dcsimg

New credit scoring model may help student loan borrowers

on Thursday,April 09,2009 20:04

expert+advice_2144_19117959_0_0_7010728_300.jpg

A company active in the area of credit risk management and funding for student loans has unveiled a new tool in an effort to boost access to educational loans.

People Capital has announced that its next generation Human Capital Score will provide a more appropriate measure of creditworthiness.

It will do so by using data such as GPA, standardized test scores, college and major information, along with traditional demographics data to give insight into the borrower''s future earnings potential.

"Students have long been disadvantaged by the current lending practices based on FICO scores and parental guarantees," says Thomas Shelton, founder and CEO of People Capital.

"[We seek] to unlock the credit markets for student loans by providing transparency and insight into a student''s potential," he adds.

He explains that Human Capital Score will enable lenders to evaluate students according to the likelihood that an individual''s income may reach a certain threshold in a given year, or that his or her average income might reach a certain threshold in the 10 years following graduation.

This new tool may be particularly useful in the current economic situation when the credit market remains tight. It may also be another reason for people interested in pursuing a degree in the fields with high future earnings potential such as architecture, web or interior design to do so.

ADNFCR-2144-ID-19117959-ADNFCR

Latest Articles & News

Kanye West to perform during Paris Fashion Week

It is no secret to many that music artist Kanye West is no stranger to fashion, and now he will be showing his new collection during Paris Fashion Week later this week, according to the Elle Magazine.

Second designer chosen for home decor competition

Teenlike.com, an ongoing online competition for young home decor designers, announced its second winner. Brandon Dover of Apply Valley, California, was this year's winner, as he created an abstract pen and inkwork design for a bedspread.

Interior Design Calendar of Events 2010 (June - December )

What It Takes to Be a Freelance Graphic Designer