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The COVID-19 pandemic and industry 4.0 are making job markets more competitive. More students and young adults need access to quality education today in order to survive the pandemic, the recession and succeed in the future of work. Most affected by this situation are the poor--specifically, students and young adults with a desire for prosperity, but have low income and a low human development index. For InvestEd, these disadvantaged youth have extremely high potential but have less money to spend on their education today. Without any intervention, many of these students will be left behind in a cycle of unemployment and poverty in a data-driven and post-pandemic world.
Low-income and poor students and young adults have limited access to education financing and have restricted economic mobility due to the perceived risk of lending to the "unbanked" or subprime consumers. InvestEd exists to break these financial barriers for the disadvantaged youth through the InvestEd Risk Engine. This risk technology enables InvestEd to offer affordable and accessible loans to subprime consumers through a proprietary credit scoring algorithm that predicts repayment. It also secures a young borrower's potential to succeed in the workforce through an Education-to-Adulthood (E2A) digital coaching program which guides borrowers in managing their loan and offers an inclusive learning platform for the youth to thrive as they transition from college students to early career young adults. With these services, students and young adults are able to maximize their potential through quality education and increase their competitiveness and employability in the job market through coaching. This produces an overall impact of reduction in unemployment and poverty.