GradBridge, a fintech company focused exclusively on second-look private student lending, announced it has raised $20 million in Series A funding led by Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management.
The funding will enable GradBridge to launch its innovative private student loan program for students who have exhausted federal and traditional private lending options but remain committed to completing their education. The program is slated for launch in Spring 2026.
Founded by former Sallie Mae executive Jen O’Donald, GradBridge is addressing one of higher education’s most persistent challenges: financing the final stages of a college degree for students who are performing academically yet fall outside of standard credit underwriting models. The company’s mission is to “bridge the gap between ambition and opportunity” by turning loan denials into graduation success stories, enabling long-term financial independence for students.
The GradBridge leadership team brings decades of experience in student lending, consumer credit, and financial services. In addition to CEO Jen O’Donald, the executive team includes CFO Brian Carp, COO Lisa Kaplan, and advisors Paul Thome (former President of Sallie Mae Bank) and Dan Hill (former Chief Credit Officer of Sallie Mae).
To ensure the program’s success and scalability, GradBridge has partnered with several leading financial and education technology providers, including CampusDoor, Nelnet, Gestalt, and Maquette Advisors. These partnerships will supply origination technology, servicing capabilities, and analytics to ensure responsible growth and regulatory compliance from day one.
GradBridge’s model directly targets the financial barriers that cause students to leave college before earning a degree. According to the Bureau of Labor Statistics, more than half of undergraduates at four-year schools drop out, with financial hardship being the leading cause. On average, college dropouts earn 30% less than graduates and are 50% more likely to be unemployed.
By rethinking the student lending process through a fintech lens, GradBridge aims to expand educational access and improve financial outcomes for millions of students. And the company’s upcoming lending program will focus on upperclassmen and graduate students who demonstrate academic progress but narrowly miss approval under conventional credit models.
KEY QUOTES:
“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. 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.”
Yadin Rozov, Chief Investment Officer, Acorn Investment Partners
“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. 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.”
Jen O’Donald, Chief Executive Officer, GradBridge
