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CommonBond’s Vision for Disrupting the Student Loan Market
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CommonBond’s Vision for Disrupting the Student Loan Market

Knowledge at Wharton·Knowledge at Wharton Staff·about 1 month ago
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The federal government and private banks currently dominate the student loan market, but a new start-up is eager to disrupt the system. CommonBond offers competitive fixed-rate loans for MBA students that are sourced from their university alumni. The company also offers the students and their financial backers a chance to mix and mingle at events in the hopes of growing their networks and advancing their careers. The fixed-rate loans are priced as low as 5.99%, presenting a serious threat to established lenders whilst promising individual investors a low-risk investment opportunity. But that’s not all. CommonBond is also taking the much-hyped one-for-one business model into the educational space, offering educational opportunities to needy students whenever a new loan is financed. CEO and co-founder David Klein said this offering has made his business model stand out from the rest as he works to inject more social responsibility into the lending space.…

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