GreenNote

Infobox_Company
company_name = GreenNote | company_type = Private company
foundation = California, United States of America (2007)
company_slogan = Get Student Loans From People who believe in You
location = Redwood City, California, United States of America
key_people = Akash Agarwal, Founder and CEO 2007
industry = Student Loans
homepage = [https://www.greennote.com/ www.greennote.com]

GreenNote is a Redwood City, Calif. based company created to help students obtain loans for education using their social network rather than through traditional lending methods such as private loans from banks.

GreenNote connects students with their social network: friends, family, community leaders and others. Students ask for small student loans. GreenNote helps formalize everything into legally binding loans and handles all the loan documentation. [cite web|title=About Us |author=GreenNote, |url=https://www.greennote.com/about_us/]

Overview

The site does not require students to have a credit worthy friend or relative co-sign its promissory notes. Nor does it plan to check borrowers' credit scores.

Once a student has lined up investors, GreenNote will perform checks on his or her lenders to ensure that they're legitimate. It will also call the student's university to confirm that the individual is enrolled and that the money will be used for the student loan. [cite web|title= At microloan sites, the new college try|author= Stefanie Olsen,Webware|url=http://www.webware.com/8301-1_109-9957465-2.html]

The site collects and transfers the amounts lenders contribute to schools. Students can postpone repaying these loans until after graduation. The interest rate is a fixed 6.8%, to conform to the maximum under the federal Stafford Loan program. [cite web|title=The Latest Twist in Student Loans|author=Anne Tergesen,Business Week |url=http://www.businessweek.com/investor/content/may2008/pi20080513_886889_page_2.htm]

Students may not be able to borrow all they need. GreenNote essentially organizes the transactions among family and friends — though there is a "public" profile option allowing outsiders to loan money through the site. [cite web|title=The bank of family and friends: new student-loan wrinkle|author=Justin Pope,Associated Press |url=http://ap.google.com/article/ALeqM5i-dgm2sdkh6qTIm4dxfeqqBeY9nQD912SODO0]

Borrowers

Students do not need collateral or other credit requirements of traditional loans. Students create a profile, and then use it to solicit friends and family. GreenNote formalizes the loan so there is structure in place to aggregate the collected money, they then route the money on the student’s behalf to their school. Students can defer payments up to five years, and there is a 10-year cap on repayment. [cite web|title=Learn about Student Peer to Peer lending|author=Juliana Bunim, Mainstreet |url=http://www.mainstreet.com/when-your-child-leaves-college/learn-about-student-peer-peer-lending?puc=msgoogle&cm_ven=MSGoogle]

Lenders

As with traditional loans, lenders receive a return on their investment. Everything is managed entirely through GreenNote's online platform, including all the loan documentation, necessary tax forms, and servicing and payment details. [cite web|title=Lenders |author=GreenNote |url=https://www.greennote.com/lenders/]

Schools

Currently available to students at all post-secondary schools.
Some participating schools that include GreenNote on their financial aid websites:
[http://www.cca.edu/students/financialaid/altloans.php California College of the Arts]
[http://www.loyno.edu/financialaid/Undergrad_Alternative_Loans.php Loyola University New Orleans]
[http://www.menlo.edu/admissions/tuition.php Menlo College]
[http://www.oxy.edu/x7024.xml Occidental College]
[http://www.scu.edu/financialaid/Alternative-Financing-Option-GreenNote.cfm Santa Clara University]
[http://www.gsb.stanford.edu/finaid/types/other_loans.html Stanford University]
[http://www.calnorthstate.org/page.aspx?pid=84 California Northstate College of Pharmacy]
[http://www.hccc.ntcnet.com/admissions/financialaid/alternative/ Herkimer County Community College]
[http://www.isu.edu/finaid/altr_loan.shtml Idaho State University]
[http://www.utdallas.edu/library/resources/hot.htm#grants University of Texas at Dallas]

Terms of GreenNote Loans

Terms of a GreenNote loan include a fixed interest rate set at 6.8% and a repayment term of 10 years with the ability to defer payments up to 5 years.

