SoFi Blog

The private student lender reaches a capital-raising milestone thanks to this partnership with the non-profit corporation ECMC Group, Inc. providing services in support of higher education finance.

San Francisco, CA – SoFi (Social Finance, LLC), the private student lender, announced today it has reached the $500 million milestone in debt and equity to transform the student lending space.

The company reached this milestone thanks to securing a community fund investment from ECMC Group, Inc. “We are pleased to be part of the SoFi community. This partnership aligns nicely with ECMC Group’s mission to support student success through innovative education solutions,” said Greg Van Guilder, ECMC Group Chief Financial Officer. “We like the social community approach that SoFi brings to its lending programs, offering borrowers an opportunity to consolidate their educational debt into one comparatively low fixed or variable rate loan.”

To date, SoFi has raised $90MM in equity, $151MM in warehouse lines, $200MM in bank participations with the remaining capital coming from alumni and community investors.

“From the beginning, we believed access to capital was our biggest barrier to overcome in order to bring real transformation to the student loan market and compete with incumbents in this space,” said SoFi Chief Executive Officer Mike Cagney. “Now that we have unlocked substantial funding, we are able to quickly scale our programs to more students and graduates in need of a better option to pay off their educational debt.”

SoFi currently refinances federal and private student loans for graduates of 100 schools. Eligible applicants can consolidate their loans into one monthly payment and reduce their interest rates to variable rates as low as 2.94 percent (with Autopay) or fixed rates as low as 4.99 percent (with Autopay).

The company will continue to expand its capital base by partnering with alumni and institutions and has plans to securitize in the fourth quarter of 2013.

About SoFi 
SoFi is an innovative student lender focused on building a community around traditional financial products. Recent graduates and current students benefit from a lower loan rate and resources dedicated to helping them achieve their financial and career goals. Founded in 2011, SoFi has funded nearly $200 million in loans to students and alumni from 100 top universities. To learn more about SoFi visit: www.sofi.com.

About ECMC Group, Inc.
ECMC Group, Inc. is a nonprofit corporation that works to help students recognize and realize their potential by investing in, creating and providing innovative education solutions that support schools and improve student educational outcomes.

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Congratulations – you’ve just landed your dream job!  It should be smooth sailing from here on out, right?

Of course, most of us know from experience that this isn’t usually the case.  Even the most happily employed person will encounter challenging work situations from time to time (a negative review, for example).  And if you want to grow in your chosen career, it requires a proactive approach.  The truth is, “career strategy” doesn’t end once you get the gig.  In some ways, it’s just getting started.

While most private lenders call to collect once a borrower becomes unemployed, SoFi calls instead to see how they can assist with job placement and career development. The private lender is the first of its kind to offer these dedicated, personalized services to student loan borrowers.

San Francisco, CA – Sept. 18, 2013 – 

SoFi (Social Finance, LLC), the community-based private student lender, announced today the addition of former Assistant Dean of Career Management at the Simon School of Business Robert Park as Head of Career Strategy & Professional Development.

This hire demonstrates the company’s one-of-a-kind commitment to providing personalized job placement and career development benefits to its growing population of over 2300 borrowers.  The company is the first and only student lender to offer this service to its customers.

“Most private lenders call to collect once a borrower becomes unemployed, but we call instead to see how we can assist with career transition,” said SoFi Chief Executive Officer Mike Cagney. “We are excited to lead the way in providing this service because we know our borrowers have goals beyond simply paying off their debt, and we want to help them.”

Park’s significant experience and proven track record of success in recruiting, professional development, and career coaching will be critical as SoFi furthers the scope and reach of its borrower benefits.

“By investing in the professional success of borrowers, I see great opportunity for SoFi to have a positive impact on these individuals as they progress in their careers,” said Park. “Whether a borrower is looking for a new job, positioning themselves for a promotion, or seeking advice on long-term career goals, we want to be their first call.”

Student loan borrowers can apply to refinance with SoFi to access these and other customer benefits at www.sofi.com.

About SoFi 
SoFi is an innovative student lender focused on building a community around traditional financial products. Recent graduates and current students benefit from a lower loan rate and resources dedicated to helping them achieve their life and career goals. Founded in 2011, SoFi has funded over $175 million in loans to students and alumni from 100 top universities. To learn more about SoFi visit: www.sofi.com

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There are a lot of factors to take into account when choosing a student loan – differing interest rates, private vs. public, the pros and cons of working with various lenders.  Among those choices, we at SoFi have found one of the things that trips up borrowers the most is the choice between fixed rate and variable rate (also known as floating rate) loans.