Student Loans May Be Easier to Find Online

Fees: Borrowers pay a processing fee of 0.75% to 2%, based on credit grade. There are also fees for missed or late payments. Lenders pay a 1% annual processing fee as well as collection-agency fees, when necessary.

Pros/Cons: Though the site offers low processing fees for borrowers, it is unclear what's going on with its securities registration process. Lending Club is in a "quiet period" until the process is complete, leaving the implications unclear.

Zopa

Description: Zopa partners with local credit unions to offer CDs and loans with a twist: Every customer who buys a CD must help at least one borrower with their monthly payments. They do this by apportioning a certain amount of their yield toward one or more borrowers' payments, called a "help." The more altruistic they are, the less return on investment. Zopa launched in the U.S. in December and also operates in the U.K., Italy and Japan.

Fees: As long as consumers are paying electronically and on time, no fees are assessed. Zopa earns cash primarily from the credit unions for servicing loans and CDs. Interest rates for borrowers start at 8.49% initially.

Pros: For borrowers, the Zopa concept is ideal: Their loan can, in theory, be paid entirely by other members. For lenders, their investments are guaranteed and insured by the government and can satisfy socially responsible investment theories.

Cons: Returns are not necessarily the best. The recent rate on a Zopa CD was 3.75% for a one-year deposit of at least $500, before subtracting the "help." That compares with an average 3.65% return on one-year CDs at the top 10 banks.