Given the challenges in the private loan markets and the uncertainty surrounding the future of FFEL, it should not be surprising to see SimpleTuition seeking to diversify the services they offer. With student loan defaults accelerating and the savings rates in the U.S. jumping in recent months, these partners seem to make sense but I was still surprised to see them on a student loan site.
Debt Rescue USA provides the following marketing pitch about their services:
"In just minutes, Debt Rescue USA
will match you up with trustworthy & experienced debt settlement
professionals who have helped thousands of people in your exact
situation. If you have $10,000 in credit card debt or
higher, find out how you can actually settle for less than you owe and
get debt relief in as little as 12 to 36 months!"
The agreement enables TuitionU.com (www.TuitionU.com) to add peer-to-peer lending technology to its growing array of high-quality, low-cost student loan options.
Not-for-profit credit unions that are currently featured will be joined
in the future by foundations, charities, corporations and other
community lenders to further enhance the network.
SLA Note: This would seem to put them on a collision course with one aspect of the People Capital model, which is to aggregate sources of capital for student loans.
