With nearly 70% of college graduates accruing some financial debt, information and resources regarding student loans are as valuable as ever. If you are looking for a one stop hub to assist you in making a plans to release yourself from this debt, look no further than Student Loan Club. The service provides loan calculators, assistance with job applications, and other tools you need to break out of debt and move up in the world. The Student Loan Club wants nothing more than to help you become loan free and start living the life you dreamed of in college.
LA TechWatch spoke with cofounder and CEO Dan Rush about his own student debt and how the company plans to help those in need.
Tell us about the product or service.
Student Loan Club provides student loan and career resources to empower people to take charge of their lives and financial situation. For $5 a month, members receive quality resources including refinancing tools, loan calculators, resume assistance, professional HR counseling and industry news, allowing members to master their student loans. Members are automatically entered in the weekly Student Loan Club Sweepstakes for a chance to win their student debt paid down or completely off.
How is it different?
While multiple platforms offer resources, none of them offer a sweepstakes based on repayment. Therefore, the Student Loan Club Sweepstakes is our strong differentiator.
What market are you attacking and how big is it?
There are currently 44 million Americans holding a combined $1.4 trillion in student loan debt. Our target market are loan holders ages 25-39 who together own roughly 60% of the total debt.
What is the business model?
We currently have three revenue channels based on membership fees, on-site advertising and affiliate programs. Eighty percent of revenue and 100 percent of donations goes towards our sweepstakes’ prize pool.
Where in LA are you based and why did you choose to setup there?
We decided to base our headquarters in Playa Vista as it is a great area to meet new startups and innovative companies.
Tell us a little about your background and what inspired the business?
I graduated from college with over $130,000 in student debt, and immediately started my journey as an entrepreneur. I co-founded a tech and 3D printing company focused on the cannabis industry, and found the debt overwhelming. Student Loan Club was inspired out of a need for hope. We seized the opportunity to be first to market.
Tell us what building your company in LA has been like?
Creating a company in LA has been an amazing experience. Not only does the weather inspire innovation, the networking opportunities are endless and there is an unlimited supply of resources.
What are the milestones that you plan to achieve within six months?
Our main goal is having 20,000 members join in the first six months. If we can attain this goal, the Student Loan Club Sweepstakes will be able to pay out $20,000 each week in student loan repayments.
If you could be put in touch with one investor in the community who would it be and why?
We would love to work with Crosscut Ventures as they work with the leading startups disrupting large markets with the potential to grow. They bring their experience and relationships with the investment that typically ranges from $250,000 to $2M in equity.
What does being “Made in LA” mean to you and your company?
Being “Made in LA” is a badge of honor for us. I could not imagine building this company anywhere else. LA has become home with its amazing weather and incredible people.
What else can be done to promote early stage entrepreneurship in Los Angeles?
A greater emphasis on entrepreneurship in high school is one place to start. Young people have great ideas and many do not realize or utilize the resources around them.
Where is the best place in LA to watch the sunset?
I love Venice Beach so I would definitely have to say the top of Hotel Erwin is the best spot. You can get a great 360-degree view from the roof.