The statistics are frightening. Americans hold $1.3 trillion in student loan debt. This represents years and years of hefty loan payments for millions of citizens. High School students and college students, need assistance understanding the financial aid and student loan process so that they can make the best financial decisions for themselves.
There’s a startup company that wants to be a sort of financial-aid-counselor-in-the-pocket for students. It’s called NextGenVest, founded by Kelly Peeler. According to a NerdWallet analysis, in 2014 as much as $2.7 billion of free federal financial aid went unclaimed by students, mainly because of either a failure to file or incorrect completion of the Federal Application for Student Aid (FAFSA). This is free money that students didn’t receive. And what is more, in 2014 graduating college seniors carried $28,950 in student loans with them when they left school (the Institute for College Access and Success report).
Peeler quotes another sobering statistic: 1 in 5 high schools don’t have guidance counselors (Department of Education study). Imagine going through high school trying to figure out your career choices, college selection, class requirements for college entrance, testing requirements, financial aid form filing, and deadlines without the benefit of a school counselor.
Clearly many students need help. Reading books or listening to talks about the financial aid process can be difficult to understand, with all the confusing terminology, and deathly boring for many students. NextGenVest’s approach is to reach students using tools that virtually all students use: text messaging.
Students can text questions to can get help with a variety of personal finance topics: how the financial aid process works, deadlines, scholarship information, budgeting, choosing a bank account, and loan repayment options. The help comes from trained college students who have been through the process themselves, referred to as “Money Mentors.” They work for NextGenVest and text back answers to student questions. They also can help students who’ve receive an unsatisfactory financial aid package and who want to appeal to the college for a better deal, as well as send reminder texts for important approaching deadlines.
Students can sign up for a free 3-month trial at NextGenVest.com to see if they like the service. After that the cost is a one-time fee of $29.95. This service company has been mentioned on the Today show, in Forbes magazine, TechCrunch, and on other media outlets. For students who feel overwhelmed by the higher education application and financial aid process, and particularly for those who don’t have good guidance at home or at school on these matters, this type of timely and relatable help is long overdue.