Project by: Tommy Qiu, Marquis Velazquez, Wes Helmi
High Concept Statement:
CollegeLoans is a P2P Lending Platform which investors can confidently invest because the only borrowers are students studying in the fields with the most expected growth rates (eg. Artificial Intelligence, Cloud Technology Services etc.) as well as high achievers in necessary fields (eg Law, Health etc.)
Need or Demand:
We believe that there are many college students in these markets of expected growth who desire the ease of their financial burden. College intuition has been the highest it ever has been in history. Many college students need to take out large loans with extremely unappealing high interest rates from financial institutions. After they get out of college they end up one hundred thousand or even a couple hundred thousand dollars in debt. This situation is especially uncomfortable for the students and isn’t particular comfortable for lenders either. We also believe that both parties would prefer a better alternative.
Product / Service / Solution:
We believe these needs can be fulfilled by incorporating a new system of lending. On CollegeLoans there will be the standard loan program with interest rates but there will also be another program where Instead of having interest rates, there will be a percentage of the college student’s salary for the first few years on the job. CollegeLoans takes a certain percentage out of your paycheck for a certain amount of years. There will be multiple plans and percentages that are calculated based off of industry analysis and other factors like expected growth of certain companies and shifts in customer demand. This not only pushes more students to study in fields with higher areas of growth and higher expected rates of return but it also makes sure that money is being put into fields in which it will stimulate the economy, improve society, and better the world as a whole.
The #1 value customers want to derive from this solution as well as additional benefits include no interest rates and fair lending plans or simply low college loan interest rates.
LendingRobot is an app that allows one to keep track of their portfolios all in one app. This app is especially built for P2P lenders and borrowers and it supports the main P2P platforms such as Lending Club and Prosper who do not support the kind of lending that CollegeLoans provides. CollegeLoans is an app that is specifically designated for a new kind of loan for a very specific borrower. The borrower takes up a loan without any interest at all. No other platform supports this type of lending, and this is appealing for both the borrower and the loaner for if the borrower has success in his work and/or there is substantial growth in his field, the borrower will have more income and the loaner will feel confident loaning.
We will take a very small percentage from the borrowers return and will fee the loaners investment. If a borrower returns $100,000 and we take 1%, we will gain $1,000. Say that we have 100 borrowers which is a very small number of borrowers considering the increasing number of college students entering the STEM field, we will make $100,000. On the investor’s side, we will fee each investment based the amount invested. For example if the investment is 1,000,000, then the fee percentage will be a higher for example say 3%.