In a student loan market saturated with first-pass credit decisions and rigid underwriting, one fintech startup is betting on those who fall through the cracks. GradBridge, a Delaware-based student lending company, has raised $20 million in Series A funding to support the launch of its unique “second-look” private student loan product—aimed squarely at students who’ve exhausted traditional lending routes but are still fighting to graduate.
The round was led by Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management, and positions GradBridge to roll out its inaugural product in time for the Spring 2026 semester. The offering is tailored for academically progressing students—particularly upperclassmen and grad students—who are denied loans not due to academic failure, but because they narrowly miss conventional credit thresholds.
At the helm is Jen O’Donald, founder and CEO, and a veteran of Sallie Mae, where she previously served in senior roles. Backing her is a leadership bench of seasoned financial services professionals: Brian Carp (CFO), Lisa Kaplan (COO), and advisors including Paul Thome, former President of Sallie Mae Bank, and Dan Hill, ex-Chief Credit Officer at Sallie Mae.
“College completion is one of the most powerful drivers of lifetime earnings and financial independence,” said O’Donald. “Yet every year, over a million students are denied access to private loans—many by just a narrow margin. With this funding, we can now give those students a second look, and in doing so, a second chance.”
GradBridge’s backend operations are reinforced through strategic partnerships with industry stalwarts such as CampusDoor, Nelnet, Gestalt, and Maquette Advisors, who will handle origination, servicing, analytics, and compliance. The infrastructure is designed to scale responsibly while maintaining strong regulatory posture—a necessity in the high-stakes, high-scrutiny student loan market.
“We’re proud to support expanded access to higher education through GradBridge’s differentiated model,” said Yadin Rozov, CIO of Acorn Investment Partners. “The company is solving a real and persistent gap for creditworthy students who are just outside traditional underwriting frameworks.”
Editorial Perspective
GradBridge is entering a market that has long struggled with binary decisions—approve or deny—based on legacy credit models that often ignore academic performance or future earning potential. By targeting this underserved tranche of students, the startup is both socially attuned and commercially strategic. With federal lending reform looming and dropout rates climbing, its timing couldn’t be sharper.
The real innovation, however, isn’t just in the product—it’s in the underwriting narrative. GradBridge isn’t trying to compete with Sallie Mae or SoFi on broad creditworthiness. Instead, it’s occupying a very specific niche: high-potential students who are academically sound but financially cornered. If it can manage risk while demonstrating strong repayment behavior in this cohort, it could unlock a new asset class in education finance.
Acorn’s involvement lends credibility, and the Sallie Mae alumni backing gives GradBridge operational depth from day one. The model will ultimately be tested not just on repayment, but on impact: can these “second-look” loans meaningfully move graduation rates? If so, GradBridge won’t just be a fintech—it could be a catalyst for structural change in higher ed lending.
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