We’re proud to announce a big step in getting borrowers better student loan repayment outcomes: Meet our new, exclusive refinancing marketplace for student loans!
You probably know Payitoff provides our partners tools for their borrowers to leverage federal programs in order to save thousands on their student debt. But now, Payitoff also offers partners the ability to give borrowers refinancing recommendations on any student loan portfolio.
Through our exclusive partnership with Sparrow, borrowers can now choose from refi deals featuring over 10 different lenders, creating a competitive environment to help borrowers get the best deal possible.
And, it’s a tried and true strategy: Sparrow’s marketplace has already saved the average borrower $9,600 over the lifetime of their loans.
What’s refinancing, and why is it sometimes a borrowers’ best option?
95% of borrowers have federal loans, which means typically Payitoff can offer them money-saving recommendations by leveraging federal repayment programs and helping them enroll.
But what about borrowers who don’t qualify for any of those programs for their federal loans, have private loans, or both?
Often the next best step is shopping for a refinancing opportunity instead- a move that can also save borrowers thousands. When a borrower is eligible for refinancing, they can consolidate higher interest debts into a new loan at a lower interest rate (and often lower payment).
Since it’s our mission to get our partners the best financial outcomes for borrowers, we knew Payitoff’s “next best step” was finding a way to offer recommendations for refinancing that prioritized transparency, clarity, and action for borrowers.
Sparrow was a dream-team match as a partner because they also embodied these values: “Transparency empowers borrowers with the foundational building blocks necessary to make confident decisions. Through our partnership with Payitoff, we cover the full spectrum of student debt – from public to private loans. Collectively, we widen borrowers’ aperture to an unprecedented amount of actionable information.”
-Harrison Hochman, Founder/CEO, Sparrow.
Better results for borrowers & lenders: How our Refi marketplace works
When borrowers connect their loans via Payitoff, they’ll get student debt guidance on their entire student loan portfolio of federal and private loans- a feature unique to Payitoff.
This means directly in-app, borrowers will be able to get holistic student debt guidance towards their next best repayment steps- and if that means they should refinance, they’ll be able to select their best loan options, pre-qualify, and move directly to the application!
This means for the first time anywhere, borrowers will be able to:
- Use student loan debt guidance on their entire (federal and private) student loan portfolio
- Apply for federal forgiveness programs directly in-app
- Pre-qualify for student loan refinancing directly in-app
- Access an embedded refinancing marketplace with 10+ lenders to select the best deal
This makes conversions easier than ever for our partners and also greatly reduces the effort it takes for borrowers to start saving. That means faster borrower results and growing wallet share!
And, with 10x the options vs other debt APIs offering refi, borrowers can get better repayment outcomes that create lasting customer relationships with your platform.
How Lenders and Financial Services Benefit
As the forbearance period comes to a close this year, millions of borrowers will be looking to refinance federal and private loans.
Payitoff partners can now offer refinancing options to their borrowers and generate revenue once the new loans are funded.
- New revenue stream: Earn refinancing revenue for each funded loan
- Early to market: Only provider offering a marketplace with the best rates and the ability to apply all in-app
- Fast to deploy: Leverage existing UI modules without building a new flow
As of today, borrowers already linked on our platform have the potential to save tens of millions.
The average loan balance Sparrow and Payitoff sees is about $60k- with an average interest rate of 7% – meaning this is a huge opportunity for student loan lenders and financial servicers to address borrower pain points and needs.
We’re excited to bring your borrowers the best refinancing outcomes with our new ultra-competitive marketplace with Sparrow.
Reach out today to learn how you can begin offering your borrowers access to better refinancing recommendations and deals with Payitoff.