GradBridge, a newly established fintech focused solely on second-look private student lending, announced the completion of a $20 million Series A funding round led by Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management L.P. (“Oaktree”). This equity investment will support the upcoming launch of a first-of-its-kind private student loan product designed specifically for students who have exhausted federal and private options yet remain committed to completing their education.
“Acorn’s principals have a long history of partnering with strong entrepreneurial businesses, and through this investment support expanded access to higher education for deserving students, while delivering attractive risk-adjusted returns,” said Yadin Rozov, CIO of Acorn Investment Partners. “GradBridge’s approach addresses a real market gap for students who are performing academically but fall just outside of traditional credit underwriting models. We are proud to lead this round and support their launch.”
Founded by former Sallie Mae executive Jen O’Donald, GradBridge is led by a team of financial services and student lending veterans with decades of experience in consumer credit, operations, and customer experience. Key leadership includes CFO Brian Carp, COO Lisa Kaplan, and support from a network of advisors including Paul Thome, former President of Sallie Mae Bank, and Dan Hill, former Chief Credit Officer of Sallie Mae.
To ensure operational excellence and regulatory compliance from the outset, GradBridge has formed partnerships with established industry leaders such as CampusDoor, Nelnet, Gestalt, and Maquette Advisors. These partnerships provide the origination technology, servicing, and analytics required to scale responsibly.
“College completion is one of the most powerful drivers of lifetime earnings and financial independence, yet every year, more than a million students are denied private loans — many by just a narrow margin. Changes to the federal student loan program will only exacerbate this reality,” said Jen O’Donald, CEO of GradBridge. “We see an unserved, addressable market for our innovative product: academically strong students who fall outside traditional student loan underwriting criteria and risk not completing their degree. With the backing of Acorn Investment Partners, we now have the resources needed to give these underserved students a second look – and a second chance to bridge the gap between ambition and opportunity.”
GradBridge addresses one of higher education’s most pressing challenges: helping students stay in school and graduate when traditional financing falls short. Currently, more than half of undergraduates at four-year institutions drop out, with financial struggles topping the list of contributing factors. According to the Bureau of Labor Statistics, college dropouts earn 30% less than college graduates and face a 50% higher likelihood of unemployment.
GradBridge’s mission is to empower students to achieve both academic and financial success, providing opportunities for those previously underserved by traditional lending channels.