A FinTech company has successfully raised $1 billion in debt financing in the past twelve months via leading financial institutions. This substantial influx will enable the expansion of a global credit model to support high-potential students from over 150 countries.
The company’s primary mission is to provide education loans to international students attending prestigious universities worldwide. These students often face limited funding options, especially those from emerging markets. According to the company’s founder and CEO, Cameron Stevens, traditional lenders struggle with local legal constraints, local data, and local repayments, which confine an applicant’s credit profile to their geographical location. “The world is increasingly global and connected, yet the banking industry has not kept pace,” said Stevens, noting the transformative potential of their global credit model to offer life-changing opportunities to students worldwide.
The financing package comprises $900 million in institutional debt from American, European, and Asian lenders, including Deutsche Bank, Goldman Sachs, M&G Investments, and Sumitomo Mitsui Banking Corporation. Additional investors involve schools, family offices, and high-net-worth individuals via an international bond programme distributed by Credit Suisse. Cameron Stevens highlighted that the significant capital obtained is a testament to the success of their borderless platform. “The financial services industry will become more global in its outlook, and we are leading the charge as we scale our business,” he stated.
This forward-thinking credit model evaluates loan applicants based on factors such as projected earnings and university acceptance, rather than historical credit. Sharon Wandill, a student borrower, attested to the impact, saying, “My life completely changed the moment I came across this platform, as it was literally the difference between me going to pursue further studies or not.”
In the 2016/17 academic year, the US hosted over 1 million international students, with engineering being the most popular field of study, followed closely by business and management. Unlike some of their peers, engineering students generally have less professional experience and lower savings, thereby having a greater need for financial assistance. The recent financing will allow the company to enhance its support especially for engineering courses at U.S. institutions. The platform now supports 245 engineering schools and 2,222 courses, including computer engineering and data analytics, with loan terms of 10, 15, or 20 years, devoid of collateral, co-signer, or guarantor requirements.
In addition, the financing facilitates the introduction of a refinance product for international graduates of U.S. schools. This new offering allows alumni to reduce their interest rates, consolidate student loans, release co-signers, and choose from flexible loan terms. The refinance option is available to eligible international graduates residing in the US or UK. To date, the platform has assisted over 11,200 students from 132 countries, with 89 per cent having no alternative access to funds.
This $1 billion financing marks a significant milestone in supporting international students and underscores the transformative potential of a global, borderless financial services model.