In the third quarter of 2015 Education Equity, Inc. (EEI) recruited two more students to our 2015-2016 Cohort Two. One of the additional students is attending Harvard Graduate School of Education. The other late addition is a second year medical student at The Medical College of Wisconsin,a new school for EEI. This brings the size of our Cohort Two to seventeen and our total number of students supported to twenty-seven.
In the third quarter we made further investment in Cohort One students of $10,002.00 and an investment of $63,846.00 in the seventeen new students of Cohort Two. This brings EEI’s total investment in students to $483,767 and a net investment of $473,000, given our $10,000 to date receipt of student earnings.
Of the ten students in our first years group, nine have now graduated and one is on track to graduate on schedule. Eight of the ten have entered repayment and we anticipate the other two will be in repayment by calendar year end. All ten students of Cohort One are employed in their intended fields, though one is “under-employed” and is still seeking a better position in her field.
In the quarter we raised $100,000 from new investors. While it was our goal, in the third quarter, to close our first investment from an institutional investor we have not done so. We have come to the very late stages of an extensive due diligence process and do believe this investment will close in the fourth quarter.
With our new banking relationship in place at American Chartered Bank, we are now collecting from our students as they enter repayment by using the banking industries ACH debit system.
This process allows us to automatically debit money on a prescheduled basis (typically coordinated with the students pay cycle) so that no action is required of the payer for the money to transfer to our account each month. This system is the best collection process that is available today. We are very pleased with the service and cooperation that American Chartered Bank has provided us. American Chartered is headquartered in Downers Grove, Illinois and specializes in banking Chicago area privately owned business.
In the fourth quarter our primary objective will be closing the investment from our first Institutional investor. This investment will allow us to expand our Cohort Three to forty students. This will be twice the size of Cohort Two and at an average of $25,000 of investment per student, will be a one million dollar investment.