A student loan fintech just closed a $300-million securitization
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This marks US-based College Ave Student Loans' third and biggest securitization, according to a press release. The oversubscribed securitization was jointly underwritten by Barclays and Goldman Sachs. Business Insider Intelligence
The alt lender, which launched in 2014, aims to help students pay for their school fees by offering loans for undergraduates, graduates, and parents of students. With $1.5 trillion owed throughout the US, student loans are the second largest form of household debt in the country, per the New York Fed Consumer Credit Panel and Equifax.
Hence, there will likely be high demand for services like College Ave that make it easier for consumers to pay for their education. And demand for alt lenders for all sorts of loans will likely accelerate in the future as consumers get more comfortable with such lenders; the share of US personal loans originated by fintechs has risen from just 5% in 2013 to 38% in 2018, for example, per TransUnion.
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