Need a College Loan? Ask Your Friends Online.

Somehow, we expect that to some people, using your social networks to get money for college might sound like, well, socialism. Hmm. This article specifically examines GreenNote's business model and use by students, as well as CollegeDegreeFund, CharityforDebt, and GradeFund. We've been using Kiva.org to make microloans in developing countries and this sort of feels the same.

As higher-education costs rise and families feel the squeeze on traditional sources for college funding, students are on the hunt for innovative ways to pay their bills. In addition to loan websites like GreenNote, other sites are cropping up where students can raise donations for college.

Easy money? What's the catch? Some of the gifts come in exchange for earning good grades or for performing nonprofit volunteer work. And so far, the aura of potential on these sites is much greater than the actual money flow. In the near-term, at least, it appears unlikely that enough donors or lenders will come forward to meet even a fraction of the clamor for cash.

In fact, traffic to peer-lending sites may be driven, in part, by a lack of information about resources available to students and parents, financial-aid experts say.