GradBridge Secures $20M for Second-Look Student Lending Initiative
October 24, 2025, 3:40 am
Location: United States, California, Los Angeles
Employees: 1001-5000
Founded date: 1995
GradBridge, a Delaware-based fintech, has closed a $20 million Series A funding round. Acorn Investment Partners led the investment. The capital will launch a new private student loan product. This program targets academically strong upperclassmen and graduate students. It serves those who have exhausted federal and traditional private lending options. The initiative addresses a critical market gap. It aims to boost college completion rates. The new product launches in Spring 2026, promising vital support for underserved students.
GradBridge, a Wilmington, Del.-based fintech, has secured a significant $20 million Series A funding round. This investment marks a pivotal moment for higher education financing. Acorn Investment Partners led the funding. Acorn is a portfolio company of Oaktree Capital Management L.P. The capital empowers GradBridge to tackle a persistent challenge in student lending.
The company focuses on "second-look" private student lending. This approach addresses a vital market need. Many deserving students face financial roadblocks. They often fall outside conventional credit underwriting models. These students demonstrate academic progress. Yet, they narrowly miss approval from traditional lenders.
GradBridge will deploy the funds to launch an innovative product. This private student loan is tailored for specific students. It targets individuals who have exhausted all other federal and private options. Crucially, these students remain committed to completing their education. The program aims to turn loan denials into graduation success stories.
The new lending program is slated for a Spring 2026 launch. It will focus primarily on upperclassmen and graduate students. These individuals represent a significant underserved segment. Their ambition often outpaces their financial access. GradBridge provides a crucial bridge for these students.
Student financial hardship is a pervasive problem. The Bureau of Labor Statistics highlights this issue. More than half of undergraduates at four-year schools drop out. Financial hardship stands as the leading cause. This has severe long-term consequences. College dropouts earn 30% less than graduates. They are also 50% more likely to be unemployed. GradBridge's model directly confronts these statistics.
The company's leadership team brings extensive experience. Jen O’Donald serves as CEO. Brian Carp is CFO. Lisa Kaplan holds the COO position. Their combined expertise spans student lending, consumer credit, and financial services. Industry veterans also advise GradBridge. Paul Thome, former President of Sallie Mae Bank, offers guidance. Dan Hill, former Chief Credit Officer of Sallie Mae, also contributes his insight. This deep bench strength underpins the company's strategy.
GradBridge has forged strategic partnerships. These alliances ensure robust infrastructure and scalability. Collaborators include CampusDoor, Nelnet, Gestalt, and Maquette Advisors. These partners provide essential services. They offer origination technology, servicing capabilities, and analytics. This collaborative approach ensures responsible growth. It also guarantees regulatory compliance from day one.
The fintech lens applied by GradBridge reimagines student lending. This innovative perspective expands educational access. It aims to improve financial outcomes for millions of students. The company's mission is clear. It seeks to bridge the gap between ambition and opportunity. This new funding significantly advances that goal.
Acorn Investment Partners recognized the substantial market gap. The investment firm supports strong entrepreneurial businesses. They aim to expand access to higher education. This focus aligns perfectly with GradBridge's mission. The partnership promises attractive risk-adjusted returns. It also fosters social impact.
Changes to federal student loan programs are ongoing. These shifts often exacerbate existing realities. They leave more students without vital funding. GradBridge addresses this directly. The company identifies an unserved, addressable market. It targets academically strong students. These students fall outside traditional underwriting criteria. They face the risk of not completing their degrees.
GradBridge's approach is timely and critical. The need for specialized lending solutions grows. Many students require a second chance at funding. This investment provides the necessary resources. It empowers GradBridge to deliver on its promise. More students will now access vital capital. More degrees will be completed. This strengthens the workforce. It enhances individual financial independence. The impact extends far beyond the student. It benefits communities and the broader economy.
GradBridge, a Wilmington, Del.-based fintech, has secured a significant $20 million Series A funding round. This investment marks a pivotal moment for higher education financing. Acorn Investment Partners led the funding. Acorn is a portfolio company of Oaktree Capital Management L.P. The capital empowers GradBridge to tackle a persistent challenge in student lending.
The company focuses on "second-look" private student lending. This approach addresses a vital market need. Many deserving students face financial roadblocks. They often fall outside conventional credit underwriting models. These students demonstrate academic progress. Yet, they narrowly miss approval from traditional lenders.
GradBridge will deploy the funds to launch an innovative product. This private student loan is tailored for specific students. It targets individuals who have exhausted all other federal and private options. Crucially, these students remain committed to completing their education. The program aims to turn loan denials into graduation success stories.
The new lending program is slated for a Spring 2026 launch. It will focus primarily on upperclassmen and graduate students. These individuals represent a significant underserved segment. Their ambition often outpaces their financial access. GradBridge provides a crucial bridge for these students.
Student financial hardship is a pervasive problem. The Bureau of Labor Statistics highlights this issue. More than half of undergraduates at four-year schools drop out. Financial hardship stands as the leading cause. This has severe long-term consequences. College dropouts earn 30% less than graduates. They are also 50% more likely to be unemployed. GradBridge's model directly confronts these statistics.
The company's leadership team brings extensive experience. Jen O’Donald serves as CEO. Brian Carp is CFO. Lisa Kaplan holds the COO position. Their combined expertise spans student lending, consumer credit, and financial services. Industry veterans also advise GradBridge. Paul Thome, former President of Sallie Mae Bank, offers guidance. Dan Hill, former Chief Credit Officer of Sallie Mae, also contributes his insight. This deep bench strength underpins the company's strategy.
GradBridge has forged strategic partnerships. These alliances ensure robust infrastructure and scalability. Collaborators include CampusDoor, Nelnet, Gestalt, and Maquette Advisors. These partners provide essential services. They offer origination technology, servicing capabilities, and analytics. This collaborative approach ensures responsible growth. It also guarantees regulatory compliance from day one.
The fintech lens applied by GradBridge reimagines student lending. This innovative perspective expands educational access. It aims to improve financial outcomes for millions of students. The company's mission is clear. It seeks to bridge the gap between ambition and opportunity. This new funding significantly advances that goal.
Acorn Investment Partners recognized the substantial market gap. The investment firm supports strong entrepreneurial businesses. They aim to expand access to higher education. This focus aligns perfectly with GradBridge's mission. The partnership promises attractive risk-adjusted returns. It also fosters social impact.
Changes to federal student loan programs are ongoing. These shifts often exacerbate existing realities. They leave more students without vital funding. GradBridge addresses this directly. The company identifies an unserved, addressable market. It targets academically strong students. These students fall outside traditional underwriting criteria. They face the risk of not completing their degrees.
GradBridge's approach is timely and critical. The need for specialized lending solutions grows. Many students require a second chance at funding. This investment provides the necessary resources. It empowers GradBridge to deliver on its promise. More students will now access vital capital. More degrees will be completed. This strengthens the workforce. It enhances individual financial independence. The impact extends far beyond the student. It benefits communities and the broader economy.