Edmit focuses on helping families make a more informed financial decision about where to go to college.
Photo: QuinceCreative / Pixabay
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Private student loans are one of the riskiest ways to pay for college, as they are more expensive than federal loans and lack strong consumer protections.
Fortunately, a college counseling firm plans to take some of that risk for its clients with a new private guarantee for student loans.
The company, Edmit, will cover private loan payments for up to six months for eligible students who do not find a job within one year After graduation.
Edmit, who focuses on helping families make a more financially informed decision about where to go to college, is launching his new product as a kind of insurance for students who need more than federal loans to pay for a specific school.
In other words, the company will help you get into the university that suits you best to get a job once you leave. And to give you confidence that she will do a good job, she is willing to pay off a few months of your loans if you can’t get a job after graduation.
Edmit’s promise to cover some of the student loan payments is unique in the private student loan market..
Most financial experts recommend that students stay within the federal system and avoid private debt altogether.
However, many times students and their families cannot avoid doing so, particularly in states where even the state’s public university tuition is not affordable.
As an example we can take the case of Pennsylvania. Federal data shows that public four-year colleges in the state charge families earning between $ 48,000 and $ 75,000 an average net price of about $ 20,000 a year, a good chunk of their income. That’s the price families pay after subtracting federal, state and institutional grants and scholarships, according to Yahoo!
To see if you qualify, you need a tuition bill showing how much you will pay out of your own purse. Edmit has a calculator on his website that users can enter their scholarships, college savings, and loan amounts, and it will help them calculate their total four-year expected loans, including federal and private loans. If that total is less than what Edmit estimates your first-year salary will be after you exit college, then you will be eligible for the guarantee.
If after graduation you can’t find a job or if you earn less than $ 20,000 a year, Edmit will make your private student loan payments for you for up to six months.
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