As many people can attest to from firsthand information, numerous companies and individuals make money on student loans. Lenders charge high interest rates on student debt borrowers, and this can be good business for such lenders in the right circumstances. Moreover, colleges and universities also make big money on student loans since they are largely funded by debt borrowed from students. However, other individuals are making money on student loans in different ways, and it is important that student debt borrowers understand how this money is made so that they have more perspective on the student loan industry.
One of the biggest ways that making money on student loans is possible is through affiliate programs. Most student debt borrowers have seen an advertisement or marketing material for student loan refinancing companies. These businesses essentially buy out your old debt and then they become your new lender.
Many student loan refinancing companies offer an incentive to individuals or businesses who refer prospective borrowers to them. Depending on the circumstances of an arrangement, this amount can exceed several hundred dollars. This website has toyed with affiliate relationships with student loan refinancing companies in order to keep the lights on at Student Debt Diaries.
Affiliates are supposed to disclose to consumers that they are affiliated with a company that provides an incentive in exchange for a referral. However, this is not always apparent. Nevertheless, it is important that people understand that these affiliate relationships exist. This is so people can understand that individuals or businesses may be referring a business not because they think that the company is the best at their job, but because of a financial incentive. People should assume that if there is a link on a website to a student loan refinancing company there is an affiliate relationship and the referrer might be receiving an incentive for the referral.
Making money on student loans is also possible for student loan advisors. There are professionals that offer advice and suggestions to student debt borrowers who wish to change their student loan plan. The student loan advisors typically ask for information from the borrower, such as the total amount of the outstanding debt, the income of the borrower, and other details. Then, the student loan advisor may suggest that the borrower refinance their student loans and the advisor may assist in the process of onboarding the borrowers into the student loan company’s system.
The way that these professionals are typically paid is how affiliates are paid. Student loan advisors may receive an incentive for each of the borrowers they originate for a given student loan refinancing company. Some student loan advisors may also request payment from the borrower himself or herself, but this is more rare. Just because a student loan advisor is being paid by a student loan company does not mean that borrowers should not work with them. However, student debt borrowers should keep this information in mind so that they can understand why a student loan advisor may be making certain decisions.
Some people approach making money on student loans through paid literature. Most of the information about student loans that can be accessed about student loans on the internet is basically free for the reader. However, sometimes, people publish ebooks or other literature that costs money to download. This website has resisted all suggestions of doing this since it is difficult to impose barriers to accessing information about student loans. Moreover, people who are paying off student loans may have financial challenges and these issues will be exacerbated if individuals need to shell out good money to purchase materials rather than paying off student loans. Student debt borrowers should carefully consider the author of any materials and other factors before deciding if they want to spend money purchasing premium literature.
This website has already discussed making money on student loans through blogging about student debt and one’s experiences with loans. Indeed, this website makes some money, although the funds mostly go to paying for the website’s upkeep. There are a variety of income streams that bloggers can use in order to generate income. One is through advertisement since many advertisers will pay by the click or pageview to content providers who host advertisements on their websites. Google is a great partner to have when it comes to ads, but there are other advertising opportunities bloggers may pursue.
Moreover, bloggers can also generate income through guest posts. Essentially, this is when a company writes a post on a topic that is relevant to the blog so that the company can connect with readers and increase the profile of the business. It is important that blogs curate guest posts so that they do not impact the image that the website is trying to present. There are a variety of other income streams that bloggers can pursue, and with some handwork, dedication, and a little luck, bloggers can make a respectable amount of money from their writing.
All told, making money on student loans is commonplace in the student debt industry since there are a lot of income streams that can generate money in a variety of ways. It is important that individuals understand all of the ways of making money on student loans since this can inform their decisions about student loans.