“Education is the most powerful weapon which you can use to change the world” - Nelson Mandela 

For the last 12 years, average college costs have risen faster than inflation, yet federal grant aid has not kept pace. We have all heard the stats: According to the Bureau of Labor Statistics, the tuition component of the Consumer Price Index (CPI) increased by 8% per year, on average, from 1979 to 2001.  For many, a college education is becoming less and less accessible.

There is no question that education is an investment in our future and the stakes just keep getting higher. The earnings gap between those with higher education and those without it is widening.  Today, men and women aged 25-34 with bachelor’s degrees earn 60% - 70% more than those with high school diplomas. In 1985, that gap was 37% - 47%.   Parents should expect to pay at least half to two-thirds of their children’s college costs through a combination of savings, current income, and loans. Gift aid from the government, the colleges and universities, and private scholarships accounts for only about a third of total college costs according to www.finaid.org

And just this month we read that some of the country’s biggest banks including Citi, JPMorganchase, PNC and SunTrust have stopped lending to students attending community colleges - arguably the students who most need to be given funding to enter the competitive arena better educated.  

I went to one of the best schools in the world-The London School of Economics & Political Science. It cost me nothing.  I was raised in England, a country that believes giving everyone access to a higher education is better for everyone.  Kids don’t have to work several jobs to get through school, nor do they come out of college with enormous debt.  Since the Thatcher administration things have changed somewhat, but kids still go to college for far less than a state university education in the U.S.

Education is the passport to choice, freedom and opportunity-not to mention expanded social experience, relationship building, personal development, and character development.  I’ve never thought these opportunities should be unavailable to those who simply don’t have enough money. That’s why I’m especially fond of coming across Prosper stories like the one (Prosper Listing 347314: Paying For My Senior Year Of College), recently shared with us her story.

I am pleased to have been a part of helping Prosper members with funding of over $800,000 in loans for student needs since January 2008.  But parents should still always think about other savings vehicles like a 529’s, Coverdell ESA’s, and loyalty programs like Upromise, a brand loyalty network that rewards customers with college funding. There are also good resources such as

• SavingForCollege.com
• Finaid.org
• StudentAid.ed.gov

Leave no stone unturned, tap them all.

To post your listing for a personal loan for students on Prosper, click on Prosper Loans

To bid on a Prosper personal loan for students, click on Lending at Prosper

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Catherine Muriel is the Chief Marketing Officer of Prosper.

Individuals with good credit have a variety of alternatives when they need to borrow money.  Traditional banks have spent untold millions of dollars on brand advertising reinforcing the notion that borrowing from a bank somehow bestows prestige on quality borrowers.  But, does membership really have its privileges?  Smart borrowers know there are two things they should consider when borrowing money, the price and the terms.  Using these two criteria, Prosper’s marketplace is the best place for most borrowers with excellent credit to borrow. 

The better your credit rating the more you benefit from an underwriting process that takes into account your individual characteristics.  Traditional lenders segment borrowers into groups so they can centrally set pricing and terms.  This approach shortchanges the best borrowers in any segment because they are given an offer designed for the average customer.  On Prosper borrower rates are arrived at independently for every borrower.  Quality borrowers are rewarded for their individual credit characteristics and get the best price the market has to offer.  In many (if not most) cases these rates are lower than the rates quality borrowers pay to banks for a similar loan product.

Another way Prosper differs from traditional lenders is loan terms.  Because traditional lenders profit from borrowers paying higher rates, the terms of many traditional lending products are designed to attract borrowers with low rates, and increase rates over time to increase profits.  This is not a practice limited to lower quality borrowers.  Teaser rates, penalty pricing, no grace periods, and prepayment penalties are some of the tools traditional lenders use to increase portfolio profits for all their customers, including the ones with excellent credit.   Prosper has fair terms so borrowers know what they will be paying over the life of the loan.   Prosper loans have fixed rates that never change over the life of the loan.  Often banks label rates as fixed when they don’t float to market rates, but still reserve the right to change the rates based on their discretion at any time.  Prosper loans have a payment grace period before which a late fee is charged, and have no prepayment penalties.  Prosper believes that all borrowers should know for certain what they will be paying to borrow money, and should benefit from a low rate for the life the loan, not just at the beginning.

Maybe membership does have its privileges, if you join the right club.

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Kirk Inglis is the CFO of Prosper.

When you’re a student, life can get pretty expensive and unless you have a steady income coming in, it can be difficult to take care of your every day needs. Many students decide that the best way to handle looming expenses and continue their education without worrying is through a low rate personal loan. However, there are a few problems that these students may face when applying for an unsecured loan with a bank.

Many banks throughout the United States have announced that they will no longer be offering loans for student expenses. Whether its for tuition or other needs, it is becoming increasingly difficult to get a loan in this climate. The banks that are still providing this service are charging premium rates and for many students, the amount of money it takes to get a personal loan is just too much.

