Leading marketplace lending company also introduces new Parent PLUS loan refinancing program
NEW YORK, Sept. 22, 2015 /PRNewswire/ -- Fresh off the heels of raising $35 million in Series B equity funding, leading marketplace lending platform CommonBond today announced that it has expanded its student loan refinancing program from 200 to over 2,000 universities nationwide at the graduate and undergraduate levels.
With over $1.2 trillion in outstanding student loan debt affecting over 40 million Americans, CommonBond is helping to reduce the student debt burden for millennials through substantial savings, a simple borrowing process and exceptional customer service. The company's innovative approach to student lending allows borrowers to save on average over $14,000 on their student loans, while offering competitive financial returns to investors. Because CommonBond looks beyond just a credit score, the company is able to provide personalized loans with lower interest rates, compared to traditional lenders.
"I personally faced the painful process of taking out student loans to fund my business school degree at Wharton, and have been fixated on creating a better experience for those with student debt ever since," said David Klein, CEO and Co-Founder of CommonBond. "Since the very beginning, we've wanted to have the broadest impact possible to lessen the burden of student loans, and with this expansion, I am proud to say that we're now able to bring the CommonBond experience to many more borrowers nationwide."
In addition to its student loan refinancing expansion for graduates, CommonBond today introduced a Parent PLUS loan refinancing program. This program allows parents, who borrowed federal Parent PLUS loans to finance their children's undergraduate education, to refinance those loans into a lower interest rate through CommonBond.
"While student loan debt weighs heavily on millennials, we also saw a big need in the market to provide a new option for parents who carry student debt on behalf of their children," Klein said. "Just as graduates can save over $14,000 by refinancing their student loans through CommonBond, parents can also save a substantial amount by refinancing their Parent PLUS loans with us."
Among CommonBond's borrower community, the company has fast become known for offering a superior customer experience—beyond just the savings.
"CommonBond offered loans at a reduced interest rate, and had that been the only benefit, I would have been overjoyed. But it's far more than that," said Noah Heilbrun, a 2009 graduate of the University of Michigan Medical School and CommonBond borrower. "I have been so positively impressed by the personal approach and the accessibility that everyone at CommonBond displays. These things make a huge difference and make me feel like more than just an account number and a monthly statement."
"With its simple, flawless process and personal customer service, CommonBond has been a breath of fresh air," said Marisa Quattrone, a 2010 graduate of the Case Western Reserve University School of Medicine and CommonBond borrower. "In addition to the money I'm saving, the personal approach and accessibility to the CommonBond team have made a huge difference and make me feel like part of a community."
For Ama Karikari-Yawson, refinancing her student loans with CommonBond has not only saved her money, but enabled her to leave her job as a corporate lawyer to become a full-time author, publisher, entrepreneur and educator. Before refinancing, she had undergraduate student debt and graduate student debt that totaled nearly $2,000 a month. "Thanks to CommonBond, I've cut my student loan obligations by almost half," said Ms. Karikari-Yawson, who is the founder of Milestales, a publishing, media and education consulting firm. "In addition to helping me leave a comfortable job in order to pursue my passion, the savings have put me in a better position to provide for my family."
CommonBond's student loan refinancing expansion follows the company's September 8th announcement that it raised $35 million in Series B funding led by August Capital, with participation from NYCA Partners and existing investors. Victory Park Capital, a leading investment firm in marketplace lending, also participated in the round. CommonBond's loan originations have increased more than six-fold year-over-year through the first half of 2015, and the company is on track to originate more than $500 million in loans by the end of this year. CommonBond expects to surpass $1 billion in loans funded in 2016.
CommonBond is a leading marketplace lending platform that lowers the cost of student loans for borrowers and provides financial returns to investors. Started by three Wharton MBAs with backgrounds in financial services, CommonBond delivers best-in-class student loan options with competitive pricing, a simple tech-enabled experience and exceptional customer service that is empowered to help borrowers. The company saves borrowers more than $14,000 on average, over the life of the loan. CommonBond is the first company to bring the "one-for-one" social model to finance: For every degree fully funded on the company's platform, CommonBond funds the education of a student in need for a full year, through a partnership with Pencils of Promise. For more information, visit http://www.commonbond.co.
*CommonBond is not affiliated with, nor does it endorse, any university or program.*