MyRichUncle

From Wikipedia, the free encyclopedia

MyRichUncle a servicemark of MRU Holdings for offering both private and federally guaranteed student loans.

Contents

[edit] History

Co-founders Raza Khan and Vishal Garg incorporated MyRichUncle's parent company (previously Iempower Inc., today known as MRU Holdings) in 1999 as an auction-exchange program where individuals could sell shares in their future income to investors, thereby bringing equity financing to the individual level. The firm narrowed its focus to investment exchange on college students, and launched its education investment program in spring 2001 as MyRichUncle. Rather than incurring debt, students who meet the necessary requirements could acquire college financing in exchange for promising investors a percentage of future earnings over a fixed period of years. The response to the product was greater than the current level of financing MyRichUncle had available. Following an unsuccessful attempt to secure greater financing for its equity financing model, MyRichUncle started exploring the traditional student loan market. The Company began originating student loans under the MyRichUncle brand in May 2005.

[edit] Controversies

As a lender, MyRichUncle has taken an activist role critical of practices in the student loan industry between financial aid offices and lenders. In 2006 MyRichUncle drew attention for publishing a New York Times advertisement accusing financial aid administrators of taking "kickbacks" from lenders in exchange for a place on their "preferred lender" lists.[1] In January 2007, the New York attorney general began an investigation to uncover relationships between schools and lenders.

On February 12, 2007, MRU Holdings purchased Embark, a provider of enrollment management services to colleges and universities, from The Princeton Review. In March 2007, Princeton Review named MyRichUncle its exclusive student loan partner, replacing Chase, drawing criticism from some college admissions officials.[2]

[edit] Recognition

  • MyRichUncle was listed as number 16 among Fast Company's 2006 Fast 50.[3]
  • Raza Khan and Vishal Garg, co-founders, were featured as BusinessWeek's Tech's Best Young Entrepreneurs.[4]
  • MyRichUncle is featured in "Footing The Tuition Bill, The New Student Loan Sector," edited by Frederick M. Hess and college marketing textbook "Marketing, real people, real choices (5th edition)" by Solomon/Marshall/Stuart, published by Pearson Prentice Hall.

[edit] References

  1. ^ Financial-Aid Administrators Denounce a Lender's Ad Questioning Their Integrity The Chronicle of Higher Education, July 21, 2006.
  2. ^ [1], The Chronicle of Higher Education, March 12, 2007.
  3. ^ The 5th Annual Fast 50 - MyRichUncle. Fast Company (2006). Retrieved on 2006-11-22.
  4. ^ Tech's Best Young Entrepreneurs: Under 30, on the Cutting Edge: Raza Khan and Vishal Garg. Business Week (2006). Retrieved on 2006-11-11.

[edit] External links