Using GreenNote to Pay for Business School

Q: Does a student need collateral for the loan?

A: No. There are no traditional credit requirements.


Q: Is this loan legally binding, or is it just an informal agreement?

A: This is a legally binding contract. The loan will be reported to credit bureaus and therefore will impact your credit rating in the future. In other words, if you repay your loan as promised, this will help you qualify for future home loans, car loans and other forms of credit. Failure to repay your loan could subject you to collections efforts and will have a negative impact on your credit rating.


Q: Do you have to be a U.S. citizen?

A: No. As long as you going to a post secondary school, you are eligible.


Q: How long does it take for students to raise the money they need?

A: The actual registration process is fast, so you can concentrate on raising money through your pledge drive. You need to think about all your potential lenders and the best ways to contact them. We can help you with some automated emails and other tips, but you may need to follow up. You should also encourage your potential lenders whom you have contacted to refer you to others as a means to broaden your pledge drive.

We also encourage you to spend time crafting your profile. Students should be creative, write thoughtful responses and use correct grammar. After all, you’re trying to get people to invest in your potential. Ultimately, how long your pledge drive takes depends on you. But once the loans are funded, it should only take a few business days to get your money.


Q: Can GreenNote funded loans be consolidated later or will students need to have separate loans for each year they raise money?

A: Not at this time.


Q: How does GreenNote compare to traditional student loan programs?

A: Unlike private bank loans or other traditional loans, GreenNote does not require students to have a credit report, co-signer or show proof of citizenship. Also, the rate is fixed at 6.8 percent compared to private lending alternatives that typically carry a variable rate up to 20 percent.


Q: What should students think about before taking out a loan?

A: The important things are determining how much money they need and really thinking through all the people who would like them to succeed. In all likelihood each student knows a lot of people who would give as little as $100 toward the student’s education.


Q: Loans that are funded through GreenNote have a fixed interest rate. In the current climate, how important is it to get a fixed interest rate loan versus a variable rate loan?

A: There is always risk associated with variable rates because they fluctuate as we have seen with the recent mortgage loan debacle. GreenNote loans are currently 6.8% and that won’t change over the course of the loan.


Q: How much of an impact will repayment of a GreenNote loan have on a student's credit score?

A: If the student continues to make payments then it will have a positive impact on their credit scores, which is important as they apply for other things, such as car and home loans.


Q: Is there any additional advice you can offer to students who are thinking about using GreenNote to fund their business school education?

A: Use GreenNote after you have maximized your federal loan options. The service is a great alternative to other kinds of loans, plus it gives people who believe in you an opportunity to invest in your future, while making a modest return.


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