Percent Welcomes Edly: Investing in Student Success with Income-Based Loans

By
Percent
March 15, 2024

Disclaimer: As of February 2025, Percent has transitioned from using Annual Percentage Yield (APY) to Coupon Rate for all new investment opportunities. Any references to APY in this post now correspond to Coupon Rate.

—

The latest addition to our investment platform is a partnership with Edly, a US-based leader in student lending. This collaboration introduces income-based repayment (IBR) student loans as a novel asset class, bringing our investors a new diversification opportunity in educational finance.

Edly: Pioneering Student Success

Founded in 2019, Edly redefines student lending with a focus on affordability and outcomes. Their IBR loans are designed with repayments tailored to the borrower's post-graduation income. Loans are also capped with a borrowing limit per student as well as a reasonable repayment maximum. This model benefits students and investors alike by linking investment returns directly to the success and earning potential of graduates.

The Edly Difference:

• Outcome-Based Lending: Prioritizes educational programs with strong graduation outcomes.
• Demand-Driven Majors: Concentrates on in-demand fields like technology and healthcare.
• Performance Analytics: Utilizes academic and performance statistics to forecast the likelihood of success.

The Strategic Advantage for Investors

The Edly and Percent partnership gives investors access to the growing sector of educational finance.

Key Advantages:

• Risk Management: Edly's predictive underwriting approach mitigates traditional lending risks by focusing on future earning potential.
• Sector Expansion: The escalating costs of education and the growing need for alternative financing solutions highlight the potential for growth in this asset class.
• Income-Based Repayment: Edly's student loans utilize projected and actual income data to form affordable and flexible repayment schedules, lowering the risk of default.
• Quality Education Support: Encourages enrollment in career-oriented programs based on graduation rates, job placement, and estimated starting income.

Introducing The EDL IBR Student Loans Sr. 2024-1

Percent is pleased to offer investors this opportunity in education financing and an outcome-oriented lending model through Edly’s IBR loans. Below are key highlights of EDL IBR Student Loans Sr. 2024-1:

• Target APY: 14%
• Duration: 36 months
• Collateral: Portfolio of income-based repayment student loans
• Credit Enhancement: 5% cash reserve

Highlights:

• Asset Class Diversification: Opens up new avenues in investment portfolios.
• Outcome-Oriented: Focuses on educational programs with an established track record.
• Investor Safeguards: Strengthened by underlying collateral and a cash reserve.

Vision for the Future

We encourage our investor community to explore EDL IBR Student Loans Sr. 2024-1, assessing both its potential returns and its alignment with your investment principles. With the addition of this new offering, we remain committed to transparency and the democratization of investment opportunities.