People Capital Launches Enhanced Credit Scoring Tool for Students and Student Loans

People Capital Launches Enhanced Credit Scoring Tool for Students and Student
Loans

NEW YORK, April 7 /PRNewswire/ -- People Capital, developer of an innovative
peer-to-peer student loan platform, announced today that it had launched the
next generation of its Human Capital Score(TM)
(http://www.HumanCapitalScore.com), a model that provides a more appropriate
measure of the creditworthiness of a student. Built on research developed at
The Wharton School of the University of Pennsylvania Insurance Department, the
Human Capital Score uses academic merit data such as GPA, standardized test
scores, college and major, along with traditional demographics data and
normative metrics, to give insight into each borrower's future earnings
potential.

"Students have long been disadvantaged by the current lending practices based
on FICO scores and parental guarantees," said Thomas Shelton, Founder and CEO
of People Capital. "People Capital seeks to unlock the credit markets for
student loans by providing transparency and insight into a student's
potential. Specifically, what is relevant is a student's future income
potential. Through the Human Capital Score we make it possible for lenders to
evaluate and rank students according to the likelihood that a student's income
may reach a certain threshold in a given year, or that his/her average income
might reach a certain threshold in the 10 years following graduation.

"Our Human Capital Score is far more appropriate than credit scores in the
current economic conditions," continued Shelton. "Traditional credit scoring
models are based on historical data on defaults and credit attributes, e.g.,
debt outstanding, number of credit cards. Such traditional models do not seek
to understand why, or how, there is a link between such attributes and
default, and are heavily dependent on historical data. When conditions change,
these old models are no longer helpful. The Human Capital Score uses both
academic and credit data to generate a rank ordering of students' ability to
pay. We project possible earnings paths for borrowers given a set of
attributes (e.g., major, school, SAT). Through these earnings projections, we
can create a rank ordering of individuals based on the sufficiency of
projected future income to pay off a loan. The Human Capital Score would
adjust projected earnings profiles to reflect changes in economy as a whole.
By looking at potential future incomes, a lender can evaluate available cash
flow to determine whether they were just barely sufficient to make their debt
payments, or those who could do so easily. When economic conditions are bad
and incomes fall, the group with more future disposable income is likely to
default at lower rates than the borrowers who have little flexibility."

People Capital is also developing a peer-to-peer lending platform that will
offer a unique solution for students to finance their college educations. This
platform is poised to provide funding for students in the 2009-10 academic
year.

People Capital will be presenting the Human Capital Score at FinovateStartup09
(http://www.finovate.com/startup09/) in San Francisco on April 28, 2009.

A more detailed business plan is available to qualified investors and
institutional partners.

About People Capital

People Capital (http://www.People2Capital.com) was founded in 2008 by a team
of world-class talent with backgrounds in student loans, consumer finance,
credit ratings and new media to develop the next generation of credit risk
management and funding for student loans. Our peer-to-peer (p2p) lending
platform will allow students to finance their college educations through
improved access to private student loans. Our patent-pending Human Capital
Score(TM) (http://www.HumanCapitalScore.com) can rank order students without
credit history by using academic and credit data to model future individual
income levels, thus their future ability to pay.

Press contact:

Thomas Shelton
Founder & CEO
thomas.shelton@people2capital.com
+1-917-470-9698

This release was issued through eReleases(TM). For more information, visit
http://www.ereleases.com.

SOURCE People Capital

Thomas Shelton, Founder & CEO of People Capital, +1-917-470-9698,
thomas.shelton@people2capital.com