NEW YORK (MainStreet) —
Student loan refinance provider CommonBond announced a new round of funding on July 19 and an acquisition in the student loan space that it says will facilitate its ability to lend.
"We just raised over $30 million in new funding, acquired a student loan management platform, Gradible, and are launching an employer-based student loan repayment platform," said CEO David Klein, which allows employers to contribute towards paying down their employees' student debt. He added that "CommonBond is now able to help improve the lives of 40 million Americans with student debt, regardless of income, education or credit profile--a first for a student lender in this country." 43 million Americans have student loans. About one in four of those loans are passed due.
A Common Bond company spokesperson said the new investment "includes a $30 million Series C equity round led by Neuberger Berman Private Equity, as well as over $300 million in loan purchases from another large asset management firm." That firm was not identified.
The spokesperson added that "Common Bond will use the $30 million in equity financing to hire across the organization, build out its technology platform and continue to scale its loan operations. The $30 million plus in loan purchases will be used to fund loans that Common Bond originates."
The spokes person described Gradible as "a personal finance platform founded in 2013 that provides people with unbiased, personalized recommendations on how to better manage and repay their student loans. With the Gradible acquisition, CommonBond now offers employers a full suite of student loan repayment programs for their employees, beyond CommonBond's student loan refinance options."