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GreenNote Launches Social Network-Based Student Loan Program |
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Wednesday, 04 June 2008 14:38 |
GreenNote (http://www.greennote.com/) launched a service today that enables students to obtain low-cost student loans from family, friends or anyone interested in helping the student.
Unlike private bank loans or other traditional loans, GreenNote does not require students to have a credit report, co-signer or show proof of citizenship. The rate is fixed at 6.8 percent compared to private lending alternatives that typically carry a variable rate up to 20 percent.
"GreenNote is a great new way for me to finance my college education," said Naidu Sandrana, who expects to graduate from Kellogg School of Management (Northwestern) in 2010. "GreenNote helps me get money for school at a lower rate from people who believe in me.
" To obtain a loan, a student simply uses GreenNote to create a profile and requests loans from family, friends and others in his or her social network. GreenNote then formalizes the agreement for students and lenders into legally binding loans and handles all the details from loan documentation through repayment.
"GreenNote is a powerful new resource for students looking to borrow money for school," said Richard Toomey, Associate Vice Provost Enrollment Management and Dean of University Financial Aid Services at Santa Clara University. "The GreenNote service makes it easy to manage the process for obtaining loans directly from people you know."
GreenNote plans to work with all post-secondary schools in the county to help financial aid officers, students and parents best utilize the GreenNote alternative loan format.
"The environment for student lending has radically changed in the last year leaving more students unsure how to pay for school," said Akash Agarwal, CEO and Founder of GreenNote. "The current credit crunch and rising tuition costs have created an environment where students need to raise money that won't leave them overly burdened after graduation.
" In the near future, anyone can become a lender and use GreenNote to find students based on numerous criteria, including school affiliations, areas of study, extracurricular activities, high school and other demographic data.
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