How does funding a student’s loan work on Zomia?
Due to the short time between students requiring funding and starting school, we provide funding to our students upfront. We then recover that funding through crowdfunding on the site. We call this process of funding loans first “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 raise enough funds on our website in time to start classes. Our pre-funders include individuals and institutions that have agreed to back students before they are listed on our website.
When you backfill a loan, your funding replaces the pre-funding and your support is then directly tied to the student(s) you support. You will then receive updates on the student’s progress through school and, once they enter repayment, a percentage of their overall repayment.