# 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.**

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The latest addition to our investment platform is a partnership with [Edly](https://app.percent.com/investor-api/login?redirect_url=https://app.percent.com/borrower/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](https://app.percent.com/deal/edl1-2024-1):

- **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.