Invest In Student Loans And Change a Life Now

Invest In Student Loans And Change a Life Now

The Student Loan Crisis

If you googled “American student loan crisis” you would receive more than 87,400,000 results and see articles titled:

  • “11 mind-blowing facts that show just how dire the student-loan crisis in America is”
  • “How student debt became a $1.6 trillion crisis”
  • “We should all be concerned about the student debt crisis”

American Student Loan Crisis Google SERP

Students at collegiate institutions need to borrow a great deal of capital at high-interest rates in order to afford skyrocketing tuition costs. These individuals graduate with onerous debt burdens that inhibit some future opportunities.

Graph Showing the Cost of Attending College through time.

Tuition data from the National Center for Education Statistics and inflation data calculated using 1963–1964 tuition and tuition increase at rate of inflation from CPI Inflation Calculator.

The burden of this sizable debt load impacts not only graduates’ livelihoods, but also the healthy functioning of the broader American economy.

According to a recent report from the National Association of Realtors® and American Student Assistance®, graduates are increasingly delaying major life milestones because of the demands of inhibitive debt:

  • 83% cite student-loan debt as the factor prohibiting home-buying. This causes them to delay their initial purchase by 7 years.
  • 32% stay in a “negative job situation” in order to pay off loans.
  • 41% have delayed marriage due to their student loans.
  • 55% have delayed starting a family.

This issue hits close to home for far too many American families. In fact, the most recent Survey of Household Economics and Decision-making (SHED) from the Federal Reserve Board indicates that 42% of Americans who attended college, and 30% of all adults, have incurred debt in order to finance a degree.

Unfortunately, financing higher education is increasing in difficulty, cost, and complexity.

There seems to be no end in sight.

Low Yields and High Volatility

Likewise, accredited investors face a difficult choice in today’s market environment. They pine for steady, predictable returns in the face of record low-interest rates and surging equity valuations. Unfortunately, there are not many good options out there.

Do they pursue safety and stability by parking their capital in low-yielding bond funds and savings accounts to earn a measly 0.06%-2.00% yield?

The Returns Investors Receive When Investing in Student Loans Compared to Bonds.

Or, do they roll the dice amidst record valuations/volatility and gamble on a portfolio of ETFs, mutual funds, and individual equities?

Stock Market Volatility Since 2004
CBOE Volatility Index (VIX) from 2004 to July 2020 (daily closings).

Okay, what’s the connection here?

What if there was a third option?

What if you could invest your hard-earned capital, earn 2-3x higher returns than low-yielding bond funds and savings accounts, and help to educate the leaders of tomorrow?

That’s where Impact Capital Funds comes in.

We believe that high-quality student loans are a smart bet on the earning potential of rising professionals. Until now, only institutional investors could invest at scale in prime grade student loans.

Not anymore.

Through Impact Capital Funds, investors can earn a targeted financial return of 4% by buying into a pool of high quality student loans, while at the same time, creating a beneficial social impact on the lives of the borrowers.

We target the hundreds of thousands of students who graduate each year from well-known colleges and universities with school-wide default rates of only 0%–2%.[1] In short, we invest in only the best.

Loans to graduates from these prestigious institutions can be predictable fixed-income investments that ameliorate the most salient financial issues each generation faces.

Few investments of any kind have the potential to change lives the way student loans can.

Some call that “creating shared value.”

Others call it a “triple bottom line.”

Whatever you choose to call it, it’s what we’re all about.

Through our patent-pending investment process, we hope to lower the cost of student loans issued in the last decade by up to 55%.

Better yet, the scholarships earned by our fund profits are donated to participating universities to be awarded to those with financial need. Our Unique Scholarship Commitment reduces the loan burdens of future graduates.

How do we do it?

At Impact Capital Funds, we follow a simple process to refinance prime student loans, pay our investors, and fund scholarships for college students with financial needs.

We employ a 3rd party lending software for loan processing and loan servicing while partnering with a bank for loan disbursement and compliance.

Investors are paid a target 4-5% annual income stream via a proprietary investment strategy (provisional patent filing pending with USPTO) and all fund profits exceeding the investor hurdle rate are shared as follows:

  • 50% to Investors
  • 50% to Scholarships

Traditional fixed-income investments can only offer financial returns and not much else.

Impact Capital Funds provides investors with a fixed-income investment with the added benefit of changing the lives of bright high potential graduates and low-income college students.

Invest In Prime Student Loans and:

Make an Impact

Grow your Capital

Fund the Future

To learn more about the Prime Student Loan asset class and how it compares to other investments, please download our free “Investing in Student Loans” eBook by clicking on the button below.

Download the eBook

[1] Department of Education Study