If you’re considering going to college you’re no doubt aware that the cost of getting a higher education continues to rise. Most people who attend college do so at their own expense. Sure, scholarship money is available, but it is limited and the competition is fierce. Student loans can also be hard to come by for some students. Several new companies have popped up, offering students alternatives to traditional private loans. One such company is GreenNote.
What Is GreenNote?
GreenNote is a higher education donor network. Their motto is "helping students harness the power of social networking to help pay for college." GreenNote does not lend money. It is more of a peer-to-peer lending system. The idea is not to borrow money from one person or company, but to accumulate a series of smaller loans that will help defray the costs of tuition and other fees. The loans come from family, friends, and others in the student's social network. Students can also use GreenNote’s online platform to connect with potential lenders, in whatever form that may take, and seek financial help for their college education.
How it Works
In order to take advantage of GreenNote’s social network, you need to visit their website and sign up for the opportunity to get your name and needs out there. GreenNote supplies the technology that will enable you to connect to people who are willing to lend money to students. Their technology simplifies the lending process. Initially you will need to fill out an online form that provides potential lenders with an overview of you, your aspirations, and your goals. The idea is to let people know who you are and what your intentions are as far as improving your life through a higher education. Then you have the opportunity to ask for help in attaining your educational goals. GreenNote assists in the process of getting the money to you. With this form of peer-to-peer lending, the amounts of any individual loan are usually very small--but by receiving a number of small loans you can accumulate enough money to pay for your education.
Although you may think a social networking system wouldn’t work for a student loan you’d be surprised at how much money can be raised from sources that you never considered. Think of all the people you've been in contact with throughout your middle and high school years. You’ve no doubt come to know any number of teachers, family members of classmates, community leaders, and members of charitable organizations who have recognized your potential and would be more than happy to contribute to your college education--if only they were aware you needed the help. GreenNote helps you let them know of your needs. Essentially it’s a fund raiser--for you. That’s what networking is all about.
One of the nicest things about paying for your college education through loans received through GreenNote is the fact that there are no credit checks involved. Basically all you have to do is ask for the money, and then pay it back. GreenNote focuses specifically on student loans--money to be used solely for your higher education. The interest rate is fixed a very affordable 6.8%. GreenNote collects the money directed to your college education and channels it into a PayPal account, which you can access as it’s needed.
In order to take advantage of GreenNote’s peer-to-peer lending through social networks, you need to borrow a minimum of $1,000, but that amount needn’t come from a single source. Individuals can contribute as much or as little as they want to your student loan. You can defer payments up to five years, with a six-month grace period, with full repayment due in 10 years. The only limit on the amount of money you can borrow through the GreenNote social networking plan is whatever the total cost of your college educations comes to. This is a legally binding loan agreement, and the results of the loan are reported to credit bureaus, so if you default on the loan it will have a negative impact on your credit rating--and the loan could be turned over to a collection agency. GreenNote may not be right for every student, but for some, it may be a nice alternative to high interest student loans.
Guest post :
Taylor Harris. Taylor writes about the best online universities for BestOnlineColleges.com.