"First they ignore you, then they laugh at you, then they fight you,
then you win." -- Mohandas Gandhi
I have prepared a marketing document that may help to explain how eduoption may work in Australia.
The link is here and includes a performa for Master of Applied Finance (Macquarie University) and cash flow for typical university. This is a PDF doc (500 KB) . A general introduction version can be found
here (8 KB). The status now is that we are negotiating with respective universities directly to help some people who have already indicated they wish to lock in their future fees. This process is slow as we have to first explain how the system works etc. If you know some university wishing to use eduoption, email us as we do offer finder fees subject to contract.
If you have further question just use the email in the document.
I am getting too many spam already from machines that are infected with virus using my domain. Please Check out Uncle's Looi virus-scanner to get rid of them. There is a free demo link for you to compare what you are using to Uncle Looi's Vbuster.
BTW the concept of eduoption is also available for the purchase of motor vehicles, please check out www.vehicleoption.com
The difference is that common motor vehicles' prices go down not UP....
Chris Kwan 19 Nov 2006
Eduoption is an electronic option contract giving the purchaser the right but not the obligation to pay
for a fixed education cost in the future. Eduoption system determines the cost
of this option and originates the contract with the seller to the purchaser. We quantified the pricing risk of education cost and interest rate cost into dollars.
Eduoption in brief
Eduoption can help institutions to identify their future clients up to 10 years in advance. By knowing who your future clients are and meeting their needs means less assumptions and dependence on historical data.
Indirectly, Eduoption provides an alternative funding source for these institutions in the form of a premium which is the cost of the risk from your future fixed education cost. This is known as risk transfer. You are paying someone else to take the risk which in this case is the institution.
By knowing how much your clients are willing to pay, Institutions can plan their budgets in advance. Improved budget forecasting means less wastage.
Clients decide how much they want to pay. A higher amount fixed in the future means a lower lockin fee and vice-versa.
Eduoption fixes future education cost and unlike prepaid, you only need to pay a calculated fee to lock in this cost. Our system calculate this fee.
Clients do not pay the full education cost and there is no obligation to do so unless one decides to take up the course with said institution.
By locking the future education cost, one need not have to worry about price uncertainty. No trial and error when it comes to financial planning.
Think of it as an insurance although technically it is a call option.
Its not a prepaid either.
We are currently seeking universities, colleges, schools, pre-schools for trials of our system.
Yes even pre-school. If you are interested to pursue this, please email us: chriskwan AT123 eduoption.com ( replace AT123 with @)
Our Intellectual Property
One of our patent pending application can be viewed here under the USPTO server.
Method, apparatus and program for pricing, transferring, buying, selling and exercising financial options for paying educational course fees or Number 20020042767
Background arts
To date there is no known mechanism where one can effectively lock in these future fees
in part due to the risky nature of pricing unknown fees and the premise that no one can
predict future events such as demand for the course, competition etc. As mentioned, our system fixes the future fee and price the potential risk as premium payable to the institution.
Once the institution accepts this payable, the risk is transferred away from the payer.
A related art is by Roberts in US Pat. Nos. 4,642,768 and 4,722,055. Roberts discloses
a method for receiving insurance premiums determined by the expected cost of college
and managing the accumulated premiums in an attempt to grow the fund to the expected cost. There is no guarantee that the value of the fund at maturity will cover the actual cost of the college selected.
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