Aaron Pisacane has created a company to bring in more data of the college student into the underwriting and pricing of private student loans. Aaron wants to enable lenders to make more insightful application decisions. This is a complete outsourced solution by addressing the need to continually evolve the model with post-pandemic data using advanced, predictive analytics. This
turnkey process is powered by Einstein Higher Edu Solutions.
Student risk continues to be ignored in the underwriting of private student loans
Traditional bank and nonprofit lenders have underwriting models that are cosigner centric. Extensive data on a parent cosigner's job, income, total debts and credit history are the primary factors in deciding how to price a loan and whether to make the loan. Einstein believes a college student’s field of study, marketplace demand for those skills, academic performance and total indebtedness and future income are predictive factors of private student loan repayment performance.
Current societal upheavals that were accelerated by the COVID-19 pandemic demands that lenders look beyond traditional underwriting models to lend to college students that
need access to credit at reasonable rates. Regulators in other loan products seem to now support creative underwriting solutions to expand credit for diversity and inclusion.
Current private student loan underwriting ignores student drop-out risk, student earnings potential and student total debt
Lenders continue to place the burden on the parent cosigner regardless of the student borrower’s likelihood of successful student loan repayment. Today there is more accessible information on the student than 10 years ago. To scale risk assessment of the college student, Einstein has automated the underwriting process to provide instantaneous application decisions without burdening the student and the operational application processing team.
Don’t let your traditional underwriting models remain obstacles to hardworking students
in realizing their dreams.Visit our website to learn how Einstein Higher Edu Solutions can help you.