San Francisco-based Credible announced Monday the launch of a service that will allow private student loan borrowers to price-shop online for a refinanced loan.
The startup will allow consumers to compare what they're paying with other borrowers. Users will also be able to fill out one form that will allow multiple student lenders to make them an offer.
"At the moment, finding a lower rate means filling out several repetitive forms with different lenders," Stephen Dash, Credible's chief executive officer, said in a news release. "Borrowers are reluctant to even attempt refinancing because of the time required and the uncertainty about the potential savings."
The firm compares its approach to the model used by Kayak.com, which aggregates airfares and hotel prices for would-be travelers. Credible also announced Monday that it's raised $500,000 from venture capital funds and angel investors.
Dash is the former founder of JoinStampede.com, which sought to pool student loan borrowers in an effort to renegotiate their interest rates collectively.
Other companies that are trying to simplify the process of refinancing student loan debt include Prime Student Loan and Student Loan Hero.
At the moment, the student loan refinancing market remains small, though in the last six weeks both RBS Citizens Financial Group and Discover Financial Services (DFS) have announced their plans to join the fray.
Other companies that offer refinancing of student loans include Wells Fargo (WFC), SunTrust Banks (STI), CommonBond, Social Finance, Darien Rowayton Bank and LendKey Technologies.
Refinancing is generally an option only for gainfully employed college graduates who are current on their payments.