A new way to look at student loans

By McKenzie Anderson

photo taken by 401k, licensed under Creative Commons

“I am a poor college student.” We hear it, say it and use it as an excuse all of the time as college students. There is no denying our long list of scholarships and student loans that we apply for. And I won’t even get into the amount that we will forever be indebted to our parents. As college students, we are constantly looking for ways to find support and it’s no surprise that money is one of the highest stressors for students while they are in college, and even in the years after. So when I saw a tweet from Mashable with a link to an article titled “SoFi Lets Students Borrow Money For School From Alumni” The page was loading as soon as my eyes passed the word “money.”

According to their website, SoFi was started by business students in the graduate school at Stanford in 2011. Around 40 different schools are on board with this program already and they’re always looking to expand. SoFi’s main purpose is to connect students with alumni from their schools by creating a community finance program. Alumni even get a 5% interest rate from giving back to their college.

I think SoFi’s program can satisfy both the students and the alumni involved. Students are happy because they are getting money for school, while also creating contacts with people who were once in their poor shoes. The program is also pleasing to alumni because they feel like they are giving back to their alma mater in a very personal, impacting way. Because of this close contact, the program also predicts that students will less likely default on their loans because they will know the alumni on a more personal level.

Would you want SoFi at Drake University or are you just fine with the way student loans work now?

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3 responses to “A new way to look at student loans

  1. This sounds like a great idea!!!! Sign me up.

    • I know! I think it sounds like a really cool way to get more connected with alumni. Plus, alumni can give money and see it being used directly, instead of just knowing it’ll go to something school-related.

  2. For as much support and contact that Drake has with its alumni, this sounds like something that would work perfectly here. Not to mention, I’m sure students wouldn’t mind the chance for more financial support! I think the connecting with alumni aspect of SoFi is a really great idea, and will probably lead to future jobs or internships for current students.

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