Education Finance Matters

People Capital announces new solution for the student loan marketplace

26th April, 2010 - Posted by Tom - No Comments

Over the last 2 years, People Capital has made great strides in developing innovative and critical solutions for the student loan marketplace. This week, I am excited to update you on the developments of our relationship with Access to Money, Inc. (OTC Bulletin Board: AEMI)  (“ATM”). They are a cash management company (with over 13,000 ATM’s) and service provider to hundreds of credit unions and banks.  They have a particular focus on the college market and developed extensive relationships to provide private student loans to college students.

Last month, we signed a “private label” service agreement where People Capital will provide our technology platform to ATM to originate and service the private student loans transacted through their services. Through this relationship, we will provide our loan origination technology to ATM, who will use it to offer new private loan options to credit unions and community banks with a focus on college students. Together, this partnership brings together both the students AND the committed funding partners.  People Capital will focus on the technology and operations while ATM will leverage their business development and relationship skills. The platform will go live very shortly.

ATM will also leverage our proprietary Human Capital Score™, an alternative credit risk metric for students and young adults developed and launched in 2009 by People Capital. Built on rigorous academic research by leading labor economists, the Human Capital Score helps lenders assess student loan risk by using academic merit data such as GPA, standardized test scores, college and major, along with traditional demographics data and metrics, to provide insight into their future earnings potential and ability to repay a loan.

I am excited that we have been able to develop a technology solution that can be fitted for a variety of private label needs. This agreement will enable ATM to offer a full suite of loan origination options to financial institutions, while allowing us to explore new private label options in other market sectors.

We have a lot of work ahead of us in developing and growing this channel but I am confident that our relationship with ATM will allow us both to address the funding needs of a whole generation of students.

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Learn more about our private label solutions

Tom Shelton, CEO & Founder, People Capital