If you’re looking to borrow some big bucks, then SoFi or Social Financing, Inc. is definitely the place to do so. This Silicon Valley-based financial company was founded in 2011 to provide students with loan refinancing options. Since then, it has expanded its services and offers consumers the chance to receive personal loans and mortgages as well. According to Ag Age, the company has around 600 employees, and has “funded $7 billion in loans, [and] offers itself to consumers as an alternative to typical banks.”
Wikipedia describes SoFi’s “alumni-funded lending model” as one that “connects students and recent graduates with alumni and institutional investors via school specific student loan funds.” Founded by 4 graduates of Stanford Business School, SoFi’s model is built upon the inherent trust that fellow alumni have in one another. This trust enables them to offer competitive rates that are lower than those offered by the government. Meanwhile, lenders receive an ROI from loans that are given out to students at their alma mater.
In a bold financial decision, SoFi is investing 20% of their marketing budget in their Super Bowl 2016 commercial.