Student loans – one of the more vexing problems of our time, and a topic of great concern to millennials and of political debate during the currently 2016 US presidential campaign.
We all want our kids to be able to get a great education, which should open the doorway to better careers and life long wage-earning, but they can be saddled with student debt for decades in some cases. What to do?
One new Washington DC-based fintech, MPower Finance, has launched a “a peer-to-peer lending platform linking international and underserved college students with affordable student loans,” according to their Crunchbase listing.
According to their website, the loans can be used for tuition or university-sponsored housing, meal plans or health insurance, and can range from $2,000-$25,000. Private and institutional investors can then invest in the loans. They are offered to over 180 nationalities (including Americans), they do not require a co-signer, and they require only small “touch payments” until graduation.
We do not know their business model, but to date, they have raised investments (both Seed & Series A) from 8 investors, so the VC community has vetted thier business plan and sees it as credible and investment-worthy. We sincerely hope this proves to be a viable enterprise.
Total Equity Funding
$10M in 2 Rounds from 8 Investors
Most Recent Funding
$6M Series A on October 26, 2016