What is The YourLoanAdviser(R) Solution?
The YourLoanAdviser Solution helps lenders easily enter the private student loan market and offer credit union student loans or bank student loans — even if they have no prior experience in student lending. This fully integrated solution includes proven analytics, program design, default prevention, regulatory support, claim payment and other components — all in a fully insured, 100% managed solution, to help lenders get an attractive yield.
How are private student loans different from federal student loans?
Federal student loans are provided through the Department of Education with minimal underwriting and fixed borrowing limits. Most students and families are generally encouraged to borrow the federally sponsored student loans first. However, where the federal loan limits do not meet the students’ total financing needs, private student loans can fill the cost of that financing gap. Private student loans are made following proven credit criteria and sound underwriting policies. We believe in an informed decision on how to finance a college education.
Why are private student loans a good asset class to add to my institution’s consumer loan portfolio?
Whether you’re a bank, credit union, college or university, many of your best customers are looking for private student loans to fill the gap between family contributions, scholarships, grants and what federal loan programs provide to fund their higher education. In fact, many are already getting bank and credit union student loans from your competition. The YourLoanAdviser Solution can help you enter this market without creating the complex infrastructure normally required by this type of lending, or assume any of the risk normally associated with launching a new product.
Please explain how the Surety Bond (insurance policy) works?
The surety bond is your insurance policy. It is a comprehensive insurance certificate covering all of the individual loans made during the academic year June 1 through May 31st. This coverage remains in effect for the entire life of the loan. The surety bond contains the complete details including agreed upon program rules, underwriting criteria and eligible school list.
Is YourLoanAdviser regulated and how do I know they are financially stable?
YourLoanAdviser is domiciled and an admitted insurance carrier in the state of South Dakota. As a regulated insurance company, we are required to undergo extensive examination. YourLoanAdviser undergoes an independent actuarial review each year, comparing the actual portfolio performance against projected expectations. Additionally, we obtain an annual independent audit performed by McGladrey. The actuarial opinion and independent audit are filed with the State of South Dakota Division of Insurance, which also performs regular examinations to ensure the financial soundness of the company.
How does YourLoanAdviser assist me with my regulators?
YourLoanAdviser has experience with regulators and we provide information needed for regulatory exams, checklists or questionnaires. We provide an extensive due diligence packet including audited financials, the independent actuarial opinion and a description of our reserve adequacy. YourLoanAdviser will also initiate meetings and discussions with regulators when appropriate.
What are my responsibilities as a lender under the program?
You will be responsible for providing loan capital that will be disbursed directly to the approved colleges and universities based on program design. You will also market your bank and credit union student loan program to the customers and the communities you serve. Understanding that the private student loan market has a very seasonal nature, YourLoanAdviser will recommend timing and marketing techniques.