Photo: Flickr / rkeefer
An innovative program out of Stanford called Social Finance (SoFi) lets university alumni contribute to a fund at their alma mater, which schools then use to extend loans needy students.
The program, which has 40 schools participating, is on pace to loan $150 million, reports Time MoneyLand’s Dan Kadlec.
That isn’t chump change. At a time when student loans have passed the $1 trillion mark, today’s college students can use all they help they can get.
How it works
Students borrow at a fixed rate of 6.24 per cent, which can fall to 5.99 per cent with auto repayment. After graduation, students pay the loans back with interest, guaranteeing the alumni a return on investment.
To provide a “social return” on both sides, alumni have the option to mentor and offer networking pointers to students.
To enroll in the program, students can visit SoFi’s site then follow the directions at top.
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