Student Loans May Be Easier to Find Online

Lenders benefit from loan guarantees and repurchases, which are not offered on competing sites. The least risky loans, which have lower interest rates, are completely guaranteed. As the risk level and interest-rate increases, so does the guarantee coverage. For those who don't want to hold onto the loans until they're paid off, Fynanz will periodically offer to repurchase loans.

Cons: Since the site is new there are few users to lend to or borrow from. Terms for some features, like repurchases, are also unclear as the site works through its testing phase.

Prosper

Description: Launched in February 2006, Prosper.com's structure is similar to Fynanz, except it can be used for all types of loans.

Fees: Borrowers pay a closing fee of 1% to 3%, based on credit grade, or a $25 flat fee, whichever is greater. There are also fees for using outside electronic payment services and for late or delinquent payments. Lenders pay an annual loan servicing fee of 1%. There are additional fees for collection agencies, when required.

Pros: Lower upfront fees for borrowers, more lenders and more listings to browse through.

Cons: Currently, there are no guarantees on loans.

LendingClub

Description: Earlier this month, LendingClub.com -- another one of Fynanz's predecessors -- posted a notice that it would not be accepting any new lenders until it registers its promissory notes with securities regulators. Ordinarily, the site is structured similarly to Fynanz, but can be used for all types of loans, and interest rates are fixed instead of auctioned. Rates range from 7.37% to 18.61%, based on credit grade. Borrowers can continue to request loans, but those posted after April 7 will be "funded and held only by Lending Club."