Students are eligible for an OpenLoan if enrolled at least half-time at an approved school, are a US resident with a Social Security Number, and pass Fynanz’s anti-fraud and identity verification checks.

To increase chances of approval and get the best rate, we recommend applying with a cosigner. However, juniors and seniors may apply for an OpenLoan without a cosigner provided the student:

1. is pursuing a degree program at a 4-year institution,
2. requests no more than $7,500 per academic year and $15,000 over 2 years,
3. does not have any negative information on their credit report, such as past-due accounts or delinquencies.

Students that need more than $7,500 in a given academic year are eligible to take out further loans with a cosigner.

A cosigner is necessary to apply for a loan if the student is a freshman or sophomore, not in a degree granting program, or does not have 2 years of continuous, verifiable employment and income. We recommend borrowers use a cosigner with a good credit history. Cosigners are subject to income verification and will have the ultimate responsibility for loan repayment if the borrower fails to make payments.

Once bidding for a loan listing is complete and the loan is funded, the borrower will receive a check in less than two weeks. The check will usually be made payable to both the borrower and the school, except in certain cases where the check will be payable to the student for qualified educational expenses not directly payable to the school, such as travel, books, and off-campus living expenses.

Checks will be disbursed on the 1st, 10th and 20th of each month.

Fynanz will usually send a check payable to both the borrower and the school. Upon receipt, the borrower should endorse the check and provide it to the appropriate department at the school. If the loan amount includes other educational expenses that are above and beyond the amount owed the school directly, the school will give the student the difference between the check amount and the amount owed to the school. The borrower will have to sign the check over to the school and they will refund the balance. Most schools will refund this difference within days. The process of refunding the money may differ depending on the school.

Fynanz requires all bids to be in increments of $25. Any amount the check is payable for that is greater than the original loan amount is due to rounding that occurred to bump the total amount financed (Original Loan Amount + Original Fee) to the next $25 increment. Therefore, the check payable to the borrower and the school may be in an amount greater than the original loan amount, but never by more than $25.

In the example provided in the answer to the previous question, the borrower would have received an extra $13, which is owed directly to the borrower (the $3,100 amount financed minus the Fynanz upfront fee of $87). The borrower may choose to either hold onto this extra money or prepay this amount at any time, as long as any prepayment meets the minimum $25 threshold for a borrower payment. Borrowers are never charged a prepayment fee on a Fynanz loan.

While in enrolled in school at least half-time, a borrower may choose between different repayment options:

• Deferred Repayment Option or academic deferment - while in academic deferment the borrower is required to make monthly $25 Good Faith Payments. The Good Faith payments made while in academic deferment help the borrower establish a good relationship with lenders and demonstrate financial discipline. A six month grace period is given after separating from school.
• Interest Paid Option – full monthly interest payments are due on the loan while enrolled in school. Choosing the Interest Paid Repayment option can save thousands of dollars in interest expense over the life of the loan, because the $25 monthly Good Faith payments will likely not be enough to cover the interest accrued on the loan.

In either option mentioned above, monthly principal and interest payments will be due once loan repayment begins. We realize that some students may not yet have found employment even after six months; therefore, borrowers may request to pay just the interest expense on the loan for the first two years of repayment, "Initial Interest Only" option.

Fynanz allows borrowers to put loans into forbearance due to economic hardship for up to 18 months. Borrowers may receive two 9 month forbearance periods. Only one forbearance period may be requested per calendar year. Interest continues to accrue on the loan during this time. Learn more about forbearance in the Fynanz Explained section.

Interest payments on Fynanz loans may be tax deductible, since they are “qualified” education loans for those enrolled at least half time in a degree or certificate program. Upon request, we will verify eligibility if a borrower sends us a completed W-9S form, which certifies the loan was used for education expenses only. Fax the completed form to 866-262-3969. Please consult a financial adviser on questions related to the tax treatment for any loans.

Fynanz reserves the right to sell loans to third parties, but loan terms would remain the same. Fynanz will inform all borrowers 30 days prior to any changes in the administration or servicing of a loan.

Once repayment begins, payments will be made by direct electronic transfers to Fynanz through a bank account. Fynanz then ensures that the lenders receive the payments into their Fynanz accounts.

Interest accrues while a borrower is in school unless interest-only payments have been made. Upon entering repayment, the accrued interest is capitalized (or added) to the principal. The sooner payments are made, even interest-only, the less expense on the loan. Also, selecting the interest only repayment option shows lenders that the borrower is fiscally responsible and plans to make payments right away, which may encourage more lenders to bid on the loan listing.

Remember, once 10% of the requested loan amount is paid (i.e 90% remaining), the interest rate will drop by 1% as the Guarantee Fee is eliminated. So if a borrower has a $10,000 original loan principal balance (without any upfront fee), and regular payments are made, when the balance reaches $9,000 the interest rate will drop by 1%.

Yes. There are no penalties if the borrower repays the loan early. Lenders will simply get repaid sooner.

Yes. A borrower has 30 days from the day the listing closes to return the money to us. The borrower will not be charged any fees or interest. Please call us and let us know if it is getting close to 30 days, so we can add a note to the account.

In the unfortunate event that a student experiences permanent disability or death, the borrower or a representative of the student can contact Fynanz to discuss and possibly modify the terms and conditions of the loan. If the borrower dies, Fynanz will discharge the loan and release the borrower and cosigner from any further payments. In the event or total and permanent disability, Fynanz will reivew the case and make the decision on the appropriate relief in response to a borrower’s request.

(See the following question for similar information on school closure.)

It is not unheard of that a school or university shuts down temporarily or permanently, either voluntarily or involuntarily. Under this circumstace you can request that your loan be partially or completely discharged. Fynanz will examine and evaluate these situations taking into consideration certain conditions, i.e. whether or not the student has graduated, or another institution is willing to admit students at no additional charge, etc. Fynanz will attempt to work with borrowers to reconcile their loan(s) through their educational transition.