A company called GreenNote just launched a new and easy way for college students to get low-cost loans from family, friends, and anyone else who wants to help them finance their higher education.
Using GreenNote, a student can create a profile to request loans from those in their social network willing to lend them money.
GreenNote then formalizes the whole thing with legally binding loans, and handles all of the details from the initial loan documentation all the way through to loan repayment.
What's really cool and progressive about GreenNote is that:
- the student's credit doesn't come into play
- the student doesn't need a co-signer
- the student doesn't have to show proof of US citizenship
- the loans are fixed at 6.8%
- the loans are deferred for 5 years, with repayment terms of 10 years
- the lenders receive a return on their investment
- there are no pre-payment penalties
GreenNote couldn't have come along at a better time considering how tight the lending market is right now for student loans and how financial aid programs are being cut back.
This could be a very good borrowing solution for students worried about how they're going to cover the cost of their education.
In the future, GreenNote plans to expand their program to allow anyone to become a lender, where lenders will be able to find and help students based on various criteria like their college, course of study, affiliations, high school, demographic info, etc.