In the excellent model of peer-to-peer lending (e.g., Kiva.org), three recent Harvard grads have used their powers for good to create an online microlending platform for the college students who need money and the alumni who can loan it. Joshua Kushner ‘08, Nimay Mehta ‘09, and Tanuj Parikh ‘09 created UniThrive, a non-profit microlending site specifically for college students. The pilot version went up this spring, and is currently only available to Harvard students and alumni. If all goes well, UniThrive’s founders hope to spread the non-profit goodness to more schools.

UniThrive is a social enterprise startup that connects alumni and students in financial relationships to lower the cost of education. It is an online platform that allows alumni of a specific university to lend, interest-free, to current students at their alma mater to help defray the costs of a college education. Students in need get favorable loan terms and alumni mentors, whereas alumni are given a tangible method to give back to their alma mater. Additionally, the beauty of a multiple-to-one peer-to-peer online lending model is that alumni of all socioeconomic backgrounds can give loans as little as $50, pooling them together to make a big difference.

The concept of microlending makes a lot of sense. If I were an alumna with discretionary income, I’d be much more inclined to lend it to a student of whom I knew something about than just throwing a wad of cash at the black hole of tax-deductible benefactions. As it is, when I give money to my alma mater, I always choose to donate to the financial aid pile, where all monies are applied directly to defray tuition costs for low-income students. Not that I have anything against supporting the school itself, and if I had a million bucks to add a new wing onto the library, I would.

But the whole point of higher learning institutions is to educate people, and by ‘people’ I mean everyone, not just the ones who can afford to learn. I love a gorgeous library as much as (probably more than) the next person, but I’d rather help pay someone’s tuition than make the library more stunning. It’s more direct. Also, you don’t need a million smackers to save the financial ass of a college student. Not yet, anyway.

Further Reading:

I’m Going to Harvard. Will You Sponsor Me?
Microlending Shows Up Stateside
Kiva Brings Microlending Home to U.S. Entrepreneurs in Need
Top 10 Lessons From a Microlending Pioneer

Posted by Alexa Harrington

(image credit: Michael Falco for the NY Times)