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GreenNote Launches Peer-to-Peer Student Loan Site

July 09, 2008

CollegediplomaI work for a nonprofit and have two kids in high school. So this announcement really caught my attention:

GreenNote today launched the GreenNote Network, which enables anyone to help students by lending them money for college as well as earning a good return on their investment.

Anyone -- individuals, institutions, and affiliation groups -- can participate in the GreenNote Network. Interested lenders use GreenNote's online tools to search for students based on a variety of criteria such as attendance, demographic information and/or area of study. They can provide a student with a loan that helps them lower their costs of going to college and, in return, receive a fixed return of 6.8 percent per annum on their loan....

Lenders can provide as little as $100 to the students they wish to support. GreenNote manages the entire process by formalizing the agreements for all its lenders into legally binding loans and handles all the details from loan documentation through repayment, making it simple and easy for lenders to loan money to students....

In other words, a Kiva for college-bound students with financial needs. Or, as GreenNote CEO and founder Akash Agarwal describes it: "Our vision is to enable social lending for education....[GreenNote] is designed to give people an opportunity to support and invest in the education of others."

Brilliant. If the site/platform (which is backed by Menlo Ventures, a Silicon Valley-based venture capital firm) gains traction, syndicating the cost of a college education for the deserving kid next door or down the street could be to the next decade what microfinance has been to this one.

-- Mitch Nauffts

Comments

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It sounds like gramma and grampa may soon be able to get a tax deduction for helping out little Timmy and Janey. Interesting.

Thanks, Mitch for the post.

I want to add that we are looking for organizations - e.g nonprofits, foundations, religous groups, alumni organizations etc. that may want to direct funds for education to students.

GreenNote wants to help students find access to such sources of capital beyond their own social circle of contacts.

Regards,
Akash
GreenNote

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