The student loan market is big. In fact at over $1 trillion in outstanding debt, student lending is bigger than...
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This is a guest post from David Klein, CEO & Co-Founder of CommonBond. CommonBond is an exhibitor at LendIt USA...
CommonBond, one of the major players in online student loans announced their Series C equity round today. The total raise, which is over...
Morgan Edwards, chief financial officer at CommonBond gives an overview of the company and the student lending opportunity in this video from LendIt USA 2016. CommonBond provides student loan refinancing but one thing that makes them unique is their "1-for-1" model where they fund an education of a student in Africa for each student loan refinancing. As of April, the company had $625 million in capital committed with zero defaults and zero 30+ day delinquencies.
Morgan believes we are in a growth cycle and capital is here to stay although we may experience some ebb and flows through the cycle. He stated, "Capital flows where there is understanding and there is a return," and highlights several aspects that make this a favorable environment for student lending and marketplace lending broadly.
You can view the full video below:
CommonBond has created a March Debtness bracket to look at the payoff rates of this year's March Madness basketball teams; the bracket identifies the time it takes for students to pay off their student loans; UCLA is CommonBond's current March Madness winner with the fastest payoff rate at 4.42 years. Source
Student lender CommonBond (profiled here last year) has created a first in the p2p lending industry: an adjustable rate loan. Adapting...
This morning, CommonBond announced its first securitization totaling $100M. The securitization comes with an expected investment-grade rating from Moody’s of...
There is no question that student lending is a massive market and several companies in the online lending industry have been...
American Banker talks with David Klein, CEO of CommonBond about the fintech industry and his insight on the effects of a fintech charter; David Klein says company valuations across the industry are more realistic and the industry is maturing with more lending platform investments focused in later round fundraisings; explains the company's technology solution for employers adding student loan payment benefits; notes the company's default rate is zero; says the OCC fintech charter should give fintech companies better competitive market positioning and help to reduce costs. Source
Last week the New York Federal Reserve President, William Dudley, gave a briefing on household debt with a particular focus...