A new way to pay for college
Crowdfunding website Pave is connecting college students, entrepreneurs, and other driven people with financial backers, CNBC reports.
Have a dream you can't afford? There's a bunch of strangers out there who might be willing to help.
Crowdfunding website Pave is connecting college students, entrepreneurs, and other driven people with financial backers, CNBC's Mary Thompson reported on Thursday.
Founded in 2012, the website features "prospect" profiles that include goals, background information, multimedia elements, and a resume-style experience section. Interested backers make an offer. After reaching the desired funding goal, prospects decide which offers to accept.
Six months after prospects graduate from college or otherwise reach their goal, they begin paying a negotiated percentage of their income to investors. Payments continue for 10 years.
Returns are typically between 5% and 8% annually, according to the report, and depend on factors such as profession, age, and location. They cannot exceed 10% of the annual income.
"While investors risk not getting all their money back, the upside is that they may get a lot more,'" Thompson said in the report.
In addition to financial assistance, investors can agree to offer mentorship.
Jennifer Schoolcraft, a sociology student in Chicago, raised $20,000 for her bachelor's degree through Pave, according to the report. In her profile, Schoolcraft explains that she wants to demonstrate the importance of higher education.
"Multiple backers have reached out to me, offered me advice and sent me information about potential internships, or jobs, or even network opportunities in general," she said in the report.
Pave makes money through upfront and annual servicing fees, according to Thomas. Unlike other crowdfunding sites, Pave does not seek funding for products or companies -- just people with ideas.
Justin Mitchell, co-founder and CTO of Pave, said prospects should pursue things they're interested in.
"The funding comes with no strings attached in terms of things the prospect must do," he said in the report. "They can take whatever job they want. Ideally that's what they will do."
The website has successfully funded 19 people so far, according to the report, with half of them using the money to pay for college.
Go in the military...Put into the GI bill....Paud for! .. and you can do something honorable for your country....I know... this goes against, the "What's in it for me" , and the anti military democrats.
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