Daily Debriefing
A group of entrepreneurs has created a new program, Safe Start, which aims to reduce fear of student loan debt that could potentially prevent students from applying to college, according to the New York Times. The service charges a fee of $40 to $70 for every $1000 a student borrows, and in return promises to lend the student money interest-free later to help prevent them from being late with their loan payments and damaging their credit rating, The Times reported. The service has been growing in popularity as alumni of colleges and universities buy SafeStart loans for incoming students as a way to, in effect, provide them with interest-free loans. Critics of the program argue that the approximately $1500 it extracts from students in fees could be put to better use, and some worry that the program could be a step toward taking away students' financial independence, according to The Times.