Founder Tom Woolf | Headquarters London, United Kingdom | |
Industry Crowdfunding, peer-to-peer lending | ||
EdAid is a peer-to-peer lending and crowdfunding platform for higher education that allows students to crowdfund their student loans for university from the community at zero interest.
Contents
History
EdAid was founded by Tom Woolf (CEO), the former Mission Chief of JustGiving Middle East and Africa 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. EdAid received regulatory approval from the Financial Conduct Authority (FCA; formerly the FSA) in February 2016 and was launched in March 2016.
Process
EdAid lets students to borrow towards the cost of university tuition fees from the community, interest-free, via crowdfunding. 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.
EdAid is regulated by the Financial Conduct Authority and students are validated through a three-phase process that includes identity, fraud and AML checks before starting an Appeal process to crowdfund their loan from the community. Students must be on a UK accredited course with the permanent right to remain in the UK after graduation.
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. Supporters of the students can view their loans as a form of inflation-protected impact investment. 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.
Fees
EdAid charges a one-off fee of 5.00% 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. Students will start to repay 10% of their monthly salary after they graduate and are in full-time employment.
EdAid Foundation
The EdAid Foundation is a UK-registered charity that provides matched funding from corporations, trusts, high net-worth individuals and alumni.