With SoFi, the past graduates of a school help to finance the education of future graduates, and also get to know them via a social network.
SoFi is a social lending platform that brings together students and alumni, forming a new way of connecting and a finance channel that benefits both parties. Alumni invest money in their school’s funding for which they will earn a double bottom line return, and then students can apply for this money like a college loan, at an interest rate of 6.24%. As they pay it back, the alumni earn 5% on their money and SoFi keeps around 1%.
The $1 trillion US student loan market is broken. We are here to offer an innovative approach. We are using the power of social communities to transform the industry.
There is a social network for each school, where students and alumni can connect and find out more about each other. Students can ask alumni for advice and alumni can see how their money is helping future graduates achieve their goals. SoFi started last year at Stanford and this week announced its expansion to 40 colleges and universities across the U.S.