Is this really an alternative to traditional student loans?
Lots of attention has been given to a company called Prosper, whose peer-to-peer lending model is something in-between microfinance and a traditional bank.
This begs the question: can you use a service like this to pay for college?
The site says the service is open to anyone over 18, they run a credit check, and if you don't have much of a credit history, well, this is one way to actually establish one.
Downside: you miss out on things like deferring payments until you are out of school. But, if you're a "non-traditional" student -- a working parent, or someone who wants to get a degree part-time, or someone looking for an MBA and not getting much of a tuition reimbursement from The Man, Prosper may be able to help.
This begs the question: can you use a service like this to pay for college?
The site says the service is open to anyone over 18, they run a credit check, and if you don't have much of a credit history, well, this is one way to actually establish one.
Downside: you miss out on things like deferring payments until you are out of school. But, if you're a "non-traditional" student -- a working parent, or someone who wants to get a degree part-time, or someone looking for an MBA and not getting much of a tuition reimbursement from The Man, Prosper may be able to help.
posted by Dave Van de Walle at
7:02 AM
1 Comments:
Check out some true private alternative student loans:
http://www.ActEducationLoans.com
and compare. The biggest benefits of private student loans are that the student can apply as the primary borrower - usually the parent is the cosigner - and the payments can be deferred until after the student graduates. Otherwise, home equity loans and other credit products are good. Also compare with the PLUS Loan:
http://www.ParentPLUSLoan.com - The Federal "Parent Loan for Undergraduate Students". With the PLUS Loan, the parent is the borrower and payments begin right away. However, the rates are generally lower than home equity loans.
Regards - Joe, Edvisors.com
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