Only three years after its inception, a major student loan marketplace lender, College Ave Student Loans, announced the completion of its first securitization of private student loans. The $161 million transaction got an ''A'' rating from DBRS and a ''BBB'' rating from S&P according to College Ave. The sole underwriter of the deal completed earlier in the summer was Barclays.
Co-founder and CEO Joe DePaulo commented that he was very proud of the results of the company for its relatively short market presence. Moving forward, College Ave would try to issue asset-backed bond options on an annual basis given the success of the deal. Furthermore, College Ave plans on expanding its own team in the near future.
This isn’t the first time College Ave has experienced success this year.
Last year, the student loan provider managed to secure $20 million in the fourth round of funding. The amount raised exceeded the College Ave's initial target funding goal by $5 million.
The move was backed by new and existing investors including Comcast Ventures and Leading Edge Ventures who commented on College Ave’s customer-focus policy as a driving factor behind the support.
The college loan provider would use the fresh capital injection to enter the in-school student loan niche, reaching over 2,500 campuses across the country.
As a new, innovative, fin-tech company, College Ave has been looking for diverse ways to attract customers. For instance, in March this year, the company became a sponsor of a new ESPN quiz show called "Bracket Genius."
Sixteen US universities would take part in the competition to win the first prize of $100,000. Participating undergraduate students would have to correctly answer questions about diverse subjects - history, politics, sports, pop culture, and more.
College Ave's Joe DePaulo commented the TV quiz was an excellent way to reward American students for their hard work at the university. He also highlighted the big cash prize would be a unique way for them to pay back their student loans.
Founded in 2014 in Delaware by seasoned, ex-Sallie Mae executives, College Ave Student Loans quickly gained popularity across the country. At the very beginning, the fin-tech loan provider focused solely on private student loans, but it has since expanded into student loan refinancing. The experienced team combines the latest technologies in the field with its deep expertise to propose tailor-made loan offers and flexible repayment options.