CommonBond, a Philadelphia, PA-based student loan crowdfunding platform, has raised a total of $3.5m.
In details, the company has raised $2.5m from prominent alumni investors to disburse to students in the form of loans, and an additional $1m in seed funding from a super angel investor.
Founded by David Klein, CEO, Michael Taormina, CFO, and Jessup Shean, CommonBond connects student borrowers and alumni investors to provide loans at a lower fixed rate. Through the CommonBond model, students pay a 6.24% fixed interest rate and can save $20K over the course of loan repayment relative to traditional alternatives, while alumni investors can expect to earn an annual return of over 4%.
The website – www.CommonBond.co – is now live and accepting applications at the University of Pennsylvania’s Wharton School of Business and will expand nationally in 2013.