced the launch of a guarantee designed to give private loan borrowers increased peace of mind.
"Although federal grants and loans, which include strong protections for borrowers, are always the best option, some students need private loans to bridge the gap when it comes to paying for high-ROI colleges," said Sabrina Manville, Co-Founder of Edmit. "The Edmit Guarantee is about extending basic protections to ensure that graduates who are truly struggling get the support they need while they search for their first job out of college."
According to a recent study, eighty percent of college students say they are concerned about "getting any type of job once [they] graduate." In addition, research suggests that fear of high tuition costs can often lead students to "undermatch" to lower-ROI institutions which can have significant long-term impacts on their career prospects and lifetime earnings.
The Edmit Guarantee, designed in partnership with Vemo Education, is designed to prevent students from borrowing too much and to reduce the risk of unnecessary debt, which often suppresses college-going aspiration, or encourages students to choose lower-cost colleges that might actually lead to a lower return on investment. Under the terms of the Guarantee, students who graduate from an Edmit-approved program but fail to earn more than the annual equivalent of $20,000 will receive up to six months of loan payments with participating loan partners.
"Optimizing for the lowest price isn't always the best choice for students. Without the right information and support, students too often opt into lower-cost options that are a poor fit which can cost them more in the end," said Kate Cody, VP of Strategy at Vemo Education. "The Edmit Guarantee proves that it's possible to provide all students with downside risk protection, as long as they make an informed college choice. When they follow Edmit's recommendations and take advantage of the Edmit Guarantee, overborrowing and undermatching become a lot less likely."
Since 2017, Edmit has created hundreds of guides and financial literacy resources, and helped students and families who use Edmit's financial aid appeal save an average of $5,000 on college tuition. The company recently joined forces with Vemo Education to help quantify the return-on-investment of a college degree for students and colleges alike.
Edmit helps families make smarter college financial decisions so that they're better off after college. Designed by former university leaders, Edmit's tools and resources for saving, planning, and paying for college have saved families millions of dollars on tuition and loan payments. Edmit's software provides families with personalized reports on how to afford college, including cost estimates, and financial fit scores based on projected ability to repay student debt. Edmit's book, Better Off After College, was a #1 best-seller on Amazon. In 2021, Edmit became an independent subsidiary of Vemo Education, Inc., whose unique pay-for-success programs help align college costs with job outcomes at Purdue University, the University of Utah, and more than 70 other institutions across the country. For more information about Edmit, visit www.edmit.me.
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