Pursuing a secondary degree is an expensive endeavor, and it’s getting more expensive with each passing year. As tuitions and living costs keep going up, more and more students are finding that, in addition to any federal loans they qualify for, they need to take out private loans to cover the remaining cost of their education. Traditionally, these private student loans have been issued by large financial institutions such as banks and corporate lending services, who often offer their loans with higher interest rates that continue to accrue during the academic school year. As a result, lots of students today leave their undergraduate or graduate programs straddled with large amounts of debt.
People Capital is here to tell you, the student, that the traditional way of borrowing money is no longer the only way of borrowing money. People Capital’s peer-to-peer (p2p) platform provides students with a chance to borrow private loans at possibly better interest rates and with better repayment options than the typical private loans issued by a large and impersonal financial institution. Under the p2p guidelines, almost anyone can register as a lender: charity organizations, individual investors, even family members and friends can all potentially qualify as lending sources. At the heart of People Capital’s p2p platform is the Human Capital Score, a data-driven method of analyzing a student’s creditworthiness. Unlike other lending institutions, People Capital doesn’t view the student’s FICO® Score as the sole standard of loan eligibility. Rather, the Human Capital Score considers the student’s GPA, standardized test scores, choice of college, choice of major, and other relevant factors in its credit-risk analysis. Further, it is the Lenders mentioned above who ultimately decided the criteria they would like to use for their lending criteria.
To learn more about People Capital’s groundbreaking p2p platform, please click here.