As the economy struggles to make a comeback, the suspension of federal student loan payments and interest, which have been in effect since last March, have again been extended––through September 30, 2021.
Not all student loans are created equal however. Many federal relief programs only apply to the Direct Loan program, not the Federal Family Educational Loan (FFEL) program nor private student loans. That said, many opportunities exist for private student loan borrowers, including deferral and consolidation programs.
Unlike federal student loan rates that are set by Congress, interest rates for private student loans are determined by creditworthiness. As the federal funds rate reached record lows, the average annual percentage rate (APR) dropped below 3 percent for consumers who have a strong credit history. These fixed rate student consolidation loans can translate to substantial savings for the borrower.
Q4 student loan lender marketing surges
The private student loan consolidation market saw a dramatic increase in direct response advertising in the fourth quarter of 2020; both pre-screened direct mail and email surged. Student loan leaders, like Citizens, combined historically low rates and lucrative incentives, such as a $500 amazon.com gift card, for consolidating through them. A market study by Competiscan Research & Insights showed Q4 mail volume of approximately 65 million pieces with Citizen’s and SoFi accounting for roughly 60 percent of that volume.1
Creative Solutions has been a leader in student loan advertising for almost 20 years, with proven expertise in targeting, segmentation, offer development, direct mail/email creative, production management and analytics.
Call 302.543.8533 or email us today to find out how we can help your student loan marketing efforts.
1Competiscan Research & Insights Student Lending Overview Q4 2020