GreenNote doesn't require proof of citizenship or require a co-signer. [cite web|title=Terms of GreenNote Loans|author=GreenNote |url=https://www.greennote.com/students/terms/]

See also

* [http://www.kiva.org/ Kiva]
* Microfinance
* Student loans in the United States
* Stafford Loan

References

* [http://www.washingtonpost.com/wp-dyn/content/article/2008/06/02/AR2008060201242.html/ GreenNote Offers More Peer-to-Peer Loans To Tackle the College Funding Gap] The Washington Post
* [http://www.kansascity.com/433/story/655746.html/ Web site links student borrowers with lenders] The Kansas City Star
* [http://www.banknet360.com/blogs/Item.do?pkId=448&serviceId=2&biId=/ GreenNote Takes P2P Lending on the Offensive] BankNet360.com
* [http://www.finextra.com/fullstory.asp?id=18544/ Facebook users want Web 2.0 banking] Finextra.com
* [http://www.walletpop.com/2008/06/02/for-college-money-try-a-microloan-or-look-on-facebook/ For college money, try a microloan...or look on Facebook] WalletPop
* [http://money.cnn.com/2008/06/02/pf/college/beat_crunch.moneymag/?postversion=2008061012/ Beat the college loan crunch] CNNMoney.com
* [http://www.bostonherald.com/business/general/view/2008_06_09_Web_sites_aid_students_with_college_finances/ Web sites aid students with college finances] The Boston Herald
* [http://marketplace.publicradio.org/display/web/2008/06/13/student_loans/ Student loans meet social networks] Market Place Public Radio
* [http://www.kcbs.com/New-Website-Allows-Students-to-Take-Out-Loans-from/2392115/ New Website Allows Students to Take Out Loans from Family] KCBS All News 740 AM
* [http://shine.yahoo.com/channel/money/greennote-connects-social-networking-and-college-lending-203357/ GreenNote connects social networking and college lending] Shine From Yahoo!
* [http://abclocal.go.com/kgo/story?section=news/education&id=6286871 Website helps creative student loans] abc7news.com
* [http://online.wsj.com/article/SB121858921873435363.html?mod=googlenews_wsj The Best Ways To Get Loans For College Now] The Wall Street Journal
* [http://www.bloomberg.com/apps/news?pid=20601039&sid=a7LI2Jh3XdHM&refer=home Financing Is as Close as the Nearest Angel: Jane Bryant Quinn] Bloomberg
* [http://www.washingtonpost.com/wp-dyn/content/article/2008/08/22/AR2008082203338.html From the Ground Up] The Washington Post
* [http://www.dallasnews.com/sharedcontent/dws/bus/stories/082508dnbusperfi.415c297.html Private lenders less likely to give student loans, but others do] The Dallas Morning News
* [http://www.marketwatch.com/news/story/unbanked-could-valuable-customers-if/story.aspx?guid={F008FA12-61DE-4E25-9805-65EB2DF346D9}&dist=msr_1 Serving the underserved] MarketWatch
* [http://online.barrons.com/article/SB121884113412245737.html?mod=googlenews_barrons Shopping for Back-to-School Loans] Barrons
* [http://www.keyetv.com/content/news/coverstory/story.aspx?content_id=83ca84c6-24d7-4c1b-8854-f38702dab72d Tapping the Friends and Family Network for Student Loans] CBS 42, Texas
* [http://www.insidehighered.com/news/2008/08/12/lending Matching Borrower With Lender, Social-Network Style] Inside Higher Ed
* [http://www.dallasnews.com/sharedcontent/dws/bus/personalfinance/stories/081108dnbusperfi.42b292d.html Social networking trend spreads to personal finance] The Dallas Morning News
* [http://www.campusgrotto.com/peer-to-peer-lending.html Peer-to-Peer Lending] CampusGrotto
* [http://media.www.fsunews.com/media/storage/paper920/news/2008/08/18/News/Greennote.Paves.Way.For.Loan.Seekers-3399468.shtml GreenNote paves way for loan seekers] Florida State University News
* [http://www.javelinstrategy.com/2008/08/11/social-networking-trend-spreads-to-personal-finance/ Social networking trend spreads to personal finance] Javelin Strategy and Research
* [http://www.dailynews.com/ci_10346927 More college students apply for financial aid] Los Angeles Daily News

External links

* [http://www.greennote.com Official site]
* [http://www.myspace.com/greennote_network GreenNote MySpace Page]
* [http://www.facebook.com/pages/GreenNote/23302838070 GreenNote Facebook Page]