It’s difficult for cash-strapped students in a recovering economy to see the bright side lately — particularly as government-backed student loan interest rates have doubled since the beginning of the month. But the good thing about problems (like, for example, super-expensive college tuitions) is that they can often be the catalysts to ingenuity and change.
Student borrowers are so often underemployed after graduation, they have a hard time paying back their loans and building a good credit history, so they get saddled with high interest rates.
Even for students who have solid credit scores and could qualify for lower rates, cheaper choices are few and far between. Now two lending start-ups, SoFi and CommonBond, are looking to refinance the high-interest rate deals for the cream of the crop of student borrowers in graduate programs at top schools.