However, there is another way to get financing for student expenses. Instead of going with the traditional type of loan or having to wait for a federal assistance loan, p2p lending may be the right choice for you. Prosper has helped many people get the loans they need for student expenses and at incredible rates. As more lending institutions stop offering these loans, p2p lending may become the wave of the future for students.

When a student needs to get a fast online loan, they can simply create a loan request on Prosper. This service is well suited for students that may not have a lot of track record when it comes to their credit. Lenders will see the loan request and will be able to submit bids in order to complete the loan. Students set how high they are willing to go when it comes to interest rates.

The latest figures have shown that many students will have to forgo their educations unless they can secure financing for their student expenses. Instead of giving up on your future, consider getting a personal loan on Prosper for your student needs. This can make all the difference and you’ll have the freedom of selecting a loan that will fit your criteria.

If you have not been able to get a direct personal loan from your school or a lender, Prosper offers a viable alternative towards continuing your education. This is especially true if your deadline for enrollment is nearing and you have not yet been able to secure financing. Traditional lending can take months to close and this can mean that a student may have to delay starting their education.

Instead of worrying about this, a student can get a very quick decision on Prosper. In many cases, they may be able to get full financing for student expenses in a matter of a few days or weeks, instead of months. If you need to act quickly, this is a great solution.

The life of a student is incredibly hard at times and expenses can quickly mount up. Tuition costs are rising every year, books are getting more expensive and it can be difficult to find the right kind of housing on a budget. The vast majority of new students may find that their parents simply cannot afford to meet all of these expenses. Instead of giving up on your dream of an education, there is a way to pay for student expenses that exceed your budget without having to worry about traditional financing. 

Outside of federal student loans, in the past, students had to go to banks that specialized in offering student expense loans. Unfortunately, many lenders have decided to stop offering these personal loans in light of new government regulations. These regulations were put into place to crack down on fraud in the industry, but the result has been a decrease in availability for unsecured loans for student expenses.

Although there are schools that are stepping up to the plate and offering direct loans, often isn’t enough financing to go around. Federal loans are usually quite good when it comes to terms, but not all students will be able to qualify for this type of assistance. 

To help fill this gap and provide students with loans for their expenses, Prosper is one of the best p2p lending marketplaces that works with students. Instead of having to deal with a bank that may not want to offer an unsecured loan to a student, there is now the option of getting a fast online loan with very little effort.

Students can post their loan requests on Prosper and detail how much interest they are willing to pay. P2P lenders will then bid on these requests and sometimes the bidding will undercut the maximum amount of interest the student is willing to pay.

Banks take their time deciding and if you need to get that loan quickly, it can be very frustrating. For students that have not been able to secure a loan, they may only have a few weeks left before the cutoff deadline for enrollment. In this situation, when a student needs a fast personal loan, traditional lending is just not a viable option. When a student deals with Prosper, the whole process is streamlined and financing can be obtained in much less time and with a lot less effort.

The result of p2p lending for student expenses is that students now have another option when it comes to the educational future. If you cannot get a Federal loan or you just want to bypass all of the hassle a traditional personal loan, Prosper might be the right answer for your needs.

As soon as a student decides they will be going to college the expenses start to mount up. From making school visits to determine which school is right, to figuring out how to pay for tuition and books, the whole process can start to feel very confusing. In addition, without the right kind of unsecured loan, a student can end up overspending on their loans. 

While it is possible to go to a bank to get an unsecured loan for an education, the terms may not be acceptable for many students. These loans typically charge a premium amount of interest and it may be hard to get one that allows for small monthly payments. This is vital if you’re a student or if you’re just starting out and trying to pay down a loan.

In addition to going with a traditional student loan, students now have the option of getting a personal online loan from p2p lenders. This is a fairly new process that has already provided many students with financing for their student expenses. If you’re not familiar with p2p lending, here’s how the process works.

A student will post a request detailing what they need for their student expenses. The student can then decide how much interest they want to pay and what terms will work for them when it comes to the monthly payment amount. The p2p lenders will then be able to review the request and determine whether or not they want to provide funding.

In most cases, a student will receive several bids for their online loan. The lenders will bid in an attempt to get the loan, so this is a great way for students to get the best deal on a loan for their expenses.

This is much quicker than trying to secure financing through a regular bank. Also, if a student cannot qualify for a Federal loan, this means that their options are limited.

However, with a fast online loan through Prosper, students have the ability to quickly get the loan they need so that they can focus on their education. Instead of waiting for months for a bank to decide, or trying to figure out how to get a direct loan from the school, a student can immediately get bids on their loan request.

P2p lenders share the risk and the student will get partial bids. This really doesn’t affect the value of the loan, but it is a system that is put into place to help lenders on Prosper minimize their overall risks. The whole process takes very little time and the student can have their loan for expenses in the matter of a few days.