PALO ALTO, Calif., Aug. 4, 2015 /PRNewswire/ -- SimpleFi, a leader in providing responsible financial opportunity to everyone, today announced its new refinancing solution for both Federal and private student loans. Initially offered as an invitation-only, limited release, SimpleFi student loans are now available to those with a FICO score of 720 and above in California, Colorado, Illinois, and Texas. With low rates, flexible "no hassle" repayment terms and financial coaching, SimpleFi is dedicated to making higher education more affordable for everyone by helping consumers alleviate debt and encourage financial stability.
Student loan debt now makes up nearly $1.4 trillion - double that of U.S. credit card debt1. With the cost of college continuing to rise, SimpleFi's student loans offer significant cost savings and flexibility compared to other options, making it easier to take on critical transitions and changes in life. In addition, SimpleFi provides one-on-one financial coaching to help educate students on how to get out of debt faster and build credit, paving the path to financial freedom.
"The cost of getting an education has continued to rise and it takes more than a student loan to cover tuition and living expenses. Students are trapped between investing in a career versus financial health," said Adam Potter, co-founder and president of SimpleFi. "Nobody wants to be denied an education for lack of funds, so we're stuck in a cycle where loans are getting bigger, deferments are growing, default rates are rising, and credit is ruined for millions. SimpleFi is here to help students take charge of their debts and get on track financially."
As students graduate and loan payments come due, many graduates, particularly millennials, consider financial support and wellness in the workplace as a key factor in job selection. In fact, 40 percent of employees are looking to their employer for more help in achieving financial security through employee benefits2. As such, employers can work directly with SimpleFi to offer student loan refinancing to employees as an HR benefit - thereby also increasing employee engagement and productivity. These employer-sponsored loans are available to employees for undergraduate or graduate degrees.
In addition to offering SimpleFi student loans to employees, employers can further subsidize this HR benefit in order to offer employees zero percent rates. This innovative program allows employers to lower education costs and enables employees to focus on the principal, resulting in rapid debt elimination.
Working to decrease debt on undergraduate, graduate and Parent PLUS loans, SimpleFi is dedicated to offering a comprehensive refinancing solution. This 'inclusive' solution offers refinance relief to those who need it the most by working with a lower income threshold than most other lenders. SimpleFi's limited release refinancing offers fixed rate student loan refinancing for 4.99 percent - 6.99 percent with variable rate loans available in the future.
SimpleFi student loans will be widely available in the U.S. in the fall of 2015. Consumers of a broader credit spectrum - not just the high-end, or so called "best borrowers" with the highest credit scores and six-digit incomes - will be able to apply for SimpleFi student loan refinancing. Alleviating debt for students across the credit spectrum is the first step in encouraging financial stability for graduates.
For additional information on SimpleFi student loan refinancing, visit www.simplefinow.com/studentloans.
SimpleFi's mission is to financially empower everyone through highly accessible and affordable credit tailored to personal needs, combined with one-on-one financial coaching. The company and its founders believe that access to financial opportunity at fair rates is crucial to a healthy workplace and national economy. Whether it is a student who is burdened with education loans, an employee who is faced with unexpected expenses or a member of the military trying to improve credit, SimpleFi is committed to the economic good of alleviating personal debt. The management team brings a wide range of experience from Wall Street to Silicon Valley to the military. Based in Palo Alto, California, SimpleFi is privately held and backed by social impact investors and strategic institutional partners. For more information visit www.simplefinow.com.
1 Federal Reserve Bank of New York
2 MetLife 12th Annual U.S. Employee Benefit Trends Study