Answers to the most commonly asked questions.
We focus on gap funding and microloans, particularly for juniors and seniors who need $5,000 or less. Additionally, we look beyond the FICO Score by analyzing alternative data and can offer loans without a co-signer. Our crowdfunding platform also allows students to raise money to reduce their debt burden.
Any student with a financial need may use our crowdfunding platform. Qualified students may access a private mircoloan. We can currently only offer loans to domestic students and place an emphasis on junior and seniors seeking $10,000 or less.
Students and universities DO NOT pay fees to PYT. PYT is paid a platform fee from our lending partners.
The moment they realize they have a financial need, and at least a month before their first payment is due. We recommend students apply near the end of any semester when they still have an outstanding balance so their registration is not placed on hold and they can still register for their first choice classes.
We have found that students who can raise a portion of their need significantly increase their probability of qualifying for a loan. It is not a requirement and students may apply without crowdfunding.
Our lending partners set industry-standard lending terms. We typically offer interest rates of 6-10%.
We offer a turnkey solution for banks to offer higher education consumer microloans. We analyze alternative data to generate a PYT SCORE and identify low-risk loan candidates that FICO SCORE misses. Instead of turning down loan candidates, banks can direct them to our platform.
Currently, 90% of student loans require a co-signer. Our thin-file clients can potentially qualify as below the income threshold, or living in CRA-qualified low- or middle-income zip codes. PYT and its diverse team is minority, female, and veteran led, and can offer potential CRA-credit for working with us.
Banks pay PYT a referral fee per student.
We have helped over 3,000 students obtain loans, and our first class graduated in 2016. We have yet to have a student default on a payment.
The students who come to PYT have exhausted all other options. They are right at the graduation finish line and just need a little bit more help. We examine positive characteristics to tell their story to "Hero Banks" that can potentially become these students' bank for life
Banks have access to a dashboard of student loan requests, along with predicted default rates provided by PYT. Banks can submit offers to students and set their own terms. Students then choose among their offers.
Currently, PYT's lending partners service the loans, but banks have the flexibility to acquire the loan to service it themselves.
Donations can be made on our website at GoPYT.com by clicking here
We identify high-potential students with financial needs through our PYT score and our relationships with over 1,800 universities and colleges. We ensure your donations and grant funds are maximized by going directly to the students who will most benefit.
You bet your bottom dollar! We take every necessary step to ensure EVERY transaction is securely encrypted using industry-accepted technology. This is the same technology used by banks and credit card companies.
Donors are only charged PayPal’s fees of 2.9% of the donation plus 30 cents USD per transaction for online donations.
A Hero steps up in time of need. A Hero is the community: friends, family and mentors who pledge money to a PYT student campaign. Donations can be anonymous.
PYT encourages every student and family to complete the FAFSA and exhaust all federal funding options first.
Compared to other private loan companies, PYT has a crowdfunding component that allows students to first reduce their debt, utilizes alternative data so students can qualify for more loans, does not require a cosigner, and partners with low-cost capital and offers rates lower than or comparable to other private lenders.
PYT's Student Loanership Program is a credit-building option for students that offers a mix of a student loan and a scholarship. As much as 50% of the loan amount can become eligible for a grant when students meet the requirements.
Loans under the Student Loanership Program are offered up to $2,500 with a maximum repayment term of 30 months.
Unlike a regular loan, PYT's Student Loanership Program provides helpful benchmarks for the student to help them succeed. If a student completes these benchmarks then they will be eligible to apply for a grant or scholarship that can be applied to the PYT Loan.
The Student Loanership Program removes the negative experience of an outstanding tuition bill and turns it into a positive experience by offering economic incentives that reward students for taking positive steps towards degree completion and future employment. It helps students increase their credit score while learning financial responsibility.
Benchmarks are milestones for the student that, when completed, converts a percentage of the student's outstanding loan balance to grant funding.
These incentives include the following:
