The Untapped Potential for Impact Investing in Student Debt
An investment can offer more than just financial returns. While traditional investors are entranced by profit — constantly looking for higher yields, greater appreciation, or increased dividends — other’s have realized that an investment can have an impact beyond the traditional bottom line. There are unrealized benefits when you Invest in student debt. You can invest for more.
Doctors, lawyers, engineers, and MBAs are some of the most employable and highly-skilled workers in the country, but they struggle when facing hundreds of thousands of dollars in student loans. Not only does investing in student debt provides investors with a steady stream of income, but it can fundamentally change the lives of bright young graduates early in their professional careers.
In addition, due to the fact that loan repayment isn’t correlated to the stock market, investors can gain the benefits of diversification and market-independent cash flow when they incorporate high-quality student loans into their portfolios. With the COVID-impacted economy sharply driving down interest rates on Treasuries, CDs and corporate bonds, student loans are attractive investments for investors seeking a bond-like yield.
Impact Capital Funds wants to reduce the burden of high interest student loan debt and provide scholarship opportunities for underprivileged communities, and provides a safe and consistent annual distribution targeted between 3.0 and 4.0% in order to do so.