A new way to get a loan from a major U.S. lender, with no minimum payments and no monthly payments, has been introduced by a small but growing number of borrowers who have taken out large amounts of money.
“The interest rate on these loans is extremely low,” says Robert J. Shaffer, chief executive of the student loan company Equifax.
“I am not saying the rates are high, but they are very low.”
Equifax, which has more than 3 million consumers who are enrolled in its credit reporting agency, said on Wednesday that it had more than 4.5 million students enrolled in more than 8 million student loans.
The company said it was not disclosing how much of the $2.6 billion in student loans that it is marketing is backed by the Federal Reserve and Federal Deposit Insurance Corp., which insures the federal government.
But the company is making the case that consumers are being steered toward the loans they think are best for them.
Equifax has partnered with the American Bankers Association to launch a new website that lets consumers find loans with lower rates and more favorable terms.
Equivalence has partnered up with Equifax and Bankrate.com to offer a $50 loan guarantee, and the website offers a free phone interview.
The website offers an option for consumers to apply online to the credit reporting company Equivalence.
The offer requires consumers to enter their Social Security number and verify that they have enough money to cover a $250 payment over three months.
The loan guarantee offers borrowers a loan guarantee of up to $250 for a total of up $5,000.
Equivents loan, which is available for $300 a month, also includes a $10,000 monthly payment option.
It also provides an automatic $500 interest refundable toward the cost of any student loan payment after 30 days.
The website says borrowers can apply online, phone or mail in their request.
The companies also have launched a consumer education website that gives consumers a look at the risks associated with student loans and how to protect themselves.
Equivistates website has the potential to have a huge impact in reducing the number of students with student debt, which at the moment stands at more than $1 trillion.
The Equifax website has already been downloaded more than 30,000 times, said J.B. Smucker, senior vice president at Equifax, in an interview with CBS News.
The site is available in more then 50 languages.