Student Loan App Sparrow Raises $7 Million For Bid To Simplify Private Borrowing

"The recent Biden administration decision to forgive up to $20,000 in student loans for many existing borrowers came with a significant caveat for student debt holders: private loans are excluded from the relief plan," Forbes reports.

..."Dependent undergraduate students can borrow a maximum of $5,500 from the federal government their freshman year and slightly higher amounts in the following years, for a total direct loan limit of $31,000. (Financially independent undergraduates can borrow $57,500 in total.) With many private college sticker prices starting at $50,000 a year, lots of students end up seeking additional loans to finance their degrees.

And most students can’t turn to their school’s financial aid office for help making that decision. Many colleges and universities do not maintain a list of preferred private lenders—or even assist students in taking out private loans—because doing so is heavily regulated, according to Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators."

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Publication Date: 9/20/2022

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