Also known as “alternative student loans,” a private student loan is made by a private bank or lending institution. These loans are meant to cover costs of higher education including tuition, room and board, and other expenses. Private student loans do not have borrowing limits like federal loans.

Federal student loans follow guidelines set by the US Dept of Education and typically have lower interest rates than private student loans. Federal loans have borrowing limits which may not cover the entire costs of education at most institutions. Private loans often make up the difference for students. Both private and federal student loans allow a student to defer payments while in school and some allow for economic forbearance once a student completes school. Unlike federal loans, private student loans are based on the credit history of the borrower and often have adjustable interest rates.

People-to-people (P2P) is lending done between individuals without the banks' traditional role in this process. Although P2P lending is often done without a bank, a financial institution may be involved indirectly. Typically, borrowers post loan requests and lenders then bid on the requests they wish to fund based on various credit criteria. The internet provides a “marketplace” for these transactions to occur in a timely, orderly and secure fashion.

Fynanz is an online auction marketplace solely for obtaining private student loans. Other websites may involve other types of lending, social networks or education, but Fynanz specializes exclusively on private student loans for higher education.

Our goal is to make student loans affordable and the process more rewarding. With growing acceptance of people-to-people lending, we can use the Internet auction marketplace to achieve two goals: support higher education and get returns for our lenders.

We want to help students get their listings funded more quickly. However, this will require involvement from all – the borrowers, thier friends, families & Fynanz.

For bids made by lenders who have identified themselves as a friend or family member of the borrower*, Fynanz will bid an equal amount for the first $1,000 dollars and bid half the amount for the next $3,000 dollars to the borrower. The maximum that Fynanz will lend to any individual borrower under this matching program is $2,500.

Bids will only be matched for friends and family bids that fall within the Fynanz posted Margin Range for each respective FACS Grade as outlined in the Rates and Fees section.

*A lender needs to be invited by the borrwer to bid on the listing for the bid to be classifed as a friends & family bid. Borrowers with an active listing can invite friends from the "My Account --> Borrowing" tab.