Many students are uneasy about borrowing, with good reason. The U.S. Education Department says 7% of borrowers default within two years of beginning repayment on loans that can stretch for a decade or more. Average student loan debt tops $23,000.
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*Source- Buisness Week*

Because of the credit crunch, conventional lenders are making it tough for any but the most creditworthy borrowers to qualify for private college loans. Now, a new breed of student lender is trying to get students to return the snub—by writing off the Sallie Maes and Citibanks of the world in favor of relying on friends, family, and even perfect strangers to finance their college loans. "It's not a solution to the credit crisis in student loans by any means," says Mark Kantrowitz, publisher of financial aid Web site finaid.org. "But the idea of using peer networks to raise money is intriguing."