Simplifying Federal Student Loan Repayment
Out Loan is a web app I developed with Rhea Rakshit. Our goal is to simplify the federal student loan repayment process in two steps:
1. Part 1 guides users through a series of simple questions to determine their eligibility for income-based repayment and public student loan forgiveness. Think Turbo-Tax or Oscar Health. It's a simple, efficient and friendly way to find the information that is relevant to you.
2. Part 2 is a dashboard that allows borrowers to customize their repayment and understand their options in the context of their lifestyle.
Getting to the final product was a long journey - in fact it is still going on. Here is a peak into the process:
Millions of federal borrowers default on their loans even though they qualify for income-based plans, which reduce their payments to a manageable amount. These plans are under-used because they are unnecessarily complex and poorly explained on studentloans.gov.
To start, we sorted through all of the information on the various plans, and made a series of wireframes and site maps.
Developing Part 1:
We prototyped different ways of explaining this information. We made flow charts and interactive prototypes using tools like InVision. We even tried a mystery game - The Adventures of Sherlock Loans.
After testing with users, we realized they wanted to focus on the information without the fluff. So we settled on a clean design that gets the users the information they need clearly and quickly. Try it out here.
Developing Part 2:
Figuring out the dashboard was more difficult. We knew we wanted a tool to help users understand their payments and visualize how paying a little more today can drastically change their loans over time. But we wanted to balance this with an understanding that a lot of users can't afford to pay extra.
Our "AHA moment":
A big insight came after speaking with positive deviants - expert repayers who were very strategic in the way they paid their loans. They made complex spreadsheets to model out the different plans and scenarios and then intentionally picked the ones that worked best for their particular lifestyle. Our task became visualizing these spreadsheets.
To test this out, we made static wireframes of the look and feel of the dashboard and prototyped it with users one on one, doing the calculations on a spreadsheet as we led them through the screens.
As we tested, we made a lot of iterations. The design of the dashboard clearly benefitted from user feedback!
At the end, this is the dashboard we designed:
Testing a MVP:
But we didn't stop there. To validate the Out Loan dashboard we needed to test it with users digitally. So with the help of a very talented developer, Alexandra Ackerman, we made a minimum viable product to test how users interacted with the core features of our dashboard. Try it out here.
Group User Testing:
We also held a workshop with students about to graduate from the Gallatin School of Individualized Study at NYU. They helped us realize that everyone's repayment situation is unique and their questions are personal. At the same time, it is important to maintain a sense of community - because we all have student loans and we can help each other understand them.
Finalizing the Design:
We packed a lot of behavioral economics principles into the final dashboard. As users adjust the sliders they can see how small changes affect the timeline of their loans, accounting for present bias or our tendency to prioritize present concerns over future ones. Because we would rather avoid losses than acquire gains (loss aversion), the summary highlights how much interest users have to pay.
Instead of explaining the plans, users can switch between them to see how they affect their budget. This principle is simple - show not tell.
We all budget in different ways, so users have the ability to view their budget on a daily, weekly or monthly basis.
Finally, users can set up savings goals, because it is easier to save for something tangible than having an abstract savings account.
To take Out Loan forward, we have explored various business models and partnerships, and developed ideas to acquire users. I have wireframed the steps users need to sign up for a new plan, and most importantly, come up with ideas to help them stick to that plan. I'm in the process of translating our dashboard to mobile. we have presented Out Loan to designers, banks, lending agencies and even the government. We have pitched Out Loan alongside other FinTech Startups to very positive feedback. While we are not sure of the final form of Out Loan, we are confident that in one way or another it will transform the way borrowers understand and pay their loans.
Please take a look at our pitch deck and be in touch with any ideas, feedback or questions.