This Company Will Pay For Your Student Loans
You’re dead set on going to college and paying for it somehow. Naturally, you’re wondering if the risk is worth the reward. This is on a much larger scale than sneaking tamales from your sister’s stash (that was worth it!) You can’t guarantee you’ll replace those tamales, but one college advising company is offering a private student loan guarantee because they believe going to college is worth it!
If you don’t find a job within a year following graduation, the company Edmit will pay for six months of private loan payments to qualifying students. Co-founders Nick Ducoff and Sabrina Manville call it a type of insurance where they shoulder some of the risk as a safety net while they help you make an informed decision on where to attend college. Experts will recommend sticking with federal loans but as schools become more and more expensive and families might have less to contribute, the need for alternative funding sources has risen.
Edmit has a calculator where you can plug in savings, scholarships, and both federal and private loans. If the four-year total is less than what Edmit’s estimate of your first-year salary is for your major, then you are eligible for the program guarantee. If you’re making less than $20,000 per year, or can’t find a job at all after graduation, the program will pay your private student loan payments for six months. Some key things to keep in mind so you don’t get in over your head like El Chapulín Colorado on a mission:
Federal Loans come first
Get as much as you can from federal loans first. Up to $7,500 for dependents and $12,500 for independent students. Then try to fill in the gap with savings, income, third-party scholarships and parent PLUS loans, if you have those options. This program is for people who’ve exhausted all of the options but are down to deciding between parent PLUS loans or private loans. ✔️
It’s not uncommon to decide you’re studying in the wrong field and want to switch majors. The six month loan payment program guarantee has a list of approved majors that won’t disqualify you from this benefit so consider that before signing up for the agreement. 🤔❓
The turnout for a 4 year degree is bleak. Roughly 1/2 of students don’t have a degree even after 6 years. This program only works once you’ve graduated so factor in getting to the finish line in order to qualify, especially if you changed majors and need to add on another semester to finish up. 🎓
Most lenders will give you a grace period of about six months from graduation. And that’s when this program kicks in. Unlike federal loans which had a pandemic grace year, you won’t get relief from privatized loans and will need to commit to making these payments regardless of life events. ⌛
For anyone returning to college, not so fast. We applaud you but this offer is only available to freshmen going into college this fall. El Capulín Colorado already has his work cut out for him! 🦗
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