Private student lender SoFi recommences origination of loans to borrowers as a result of alumni investments and the recent Morgan Stanley warehouse facility.
San Francisco, CA – April 2, 2013 – Social Finance, Inc. (www.sofi.com) recommences lending today for current students and graduates from the majority of the 78 schools in the company’s footprint.
SoFi paused lending in November of 2012 after demand for loans far outstripped the supply of alumni capital. The company had originated over $90 million in loans to that point. SoFi has recently raised additional alumni and institutional capital that will provide funding for new loans.
“As a result of more alumni investment and the recent Morgan Stanley warehouse facility, SoFi is able to start lending again,” stated Mike Cagney, Chief Executive Officer, SoFi. “We are aggressively raising additional alumni capital to meet both our current backlog and ongoing demand. Our ability to fund loans for a given school will continue to be driven by our success raising alumni capital for that school.”
SoFi is transforming the $1 trillion student loan market. By connecting accredited alumni investors with students and recent graduates through school-specific loan funds, investors can earn a compelling risk-adjusted return while helping borrowers reduce the cost of their loans. Founded in 2011 by a team of Stanford Graduate School of Business alumni, SoFi has funded over $90 million in new and refinanced student loans to students and alumni of 78 schools. To learn more about SoFi visit www.sofi.com.