Does loan funding on go directly to students?

It depends, although often it does not. In some cases, Zomia transfers money to a student before lender support is secured online. In effect, Zomia owns such loans until an external lender funds a portion of the loan, at which point a proportional share of the loan and future repayments is transferred to the lender. Lenders who provide funds in this scenario reimburse Zomia for pre-funding the loans in a process we call “backfilling.”

In other cases, if a loan has not been fully disbursed, Zomia must secure additional lender contributions to meet a student’s total funding need. Loan funding secured on the website is effectively passed along to the student when the next advance is made. (Loans are typically disbursed twice per academic year.)

Funds provided by lenders to support student loans cannot be used to cover Zomia’s operational costs.

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