EdAid

EdAid
Industry Crowdfunding, peer-to-peer lending
Founder Tom Woolf
Headquarters London, EC1
United Kingdom
Website http://www.edaid.com/

EdAid is a peer-to-peer lending and crowdfunding platform for higher education[1][2] that allows students to crowdfund their student loans for university from the community at zero interest.[3]

History

EdAid was founded by Tom Woolf (CEO), the former Mission Chief of JustGiving Middle East and Africa[4] and Accenture Financial Services Strategy alumni. He is also a former professional athlete and remains involved in sports as the current Head Coach for Nike Middle East.[5] EdAid received regulatory approval from the Financial Conduct Authority (FCA; formerly the FSA) in February 2016[6][7][8] and was launched in March 2016.[3]

Process

EdAid lets students to borrow towards the cost of university tuition fees from the community, interest-free, via crowdfunding.[9][10] The student can use the funds raised from family, friends and the business community to fund other associated costs with university, such as cost of living, examination fees, and field trips.[11]

EdAid is regulated by the Financial Conduct Authority[6][7] and students are validated through a three-phase process that includes identity, fraud and AML checks[12] before starting an Appeal process to crowdfund their loan from the community.[10] Students must be on a UK accredited course with the permanent right to remain in the UK after graduation.[13][14]

EdAid aims to save students up to $50,000 in interest fees and on average nine years of indebtedness, as compared to traditional student loans.[9][15] Supporters of the students can view their loans as a form of inflation-protected impact investment.[3] EdAid is also different from other lenders in that it only charges a fixed percentage initial fee, and does not charge interest or additional fees.[16]

Fees

EdAid charges a one-off fee of 5.00%[17] from successfully funded appeals which cover legal, regulatory, banking and administrative costs from raising funds. Repayments are pegged to the rate of the Consumer Price Index without additional interest charges.[11] Students will start to repay 10% of their monthly salary after they graduate and are in full-time employment.[18]

EdAid Foundation

The EdAid Foundation is a UK-registered charity[19][20] that provides matched funding from corporations, trusts, high net-worth individuals and alumni.

See also

References

  1. ↑ "The benefits of peer-to-peer lending". Esquire Middle East. Retrieved 2016-07-07.
  2. ↑ "Innovate Finance dubs UK a fintech diversity hub". Retrieved 2016-07-08.
  3. 1 2 3 "Euromoney Magazine". Euromoney. Retrieved 2016-07-07.
  4. ↑ "Brief: Former Mission Chief For JustGiving Tom Woolf Set to Launch New Crowdfunding Platform Dedicated to Students". Crowdfund Insider. 2015-08-14. Retrieved 2016-07-07.
  5. ↑ "InnerTalks 4, 30th April 2015". InnerFight. Retrieved 2016-07-07.
  6. 1 2 Williams, Aimie (2016-04-01). "Big peer-to-peer lenders still awaiting Isa approval". Financial Times. Retrieved 2016-07-07.
  7. 1 2 "Just 11 providers FCA authorised for IFISA launch | Financial Reporter". www.financialreporter.co.uk. Retrieved 2016-07-07.
  8. ↑ "Only 9% of P2P platforms fully regulated - FTAdviser.com". www.ftadviser.com. Retrieved 2016-07-08.
  9. 1 2 Kharpal, Arjun (2015-05-04). "Want a college education for free? Try this". CNBC. Retrieved 2016-07-07.
  10. 1 2 Green, Harriet (2015-10-08). "The future of education finance is here". Retrieved 2016-07-07.
  11. 1 2 Payne, Aaron (2015-08-14). "Crowdfunding platform set up to help students". Retrieved 2016-07-07.
  12. ↑ "EdAid Principles". www.edaid.com. Retrieved 2016-07-07.
  13. ↑ "Time to end "cloak and dagger" student loans says EdAid entrepreneur | Quintin Hogg". www.theqh.co.uk. Retrieved 2016-07-08.
  14. ↑ "EdAid FAQ". edaid.com. Retrieved 2016-07-07.
  15. ↑ "3 Startups to Watch: Principly, EdAid, Wayerz | Bank Innovation". bankinnovation.net. Retrieved 2016-07-08.
  16. ↑ "Student loans suck: EdAid is helping students crowdfund their education". The Memo. 2016-08-18. Retrieved 2016-08-18.
  17. ↑ "New Platform Targets UK Students - AltFi News". Retrieved 2016-07-07.
  18. ↑ "Industry Interview: Lawrence Wintermeyer, CEO of Innovate Finance | Verdict Financial". www.verdictfinancial.com. Retrieved 2016-07-07.
  19. ↑ "Edaid Foundation - Total Giving - Donate to Charity | Online Fundraising for Charity UK". www.totalgiving.co.uk. Retrieved 2016-07-07.
  20. ↑ "EDAID FOUNDATION :: OpenCharities". opencharities.org. Retrieved 2016-07-07.
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