Increasingly, when faced with the pivotal challenge of financing their educations, students are turning to one alternative mode of borrowing -- the person-to-person mode.
Person-to-person loans offer students highly customized personal loans that can be used toward any part of their education -- These can be loans made between individuals, institutions, or small groups. The type of lenders under the person-to-person system is nearly limitless -- individual investors, philanthropic or affinity groups, financial institutions, even family members, all potentially qualify as lenders. Of course, things are more personalized on the borrower’s end as well. To evaluate loan candidacy, most person-to-person lending platforms will look deeper than a student’s FICO Score and credit history. Today, borrowers can use the social online marketplace to request loans and have lenders fill the loan either in its entirety of just partially.
With its groundbreaking Human Capital Score, People Capital is carving out a unique position in the field of person-to-person lending. The Human Capital Score is a data-driven method for producing a credit-risk assessment of potential borrowers. At People Capital, we know that many, if not most students preparing to enter undergraduate or graduate schools have not yet had the opportunity to develop FICO Scores and credit histories. This is why our Human Capital Score considers tangible, relevant data such as grade points average, standardized test scores, and choice of college and specialization to devise a powerful predictor of potential future income and borrower’s risk assessment.
To learn more about the Human Capital Score and People Capital’s pioneering person-to-person lending services, click here.