Nelnet Inc. , a Nebraska-based lending conglomerate holding over $25b in student loans, has invested an undisclosed amount in CommonBond. Nelnet will also be providing at least $150m in funding to finance more loans. This funding comes after Social Finance's (SoFi) latest $200m raise this week. Online lenders continue to provide an alternative and challenge traditional lenders. CommonBond says it saves borrowers an average of $10,000 over the life of a 10-year loan.
CommonBond Inc., a New York-based online student-loan company, said Thursday that Nelnet Inc. invested an undisclosed amount, while providing at least $150 million to finance more loans. CommonBond Chief Executive Officer David Klein said the deal builds on more than $100 million that it had previously garnered from investors including former Citigroup Inc. CEO Vikram Pandit, and Social + Capital, a Palo Alto, California-based venture capital fund.