If you’ve taken any college classes, chances are you’ve had to deal with student loans. These loans can be especially burdensome for young professionals just getting started in their chosen fields. But there are some options and resources for dealing with them.
That’s where Student Loan Club comes in. You can read more about the business and what it does for students and graduates in this week’s Small Business Spotlight.
What the Business Does
Provides student loan and career resources.
Co-founder and COO Jay Rush told Small Business Trends, “For $5 a month, members receive quality resources including refinancing tools, loan calculators, resume assistance, professional HR counseling and industry news, allowing members to master their student loans. Members are automatically enrolled in the weekly Student Loan Club Sweepstakes for a chance to win their student debt paid down or completely off.”
A sweepstakes program.
Rush says, “While multiple platforms offer resources, none of them offer a sweepstakes based on repayment. Therefore, our strong differentiator is our Student Loan Club Sweepstakes.”
How the Business Got Started
As a way to deal with mountains of student loans.
Rush says, “My parents were losing sleep worrying about the quarter of a million dollars of student debt that my brother and I had accumulated over time. After years of making fruitless payments, we sat down as a family and founded the Student Loan Club within a few months.”
Getting early funding.
Rush explains, “Our biggest win as an early-stage startup was receiving our seed funding to turn our dream into a reality. That initial capital gave us the ability to start executing our plan.”
Turning to loved ones for funding.
Rush says, “The most difficult part of the process has been getting people to believe in and fund the idea. Our funding came from family and friends who put their faith in us to create a return on their investment. The risk is already paying off, but if it does not, next Thanksgiving could be awkward.”
How They’d Spend an Extra $100,000
Helping members repay their loans.
Rush says, “We would use an extra $100,000 for both marketing as well as the sweepstakes prize pool. Students are currently in debt an average of $35,000. That money could really help some people out.”