How does funding a student loan work on zomia.org?
Due to the short time between students applying for funding and starting school, we provide funding upfront. We then recover that capital through crowdfunding on the Zomia website. We call this process of funding loans upfront “pre-funding” and the process of lenders replacing pre-funding as “backfilling.”
Pre-funding loans prevents a situation in which students are accepted to a university but haven’t been able to attract enough funds on our website in time to begin classes. Very often, we have less than two weeks between contract signing and tuition deadlines! Our pre-funders include individuals and institutions that have agreed to support students before they are listed on our website.
When you backfill a loan, your funding replaces the pre-funding, and your support is directly linked to the student you fund. You then receive updates on the student’s progress while in school and, once they enter repayment, a percentage of each repayment.