Friday, January 23, 2009

Paying for college the peer to peer way

With Fynanz exiting the US student loan market earlier this month there’s still room in the student loan market for a peer to peer player.

Lending Club requires a swift three-year repayment, and the interest is higher than some commercially-available student loans. Some students may want to turn to Greennote as a funding option. Greennote.com has a fixed interest rate of 6.8% and doesn’t require citizenship or a co-signer. (Prospective investors, take note.) Greennote is backed by Menlo Ventures and is based in Redwood City, CA. They launched in June 2008.

Another alternative for students is a mico-grant program found at CollegeDegreeFund.com. Students establish a profile and companies and individuals can provide a sponsorship of any amount towards his or her needs. Funders can contribute as little as $1.00. This is not an investment program, but a micro-grant program of essentially free money for college students. I’ve sent an e-mail off to the managing partners to see how many sponsorships have been funded so far as they reach the one-year mark of operation and I will update here when I hear back from them.

1 comment:

Tom said...

I've never heard of College Degree Fund before but what a fascinating idea. It reminds me of Gradefund.com.