According to Social Finance (SoFi) CEO Mike Cagney “Through SoFi, we have been able to create a whole new market that gives students better alternatives to fund their education while strengthening ties to their alumni community…” Following an approach similar to Prodigy Finance, this organization aims to tap financial support from alumni to help fund future students’ studies at the home institution.
To learn more about the SoFi story, see the link here.
To learn more about Prodigy Finance, see the link here.
While an innovative approach to student funding, often these primarily alumni-funded loan schemes do have their own risks, both for investors and the home institutions. Nonetheless, they are an interesting model and one worth following as they mature into a more commonly tapped source of student loans.