--- title: Social Impact Bonds description: Student risk becomes the foundational basis to underwrite private student loans at Einstein Higher Edu Solutions. image: https://www.einstein.consulting/hubfs/Icon_FinancialBarrier.png --- [Skip to content](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-0#main-content) - [Login](http://admin.einstein.consulting) - [Developers](http://docs.einstein.consulting) - [About us](https://www.einstein.consulting/about-us) - [Blog](https://www.einstein.consulting/blog) - [Contact](https://www.einstein.consulting/contact) Close - [For CollegeStudents](https://www.einstein.consulting/student) - [For Lenders](https://www.einstein.consulting/lender) - [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) - [About us](https://www.einstein.consulting/about-us) - [Blog](https://www.einstein.consulting/blog) - [Contact](https://www.einstein.consulting/contact) - [Developers](http://docs.einstein.consulting) [![logo](https://www.einstein.consulting/hubfs/_Toolkit/einstein_logo_blue.svg "logo")](http://einstein.consulting) - [For College Student](https://www.einstein.consulting/student) - [For Lenders](https://www.einstein.consulting/lender) - [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) [Aaron Pisacane](https://www.einstein.consulting/blog/author/aaron-pisacane) 21 Sep 2021 3 min read # Social Impact Bonds Why student loan lenders should care.  ### Increasing college access with Social Bonds Social Bonds use bond proceeds to raise funds for new and existing projects that have positive social outcomes. The [International Capital Market Association](https://www.icmagroup.org/) administers a framework that guides bond issuers on how to meet [Social Bond Principals](https://www.icmagroup.org/sustainable-finance/resource-centre/) (SBP).  SBP support bond issuers in financing socially sound and sustainable projects that achieve greater social benefits.  Benefits include matching bonds with investors seeking to invest in [SBP.](https://www.icmagroup.org/sustainable-finance/resource-centre/) Voluntary transparency is achieved by the tracking of bond proceeds used for [Social Projects.](https://www.icmagroup.org/sustainable-finance/resource-centre/)  The SBP recommend a clear process and disclosure for bond issuers, which investors, banks, underwriters, and placement agents use to understand the characteristics of a Social Bond.   ### Social Projects: using education loans to increase college access This financing topic relates to my passion to solve the decades-old problem of helping hardworking college students pay for college based on their risk profile. Traditional credit underwriting models are ineffective in accessing the risk of college students to successfully payback their student loans.  Student loans without cosigners breaks traditional student loan lending models.  It also provides an opportunity for student loan lenders to expand their loan programs from Einstein's credit platform.  ### Smarter credit underwriting that increases college access The [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) uses nontraditional data to increase college access for many college students. Traditional FICO scores and employment requirements lock access to college especially for disadvantaged socio-economic populations that deserve more support from lenders.  This limits college access to essential services such as education and vocational training that are recognized by SBP as a typical Social Project.   The [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) can benefit the target populations of SBP that include the underserved, owing to lack of quality access to essential goods and services.  A no cosigner student loan is one method of increasing access to underserved populations for essential services such as education. To do it responsibly to achieve a social good requires a robust risk assessment framework, access to relevant alternative data and technology to process the vast amounts of data through a modern credit engine.  Simplicity and shortcuts can easily lead to poor student borrowing outcomes and more bad press for student loan lenders. This is not what the industry needs.  Think about adding another loan program to your product offering that can be safely piloted. Also consider using a portion of bond proceeds to meet [Social Bond Principals.](https://www.icmagroup.org/sustainable-finance/)  You may find that investors, your Board of Directors, colleges and others recognize your organization for the social good that you are promoting.  The student customer will certainly notice!    More about [Einstein Higher Edu Solutions](https://www.einstein.consulting/) and how we can partner with lenders and colleges to meet their college access goals.      ## RELATED ARTICLES ### [Aaron Pisacane 14 Jul 2023 6 min read Biden's Updates to the Income Driven Repayment Plan for Student Loans Impacts to Private Student Loan Repayment Performance More Updates to Direct Federal Student Loans Besides Repayment Restart ... Start Reading](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-1-0-0-0-0) ### [Aaron Pisacane 07 Jul 2023 4 min read Are your private student loan programs focused on undergraduate growth programs? Five-Year Undergraduate Enrollment Trends Spring Enrollments: 5 Year Trends at Public 4 Year Universities Enrollment data ... Start Reading](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-1-0-0-0) ### [Aaron Pisacane 30 Jun 2023 5 min read 6/30/23 UPDATE: Impacts to Private Student Loans When Federal Student Loan Payments Restart in October 2023 Are strategies in place to protect student loan performance? Impacts to After-Tax Income by Federal Student Loan Payments As ... Start Reading](https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-1-0-0) [![einstein\_logo\_white](https://www.einstein.consulting/hubfs/_Toolkit/einstein_logo_white.svg)](http://einstein.consulting) **Einstein Higher Edu Solutions LLC** 917 N. Hancock Street Philadelphia, PA 19123 - [Einstein Higher Edu Solutions](https://www.einstein.consulting) - [For College Students](https://www.einstein.consulting/student) - [For Lenders](https://www.einstein.consulting/lender) - [Einstein Risk Score](https://www.einstein.consulting/einstein-risk-score) - [About us](https://www.einstein.consulting/about-us) - [Blog](https://www.einstein.consulting/blog) - [Contact](https://www.einstein.consulting/contact) Einstein Higher Edu Solutions © All rights reserved - [Privacy Policy](https://www.einstein.consulting/privacy-policy) - [Powered by Ander Group](https://www.ander.group/en) ```json { "@context" : "http://schema.org", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "", "addressLocality" : "Philadelphia", "addressRegion" : "PA", "postalCode" : "19123", "streetAddress" : "917 N. Hancock Street" }, "email" : "hello@power.com", "knowsLanguage" : "en", "logo" : { "@type" : "ImageObject", "url" : "https://19883800.fs1.hubspotusercontent-na1.net/hubfs/19883800/_Toolkit/einstein_logo_blue.svg" }, "name" : "Einstein Higher Edu Solutions", "telephone" : "+49 (0) 89 123 456", "url" : "https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-0" } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "abstract" : "Student risk becomes the foundational basis to underwrite private student loans at Einstein Higher Edu Solutions.", "author" : { "@type" : "Person", "name" : "Aaron Pisacane" }, "dateModified" : "September 22, 2021 12 AM", "datePublished" : "September 21, 2021 5 PM", "headline" : "Social Impact Bonds", "image" : "https://f.hubspotusercontent00.net/hubfs/19883800/Icon_FinancialBarrier.png", "inLanguage" : "en", "keywords" : "[alternative data, credit underwriting, no cosigner student loans]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "Social Impact Bonds", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://19883800.fs1.hubspotusercontent-na1.net/hubfs/19883800/_Toolkit/einstein_logo_blue.svg" }, "name" : "Einstein Higher Edu Solutions" }, "text" : "Why student loan lenders should care. Increasing college access with Social Bonds Social Bonds use bond proceeds to raise funds for new and existing projects that have positive social outcomes. The International Capital Market Association administers a framework that guides bond issuers on how to meet Social Bond Principals (SBP). SBP support bond issuers in financing socially sound and sustainable projects that achieve greater social benefits. Benefits include matching bonds with investors seeking to invest in SBP. Voluntary transparency is achieved by the tracking of bond proceeds used for Social Projects. The SBP recommend a clear process and disclosure for bond issuers, which investors, banks, underwriters, and placement agents use to understand the characteristics of a Social Bond. Social Projects: using education loans to increase college access This financing topic relates to my passion to solve the decades-old problem of helping hardworking college students pay for college based on their risk profile. Traditional credit underwriting models are ineffective in accessing the risk of college students to successfully payback their student loans. Student loans without cosigners breaks traditional student loan lending models. It also provides an opportunity for student loan lenders to expand their loan programs from Einstein's credit platform. Smarter credit underwriting that increases college access The Einstein Risk Score uses nontraditional data to increase college access for many college students. Traditional FICO scores and employment requirements lock access to college especially for disadvantaged socio-economic populations that deserve more support from lenders. This limits college access to essential services such as education and vocational training that are recognized by SBP as a typical Social Project. The Einstein Risk Score can benefit the target populations of SBP that include the underserved, owing to lack of quality access to essential goods and services. A no cosigner student loan is one method of increasing access to underserved populations for essential services such as education. To do it responsibly to achieve a social good requires a robust risk assessment framework, access to relevant alternative data and technology to process the vast amounts of data through a modern credit engine. Simplicity and shortcuts can easily lead to poor student borrowing outcomes and more bad press for student loan lenders. This is not what the industry needs. Think about adding another loan program to your product offering that can be safely piloted. Also consider using a portion of bond proceeds to meet Social Bond Principals. You may find that investors, your Board of Directors, colleges and others recognize your organization for the social good that you are promoting. The student customer will certainly notice! More about Einstein Higher Edu Solutions and how we can partner with lenders and colleges to meet their college access goals.", "url" : "https://www.einstein.consulting/blog/einstein-higher-edu-solutions-is-modernizing-underwriting-for-private-student-loans-1-0-0-0", "wordCount" : "628" } ```