check out GreenNote

Preview of a new service that will be launching in June.

Student loan service. Tuition fees rapidly increasing. Credit turmoil is making it harder for students, with limited credit history. Help students get low cost loans from friends and family. Formalize the loan and get funds to the school.

Social networking component - Pledge Process - to reach out to friends and family and request loans. Register and build your profile. Share activities, why worthy of a loan. Then enter email addresses and contact info for potential lenders to send link to web page. Student can use template or customize look and feel. Borrower dashboard to see status of loan, who has committed, who has funded.

Potential lender receives email, can click to view profile, three choices pledge, remind me, cannot help. Lender registers to create a GreenNote account. Sees progress against students goal.

Later, provide confidential info to formalize loan. GreenNote creates documentation and facilitates loan process. [Unclear whether GreenNote facilitates the subsequent payback of the loans or not.]

Closed pilot working with a number of schools. Not evaluating student's credit. Only helping them to connect with people they already know. Saving 500, 600 basis points vs. private loans available in the industry. Encourage students to first get grants and federal student loans, then use GreenNote to access funding from friends and family.