Whilst the rewards usually pay off in the years after graduation, tertiary education can be a costly business. Burdened with debt and high interest rates on the loans, repayment can be a crippling experience for some.
Recognising this, a team of entrepreneurs that attended the Stanford Graduate School of Business formed a start-up in early 2011 called SoFi (where “Social” meets “Finance”). Drawing on the power of the social web, SoFi connects students and alumni through a dedicated lending fund.
Everyone benefits. There are lower interest rates on the student loans, and a decent return on the fund for the alumni – and future business connections for both parties. What’s more, schools and colleges can access a stable and low-cost funding source.
Community based student loans might be too late for some of us, but could mark an exciting new trend for others.
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