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Juno Enhances Guarantee of Lowest Interest Rate for Your B-School Loans

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A message from our Partner, Juno

Juno can help you make your MBA dreams more affordable with the power of collective bargaining and a new, enhanced guarantee.

Juno negotiates on behalf of MBA candidates for lower interest rates on their b-school loans. They guarantee students will receive the lowest rate possible with them, or they will cover the difference.

Read on to find out how the new guarantee works.

How Juno Works

Over the course of the year, Juno gathers large groups of students for each upcoming school year before beginning a negotiation process with dozens of lenders. Before starting the auction, they set a fee for the winning lender. They then choose a lender based on the best loan offers.

Juno takes these loan offers back to participating students, who then decide if they want to accept the loan terms or not. Because the terms are negotiated, rather than standard preset terms lenders offer, the rates are often much more competitive than students could get on their own. In fact, the typical Juno member’s median rate is 1.6% lower than they’d have been offered on their own.

Juno’s Enhanced Guarantee

Juno has simplified the process of reimbursement, enhancing their guarantee of securing students the lowest interest rate. Now, they calculate the difference in interest over the entire life of the loan and pay it to you upfront. For some people, that means getting tens of thousands of dollars back and a negative interest rate.

People who are able to find a lower interest rate outside of Juno may be able to obtain negative interest rates through the Juno guarantee program. In all cases, they are able to save a significant amount compared to just proceeding with the non-Juno quote they found.

When you use Juno’s new guarantee program, Juno will:

  1. Calculate the payments you’d need to make over the life of the “other” loan
  2. Calculate the payments you’d need to make over the life of their offer
  3. Subtract #2 – #1 and send you a check for that amount around when the loan is disbursed.

For example, let’s say you are borrowing 80K and it’s a 15-year loan. Juno’s lender quoted a 5 percent interest rate, but you’ve found a different lender at a 4 percent rate. In this case, Juno would pay you $9.5K as soon as the loan is disbursed. Assuming you use that money to pay down the balance on your loan, your new effective APR would be 3.43%. If you refinance soon after graduation, your effective APR would now be -11.94% (i.e. you actually get paid $6.8K)!

Sign up to Juno and get your quote from their lending partner, backed by their lowest rate guarantee. If you find a lower cost private b-school loan elsewhere, you can file a guarantee claim here: https://joinjuno.com/guarantee.

Posted in: Juno

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