Every year, the search starts anew: thousands of undergraduate and graduate students start looking for the best private student loans they can find. Postsecondary costs being what they are, education loans have become a necessity for many students nationwide. In many cases, once the federal route is exhausted, students turn to traditional lenders -- banks, lending corporations -- to fill in the gap in costs. These students will graduate from school with debt at a high interest rate, and they can spend a decade or more (sometimes, much more) paying back what they owe.
But with the emergence of online communities on the Internet, and with the development of more sophisticated credit-risk analysis tools, students who look at the right places today can find education loans at lower interest rates with simpler repayment plans. This important shift in education finance is what the peer-to-peer (p2p) model is all about, and People Capital is set to lead the way forward. The Human Capital Score, People Capital's data-driven method for calculating creditworthiness, considers much more than a borrower's FICO score when determining loan amounts and loan conditions: GPAs, standardized test scores, choice of school, choice of major, among other factors, all are fed into the equation. The result is a holistic and powerful credit-risk evaluation that can actually benefit the borrower.
For more on People Capital's p2p platform, please click here.