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Prime mortgages are for the best borrowers, the ones most likely to pay back debt.
ZestCash, Mr. Merrill said, uses a proprietary underwriting process that looks at hundreds of variables to determine if the customer is likely to pay back the loan.
But supporters of the program respond that lower interest rates and smaller monthly payments make graduates more likely to pay back their loans.
Indeed, long-term investors are very likely to pay back the "bonus" in higher fees -- and then some -- over the life of their investment.
My fear is that the government will look at the proportion it is paying and ration the loans on the basis of the students most likely to pay back.
Housing counselors offer at least one possible explanation for the shift: some people with financial reversals who are in danger of losing their homes anyway might be more likely to pay back their credit cards, because they still need them to buy groceries and other essential items.
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Creditors and lenders use your credit report to figure out if you are likely going to pay back any money you are loaned.
Try to find positions with good benefits and pay, as you will likely have to pay back a large number of loans.
This "score" is determined by one of three companies– Equifax, TransUnion or Experian and basically tells a creditor how likely you are to pay back a loan on time.
While the company doesn't disclose exactly how it builds risk assessment profiles, Loong says it uses online sources, including bill payment records and social media profiles, to verify the identity of borrowers and figure out how likely they are to pay back their loans on time.
Lenders look at your credit score, also known as your FICO score, to gauge how likely you are to pay back the money they lend you for a mortgage, auto loan or credit card.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com