Comment on Upstart offers loans for coding boot camps

Upstart offers loans for coding boot camps

Upstart, a small peer-to-peer lending company based in Palo Alto, has just introduced a product to fill a growing but underserved niche: loans for coding boot camps. [...] the boot camps are not accredited, and students attending unaccredited schools are not eligible for federal financial aid, including government-backed student loans. Upstart struck partnerships with 13 coding academies so students could get income-share loans, but many wanted a traditional loan with a fixed rate and shorter term. The new loans will still be peer-to-peer, meaning borrowers raise money from wealthy investors over Upstart's Internet platform rather than going to a bank or credit union. Lending Club recently acquired Springstone Financial, which provides traditional loans for private K-12 schools and cosmetic surgery. Many lenders shy away from making loans to unaccredited vocational schools because they are still considered education loans and subject to different requirements than consumer loans. Some Dev Bootcamp students have received loans through Lending Club's platform, says Chris Lee, the camp's vice president of finance and operations. When informed that Lending Club loans aren't supposed to be used for education, Lee said the students may use them to "cover all the other ancillary expenses in their life outside tuition."

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News