Learn To Lend

Fynanz appears to be the first to take a niche approach [in peer to peer lending] with a service dedicated to funding student loans

A new company named Fynanz aims to offer students an alternative to the troubled student loan industry by creating a private marketplace for private student loans from friends, family, alumni, and investors.

To apply for a loan, students fill out an application and create a personal profile, including the amount and interest rate desired. Tapping into 15 years’ worth of student loan data, Fynanz uses that information to give each student a grade and place them in one of six groups reflecting both their credit score and their academic characteristics, among other things. Individual lenders including friends, family and alumni of the institution the student attends are then given priority as they bid alongside lender networks to fund the loan. The more participants bid on the loan, the lower the winning rate is likely to be

One obvious question, what will Fynanz offer to students that sites like Prosper and LendingClub do not?  If Fynanz is smart, they will follow in the footsteps of LendingClub and have a presence on Facebook to tap into the social network of students.

Source: SpringWise – Peer to Peer Student Loans