Good news for MBA borrowers: Juno promises to match loan rates

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Getting an MBA is an expensive undertaking. The cost of the two-year residency program – whether it starts or ends in person or virtually – can be in the range of 250 thousand dollars or more for an elite program… For most students, this means obtaining a loan that will take at least several years to pay off. no matter how much money you earn after graduation

But there is good news for MBA borrowers in the United States and for most American students planning to study on an international MBA program: from June 15 Juno, a company founded by MBA which uses collective bargaining to force banks and other lending institutions to lower interest rates for MBA borrowers, will offer exclusive betting cards with its new partner Earnest, a financial lender based in San Francisco. Even more intriguing, Juno guarantees the cheapest private student loans.

“If someone gets a lower grade elsewhere, Juno will match and surpass it,” says co-founder Chris Abkarianes, an MBA at Harvard Business School 2020. Poets and quanta

JUNO MEMBERS CAN EXPECT 1.6% RATE BELOW STANDARD RATE

Chris Abkarians (left) and Nikhil Agarwal founded LeverEdge in the summer of 2018. Since then, the company has been renamed Juno. Kind photo

Offering any deal is the culmination of the Juno founders’ dream.

“We are very excited,” say the Abkaras. “This is literally what we have wanted to do for the past three years.”

Juno began her life as Leverage in the summer of 2018. when the Abkaras and their Harvard colleagues admitted that Nitin Agarwal was worried about the interest rates they were facing on loans they probably needed to get their MBA at the HBS. In response, they organized and created a business model that harnessed the power of collective bargaining to help students like themselves who had long been at the mercy of the education funding system.

According to their model, the business school accepts and students join the negotiation group, and Juno informs the banks of the growing group size. He ends up asking banks to compete for an exclusive recommendation. In 2018 for amounts in excess of $ 20,500, many students have considered federal version Grad PLUS which charged 7.6% per annum and 4% + registration fees; working with Connecticut Bank, Abkarians and Agarwal Secured Their Clients rates from 5% to 6% without registration fees.

The same approach worked in 2019 and, with some hiccups, there will be a 2020 pandemic, with thousands of MBA students receiving better loan rates and therefore saving thousands of dollars each. In 2021, working exclusively with SeriousJuno has agreed on an exclusive rate card “which is always cheaper than Grad PLUS,” says Abkarian, with 10-year deferred loans at a fixed rate of 4.25% to 5.85% per annum versus a federal annual rate of 6.93 % (which is expected to increase this year).

But Juno wants to beat private loans too. Abkarians says the average Juno member will receive rates that are about 1.6% lower than standard rates – and if someone finds a cheaper loan elsewhere, Juno will match and surpass it.

“This is very exciting news,” the Abkaras say. P&Q… “This is what we set out to do on the first day. I have a high degree of confidence that there will be no one with lower rates anywhere. “

The loan rate fluctuates between the expected MBA students working with Juno. Courtesy of Juneau

HOW THE WARRANTY WORKS

Eligible US citizens or permanent residents, as well as international students who have US citizens or US permanent residents. Rate options include five-, seven-, 10-, 12- and 15-year terms, as well as four repayment options and a nine-month grace period. The Abkarians say that compared to Grad PLUS, the rates that Juno negotiated are always lower; compared to the Stafford loans, “in most cases our rates are still lower.”

He adds that it is difficult to compare student loan options. “To date, we have not found a single publicly available calculator that allows you to compare fixed and variable lending rates with assumptions about how variable rates may change in the future,” he says. “So we built one and you can access it here… We recommend that you enter any quotes you are interested in from any lender, whether they are a Juno partner or not. “

Federal student loan rates are 0.98% higher than last year, Abkaryan said. For the first $ 20,500 borrowed from the government, students pay a 5.28% interest rate and a registration fee – the amount paid on the first day – that is, about 1%. Over $ 20,500 government loans will cost borrowers 6.28% per annum and a registration fee of about 4.2%.

According to him, in transactions with Juno, the commission is equal to $ 0.

“Our mission”, – say the Abkaras. P&Q, “Allows MBA students to access the most affordable student loan and find peace of mind. So, if anyone finds a lower rate on a private student loan anywhere else, we will match the cost and surpass it.

“There is nothing to worry about if the quotes compared are comparable (for example, you are comparing a 10-year loan with a fixed rate and deferred payments until graduation with a similar loan structure from our partner)”

Summary of Juno Ratings Compared to Grad PLUS

“GUARANTEED YOU CANNOT GET THE BEST DEAL ANYWHERE”

Abkarians says Juno decided to work with Earnest this year after receiving offers from a dozen lenders.

“Our goal over the past few years has been:“ How do we ensure that our model guarantees everyone the lowest rate? “We used to be able to get the lowest rate for about 95% of the people in the high confidence group, but there could always be a lender who would come later and become more aggressive trying to lower their rates. Now, firstly, I think we already have the lowest rates on the market. But if by chance someone later gets a lower grade, then we have a really easy way to let us know they have it, and then we’ll match it.

“We wanted to make it as easy as possible. I want to be able to convey to everyone in Booth that, “Hey, guaranteed you can’t find a better deal anywhere else.”

The process is similar to what Juno has done in the past, only much larger, he said.

“I would say that three years ago we started with a couple of hundred students when we first tried to announce the discount,” Abkaryan says. “And this year there are 65,000 of them. So the simple rate hike formula worked. We were able to attract more than a dozen lenders interested in providing us with information on what rates they will offer and what discounts they can offer – and we made a deal with Earnest. “

Students who switch from Juno to Earnest receive lower rates than if they switched to Earnest directly, due to Juno’s exclusive rate card, Abkarianz said. In addition, Juno members have softer underwriting criteria, which means that if borrowers do not have a job and income while at school, which is typical for most MBA students, they can still get a loan without a co-author through the Juno card. “This is abThis is a deal for a lot of people, says Abkarian, because about two-thirds of our audience wants to sign an agreement. ”

Find out more on the Juno website

DO NOT MISS INTERNATIONAL LAW: ACCEPTED US MBA PROGRAMS ARE NOT ACCEPTED FOR CREDITS as well as A LEVER TO HELP MBA STUDENTS REDUCE LOAN RATES REMOVES



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