As student loan legislation takes the spotlight in the media, borrowers, and lenders are left in the air when it comes to the unsure future of student loans. Here are some of the most popular queries that have arisen as a cause of this:
- How will the rules for student loan forgiveness change?
- How can lenders make paying off student loans easier for borrowers?
Lenders and borrowers are keenly interested in student loan legislation that could quickly affect their lives and businesses. The need to stay on top of new student loan legislation and bills means stakeholders will have to keep an eye on what’s going on in Washington and find new tools to help them navigate the ever-changing new student debt landscape.
What’s happening with student loan legislation?
President Biden has been ever-interested in reforming how student loans are paid and how student loans are forgiven. President Biden has already canceled three billion dollars of student loan debt in his presidency so far. Student loan legislation didn’t stop there. With the CARES Act Biden signed, Americans currently have their student loan payments suspended until at least January of 2022 or are now qualified for student loan forgiveness.
After announcing the student loan payment suspension on federal student loans, groups of Democrats continue to push legislation that’ll make paying back and canceling student loans easier. Here are just a few of the points from the current agenda:
- Make canceling student loans faster
- Expand the number of people who qualify for student loan forgiveness by relaxing requirements
- Automatic cancelation of student loans in unique cases
- Simplify the repayment process of paying off student loans
- Implement tax-free student loan forgiveness
It’s unclear as of today which aspects of the student loan legislation will become law. However, it is clear that the Biden administration is interested in shaking things up and making paying off student loans more manageable.
Embedded fintech: Data and refinancing solutions
Lenders are also keenly interested in making paying off student loans easier and the culprit that’s preventing it is the unreliable data. The most impacted data issue is refinancing, and with upcoming student loan payments restarting, lenders will soon see an influx of borrowers looking to refinance. The problem is mainly due to ineffective and missing data. The discrepancies in the exchange of loan information between the former lender and the new one ultimately ends up putting the borrower in an unfortunate situation. Where is the embedded fintech solution in all of this?
The embedded student loan refinance solution
The embedded student loan refinance solution calls for amazing data and intelligence to get the exact loan amount in order to pay off the original lender in real-time. No more guesstimates or the hassles that come with over or underpaying the original lender and Spinwheel’s proprietary Precision Pay does just that.
Spinwheel’s embedded fintech, Precision Pay, gives lenders the exact amount they need to pay off the original lender. Not a penny more or less. Lenders can issue payments in real-time and have them processed fast for speedy student loan refinancing that’s also very transparent. How is this possible?
Lenders are able to access users’ up-to-date student loan debt information as well as a full financial student debt picture. All information is updated in real-time due to user-authenticated access for continuous and uninterrupted account connectivity. The embedded finance intelligence for student loan refinance is able to take all data points into account and calculate the correct amount every time. To top it off, embedded intelligence can also assist both lenders and borrowers with financial literacy for better account management combined with quality data. What’s more, Spinwheel’s easy-to-implement and low-code debt API makes life easy for developers, with the added advantage of zero data-scraping involved.
Next level embedded debt repayment features
Spinwheel did not stop there and went the extra mile. Lenders can assist borrowers in improving their debt repayment outcomes with revolutionary high-impact repayment options. Here are some of the embedded debt repayment features and options any lender can utilize for themselves or borrowers:
- Auto-payments and auto-debit procedures are a breeze to handle. User experience at its finest – managing and making payments has never been easier.
- Allows the borrower to make micropayments right from the app. Borrowers can make payments on the go. When they have the funds, they can make a payment, any time they’re ready to – either towards their principal or as an extra payment. Companies also stand to benefit by way of users opting for value-added micropayments that get them better rates on interest. This not only helps bring down their debt faster, Spinwheel’s debt API helps the user to convert loyalty points into funds, allowing users to redeem points to pay down their student loans quickly.
- Implements intelligence that optimizes debt outcomes. When combined with other debt accounts such as credit card debt, it can be difficult for borrowers to manage and pay down debt faster. Spinwheel’s debt API intelligently manages payments to give borrowers the highest repayment impact based on an algorithm that helps them get out of debt faster. It doesn’t stop there.
- Round up small transactions to pay debt faster. Another thing that end users will get with Spinwheel’s debt API is an option to round up transactions to the nearest dollar and automatically apply the extra change directly to their student loan and other types of debt.
- Added revenue streams. Lenders stand to gain more and increase revenue by being a part of Spinwheel’s refinance network.
Spinwheel makes navigating the student loan landscape a breeze
With Spinwheel’s technology that utilizes easy-to-use, low-code, drop-in-style debt API modules, you can help borrowers pay off their debt faster. While the landscape of student loans is quickly changing, utilizing tools like Spinwheel’s fully embeddable debt solution that help both lenders and borrowers make student debt easier.
Spinwheel is the leader in unlocking consumer value with debt APIs and thanks to their easy-to-use drop-in embedded API modules; your developers can customize and implement quickly. Spinwheel has a strong focus on helping tackle student loans and student loan repayments to help students get out of debt sooner. For more information, visit Spinwheel here.