CommonBond, has recently announced that it will disburse $2.5 million in student loans at Wharton, benefiting as many as 50 students. What makes this significant is that the loans are funded by Wharton alumni itself. CommonBond is a startup founded by Wharton Alumni. They oversee the disbursal process. At the heart of CommonBond's effort is a philanthropic quest - a positive social change. A case in point is that for every fully-funded degree, the company will sponsor a child's education, for a year in partnership with the African School for Excellence.
The news is a boost to the nascent alumni-sourced loan industry, which seeks to ease the difficulties faced by MBA students looking for loans. Students do not have to put up with the intense scrutiny and paperwork, which they must go through otherwise. And even more significantly, the interest rates are just 6.24%, lower than the lowest Federal loan rate of 6.8%. Private loan rates go even higher, averaging around 12%. Alumni who contribute to the loan pools get returns of above 4.25% - profits with a cause attached. What's more, the risk factors are very low. The 10-year cumulative loss rate estimated for the Wharton loan pool is around 0.70%.
Students have a grace period of 6 months after graduation before they need to start repayments. There also is an economic hardship forbearance period, when students can postpone making payments due to financial hardship. The only additional charge is a 2% origination fee which is added to the loan balance, and compares favorably to the Federal Direct PLUS loan's 4%. The repayment period is 10.5 years after graduation, in 120 installments. The loan amount can be the entire cost of attendance, which at Wharton was $87,764 for the class of 2013 and $93,000 for the class of 2014. Repayment can start earlier if the students choose so, and there is no prepayment penalty.
CommonBond's growth so far has been exponential. The company was founded in November 2011, and a year later, $3.5 million has been raised, including $1 million in seed money. It also reflects the high potential for this industry. Market leader SoFi has made $130 million in loans in 2012, while UK's Prodigy Finance, has disbursed $28 million. CommonBond plans to hit $50 to $100 million in loans in 2013, at 20 schools. They will mostly be at selective, top tier schools like Harvard, Stanford, Booth, Haas, and Stern.
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Question 1: What makes you feel alive when you are doing it, and why? (300 words maximum) (Video Essay)
Question 2: What are your short-term and long-term career goals, and how will an MBA from Haas help you achieve those goals? Short-term career goals should be achievable within 3-5 years post-MBA, whereas long-term goals may span a decade or more and encompass broader professional aspirations. (300 words max)
Question 3: Distance Traveled: At Berkeley Haas, we consider "distance traveled" as the contextual information that helps us understand the unique circumstances, challenges, or influences that have shaped your personal and professional journey.
We invite you to share aspects of your background, personal circumstances, or significant experiences that have meaningfully impacted who you are today and how you've reached this point. Please tell us how these experiences have influenced your perspectives, decisions, and aspirations, and how they contribute to the person you are becoming. (300 words max)
Question 1: How will a Booth MBA help you achieve your immediate and long-term post-MBA career goals? (Minimum 250 words, no maximum.)
Question 2: Chicago Booth appreciates the individual experiences and perspectives that all of our students bring to our community. This respect for different viewpoints creates an open-minded environment 
that supports curiosity, inspires us to think more broadly, and take risks. At Booth, community is about collaborative thinking and learning from one another to better ourselves, our ideas, and the world around us.
The photos below represent some of the values described above that we uphold at Chicago Booth. Select one and share how it resonates with one of your own values. (250-word minimum)
• Business-Minded Essay: Please reflect on how your choices have influenced your career path and aspirations. (up to 300 words)
• Growth-Oriented Essay: Curiosity can be seen in many ways. Please share an example of how you have demonstrated curiosity and how that has influenced your growth. (up to 250 words)
• Leadership-Focused Essay: What experiences have shaped how you invest in others and how you lead? (up to 250 words)
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Short Answer: What are your short-term career goals?
Question 1: Change: _________ it (350 word maximum, double-spaced, 12-point font)
In today’s global business environment, the only constant is change. Using NYU Stern’s brand call to action, we want to know how you view change. Change: _____ it. Fill in the blank with a word of your choice. Why does this word resonate with you?
How will you embrace your own personal tagline while at Stern? Examples:
• Change: Dare it.
• Change: Dream it.
• Change: Drive it.
• Change: Empower it.
• Change: Manifest it.
• Change: [Any word of your choice] it.
Question 2: Personal Expression (a.k.a. "Pick Six")
Essay A: What matters most to you, and why? (650 Words)
Essay B: Why Stanford? (350 Words)
Optional Question: Think about times you’ve created a positive impact, whether in professional, extracurricular, academic, or other settings. What was your impact? What made it significant to you or to others? (600 Words) (200 words – each example)
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(24+ Sample Essays & 300+ Pages of Essay Writing Wisdom)
Essay 1: Two short-form questions
What is your immediate post-MBA professional goal? (50 words)
What are your career goals for the first three to five years after completing your MBA, and how will those build towards your long-term professional goals? (150 words)
Essay 2: Long-form essay: Taking into consideration your background – personal, professional, and/or academic – how do you plan to add meaningful value to the Wharton community? (350 words)