Fair, Affordable Funding


The EdAid Foundation is a UK registered charity 1163047 established to fund high-potential students who would otherwise not be able to attend University at graduate level in STEM, Law & Finance subjects.


Who

The EdAid Foundation was established to provide funding for UK based students studying at UK Universities who would typically be locked out of higher education. Tuition Fee payments are deferred until after graduation, and through Income Contingent Repayment are designed to be fair and affordable.


Why

We believe that access to education should be universal & that financing should not be a barrier to economic empowerment. The Foundation’s Charitable objects are to alleviate financial hardship and drive economic empowerment through education.


How

Top-performing Students are able to obtain low cost, index-linked funding from the EdAid Foundation to pay for Grad School. Payments are made from the EdAid Foundation directly to the School/University and funds can only be used for Tuition Fees.


Representative example

Borrow

£10,000 for 4 years (Including Study & Grace Period)

Origination fee

£0

Total amount repayable

£10,760.88

Interest rate

2.9% p.a. (variable)

Repayments

11 Months Study & Grace Period

12 payments of £291/month,

12 payments of £305/month,

12 payments of £321/month

1 payments of £77.88/month

Representative 1.93% APR (variable)


Pre-Contract Credit Information

PRE-CONTRACT CREDIT INFORMATION

(Standard European Consumer Credit Information)

Creditor

EdAid Foundation (‘EF’)

33 Queen Street, London

EC4R 4TP

[email protected]

edaid.co.uk


Lending Platform

EdAid Limited

160 City Road, London

EC1V 2NX

[email protected]

edaid.com

Key features of the credit product

The type of credit

Unsecured Consumer Credit Agreement

The total amount of credit £0,000

This means the amount of credit to be provided under the proposed credit agreement or the credit limit.

How and when credit would be provided.

The credit will be provided to you by transferring the total amount of credit to the University you have nominated to receive the credit, once we have accepted your application and signed the agreement.

The duration of the credit agreement

The maximum duration is 120 months. Repayments are income contingent, as such a student will likely clear the balance within 48 - 60 months.

Repayments

You will pay by direct debit 10% of your gross monthly salary (calculated monthly in arrears) which will equate to monthly payments of £000 each, starting twelve (12) months after the agreement date, and only in months when you have income, and continuing on the same day in each calendar month for the term of the agreement.

Your repayments will pay off what you owe in the following order:

The amount of your repayments is calculated to reduce the principal amount you owe us to zero by the end of the term of the agreement.

If you pay less than the full amount of each instalment, we will use the money to pay off first, any fees and charges applied to your account; and second to pay off the amount of credit outstanding under this agreement starting with the arrears.

The total amount you will have to pay

This means the amount you have borrowed plus inflation costs

£0,000

This is the total amount payable by you under the agreement assuming that you do not default under the agreement.

It is made up of the amount of credit shown on page one, plus a total charge for credit of £0,000.

Costs of the credit

The rate(s) of inflation which apply to the credit agreement.

Inflation (RPI) at a variable rate of 3% APR (with a minimum rate of 1% and a maximum rate of 5% APR) is calculated and charged on the outstanding balance from the agreement date until you have paid in full the Total Amount of Credit plus any other amounts due under this Agreement in full.

Annual percentage rate of charge (APR)

This is the total cost expressed as an annual percentage of the total amount of credit.

1.9% (APR) - The APR is there to help you compare different offers of credit.

RELATED COSTS

Costs in the case of late payments

Late Repayment Charges

If a borrower cannot make a payment, then if they inform EF in advance then there will not be any charges.

1st Attempt - EF will attempt to collect a payment on Day 1, if the payment is declined they will attempt again.

2nd Attempt - EF will attempt to collect a payment on Day 5, if the payment is declined they will attempt again.

3rd Attempt - EF will attempt to collect a payment on Day 10, if the payment is declined they will attempt again.

There are no charges for the borrower for the first three attempts to collect payment.

If a Borrower is not fewer than 11 days late in making payment (and has failed to inform EF in advance), EF, its legal representative or the Collections Agency reserves the right to charge the Student an administration fee for the work it does in attempting to collect their Repayments ("Late Payment Fee"). The Late Payment Fee will be £50, and in no event greater than the maximum allowed by UK law, except where it is necessary to employ a field agent has been employed as part of the collections process, in which case the Late Payment Fee will be the collections agency fee.

Long Term Default Fee

If the Student remains in long term default (4 months or more) without making a prior arrangement with EF then the EF through edaid.com can order instant payment of the entire remaining unpaid balance. If the Student has not paid the full amount of the balance when such final payment is due, then edaid.com on behalf of the EF will charge the Student a late payment fee each month on the unpaid balance at a rate of a ten percent per year (i.e., EF will multiply a factor of 0.00833 against the relevant balance and add that to the amount due). (“Unpaid Balance Charges”) on the unpaid balance at an APR of ten percent (10%) per year. Unpaid Balance Charges will not be assessed with respect to any instalment on which a Late Payment Fee has previously been collected.

As highlighted if a student is not earning then they are not repaying and as such will not be in default. We believe that we have the best possible forbearance protocols in the market and see TCF as a founding principle of EF.

We expect to charge no other fees.

Consequences of missing payments

Missing payments could have severe consequences and could result in legal proceedings being taken against you. If you miss a payment we may record your default with a credit reference agency who will keep a record of that default. This could make obtaining credit more difficult for you.

