ABSTRACT
The Academic Bank performs one or more of a series of functions for the college or university with which it is affiliated. In order to properly provide for college savings, the Academic Bank will have to perform two banking functions. First, it will have to accept deposits in some convenient form. Second, the Academic Bank will have to perform some kind of intermediation service to benefit the depositors. The Academic Bank, at the college or university's choice, may be able to offer supplemental loans at different terms than Federally or state backed loans. The Academic Bank solely interested in providing loans to one or more of its constituencies could easily pattern itself after a consumer credit company. Mutual funds and insurance companies are uniquely positioned to provide vehicles to accumulate capital and transform the capital into loan assets for the Academic Bank.
