The Story Behind My Rich Uncle Student Loans
Certain good intentions have a way of ending badly. This is the story of a defunct firm called MRU Holdings, one of the largest providers of student loans in the year 2007. Popularly known as ” My Rich Uncle ” student loans, they have introduced the first algorithm that took student circumstances into the next level. Their student-centric model has made them a star above your usual student loans. Their aspiration of being a ‘conflict-free’ lender, a better alternative in the market, has made them rise faster than the laws of gravity can ever allow.
My rich uncle student loans have hit the spotlight when they created a buzz in the New York Times, with an advertising campaign that questioned the shady practices of financial aid officers and student loan firms. A Perfect Spice for Controversy! No wonder that their conspiracy theory had led to a full-fledged investigation of deceptive lending practices in the world of student loans. A catalyst for change? Perhaps. An action led to another and finally, we see federal policies crackdowns and subsidy cuts.
What Made My Rich Uncle Student Loans a Top Choice for Students?
Think of having a rich uncle, someone who’s always there to give you that loan. Sounds cool? This is exactly the concept behind MRU. This group prides itself as being the best alternative in town, where they give students the freedom to choose their school and have the money to do so. Many students took a bite on this great offer, since having greater choices means greater careers in the end. My Rich Uncle student loans is purely web-based where parents, undergrads, and graduates are always welcome to apply for one. They offered the best of everything about student loans, on their homepage. Students can make a research, get financial tips, or even a FAFSA guide. There was a step-by-step wizard that guided a user depending on his or her needs. Overall, they had a user-friendly, seamless, no-fuss site. Their loan availability for all schools you can think of, plus, FREE services – have made them a huge hit.
How Did My Rich Uncle Student Loans Work?
For example, you have applied for a loan that won’t exceed 15% of your future income ( which is computed based on research ), you can expect to pay for your loans for a 10 to 15-year period at a fixed rate, based on how much you have borrowed. If you have a hard time paying your loans and it reached maturity date ( end of your loan term ), you don’t have to pay anymore the remaining loan or any penalties. So, the less you earn, the less you pay. The more you earn, the more you pay. Pretty Neat! This is their way of avoiding loan default. Some may think this is too good to be true. Probably. There have been a lot of complaints and shouts of scam about MRU. This perhaps is related to their upfront fees.
My Rich Uncle Student Loans: The Fall of a Super Nova
Between the years 2005 and 2008, My Rich Uncle student loans have given out over $550 million in student loans, making them join the prestigious spot held by Sallie Mae, Citi Group, and Chase. Rising through the lenders hall of fame in a flash has created money problems as well. As if liquidation problem is not enough, in December of 2008, its former employee named Troy Hill was charged with embezzlement worth $2.3 million from the company’s accounts. Finally, My Rich Uncle Student Loans closed its doors permanently to students on February 9, 2009. They were just unable to issue new student loans and pay their creditors. In the end, they have ended with an asset of $11 million… but a liability of $45 million. In the real world of student loans, there’s simply no thing such as a .. Happy Ending.
READINGS:
http://en.wikipedia.org/wiki/MyRichUncle
http://www.eduinreview.com/Student-Loans/My-Rich-Uncle/
http://www.nextstudent.com/student-loan-blog/blogs/sample_weblog/archive/2009/02/18/8373.aspx
http://www.collegebound.net/content/article/my-rich-uncle-offers-an-alternative-to-college-loans/2434/
http://www.investmentadvisor.com/news/2009/2/Pages/My-Poor-Rich-Uncle.aspx