Other important legal aspects

Right of withdrawal

You have a right under section 66A of the Consumer Credit Act 1974 to withdraw from this agreement without giving any reason before the end of 14 days beginning with the day after the day on which the agreement is made. If you wish to withdraw you must give us notice in writing, by telephoning us, Email or text message. If you give us notice of withdrawal, you must repay us the whole of the credit without delay and in any event by no later than 30 days of giving notice of withdrawal. You will also have to pay inflation charges accrued from the date the agreement was made until the date you repay it. Inflation will be charged at an (estimated) amount of 0.000008219 per day.

Early repayment

You have the right under Section 94 of the Act to repay early in full or in part and you may be entitled to a rebate calculated in accordance with Section 95 of the Act. If you wish to pay any amount early you must give us written or verbal notice.

There is no penalty or charge for early repayment.

Statement of Account

You have a right under section 77B of the Act to receive, on request and free of charge, at any time during the period of this agreement, a statement in the form of a table showing: a) the details of each instalment owing under the agreement. b) the date on which each instalment is due, the amount and any conditions relating to the payment of the instalment; and c) a breakdown of each instalment showing how much comprises i) capital repayment, ii) interest payment, and iii) if any other charges.

Consultation with a Credit Reference Agency

If we reject your application on the basis of information we get from a credit reference agency, we will tell you this, and we will tell you (without charge) the name and contact details for that agency.

Right to a draft credit agreement

You have the right, upon request, to obtain a copy of your draft credit agreement free of charge, unless at the time of your request, we have already decided that we do not want to proceed with your credit agreement.

Additional information in the case of distance marketing of financial services

(EdAid Foundation is authorised and regulated by the Financial Conduct Authority).

The law taken by EdAid as a basis for the establishment of relations with you before the conclusion of the credit agreement. The law of England and Wales shall apply to this Agreement.

The law applicable to the credit agreement and/or the competent court English law governs this credit agreement and the credit agreement is supplied in English. We will communicate with you in English for the duration of the credit agreement.

Complaints

We undertake to provide the highest standard of service, whilst acting responsibly at all times. If, however, in the unlikely event that you do have a complaint regarding the service we provide on your account, please let us know in person, in writing, by phone, email or text message and we will seek to resolve your complaint promptly. If you are not satisfied with our response you may wish to take your complaint to the Financial Ombudsman Service. In order to contact the Financial Ombudsman Service, you should write to them at Exchange Tower, London, E14 9SR Telephone: 0800 023 4567 Email: [email protected] Website: www.financialombudsman.org.uk


FAQ

Who is the team behind the EdAid Foundation?

The EdAid Foundation is a UK registered charity 1163047 established to fund high-potential students who would otherwise not be able to attend University at graduate level in STEM, Law & Finance subjects.

So what exactly is it that you do?

Top-performing Students are able to obtain low cost, index-linked funding from the EdAid Foundation to pay for Grad School. Payments are made from the EdAid Foundation directly to the School/University and funds can only be used for Tuition Fees.

How can the EdAid Foundation help?

We’re making it easier to pay for education. The Foundation enables post-grad level students in the UK to access world-class education without having to pay the full School Fees upfront.

The Foundation selects students who based on high academic potential would benefit from flexible, affordable financing with an interest-free or low-interest loan.

We’ve lived the challenge of paying for higher education, and the Foundation is here to make payment as fair and affordable as possible.

How does it work?

Deferred Payment Plans enable parents to Students to pay their Tuition Fees over an extended period (normally 12-60 months). During admission, the Foundation select Students who would benefit from flexible, affordable financing. Students go through verification and affordability checks during the EdAid.com enrollment process. Then, if application for financing is successful the Foundation agrees to pay Tuition Fees top the University and the Student pays their tuition fees after they graduate once they have got a job. Payments are monthly and income contingent.

Deferred Payment Plans are either interest free or linked to inflation at RPI (2.9% variable).

How did you come up with this idea?

The Founder's of the EdAid Foundation recognise the incredible opportunity that a high-quality, career focusted graduate education can bring to someone's chosen profession. However, the upfront financial burden for most Students is too high. As such the Foundation raises impact investment funds to drive diversity at Universities and make the whole process more affordable for a Student.

Can anyone apply to the Foundation for funding?

In order to apply you will need to have secured a place on your post-grad level course at your chosen University. You will need to be a British or EU citizen with the permanent right to live and work in the UK. You will need to already have a UK bank account and a National Insurance number.

What are the Interest Rates charged?

If parents cannot pay because they are not working or have a period of temporary hardship, then payments can be temporarily frozen & there are no penalties or fees. If a parent who is eligible to pay, refuses to pay then EdAid will seek to recover the outstanding payments.

How much can I borrow?

The maxmim amount of funding for 2019 per student will be £12,500. These funds can only be used for paying tuition fees and will be apid directly to your chosen University.

Where can I find out more information about costs and payment terms.

All Pre-Contract Credit Information can be found by clicking the link below.

Pre-Contract Credit Information

How can the EdAid Foundation afford to provide such low-cost loans?

All the Foundation's loan capital comes from philanthropic support, impact investment funds, Univerities and trusts. All of these supporters believe that the cost of financing education for students is too expensive and believe in our mission of widening participation & delivering economic empowerment at scale.