1. Chief Marketing Officer, CommonBond @phildegisi @commonbondW
Making Sense of
Student Debt
Phil DeGisi
Chief Marketing Officer, CommonBond
©CommonBond Inc. Confidential

2. A quick introduction Chief Marketing Officer @ CommonBond
Joined CommonBond December 2014
Background in ecommerce marketing (Amazon, Walmart.com)

3. Why I joined CommonBond
Because of this day:

4. In June 2009, I received 2 things that would change my life
$150,000
(with >8% interest rates!)

5. The Student Debt Dilemma

6. The Stats You Know
$1.3+ trillion in total outstanding student loan debt
40+ million Americans hold student debt
70% of college graduates have student debt
Sources: NY Fed, Ticas.org

7. The Stats You Know Average student debt by degree $35k $57k $56k $112k
Undergraduate
Graduate
MBA JD MD
DDS
Sources: Debt statistics - Undergraduates: Edvisors; Graduates: U.S. News & World Report; MBAs: U.S. News & World Report;
Doctors: Association of American Medical Colleges; Dentists: American Dental Education Association; Lawyers: U.S. News & World Report

8. The Stats You May Not Know
46%
69%
78%
are delaying
wedding plans
are delaying
home ownership
are delaying
the vacation of
their dreams
Source: CommonBond survey February 2016

9. Lack of Student Debt Literacy is a key part of the issue…

10. We need to educate students, graduates, and parents on what their options are

11. There’s never been more options for student debt repayment
Federal programs that can help those struggling to make their monthly payments
Refinancing thru a private lender that can help graduates save thousands in interest payments
Employers contributing to their employees’ student loans can enable millennials to save more for retirement

12. Federal Government Programs
Income-Based Repayment Plans
Public Service Loan Forgiveness

13. Income Driven Repayment
Federal Programs:
Income Driven Repayment
Download this pdf at

14. Public Service Loan Forgiveness
Federal Programs:
Public Service Loan Forgiveness
Must work for government organization, 501(c)(3) non-profit, private not-for-profit org (ie law enforcement, emergency management, public education, and more)
10 years of on-time payments. Should be on income-based repayment plan if planning to take advantage of PSLF
Forgiven amount is NOT taxed
First year loans will be forgiven as part of this program is 2017
Some discussion around capping the benefit (ie preventing high earners like doctors from getting hundreds of thousands forgiven)

15. What is student loan refinancing?
Refinancing means taking out a new loan to
replace an existing loan
Lenders pay off your existing loans, and
create a new loan for you at a lower interest rate
You can refinance federal, private, and
previously consolidated student loans

16. Why are graduates refinancing?
By refinancing student loans with a private lender like CommonBond, borrowers can:
Lower their monthly payments
Lower their interest rate
Choose a payment plan that’s right for them
Yet, in spite of that, 1 in 4 millennials with student loans aren’t aware refinancing is even an option1
1 Student Loan Hero 2016 Refinancing Survey

17. CommonBond has delivered over $60,000,000 in savings on student loans
$14,581
70%
Average member savings
2.22%
Our lowest interest rate
(5 year variable)
APR
How much lower our interest
rate is versus the Grad Plus
government rate5 11
2,000+
Number of
refinancing products
Students educated
through our social promise

18. Why are
CommonBond's rates
lower than the
government's?

19. We use technology and data to get to know applicants...
Free Cash Flow
Education
RATE
Credit History
Location
Earnings Potential
And many more...

20. so we can give them a lower rate ...
Lowest
CommonBond
Rate (Variable)
Federal Government Grad Plus Rate
Federal Government Grad Plus Rate
Average
CommonBond Rate
7.21% APR
7.21% APR
4.65% APR
2.22% APR
Savings = $18,332 (Assumes loan balance of $125,000)
Savings = $36,828 (Assumes loan balance of $125,000)

21. …in a matter of minutes

22. “ Our members save big: Sarah saved $27,100
Education
BA, Hofstra University
JD, Cornell Law School “
If I was going to go through
the process of refinancing my student loans, I wanted to do it with a company that was really easy to work with. And that was CommonBond. It was nice to talk to real people who actually know things. At other companies, you have to talk to five people to get an answer and wait on hold forever"

23. The newest opportunity: Employer contribution to student loans
Millennials increasingly are looking to their employers for student loan assistance
Source: ionTuition

24. Employers are considering two ways to contribute to their employees’ student loans
Employers can contribute to their employees student debt directly
Employers are exploring matching their employees’ student loan payments with a 401k match

25. It’s still very early days…
Source: Willits Towers Watson Survey – March 2016

26. …and Congress will have a significant impact on the adoption rate
Bills in Congress that, if passed, would make the tax treatment of employer student loan repayment similar to that of a 401(k):
Employer Participation in Student Loan Assistance Act (House)
Student Loan Repayment Assistance Act of 2015 (House)
Employer Participation in Repayment Act of 2016 (Senate)
Student Tax Affordability and Relief Act (Senate)

27. To summarize
There has never been more ways for graduates to manage their student debt
Awareness of options and understanding of the ramifications is key to putting a dent in the student loan dilemma
Employers are starting to see the opportunity to contribute to the solution and help millennials save for retirement as a result
We as financial literacy enables can play a critical role in helping more people make the best, most-informed choice for them

28. Thank you! Keep in touch: @phildegisi phil@commonbond.co