SoFi's student loan assets reflect the highest quality unsecured lending assets available.
San Francisco, CA (PRWEB) March 26, 2013
Social Finance, Inc. (http://www.SoFi.com), the private student lender, announced today that it has secured a $60 million warehouse line from Morgan Stanley (NYSE: MS). The facility gives SoFi increased capacity to further expand its successful community-based lending model.
SoFi has transformed student lending by connecting investors and borrowers via school-specific lending funds that yield compelling financial returns while lowering the cost of student debt. Since launching publicly in April 2012, SoFi has seen exceptional traction, having funded $90 million in loans and received interest from potential borrowers for an additional $250 million in loans.
"This financing represents a significant milestone for SoFi," stated Mike Cagney, Chief Executive Officer, SoFi. "The quality of our borrowers and rigorous underwriting criteria attracted the support of a world-class financial partner in Morgan Stanley. This credit facility supports our plans for ambitious growth and allows us to have a greater impact on the student loan market."
This announcement comes two weeks after Sallie Mae, the largest U.S. student lender, sold $1.1 billion of securities backed by private student loans, according to the Wall Street Journal. The popularity of this sale demonstrated investor interest in student loan credit.
"SoFi's student loan assets reflect the highest quality unsecured lending assets available," said Cagney. "By adding more responsible underwriting and a community-based social contract between borrower and investor, our private education loans are a significantly more attractive investment."
SoFi is transforming the $1 trillion student loan market. By connecting accredited alumni investors with students and recent graduates through school-specific loan funds, investors can earn a compelling risk-adjusted return while helping borrowers reduce the cost of their loans. Founded in 2011 by a team of Stanford Graduate School of Business alumni, SoFi has funded over $90 million in new and refinanced student loans to students and alumni of 78 schools. To learn more about SoFi visit http://www.SoFi.com.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 43 countries. Since 2006, Morgan Stanley has executed more than $5 billion in investments to strengthen underserved communities. For further information about Morgan Stanley, please visit http://www.morganstanley.com.