Online Lender Raises $500 Million, Says Maybe Your Date Cares More About Your Debt Than Your STD

Online Lender Raises $500 Million, Says Maybe Your Date Cares More About Your Debt Than Your STD

It was just one week ago in "A $1.3 Trillion Quandary" that I (re)introduced you to SoFi, the marketplace lender that's made a splash (or maybe "belly flop" is better) in the private student loan securitization market. SoFi went full retard in early 2016 when, amid prevailing concerns about an imminent turn of the credit cycle (remember, the environment for credit at this time last year was night and day compared to the current market), the company decided to start a hedge fund to buy loans fr
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3 thoughts on “Online Lender Raises $500 Million, Says Maybe Your Date Cares More About Your Debt Than Your STD

  1. I refinanced some of my student loans through SoFi and can confirm that their marketing and client communications are pretty cringy. In fact, I have the SoFi T-shirt and selfie stick to prove it.

    To their credit, however, they’ve marketed pretty heavily to medical professionals (med students and dental students in particular) which explains the average age, incomes, and credit scores of their borrowers. If they can manage to sustain their business by lending almost exclusively to those with STEM degrees, good incomes, and job security, they ought to be fine. What has yet to be seen, however, is how they’ll behave if/when they run out of doctors, dentists, and engineers to loan to.

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