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College Ave Student Loans Survey Finds Only Half of College Students That Borrow Student Loans Feel Confident They Can Repay

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For many students, student loans are a part of the college experience: 43% borrow (or currently borrow) federal student loans and 12% borrow (or currently borrow) private student loans, according to the College Ave Student Loans survey of 1,019 undergraduate students conducted by Barnes & Noble College InsightsSM. Of those borrowing, only half (49%) feel confident they can repay their student loans.

While the majority of students that borrow (86%) understand taking out student loans means they will repay more than they borrow, only about 1 out of 3 (37%) fully understand the financial terms associated with them. More than two-thirds (69%) do not know what the monthly amount will be on their first student loan bill.

“Our survey highlights that though student loans play a significant role in helping students achieve their college degree, more can be done to help educate students on responsible borrowing,” said Joe DePaulo, CEO and Co-Founder of College Ave Student Loans. “Through our clear and helpful online resources and calculators, College Ave Student Loans strives to make student loans as simple and easy-to-understand as possible and help students understand their monthly payments when they graduate.”

The College Ave Student Loans survey also finds that students expect to take on most of the responsibility of repaying their student loans. More than half of students (55%) plan to pay back their loans without help from parents. And, college students graduating with student loan debt are motivated to enter the workforce. More than half (58%) say this will motivate them to land a job faster. Nearly half (43%) will look for a job where student loan repayment is part of the benefits. And, around 1 in 3 (36%) plan to work two or more jobs to help them pay off their student loans.

Borrowing for college can be a confusing process that can leave students with a financial responsibility for the years to come. To help students who plan to borrow for the upcoming school year, DePaulo offers the following tips to help families borrow smart:

  • Borrow federal loans first. Federal loans in the student’s name offer certain protections and benefits – such as income-driven repayments and public service forgiveness – not typically offered with private loans.
  • Don’t borrow more than you expect to make in your first year of your professional career. By doing so, you help ensure your student loan payment vs. income ratio is kept at a reasonable amount.
  • Be aware of automatic deferment. Some loans, such as federal, automatically defer payments while you are in school. But paying down loans while in school – even as little as $25 a month – can help you save money over the long run. Check your repayment for each loan, and if you can afford to, ask your student loan servicer how to make payments on your loan while in school.
  • Make sure there are no additional fees. Some loans come with origination, application or even early repayment charges – extra fees that College Ave Student Loans does not charge its borrowers. Make sure to read the fine print and ask your student loan servicer if you are unsure.
  • Apply with a co-signer that has strong credit. Applying for a private student loan with mom or dad? Choose the parent with the strongest credit score and history who can help you net the best interest rate possible. One easy way to check what rates you can expect without pulling a credit report is with the  College Ave Student Loan Credit Pre-Qualification Tool.
  • Sign up for automatic payments. Planning to start paying off your student loan while in school? Consider signing up for automatic payments. You’ll often get a discount on your interest rate when you’re making automatic payments, and you’ll know that your payments are being made on time each month. Not all student loan servicers offer this benefit – make sure to ask.

 

SOURCE College Ave Student Loans

Fintech

Central banks and the FinTech sector unite to change global payments space

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The BIS, along with seven leading central banks and a cohort of private financial firms, has embarked on an ambitious venture known as Project Agorá.

Named after the Greek word for “marketplace,” this initiative stands at the forefront of exploring the potential of tokenisation to significantly enhance the operational efficiency of the monetary system worldwide.

Central to this pioneering project are the Bank of France (on behalf of the Eurosystem), the Bank of Japan, the Bank of Korea, the Bank of Mexico, the Swiss National Bank, the Bank of England, and the Federal Reserve Bank of New York. These institutions have joined forces under the banner of Project Agorá, in partnership with an extensive assembly of private financial entities convened by the Institute of International Finance (IIF).

At the heart of Project Agorá is the pursuit of integrating tokenised commercial bank deposits with tokenised wholesale central bank money within a unified, public-private programmable financial platform. By harnessing the advanced capabilities of smart contracts and programmability, the project aspires to unlock new transactional possibilities that were previously infeasible or impractical, thereby fostering novel opportunities that could benefit businesses and consumers alike.

