How do you initially plan to structure your loans/agreements (interest rate, term, etc) - and what adjustments will you consider making from those numbers to acquire users?
Initially we are beginning with quinquennial term lengths with a fairly conservative price structure. However, our model is being designed with the end-state in mind.
In our end-state, we intend to have full flexibility on any lever possible.
For example, say you have the option of covering your education in return for 5% of your income for 20 years. This may be equivalent to 10% over 10 years, or 20% over 5 years (please note these are purely for illustrative purposes and not discounted/run through our pricing model).
You will have the option of having a sliding scale for income sharing %, term, etc. It should look near-continuous rather than discrete. Sliding one parameter will certainly drag the others but we will provide recommendations based on what the user's financial needs are.
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We have an exceptionally data-heavy focus. As for adjustments, this model will take inputs (e.g. GPA) such that when a student does well in class, they can "refinance" to perhaps take off a basis point or two depending on the model output which could be significant over the course of repayment (a la "Get an A in Organic Chemistry and save $120 on average over the course of your repayment period."). This can also apply to when a student acquires an internship or their first job which gives an idea of starting salary. More data will allow us to more accurately predict their future earnings potential. Realistically, these adjustments can apply to anything with a statistically significant impact on a student's future earnings potential.
We believe this will allow for students to feel a sense of control over their education financing.
In our end-state, we intend to have full flexibility on any lever possible.
For example, say you have the option of covering your education in return for 5% of your income for 20 years. This may be equivalent to 10% over 10 years, or 20% over 5 years (please note these are purely for illustrative purposes and not discounted/run through our pricing model).
You will have the option of having a sliding scale for income sharing %, term, etc. It should look near-continuous rather than discrete. Sliding one parameter will certainly drag the others but we will provide recommendations based on what the user's financial needs are.
--
We have an exceptionally data-heavy focus. As for adjustments, this model will take inputs (e.g. GPA) such that when a student does well in class, they can "refinance" to perhaps take off a basis point or two depending on the model output which could be significant over the course of repayment (a la "Get an A in Organic Chemistry and save $120 on average over the course of your repayment period."). This can also apply to when a student acquires an internship or their first job which gives an idea of starting salary. More data will allow us to more accurately predict their future earnings potential. Realistically, these adjustments can apply to anything with a statistically significant impact on a student's future earnings potential.
We believe this will allow for students to feel a sense of control over their education financing.