ReliaMax®, a leading platform-as-a-service solutions provider for the private student loan industry, today introduced the Connext Private Student Loan solution for banks and the emerging market of alternative lenders.

The Connext solution is specifically designed for banks and alternative lenders looking to enter, grow or diversify their private student loan volume into a profitable asset class to meet the growing education financing gap with a comprehensive, branded private student lending product. This proven turnkey solution allows banks and alternative lenders to offer competitive in-school and consolidation/refinance private student loans supported by a compelling online experience for student borrowers.

“Students and parents are looking for competitive options to finance their education or refinance their federal and private loans after they have graduated. With Connext, banks and alternative lenders can offer comprehensive, risk managed private student loans without having to invest in the infrastructure or headcount,” said Michael VanErdewyk, CEO of ReliaMax. “Private student loans are proven to be a reliable and well-performing asset class in which an increasing number of lenders are competing. Just as Uber brings riders and drivers together, ReliaMax is the only solution that brings borrowers and lenders together in an enduring financial relationship.”

Adding to ReliaMax’s impressive list of student loan programs, the Connext Private Student Loan solution is designed for community banks, regional banks and alternative lenders to enter or expand their market share in the education financing and the student loan industry. Benefits to lenders include the following:

• The opportunity to build credibility and acquire Millennial customers who are projected to inherit $30 trillion* over the next few decades and who value deeper connections to their financial vendors (Accenture Consulting, The Greater Wealth Transfer, 2015).
• Delivering a brand experience that resonates with Millennials, crucial to building loyalty as the relationship matures. Millennials are more likely to switch banks for competitive products than any other generation. (Scratch/Viacom Media Networks).
• School certifications for private student loans are nearing 100 percent, correlating directly to improved loan performance, repayment, and sharp declines in 90-day delinquency rates (MeasureOne Private Student Loan Report Q1 2016).

The total cost of education continues to rise and new options for financing education that take advantage of today’s low interest rates have driven increased demand by students for private student loans versus other consumer loans. Private student loans enhanced by ReliaMax, offer lenders and investors stable and attractive returns at materially lower risk than other, similar assets, along with low delinquency and default rates.

In addition to offering Connext, ReliaMax continues to offer The ReliaMax Solution, a custom platform for borrower acquisition, loan origination, servicing, insurance and providing capital market liquidity to lenders for undergraduate and graduate in-school and consolidation/refinance student loans. ReliaMax currently insures over $2.6 billion in private student loans at over 450 banks, credit unions and alternative lenders in 49 states and the District of Columbia.