NEED & OPPORTUNITY The 2008 financial market meltdown, the 2010 nationalization of federal student lending into a single-payer system, and other regulatory changes collectively combined to eliminate funding from over 1,500 financial institutions that previously supported the funding of higher education. As a result, billions of dollars per year in private-funded student financing vanished, leaving only students/families in the highest income brackets and credit tiers able to access GAP Funding (defined as the last dollars needed for someone to attend the school and program of their choice). The groups most affected by these changes are independent/adult, minority, first-generation, and lower- income students and families. Hand-Up fills this void, breaking down barriers to entry for students and helping schools escape from suffocating unfunded tuition discounts.
THE HAND-UP SOLUTION
· Hand-Up acknowledges that building and managing a compliant loan/ISA program could be a significant distraction from schools’ core mission: educating students
· Hand-Up enables schools to expand their demographic reach while simultaneously taking small steps on a path to independence from government funding sources
· Hand-Up delivers equal or better cash flows than could be achieved with an institutional loan program.
· Hand-Up helps schools looking for additional GAP Funding solutions that will add immediate value to their students, including:
-Reducing large out-of-pocket or in-school
-Increasing the amount of credit loads that can
be taken per term (and thereby reducing the
time to completion)
STRATEGY & COMPARATIVE ADVANTAGE
· Hand-Up offers students and schools unique products and terms not found anywhere else in the private student finance marketplace.
· Hand-Up’s non-profit status allows it to offer products and services that are as economical as federal loans, but with better customer service solutions.
· Hand-Up utilizes best-in-class third-party origination partners that make the application process for students and schools simple and efficient.
· Hand-Up has a highly qualified management team and utilizes seasoned servicing partners to build a compliance environment that could not be replicated at individual schools in a cost-effective manner.
· Hand-Up’s capital structures rely on multiple sources of capital working in synergy to address differing risk tolerances and investment objectives.