Yelo Funding, a New York-based fintech startup that provides a college financing solution, raised $1.2M in Pre-Seed funding.
The backers were not disclosed.
The company intends to use the funds to launch its operations in select markets and provide financing for students’ college tuition, room and board.
Led by Daniel Rubin, Founder and CEO, Yelo Funding offers a socially responsible solution that aims to close the funding gap in higher education, reduces loan repayment, improves access to education, and helps students choose degree programs with favorable career outcomes, Yelo’s offering provides students with a flexible financing repayment schedule directly aligned with their employment status during the years after graduation. Rather than offering a private loan, which is used to pay for a student’s education, even with the backing of a cosigner, with repayment terms that can be expensive and extend as many as 25 years or more, the company finances student tuition using a financial instrument known as an Income Share Agreement (ISA). ISA payments are tied to earnings rather than to a fixed principal amount. They are limited in time and capped at a maximum dollar amount.
FinSMEs
20/04/2023