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.
Fad or Future?
Have your say and vote below.
