Klein: That’s the concern. But I think our model can compliment the efforts of alumni offices. Not everyone sees this, but that’s fine by us. We think that over time we’ll be able to prove that we live in a world of abundance, where there is a growing pie, as it pertains to alumni investor participants.
Klein: We say that the scholarship is a different kind of investment for alumni. If you think of an investor’s portfolio, the alumni scholarship giving falls into the philanthropic side. We fall into the conservative side of an investor’s portfolio where they can get a return for their money. We see these as very different kinds of investments. So even among the alumni who currently give money to their alma mater, you can see a world Louisiana payday loan bad credit no bank account in which they can participate in both sides – philanthropy and investment – allowing them to diversify their portfolios. We also tell the alumni offices that our model will engage a larger group of alumni who are currently not engaged with the university.
Knowledge in the Wharton: This industry is about a year old. Who’s your competition and how have you positioned CommonBond uniquely in this space?
Klein: Our competition really falls into three different categories. First there are the traditional players – the federal government and the private banks – that represent about 93% and 7% of student loans, respectively.
Secondly, there is the social lending area, that is a little more mature than simply the business structure. Users instance Credit Club otherwise Excel are located in peer-to-fellow lending once the 2006 and you will 2007, respectively.
But if you broaden out the concept of attraction organizations, you could thought a scene in which just try student loans are best cost, ideal applied and better serviced with this design, but so might be various different kinds of lending options
The third urban area, I would personally call social lending whilst relates especially to help you scholar financing. İncele
