Between the tens of thousands of dollars that undergraduate and graduate schools charge in tuition, and the thousands more students shell out every year for housing, books, and meal plans, it’s a small wonder that an increasing number of students graduate from their schools with significant personal debts to repay. Making things even more inconvenient is the fact that undergraduate and graduate schools (or most of them, at least) reevaluate their students’ financial aid awards on a yearly basis, which forces students to take out new loans at the beginning of each academic year, sometimes from different lenders. Depending on where the loan came from, the loan repayment terms -- the repayment schedule, the monthly interest rate, the loan consolidation options -- might differ as well.
But truly burdensome school debt may be avoidable, especially if you’re smart and diligent early on in the process, when you’re looking for the right student loans. Now, what if we told you that there are student loans that may be available at lower-than-average interest rates? What if the eligibility for these loans did not depend entirely on having a mature, robust credit score? And what if we told you that you could potentially borrow this loan from a willing family member, friend, private investor, or philanthropic group?
Sounds too good to be true, but it isn’t. Peer-to-peer (p2p) lending has become a reality, and it will change the way you think about Private student loans. People Capital’s p2p platform, anchored by the Human Capital Score, uses hard data far beyond your FICO score digit to produce a comprehensive credit-risk analysis.
For more on People Capital’s approach to peer-to-peer lending, please click here.