Students Have Entire Student Loans Paid For- For A Small Price - 47 ABC - Delmarva's Choice

Students Have Entire Student Loans Paid For- For A Small Price

Posted: Updated:

WMDT 47 News: We all know that going to college comes with a hefty price tag and paying off those student loans can be a big burden.  But now, some are now turning to companies like Upstart.com, where investors pay off students' loans and help them start up new businesses.  In exchange, the investors receive 1 to 6 percent of the pretax income for the first 5 to 10 years that their business is open.

Dan Ervin, a finance professor at S-U, sees little risk for students, saying, "The risk for the student is they hit it big and someone is going to get a percentage of your salary.  In addition to the money aspect, the investors are providing a mentoring aspect as well."

Nationwide, 70 percent of college graduates will have some debt, with the average being 29- thousand dollars.   And over the past three years, the declined economy makes it difficult for family members to help out. Barri Zimmerman, the director of financial aid for Salisbury University says, "its getting harder for parents to borrow loans for students, because there is a whole program for parent borrowing in addition to student borrowing, and a lot more parents are not able to get through the credit screening process for that. You see students taking out loans in their own name because they're trying to finance that education on their own, where parents were maybe able to help them in the past."

While some remain apprehensive, Professor Ervin reassures, that the only person who could be negative affected in this process is the investor.

  • ContestsMore>>

  • Teacher Who Makes A Difference

    Teacher Who Makes A Difference

    The WMDT 47 Teachers Who Make a Difference Contest is Sponsored by Accurate Optical: "Encouraging children of all ages to come in for an annual eye exam to help them see better in school." Each month weMore >>
    The WMDT 47 "Teachers Who Make a Difference" Sponsored by Accurate Optical Encouraging children of all ages to come in for an annual eye exam to help them see better in school.More >>
  • Free Tuition Contest

    Free Tuition Contest

  • Local NewsDelmarva HeadlinesMore>>

  • Salisbury Bingo Supports ALS Foundation

    Salisbury Bingo Supports ALS Foundation

    Thursday, August 21 2014 11:40 PM EDT2014-08-22 03:40:24 GMT
    SALISBURY, Md. - The "ALS Ice Bucket Challenge" has taken social media by a storm. An event hosted by the DC/MD/VA chapter of ALS gained funds and awareness without the use of ice cold buckets.More >>
    SALISBURY, Md. - The "ALS Ice Bucket Challenge" has taken social media by a storm. An event hosted by the DC/MD/VA chapter of ALS gained funds and awareness without the use of ice cold buckets.More >>
  • New App Offers Anonymous Peer Counseling

    New App Offers Anonymous Peer Counseling

    Thursday, August 21 2014 11:18 PM EDT2014-08-22 03:18:52 GMT
    47 ABC - We've heard the quote "Be kind. For everyone you meet is fighting a hard battle." A new smartphone is proving just that, offering strangers the chance to lend an ear to one another when times are tough.More >>
    47 ABC - We've heard the quote "Be kind. For everyone you meet is fighting a hard battle." A new smart-phone is proving just that, offering strangers the chance to lend an ear to one another when times are tough.More >>
  • 2nd Duck Derby Benefits National Foundation

    2nd Duck Derby Benefits National Foundation

    Thursday, August 21 2014 11:18 PM EDT2014-08-22 03:18:21 GMT
    OCEAN CITY, Md. - And they're off! Three thousand rubber ducks swam to the finish line in support of a great cause.More >>
    OCEAN CITY, Md. - And they're off! Three thousand rubber ducks swam to the finish line in support of a great cause.More >>
  • Most Popular StoriesMost Popular StoriesMore>>

  • Homeless Sex Offenders

    Homeless Sex Offenders

    DELAWARE - Individuals featured in this slideshow are NOT wanted. They are sex offenders who have registered with Delaware State Police as homeless. These are public notifications.More >>
    DELAWARE - Individuals featured in this slideshow are NOT wanted. They are sex offenders who have registered with Delaware State Police as homeless. These are public notifications.More >>
  • Cory Hamilton Found Not Guilty In Adrian Marshall Murder

    Cory Hamilton Found Not Guilty In Adrian Marshall Murder

    Thursday, August 21 2014 7:11 PM EDT2014-08-21 23:11:01 GMT
    WORCESTER CO., Md. – The trial for one of four men charged in a Thanksgiving 2013 murder of Adrian Marshal just wrapped up Thursday afternoon after three days in court. The verdict – 28-year-old CoryMore >>
    WORCESTER CO., Md. – The trial for one of four men charged in a Thanksgiving 2013 murder of Adrian Marshal just wrapped up Thursday afternoon after three days in court.More >>
Powered by WorldNow
Powered by WorldNow All content © Copyright 2000 - 2014 WorldNow and WMDT. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.