EdAid

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EdAid
IndustryCrowdfunding, peer-to-peer lending
FounderTom Woolf
HeadquartersLondon, EC1
United Kingdom
Websitehttp://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[edit]

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[edit]

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[edit]

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[edit]

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[edit]

References[edit]

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

External links[edit]