4HI is committed to giving students a real world, hand-on approach to money management.
The signature initiative of 4HI is running a peer-to-peer (P2P) loan portfolio. The P2P market is a rapidly growing provider of small consumer loans. We are able to create a diversified portfolio of debt using individual loans of as little as $25 each (compare that to a $5,000 round-lot in the bond market).
We currently have an investment account with Lending Club and Prosper; the two main companies that offer these peer-to-peer loans.
Each year’s group of students writes its own investment guidelines based on past experience.
In addition to being financial managers, student members gain the experience of running a non-profit organization.
An important component of 4HI is its research papers and presentations.
We want to encourage finance students to study creative ways to provide short-term, uncollateralized loans. We believe that payday lending targets vulnerable populations, and can easily prevent them from creating wealth and achieving financial freedom. We have been focusing our research efforts on evaluating creative alternatives.
These papers are ways for our members to gain and share knowledge about small-dollar lending. We have designated $200 toward funding a student’s conference participation in the future. No members who could benefit from this funding were permitted to vote to designate these funds. We do not use donations to directly fund research.
To view our published papers, click here.
Our third and most important mission is the promotion of financial literacy.
Members engage in outreach activities including volunteering at free tax preparation sites, sponsoring financial literacy presentations on the University of Puget Sound’s campus, and adopting low-income families during the holiday season.
Our most recent projects include the 4HI textbook scholarship, volunteering with Junior Achievement, and the 2013 Financial Fitness Fair.