Education Financing

A college degree is often the passport to a better life. 

According to some estimates, college graduates earn significantly more than those with just a high school diploma - as much as 80% more. That’s why, despite the exorbitant costs involved, many students are keen to pursue a college education. 

The average cost of a college degree in the US is over $35,500 per year. That includes tuition, books, supplies, and daily living expenses. Clearly then, funding an undergraduate or graduate education can be challenging for many students, especially those who come from economically challenged backgrounds. 

Fortunately, there are a variety of banks and credit unions that are focused on providing education financing opportunities for students, both through loans, financial education, and scholarship opportunities. When you choose to deposit your savings with an education financing institution, you’re choosing to have your funds be put to work toward aiding students with their higher education goals.

Key takeaways

Offering student loans: Student loan banks can be particularly helpful because they are typically driven and committed to making education more accessible to young people.

Competitive savings products: A student loan bank focused on educational financing offers excellent interest rates on savings.

Easy access: Savings products and loans offered by such banks or a student loan credit union are far more accessible to communities that are underserved by traditional banking institutions. 

Why education financing is important

As the cost of higher education continues to grow, the importance of banks that focus on education financing has grown as well. These banks can help people access quality education and advance their social and economic development through the bank’s financial products.

Let’s take a look at the various reasons why education financing banks are important:

  • Access to education: Education financing can help increase access to education by providing financial support to individuals who may not otherwise have the means to attend college. With easier loan qualification criteria and high-yield savings products, education-focused financial institutions work to help their customers meet their scholastic goals.

  • Economic growth: Education is a critical driver of economic growth. Education financing can help provide individuals with the skills and knowledge needed for their careers. This, in turn, can lead to increased economic growth and development.

  • Quality of educational materials: Education financing can be used to improve the quality of education by allowing borrowers to procure resources such as textbooks, laptops, and other educational materials. Without these resources, students can often find it hard to keep up with the demands of higher education. 

Social development: Education isn’t only important for economic development; it also plays a crucial role in fostering social development. Education financing can help support the dreams and aspirations of marginalized communities that have not historically had access to quality education. By studying at good universities and securing well-paying employment, individuals from underserved and underrepresented communities can become net contributors to their economies.

Education financing bank spotlight: Sallie Mae Bank

Sallie Mae Bank provides financing and know-how to support access to college and offers products and resources to help customers make new goals and experience, beyond college, happen. Their savings products offered through Raisin help to support these efforts.

What education-focused financial institutions offer

Education-focused and student loan banks offer a range of financial products designed to help individuals and families plan and pay for education expenses. Two of the most common types of financial products offered by these banks are:

  • Savings products: A student loan credit union or bank offers specialized savings products that are designed to help families save for education expenses. These savings products include traditional savings accounts, private bank student loans, certificates of deposit (CDs), and 529 college savings plans. Traditional savings accounts and CDs offer a low-risk way to save for education expenses. These accounts typically offer competitive interest rates and may have flexible withdrawal options. 

  • Education loans: A student loan bank, credit union, or private lender offers student loans at competitive interest rates. While these interest rates are generally higher than federal or state education loans, they offer greater flexibility. For example, you could have the option of requesting higher sums and negotiating repayment options from an education-focused bank.

Education financing banks available on Raisin

Quality education can be prohibitively expensive. Financial institutions that prioritize offerings that help students access higher education are vital. 

At Raisin, we understand how everyone planning for educational expenses deserves the support they need to realize their goals. Investing your savings with education financing banks through our platform could help others achieve their own education goals.

We partner only with reputed, FDIC-insured banks and NCUA-insured credit unions to offer savings and deposit instruments designed to help you make the most of your money. At Raisin, you can operate multiple accounts with different financial institutions with the convenience of a single login!

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Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodian Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodian Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City, Member FDIC, d.b.a. Central Payments is the Service Bank. Lewis and Clark Bank is the Custodian Bank.