With the 2008-2009 school year just around the corner and the credit crunch tightening lenders' belts, students are turning their pockets inside-out to find adequate finances for their education. But the latest in lending alternatives might surprise you. Some private companies are utilizing the social networking phenomenon to aid students in their quest for financial aid.
Sites like Fynanz provide "peer-to-peer" lending services for students and private lenders alike. Students are encouraged to create a profile indicating their educational and personal goals, as well as their anticipated finances. Individual lenders, whether private benefactors, family members, friends, or alumni, can contribute to students' loans in an interactive online marketplace.
According to this article about the twist on student loans from eSchoolNews.com, "Fynanz, which debuted in March and currently operates in 16 states, called itself the first such service to target student loans. The site evaluates students for credit risk and matches them with an individual investor or investors, who bid to finance the loans."
For more information about financial aid, go to eCollegeFinder's student loan page.