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MyRichUncle tried a similar model in ~2001:

"Through this website, investors could provide money to pay for a student’s undergraduate or graduate degree expenses in exchange for a fixed percentage of that student’s future income for a set period after graduation."

They're one of my all time favorite startup stories, going from the charter described above, to trying to be a "white knight" in student lending - ultimately going public, then going bankrupt spectacuarrly.

Worth the read:

http://en.wikipedia.org/wiki/MyRichUncle

Better luck to Upstart!



Yes, that was the startup I remember from 10 years ago. I found and skimmed the same article but didn't find that line. Considering they became one of the biggest lenders, I would say they're a success story.

Also, a competitor I uncovered from same era is part of the Clinton Global Initiative and appears to be doing well in four different countries: http://lumni.net


There are currently some students at UC Riverside trying to get the University of California to do something similar itself:

http://www.fixuc.org/




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