 | |
| Company type | Private |
|---|---|
| Industry | Financial Services |
| Founded | November 2011 |
| Founders | David Klein, Mike Taormina, and Jessup Shean |
| Headquarters | New York, New York, USA |
Key people | David Klein, CEO |
| Website | commonbond |
CommonBond is a private company headquartered in New York City that provides financial products and services related to student loans. The company was founded in 2011 by three Wharton University students. Initially, it focused on lending to students at elite business schools. Over time, it expanded to eventually supporting most students and graduates.
Corporate history
editCommonBond was founded in 2011[1] by three students from Wharton University[2] in response to cofounder David Klein's experiences looking for student loans.[3][4][5] In 2012, CommonBond announced it had raised $3.5 million in funding from Wharton alumni and angel investors.[4][6] CommonBond raised another $30 million in 2016 and acquired Gradible, a startup focused on employer-sponsored student loan repayment programs.[7][8][9] Another $50 million in funding was raised in 2018, bringing total funding to $130 million.[10]
Lending
editCommonBond is a provider of student loans, student loan refinancing, and student loan-based employer benefits services. As of 2018, it has provided $1.5 billion in loans to 25,000 borrowers.[10] For every degree that is financed by CommonBond, the company funds the education of a student in Africa[4][11][12] through an organization called Pencils of Promise.[13]
CommonBond's first round of student loans was with 40 MBA students and graduates from Wharton University.[14] Later, CommonBond became known for serving a small number of graduate students at elite business schools[15] with loans that were mostly funded by wealthy alumni.[4][16] It charged lower rates than federal student loans[17] by targeting universities and degree programs where students have more earning power and lower default rates.[14]
Over time, CommonBond's scope expanded. In September 2013, it obtained $100 million in funding[11] that was used to finance 109 student loans for degrees in business, law, medicine, engineering, and others.[11][18][17] CommonBond raised another $150 million in 2015 and further expanded the number of universities and degree programs it supported.[19]
In 2016, CommonBond obtained another $300 million to finance student loans.[7][8][9] The following year, CommonBond announced it would provide student loan financing products to students from any university for any degree, except for students at online or for-profit schools.[20] It also announced a service for businesses that want to offer student loan repayment benefits to employees.[13]
References
edit- ^ Wack, Kevin (March 21, 2018). "Two banks take equity stakes in online student lender CommonBond". American Banker. Retrieved July 7, 2018.
- ^ McEnery, Thornton (February 5, 2015). "CommonBond goes from disruptor to player". Crain's New York Business. Retrieved July 7, 2018.
- ^ Henry, Zoë (August 11, 2015). "5 Things To Know About Student Loan Refinancing". Inc.com. Retrieved July 7, 2018.
- ^ a b c d Alden, William (September 4, 2013). "Lending Start-Up CommonBond Raises $100 Million, With Pandit as Investor". DealBook. Retrieved July 7, 2018.
- ^ Henry, Zoë (September 8, 2015). "CommonBond Gets $35 Million Funding, Wants to Cut Woes Behind Student Loan Refinancing". Inc.com. Retrieved July 7, 2018.
- ^ "P2P Lending & Education: CommonBond Launches With $3.5M, Joining SoFi In Quest To Solve The Student Debt Crisis". TechCrunch. November 1, 2012. Retrieved July 7, 2018.
- ^ a b Oran, Olivia (July 19, 2016). "CommonBond announces new funding, led by Neuberger Berman unit". Reuters. Retrieved July 7, 2018.
- ^ a b Lunden, Ingrid (July 19, 2016). "Student loan platform CommonBond raises $300M and $30M in equity, buys Gradible". TechCrunch. Retrieved July 7, 2018.
- ^ a b Harris, Ainsley (July 19, 2016). "CommonBond Gets $30 Million To Take On SoFi". Fast Company. Retrieved July 7, 2018.
- ^ a b Stoller, Kristin (March 21, 2018). "Student Lender CommonBond Raises $50M To Invest In Technology, Blockchain". Forbes. Retrieved July 7, 2018.
- ^ a b c Empson, Rip (March 21, 2014). "With Over $100M Raised, P2P Lending Platform CommonBond Expands To 100 Programs To Help Grad Students Reduce Debt". TechCrunch. Retrieved July 7, 2018.
- ^ Gobel, Reyna (June 26, 2017). "Your money: Now you can get miles for your student loan". U.S. Retrieved July 21, 2018.
- ^ a b Stoller, Kristin (March 21, 2018). "Student Lender CommonBond Raises $50M To Invest In Technology, Blockchain". Forbes. Retrieved July 21, 2018.
- ^ a b "End of the peer show - Crowdfunding in America". The Economist. May 1, 2013. Retrieved July 7, 2018.
- ^ Shieber, Jonathan (April 25, 2017). "CommonBond now offers direct student loans alongside debt refinancing". TechCrunch. Retrieved July 7, 2018.
- ^ Pinsker, Beth (July 8, 2013). "Alumni May Help Make College More Affordable". HuffPost. Retrieved July 7, 2018.
- ^ a b McGrath, Maggie (December 10, 2014). "Student Debt As An Asset Class: A $1 Trillion Opportunity?". Forbes. Retrieved July 7, 2018.
- ^ "Why Refinancing Your Federal Student Loans Can Cost You". Money. September 30, 2014. Retrieved July 7, 2018.
- ^ McGrath, Maggie (February 5, 2015). "CommonBond Boosts Its Student Loan Refi Footprint With $150 Million Investment From Nelnet". Forbes. Retrieved July 7, 2018.
- ^ Harris, Ainsley (April 25, 2017). "CommonBond Launches Direct Student Loans For Undergraduates". Fast Company. Retrieved July 7, 2018.