THE VELONA GROUP, LLC
Our mission is to revolutionize higher education financing through an innovative solution,
Tuition Shares.
Tuition Shares provide colleges and universities an independent source of capital and prepayment accessibility to students and families.
Colleges and universities offer courses that unlock a world of possibilities to students. An innovative utilization of these courses can advance the needs of higher education as well as students and families.
Future academic course credits can be securitized, through a patented system, into tradable securities called Tuition Shares that provide colleges and universities needed capital now in exchange for future classes.
Tuition Shares also provide students and families a means to prepay college course credits that is as simple as purchasing prepaid movie tickets.
Tuition Shares reach goes beyond the traditional student and provides higher education opportunities for:
Tuition Assistance Programs
Scholarship Endowments
Corporate Tuition Reimbursement Plans
Retail and institutional investors.
TUITION SHARES
Revolutionizing Higher Education Financing
TUITION SHARES
Academic course credits provide a means of obtaining needed capital for colleges and universities. Future course credits are securitized into tradable securities called Tuition Shares. Colleges and universities work with an underwriter to structure an Initial Public Offering (IPO) allowing them to finance various initiatives now and/or invest the balance for future needs. Unlike corporations that issue IPOs of stock, higher education institutions issue IPOs of academic course credits which are a share or a portion of tuition for college courses. Colleges and universities have the flexibility to determine how many shares are issued, when shares are redeemed, or whether dividends are issued to owners/holders of Tuition Shares.
Purchasing academic course credits at today’s prices allows students and families to prepay for college courses; similar to prepaying for movie tickets. Tuition Shares are held until the student is accepted by the educational institution. Then, Tuition Shares are redeemed for academic course credits. If a student is not accepted or wishes to attend another school, Tuition Shares are traded on the open market, such as a securities exchange.
TUITION SHARES CHARACTERISTICS
Tuition Shares are securitized academic course credits. Tuition Shares have a blend of security characteristics:
Equity-like features:
Holders of Tuition Shares owns all or a portion of academic course credits
Issuer can offer dividends to Tuition Share owners/holders
Bond-like features:
Fixed number of Tuition Shares are issued
Date when Tuition Shares are redeemable
Issuer is obligated to redeem Tuition Shares for academic course credit that is applied to a course
Matriculating and non-matriculating guidelines apply.
Note: Tuition Shares ownership does not equate to automatic acceptance at a college or university.
TUITION SHARES
Revolutionizing Higher Education Financing for Colleges & Universities
TUITION SHARES ANALYSIS
College or university meets with its trusted consultant, advisor, and/or security underwriter to:
Determine Tuition Share issuance/Initial Public Offering (IPO)
Conduct breakeven analysis
Determine timeframe for when Tuition Shares mature for redemption
Consider how monies from Tuition Shares issuance are used and managed
TUITION SHARES ISSUANCE PROCESS
College or university decides to proceed with Tuition Shares. Security underwriter collaborates to:
Introduce Tuition Shares to the market
Tuition Shares are traded on a securities exchange
Assets raised by IPO are utilized by college or university for expenditures such as infrastructure projects and/or managed by asset manager
ALUMNI SUPPORT
Tuition Shares provide another avenue for alumni support. Alumni can:
Purchase Tuition Shares for family and friends
Donate Tuition Shares to scholarship funds or programs
Bequeath Tuition Shares to colleges and universities
TUITION SHARES REDEMPTION PROCESS
Tuition Shares mature and are redeemable
Tuition Shares owners submit redemption requests
Redemption requests are processed
Students attend course covered by Tuition Shares
TUITION SHARES
Revolutionizing Higher Education Financing for Students & Families
FAMILIES PLAN AHEAD
Tuition Shares provide students and families with a form of prepayment for college/university courses.
Families or students can:
Purchase full or portions of academic course credits
Tuition Shares can be gifted to students
Tuition Shares are held in an account, such as a 529 Savings Plan until Tuition Shares are redeemable
Note: Tuition Shares ownership does not equate to automatic acceptance at a college or university.
COLLEGE APPLICATION PROCESS
Students follow standard college and university admissions process. Applications can be to:
Colleges or universities where the student owns/holds Tuition Shares
AND/OR
Colleges or universities where the student does not own/hold Tuition Shares
COLLEGE ACCEPTANCE
Students receive acceptance letters and determine which school is the best fit. Student can decide to:
Attend school where they own/hold Tuition Shares
Enroll in courses and submit redemption request for Tuition Shares
OR
Attend school where they do not own/hold Tuition Shares
Sell Tuition Shares for money to pay for courses; or
Trade Tuition Shares for Tuition Shares of desired school
TUITION SHARES REDEMPTION PROCESS
Student submits Tuition Shares redemption request of mature, redeemable shares
Redemption requests are processed
Students attend course covered by Tuition Shares
FREQUENTLY ASKED QUESTIONS
The Answers You Need
WHY ISSUE TUITION SHARES?
Higher education is in need of a new financing option that provides:
prepayment of tuition option that is accessible to all;
an alternative to student loan debt, and
additional source of capital for colleges and universities.
WHAT ARE THE ADVANTAGES
OF TUITION SHARES TO STUDENTS AND FAMILIES?
Provides accessibility to prepayment of academic course credits
Locks-in costs associated with academic course credits
Insulates Tuition Share owners from market fluctuations
Potential for appreciation of Tuition Shares
Provides flexibility if student isn’t accepted or changes schools
WHAT IS THE ADVANTAGE OF ISSUING TUITION SHARES TO COLLEGES AND UNIVERSITIES?
Funds are immediately available to the college/university following the Tuition Shares issuance/IPO
Independent source of capital, with no debt
Monies raised can pay down debt & fund infrastructure projects
Only locks in the cost of college/university course credits
Provides flexibility on how Tuition Shares are issued
Note: Ownership of Tuition Shares does not equate to automatic acceptance.
HOW DOES A COLLEGE OR UNIVERSITY GO ABOUT ISSUING TUITION SHARES?
Colleges and universities work with an underwriter. The underwriter is awarded
licensing rights to securitize college credits. The underwriter works with the college or
university to establish the appropriate parameters of Tuition Shares for that
institution (e.g., year tuition shares become redeemable, number of shares to be
issued, whether there is a dividend component, etc.). With their vast experience, the
underwriter brings Tuition Shares to the securities exchange.
ADDITIONAL INFORMATION - THOUGHT PIECE
ABOUT
THE VELONA GROUP
“While we have time, let us do good.” - St. Francis of Assisi
Life is short, youth is finite, and opportunities endless. Have you found the intersection of your passion and the potential for world-shaping positive impact? - Justin Rosenstein
The Velona Group is a woman-owned firm, established by Diane Velona, that is looking to disrupt college finance. Diane’s life was forever changed by a family tragedy. At the age of seven, a shoelace spared her life from a pedestrian accident that killed her five-year old sister and left her mother in a coma for several days. This event has had an everlasting effect. She wants to make a positive impact with her second chance and establish a Memorial Scholarship Fund with proceeds from the licensing or sale of Tuition Share patent rights. Support is intended for all levels of education from elementary through undergraduate studies at colleges and universities.
CONTACT US
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