How CommonBond Disrupts the Student Loan Market
Episode Description
A new start-up, CommonBond, is revolutionizing America's student loan market by offering competitive loans via alumni investors, and it just received a huge vote of confidence from the former chief executive of Citigroup, Vikram Pandit. Pandit, along with a group of financial backers, recently invested more than $100 million in CommonBond to help the company expand across the States and compete head-to-head with leading lenders. The company is also making waves because it employs the one-for-one business model, offering educational opportunities to needy students whenever a new loan is financed. Knowledge@Wharton spoke with CommonBond's CEO and co-founder, David Klein, to understand how he is working to upend the dysfunctional student debt market. 📂 Leadership
Brief Summary
David Klein discusses Common Bond's innovative approach to student loans and its social impact on education financing.
Key points
- The Social Promise. For every degree funded, Common Bond supports a student in need abroad.
- Common Bond's Unique Model. Common Bond connects alumni investors with students, offering financial and social returns.
- Community Building. Common Bond fosters a community that connects students and alumni for professional success.
- Future Aspirations. Common Bond aims to be a premier lender, starting with student loans due to personal connections.
- Building a Trusted Network. The speaker emphasizes the importance of trust in financial relationships, especially within affinity groups.
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Episode highlights
- The Social PromiseFor every degree funded, Common Bond supports a student in need abroad.“Our global social promise is that for every degree fully funded, we will fund education abroad.”1:56Sep 25, 2013
- Common Bond's Unique ModelCommon Bond connects alumni investors with students, offering financial and social returns.“We can price risk better than traditional alternatives.”6:51Sep 25, 2013
- Community BuildingCommon Bond fosters a community that connects students and alumni for professional success.“Real connection meaningful community is done human-to-human in person.”12:59Sep 25, 2013
- Future AspirationsCommon Bond aims to be a premier lender, starting with student loans due to personal connections.“We would like to be a premier lender, period.”21:16Sep 25, 2013
- Building a Trusted NetworkThe speaker emphasizes the importance of trust in financial relationships, especially within affinity groups.“Trust exists in trusted networks.”21:57Sep 25, 2013
