GreenNote Offers More Peer-to-Peer Loans To Tackle the College Funding Gap

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The funding gap between the average four-year cost of going to a state college and available federal loans is at least $22,000, according to the company. It is about tapping into the altruism of family and friends who want to chip in to help finance the college education of a student they already know. CEO Akash Agarwal says: The loans are designed to mimic a federal Stafford loan—the interest rate at launch is 6.8 percent. GreenNote keeps track of who owes what to whom, takes care of the paperwork, collects the funds, and then distributes the payments after the student graduates and starts paying back the loan. GreenNote raised $4.2 million in a series A round last October from Menlo Ventures and Glenbrook Partners.

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