Busted: Student loan company created highly cited and totally fake ‘expert’ to sell debt products
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The fellas behind studentloans.net were caught deceiving student borrowers this week, thanks to an exposé from the Chronicle of Higher Education; just one day after the report was published, the Delaware charlatans want the world to know that they fBusted: Student loan company created highly cited and totally fake ‘expert’ to sell debt products
The fellas behind studentloans.net were caught deceiving student borrowers this week, thanks to an exposé from the Chronicle of Higher Education; just one day after the report was published, the Delaware charlatans want the world to know that they feel really bad about what they did. LendEDU, the student-loan refinancing company that created a fictional expert who was widely quoted by media outlets, has apologized for hiding the fact that it created “Drew Cloud.” That announcement was posted on the company’s website, the Student Loan Report, on Wednesday morning. To understand the site’s downfall, one must first understand their rise. It all started when Nate Matherson and Matt Lenhard created a blog called The Student Loan Report in 2016, just as they graduated college. The blog was designed to be a clickbaity, SEO-drenched feeder stream for LendEDU, a company they also own, which peddles student loan consolidation and other debt products, and even found some credibility via participation in Y Combinator. LendEDU is a startup in our current Winter 2016 class that aims to do for the student debt market what Kayak has done for the online travel industry — making the process of shopping around for the best deal as easy and accessible as possible. LendEDU has built a marketplace for student loan refinancing that helps students, parents, and graduates save money through price transparency. By offering overly simplistic and Google search-friendly explainers, tips, and tricks for student borrowers, quirky surveys, and polls that purported to offer glimpses into the minds of those saddled by educational debt, Cloud and the SLR team found a niche, if naive, audience, to whom they served up not-so-subtle sales pitches for LendEDU products such as student loan consolidation. Read more