CommonBond, a student loan crowdfunding platform is gearing towards its official launch at the University of Pennsylvania’s Wharton School of Business. The company confirms that it has raised a total of $3.5 million from alumni and investors: $2.5 million from prominent alumni investors to disburse to students in the form of loans, and an additional $1 million in seed funding from a super angel investor to capitalize the business.
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%.
CommonBond will fund over 50 Wharton MBA students in December, just in time for second semester, before expanding nationally in 2013. Founded by three Wharton Business School students in 2011 – David Klein (CEO), Michael Taormina (CFO), and Jessup Shean (Advisor) – the company is launching its inaugural loan program at Wharton in November 2012.
[Image courtesy: CommonBond]