Monday, April 28, 2008

Fynanz Media Mentions of the Month

For your personal perusing pleasure here are some snippets from media stories on Fynanz:

Peer Lenders: A Last Resort for Student Loans
April 25, 2008

“Fynanz won't even accept applications from borrowers who haven't first tried to get loans by filing a Free Application for Federal Student Aid.”

“Two big advantages of traditional student loans — deductible interest and not having to make any payments until after graduation — aren't going to be offered with most peer-to-peer loans, cautions Kantrowitz. Instead, you'll probably be required to start paying back the loan immediately, with payments spread out over a short (usually three-year) period. The exception: Fynanz, which offers longer repayment periods and an in-school deferment. Because it verifies your student status and ensures you use the loan for qualified educational expenses, the interest you pay may also be tax deductible.”

Student Loan Confusion Opens Market Niche
April 20, 2008

“So-called peer-to-peer lending companies are also sailing into the student loan fray. Waltham-based Virgin Money (part of Richard Branson's empire) offers to formalize loans between students and their family members for $299. Fynanz Inc., a younger New York start-up, recently began doing the same thing in Massachusetts, though Fynanz allows strangers (perhaps alumni of a school) to make loans to students and earn interest - anywhere from 6 to 10 percent, depending on the borrower's credit score.”

“But online peer-to-peer lending is still new, and Fynanz has completed one loan since its launch in March. "We don't expect this to be mainstream anytime soon, but I do expect some of the smarter, more involved students to see this as an option," says chief executive Chirag Chaman, an alumnus of Worcester's Clark University.”

Student Lending Exodus Lures a P-to-P Network April 18, 2008

(You will need a membership to view the full article)

"While bankers are exiting the student lending market, a person-to-person loan facilitator is taking a run at the niche. With banks and other lenders backing away from the student market as a result of narrowing margins and a dearth of liquidity, Fynanz Inc. sees an opportunity to market to individuals willing to offer loans to students and hold on to the debt."

Bobbie Britting, a senior analyst with the TowerGroup was quoted as saying (about Fynanz):

"It's going to fill a void, because there are lenders closing their doors on a regular basis, and students still want to go to school," she said. "And as Americans, we want them to go to school. We want an educated society."

Peer-to-Peer Sites Connect Lenders with Borrowers April 12, 2008

“If you're using a site like Prosper or Fynanz, make lots of smaller loans to multiple borrowers, instead of a few big loans to a few borrowers. That's the same principle as diversifying your portfolio.”


Feel free to contact me with any questions or comments & I will respond with more information.


William Kermode
Community Development Manager

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