[Congressional Record Volume 158, Number 120 (Monday, September 10, 2012)]
[Extensions of Remarks]
[Page E1461]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             RECOGNIZING THE POTENTIAL OF COMMUNITY LENDING

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                         HON. ROBERT E. ANDREWS

                             of new jersey

                    in the house of representatives

                       Monday, September 10, 2012

  Mr. ANDREWS. Mr. Speaker, I rise today to recognize some recent 
innovations in private lending to graduate and undergraduate students 
in U.S. colleges and universities. I also want to encourage our 
nation's wealthy individuals to think about participating in these 
programs as one way to give back to our communities. Since its 
inception in 2011, the Social Financial company, or SoFi, has offered 
compelling community-based lending and consolidation programs, and this 
academic year will assist students from 45 colleges and universities 
across the country.
  At its core, SoFi demonstrates the powerful idea of community 
lending. It brings alumni, students, and schools together to ensure 
students' debt burdens are manageable. For the upcoming 2012-13 
academic year, SoFi used its equity base and additional capital from 
alumni to secure $80 million to finance, fund, and support new student 
loans. This innovative student loan solution benefits students, alumni, 
higher education institutions, and our nation. The funds from school-
specific lending pools allow students to enjoy comparatively low-
interest loan rates and opportunities to refinance previous loans. In 
addition, the alumni that contribute to the pool earn a significant and 
low-risk return, while schools gain access to low-cost funding.
  Mr. Speaker, although I do not expect private lending schemes to 
supplant available federal loan structures, I believe Social 
Financial's commitment to the betterment and transformation of the 
financial services landscape for students sets an example for how to 
innovate in this field. I commend SoFi for its hard work, community 
partnerships and innovation, and congratulate SoFi on its continuous 
expansion to schools across the U.S. In order to tackle student debt, 
we will need to be creative, in exactly the ways SoFi has been. I 
encourage those who have the means and desire to give back to follow 
Social Financial's example and invest in the education of the next 
generation.

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