Student loan refinancer CommonBond announced a strategic partnership with education planning and financing provider Nelnet. As part of the deal Nelnet invested an undisclosed amount in CommonBond and agreed to finance at least $150 million of CommonBond's annual loan volume.
The announcement comes on the heels of SoFi’s $200 million Series D at a $1.3 billion valuation. Founded in 2011, CommonBond raised over $100 million in venture capital to date.
Nelnet is the first participant in CommonBond’s new forward flow program which lets interested capital providers buy loans directly on the CommonBond platform.
"We believe that having a diversity of funding sources and funder profiles makes the most sense for building a strong and sustainable financial marketplace,"
states David Klein, Chief Executive and Co-Founder of CommonBond in the press release.
The company also expanded its loan financing options to over 700 programs in the US. CommonBond connects students with alumni investors to offer easier and cheaper student loans. These investors tend to be genuinely interested in supporting grad students which leads to CommonBond’s other goal: building a community around the product.
Further Reading
- CommonBond Announces Innovative Financing Partnership With Nelnet | PR Newswire
- CommonBond Obtains $150 Million in Boom for Online Lenders | Bloomberg
- CommonBond goes from disruptor to player | Crain’s
- CommonBond Boosts Its Student Loan Refi Footprint With $150 Million Investment From Nelnet | Forbes