TuitionCoin Student Loan Application Process

The TuitionCoin loan application process makes me very proud. We are flipping traditional loan applications completely upside down. Typically lenders start with the borrower without caring about the school attended or the degree that was earned. TuitionCoin is different. We start with the school, the degree and finally look at the person. How does our application process work?

The first step is checking the investment rating of the school the borrower attended. TuitionCoin rated over 4000 schools based on the investability of the school. The ratings go from F to A+. A+ schools get a 2.49% interest rate. D- Schools get 7.99%.

The second step is checking the market rating of the borrower’s degree. TuitionCoin rated about 100 degrees on the same F to A+ scale. This determines how much student debt we are willing to refinance. An A+ degree can refinance up to $120,000 and a D- degree can refinance only $10,000.

The third step is to adjust the rate, up or down, based on the individual. We look at the credit score, income compared to degree averages, and debt/income ratio as well as a few other items.

The final step is the payment plans. We are offering traditional 5, 10, 15 and 20 year loans as well as 10% or 15% income based loans. I’m also excited about our innovative 10, 15, and 20 year “stepping” loan. The “Stepping loan” starts out with ultra-low payments that increase during the length of the plan. This way payments increase as the borrower’s career matures.

This application process accomplishes a few things. The first is that graduates do not have enough credit history for credit scores to be predictive. We believe the school they attended and the degree they earned is more predictive of their ability to earn and pay down debt. The second thing we accomplish is that funds go to good schools with better investment ratings; and good marketable degrees.

I’m excited to share the process with everyone. I hope you look forward to seeing the investment rating of your school; the market rating for your degree; and how our payment plans can improve your financial situation. We still have some legal work and a document upload process to verify application info. But it’s looking really good and is shaping up to be a quick and fun process.