The credit crunch has driven dozens of lenders out of the student loan market. But a number of new websites are trying to sidestep the traditional players, facilitating loans between students and anonymous investors or even friends and family members.
The latest start-up player in the so-called “peer-to-peer” student lending market, GreenNote, marks its official launch Wednesday. The timing is intended to attract interest as students piece together financial aid over the summer.
The field is still fairly small but hoping for sharp seasonal increases. Fynanz, a competitor that matches up students anonymously with investors, said it’s seen a big uptick this week, with applications for about $180,000 in loans arriving in just the last three days.
Our children know that the family “bank” is out of business…….permanently.