LeverEdge is linking in-debt students with group discounts



Leverage is really comedy so we've talked a lot about Fintech on the show. Tons of Brown's this is one that really came out to me as being quite unique in the space and so deliver edge targets student loan market specifically private student loans. And what the company does is it helps links students together to try to get a volume discount from banks so the idea is like hey instead of trying to negotiate your own rate you can go and work with seven hundred of your other students at business school at Medical School and work together and say hey instead of getting a fifty thousand dollar loan what would you give for a fifty million dollar group load and what they found is that they can actually save students sometimes as much as fifteen thousand dollars by getting a group discount raped raised two point. Five million seat led by fx along with level founders capital and an earnest and Sophie the founders from Ernest and Sophie. I'm curious what do we think about this sort of? Fintech play this sort of collective bargaining on the consumer side. I mean I think it's kind of fascinating Especially if you think about her first from the graduate level which is that if you're going to medical slowly going business school. There are natural career paths coming out of his graduate degrees and associated with those tend to be a certain income level and so in terms of being able to have it from the lender's perspective have a certain amount of risk taken off the table. Because you understand what the likelihood is under. There's actuaries that have studied on an individual basis. What is the likelihood of repayment from people in those professions? Now you're just able to scale that at at a broader level instead of necessarily giving out loans to people just because of their school but not having sons of their major air concentration or whether they're planning to do afterwards yet my my question there was if they're just targeting business. School students are really liked that it started with this Harvard. Business and meeting students do the facebook group but I was wondering if it can attack a broader group of students because like you said Iris. The risk is different with a Harvard Business Grad versus a Non Ivy League student but everyone wants a lower or maybe no interest on their loans. So that's that was my big question mark when I when I first heard about them. Yeah I think the the key here is the student. Loan market is huge but a lot of his federal back right and so those loans have fixed interest rates. Banks can't charge anything else. It's really kind of a pretty bad game right. There's not a lot of margin on these loans. You have to have huge volumes. Make the business worthwhile. What's interesting here? Is THEY FOCUS specifically on private student loans right

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