​Fintech award ceremony at the Distribution Summit.

Some students might be able to find a new way to pay for their post-graduate education beyond traditional loans—fintech companies are now funding educations as part of their investment strategies according to a story by CNBC.

This new way of lending combines peer-to-peer loans with social impact investing by allowing investors to hand out postgraduate loans to international students, who might not qualify for a typical loan while also earning consistent returns on their investment.

At Prodigy Finance, a U.S. fintech startup, a student loan is approved based on academic performance and potential earnings. Right now, loans are only being given out to MBA, MPP, law, and engineering students. The company has a 99.1 percent repayment rate. While students and investors don’t need to interact with one another, they are encouraged to share business ideas.

With the student loan debt crisis at critical mass—44 million borrowers in America have a combined $1.41 trillion in debt and the problem is just as prevalent in other parts of the world—it makes sense that students will be looking for alternative methods to pay for their degrees.

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Some companies are taking this concept of investing in other people to the next level. British-based Secco has developed an app that allows users to trade with others and give them credit for certain qualities. The hope is that eventually people can invest in each other, such as helping a homeless person find a job, and that individual in turn repays the funding.

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