Introduction:
More than 50% of the student population in the United States is known to take student loans to complete their education. Student loans have proven to be a great aid in finances for those who find education expensive in America. Here we will see about Who are the largest student loan providers?
The money needed to study in the US is not a meager amount. Pursuing education through student loans is more prevalent in the United States than in any other country. The regulatory frameworks responsible for providing such loans in the US are the US Department of Education (FAFSA) and the Higher Education Act of 1965.
It is a form of financial aid provided chiefly for pursuing higher education.
Who are the largest student loan providers in the US?
The United States is home to many private student loan providers. It is a significant part of the banking sector in the US. Most of these money lenders are huge reputed institutions, including both government and non-government banks.
A student loan is mostly provided by the government or international banks. Some of the largest companies providing student loan are listed below:
1. Discover Financial Services: This Company is an American financial services company. Discover Bank owns and operates the company. The company has its headquarters located in Riverwoods, Illinois, US. Discover provides private student loans to undergraduates, graduates, law, medical, and MBA.
The company is one of the top lenders in the country. The interest charged by the company is 0.25%, which is the standard interest rate in the country. The loan term ranges between 15 to 20 years depending upon the degree. The company also provides bar exam loans and residency loans.
2. Navient: Formerly named Sally Mae, Navient Corporation is based in the United States at Wilmington, Delaware. It is a public financial services company that was founded in the year 2014 by Congress. The company was established to contribute to the student loan program run by the Higher Education Act of 1965.
The company’s chief functions are to provide financial services and collect student loans. Presently, Navient owns 25% of the student loan services in the United States. The company provides both federal and private student loans.
3. SoFi Technologies: Social Finance Technologies, Inc. (SoFi), was founded in the year 2011. The founders of the company were Mike Cagney, James Finnigan, Dan Macklin, and Ian Brandy. This American online finance company has its headquarters located in San Francisco, California, US.
The company deals with various financial products including home loans, student loans, personal loans, credit cards, wealth management, and stockbroker. The company has over $6 billion in loans issued. SoFi does not charge any extra fees other than the interest rate. The company has been providing federal and private student loans with an interest rate ranging between 1.89% and 11.92%.
4. Ascent: Ascent Funding, LLC was founded in the year 2015 by Ken Ruggiero. The exceptional feature of the company is that it has been providing student loans with or without a consignor.
The Richland State Bank operates the student loan procedure of the company. The company specializes in providing all kinds of student loans including graduate loans, undergraduate loans, college loans, tuition assistance, and financial aid. The loan term ranges from 5 years to 15 years with an interest rate ranging between 1.64% and 9.23%.
5. Rhode Island Student Loan Authority: The Rhode Island Student Loan Authority was founded in the year 1981 as a non-profit financial services agency. Gail Walker is the director of the authority. The agency has been providing student loans to undergraduates and graduates.
The loan amount ranges between $7500 and $250,000, depending upon the course degree. The loan term given by the company is 5, 10, or 15 years. The agency also provides a loan forgiveness facility to students who qualify for it. There are no extra application fees charged by the company. The students are only supposed to pay the interest rates,
6. A. M. Money: This consumer lending and financial service company was founded in the year 2017 by Daniel Rogers and Jeffery Wright. The company has its headquarters located in the Greater Chicago Area, US. This for-profit company has been providing student loans at a low cost and without any co-signer. The student loan is provided chiefly for pursuing higher education.
Conclusion:
The companies mentioned above are some of the prominent student loan providers in the United States. In the past few years, these companies have had a massive business regarding student loans.
Frequently Asked Questions:
1. Who is the lender for federal student loans in the US?
The Federal Government is the lender for federal student loans in the US.
2. Are unemployed students also required to pay back student loans?
The students who are unemployed after pursuing the course can postpone the repayment of the loan for up to 36 months.