The collaborative effort seeks to address and surmount a variety of structural inefficiencies that currently plague cross-border payments. These challenges include disparate legal, regulatory, and technical standards; varying operating hours and time zones; and the heightened complexity associated with conducting financial integrity checks (such as anti-money laundering and customer verification procedures), which are often redundantly executed across multiple stages of a single transaction due to the involvement of several intermediaries.

As a beacon of experimental and exploratory projects, the BIS Innovation Hub is committed to delivering public goods to the global central banking community through initiatives like Project Agorá. In line with this mission, the BIS will soon issue a call for expressions of interest from private financial institutions eager to contribute to this ground-breaking project. The IIF will facilitate the involvement of private sector participants, extending an invitation to regulated financial institutions representing each of the seven aforementioned currencies to partake in this transformative endeavour.

Source: fintech.globa

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TD Bank inks multi-year strategic partnership with Google Cloud

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TD Bank has inked a multi-year deal with Google Cloud as it looks to streamline the development and deployment of new products and services.

The deal will see the Canadian banking group integrate the vendor’s cloud services into a wider portion of its technology solutions portfolio, a move which TD expects will enable it “to respond quickly to changing customer expectations by rolling out new features, updates, or entirely new financial products at an accelerated pace”.

This marks an expansion of the already established relationship between TD Bank and Google Cloud after the group previously adopted the vendor’s Google Kubernetes Engine (GKE) for TD Securities Automated Trading (TDSAT), the Chicago-based subsidiary of its investment banking unit, TD Securities.

TDSAT uses GKE for process automation and quantitative modelling across fixed income markets, resulting in the development of a “data-driven research platform” capable of processing large research workloads in trading.

Dan Bosman, SVP and CIO of TD Securities, claims the infrastructure has so far supported TDSAT with “compute-intensive quantitative analysis” while expanding the subsidiary’s “trading volumes and portfolio size”.

TD’s new partnership with Google Cloud will see the group attempt to replicate the same level of success across its entire portfolio.

Source: fintechfutures.com

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MAS launches transformative platform to combat money laundering

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The MAS has unveiled Cosmic, an acronym for Collaborative Sharing of Money Laundering/Terrorism Financing Information and Cases, a new money laundering platform.

According to Business Times, launched on April 1, Cosmic stands out as the first centralised digital platform dedicated to combating money laundering, terrorism financing, and proliferation financing on a worldwide scale. This move follows the enactment of the Financial Services and Markets (Amendment) Act 2023, which, along with its subsidiary legislation, commenced on the same day to provide a solid legal foundation and safeguards for information sharing among financial institutions (FIs).

Cosmic enables participating FIs to exchange customer information when certain “red flags” indicate potential suspicious activities. The platform’s introduction is a testament to MAS’s commitment to ensuring the integrity of the financial sector, mandating participants to establish stringent policies and operational safeguards to maintain the confidentiality of the shared information. This strategic approach allows for the efficient exchange of intelligence on potential criminal activities while protecting legitimate customers.

Significantly, Cosmic was co-developed by MAS and six leading commercial banks in Singapore—OCBC, UOB, DBS, Citibank, HSBC, and Standard Chartered—which will serve as participant FIs during its initial phase. The initiative emphasizes voluntary information sharing focused on addressing key financial crime risks within the commercial banking sector, such as the misuse of legal persons, trade finance, and proliferation financing.

Loo Siew Yee, assistant managing director for policy, payments, and financial crime at MAS, highlighted that Cosmic enhances the existing collaboration between the industry and law enforcement authorities, fortifying Singapore’s reputation as a well-regulated and trusted financial hub. Similarly, Pua Xiao Wei of Citi Singapore and Loretta Yuen of OCBC have expressed their institutions’ support for Cosmic, noting its potential to ramp up anti-money laundering efforts and its significance as a development in the banking sector’s ability to combat financial crimes efficiently. DBS’ Lam Chee Kin also praised Cosmic as a “game changer,” emphasizing the careful balance between combating financial crime and ensuring legitimate customers’ access to financial services.

Source: fintech.global

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