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Our credit model

 

We want to be confident that every student we lend to will be able to repay their loan quickly and easily once they’re in their new career.

Here’s how we plan to do that.

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Our goal is to come as close as we can to a picture of each student as a person. Our model innovates on best practices from economics, psychology, computer science, and other fields to identify students with a high likelihood of repaying loans. We take into account a number of factors, including:

 
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Institutional quality

We carefully vet partner institutions to ensure that we never contribute to educational scams that trap students in debt.

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Growth industries

We work with local partners to focus lending on high-growth fields such as healthcare, education, or the law.

 
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Academic data

It makes sense that students who get good grades are likely to be trustworthy borrowers, and research backs that up.

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Psychometric testing

Screening potential borrowers with even a basic questionnaire can significantly reduce default rates. We’re building our own assessment based on best practices and specifically geared towards students.

 
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Machine learning and AI

We want to avoid making assumptions about what makes a reliable borrower. We’ll use machine-learning algorithms to find patterns in the data that humans might overlook. These tools will only get more useful as we work with more students over time.

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References and interviews

Numbers aren’t everything. Students might have proven their reliability in ways that don’t show up on tests or transcripts. We want to honor that. Plus, studies show that strong references “significantly predict” higher job performance and lower turnover.

 

Based on our research, we’re confident that we can achieve repayment rates of 95% or more.

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Hypothetical example

 
 

A student—we’ll call her Haddy—is in the final year of a nursing program at The University of The Gambia.

Halfway through the fall semester, her father gets sick. Haddy picks up a side job to make up for her family’s lost income, but she ends up $1,000 short on tuition. Under the current status quo, she has three choices:

  • Graduate but deny her family needed money.

  • Borrow from friends and family (often impossible) or from a predatory lender.

  • Drop out, earning as little as 30% of what she could have with a degree.

 
 

Jump offers a new choice.

Haddy can take a few simple steps to get access to the credit she needs:

  1. Submit grades and references to Jump’s simple online application, take the in-house assessment.

  2. Get approved for a loan at an interest rate that compares with other international micro-lenders.

  3. Graduate and start a job (maybe with help from Jump’s alumni network). Within two years, fully repay the loan on a flexible schedule.

Over time, as Haddy establishes herself in her career, she can continue to be part of a network of high-credit professionals and a resource to future Jump students.

 
 

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