Over the last few decades, the lending and borrowing of money has become an increasingly vital part of education finance and funding. Since federal loans are available in limited amounts and depend heavily on strict eligibility standards, students have conventionally turned to private student loans from large financial institutions to pay their undergraduate or graduate expenses.
Peer-to-peer or p2p lending can offer students an alternative to the old way of borrowing money. What's the peer-to-peer advantage? In a nutshell: borrowers benefit from lower rates and pricing with a better ability to have their creditworthiness assessed. Borrowers also get superior rates compared to credit cards with low limits, near-term pay-back requirements, etc. Lenders have the ability to make both short- and long-term loans, with the non-conventional loan sources packaged into tax-efficient options. To top things off, lenders consult People Capital's new credit-risk methodology, the Human Capital Score, a data-driven analysis that does not rely on a borrower's (or a cosigner's) credit score.
For more on People Capital's p2p platform, please click here.