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Find Backers to Invest in Your Education

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  • Description

    Pave CEO Sal LaHoud on how the company’s alternative model to student loan debt.

  • Duration 4:14
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This transcript is automatically generated

You know loan -- country is nearing eight trillion dollars but one company may have -- a private sector solution to the ballooning crisis.

Pave the -- students with older experienced professionals who agree to invest a certain amount of money towards tuition in return.

The prospects bowed their backers are percentage of their annual income for ten years very -- like venture capital for college and here now to discuss.

-- -- -- -- -- -- Welcome to the show I think this -- soul fascinating and just to explain basically how it works as we said it somebody is trying to raise money to go to school.

So they get somebody's sort of loan them the money and invest in -- they promised to pay them a percentage of their income and basically what you do.

Is matched the two sides how does that work.

We provided technology -- would protect platform for people to come up young people come up explain -- stories and what a passionate about and try to convince Backus -- they should invest in them.

And it's computing noble way.

-- -- -- example you know one of the examples I read you get 10% of their earnings for ten years but you're saying.

It's all about how much money you need what you're gonna study I mean it's not a -- -- there's actually a lot of logic to it.

-- the pilot was we did the pilot eight people -- that range from someone sharing point 6% of income 25% was the highest.

And they range from filmmakers journalists business people of people looking finance whatever.

You can convince -- to investing.

So what happens I mean for example when you go to college you don't necessarily know what you're gonna be what you're gonna study part of college is discovering what you're gonna do what complain completely changes while you're there.

I think that's part of the problems to these as you graduate with such a huge amount of -- that ends -- dictating your choices and you know initially when India and thought contesting the cost of education.

This isn't this is a way that applies to you person if people investing in -- and whatever you do aligned with the Backus.

And they have an incentive to help you succeed because they're sharing and -- and that success.

So -- you -- your segment if you change your mind about what you're gonna be.

Along the way.

That it doesn't necessarily impact what happens I'm thinking if I'm saying to someone you know.

I'm gonna get out -- be an investment -- they're like great 10% of your 600000.

Whenever it's gonna make it's going to be a good.

Payout but that if I decide on their well I think -- going to be a writer you know on any star war.

-- years -- -- have you broken the contract.

-- -- -- I mean I think -- great -- there I'm a great financing remembered I think it's a matter of you know day one you're investing in a person -- I think it's passion about something so that the onus on them to explain.

What they wanna do and and and really demonstrate how passionate I was coming in and I think about really influences of the people invest and -- know.

So it's not just about student loans I mean it's about raising money for what ever.

Right I think the supplies to you know to young -- is pleasant students to have creatives to entrepreneurs.

Anyone who can demonstrate that they are passionate about something and convince someone that you know what.

Listen I'm about to do something great and I think you should be part of of the journey.

This is like crap funny that makes sense because to me crowd funding is nonsensical it's just people donating money this is about maybe getting it back how many people -- gotten involved how much money has been -- for your.

I think one of the main things that has happened is backers of really been attracted to the idea of festival investing in people which is complete difference anything they've done -- -- And second the three bottom lines you have from this as an -- -- number one there's a financial incentive and it makes sense.

Number two you all part of a movement this is it is socially you hoping that you -- you effecting change in this could be a solution to to a -- of the issues we -- today.

And three there's a human to human connection we can actually.

Actively participate and actually influence your investment and help it succeed through mental -- and guidance and experience.

Just think all right so I wanna check it out I can go online and look at paid dot com who's gonna pay dot com I think -- make a fantastic but I don't think.

After I got it.

I don't know like I can get money if I went online for something I'm not -- when it loan money velocity anyway.

Itself thank you for coming on will definitely check it out and -- god thank you very much are having us thank you coming out.

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