Gradbridge Launches Second-look Private Student Lending Program and Partnership With Hatch Bank

WHY THIS MATTERS:
Access to higher education in the U.S. is increasingly shaped by financing availability, with financial strain remaining one of the leading reasons students drop out of college. GradBridge’s launch of a second-look private student lending program, backed by Acorn Investment Partners and delivered through Hatch Bank, targets a specific gap in the market: academically progressing students who narrowly miss approval under traditional credit models.

The platform evaluates borrowers using both credit signals and academic progress, offering loans to upperclassmen and graduate students at more than 2,000 Title IV institutions. With significant federal financial aid changes scheduled for July 2026, alternative lending solutions may become more prominent as students and families seek flexible financing to complete their degrees.

GradBridge, the fintech company focused exclusively on second-look private student lending, today announced the launch of its student lending program backed by Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management L.P. (“Oaktree”) and a sponsor-bank partnership with Hatch Bank. The fintech is now accepting applications for its private student loans program, offered through Hatch Bank, designed to help more students overcome financial barriers and continue their higher education. The launch follows the previously announced closing of a $20 million Series A funding round led by Acorn Investment Partners.

The need for private student loan solutions like GradBridge has never been greater. Today, more than half of undergraduates at four-year schools drop out, with financial strain cited as the leading cause. College dropouts earn 30% less over their lifetime and are 50% more likely to experience unemployment, according to the Bureau of Labor Statistics. With major federal financial aid changes set to take effect in July 2026, GradBridge and the private student loan market will play an increasingly critical role for students and families.

“GradBridge was created to address a simple but urgent problem: academically capable students are too often left behind by traditional lending models, not because they lack ability, but because the system wasn’t built with them in mind,” said GradBridge CEO Jen O’Donald. “By aligning credit evaluation with academic progress and providing a second-look option, we’re giving students a meaningful pathway to stay enrolled and finish their degrees.”

GradBridge offers second-look private student loans to creditworthy upperclassmen and graduate students who are academically progressing and who narrowly miss approval under traditional private student lending models. Now available at more than 2,000 Title IV schools in the U.S., GradBridge private student loans offer fixed and variable interest rates, flexible repayment options and terms from five to 15 years. Loans are originated through Hatch Bank, a purpose-built, tech-forward sponsor bank that provides specialized financial products and services.

“Hatch Bank is proud to partner with GradBridge to expand responsible access to private student lending for borrowers who are actively progressing toward degree completion,” said Hatch Bank President Amanda Swoverland. “GradBridge’s approach creates an important second pathway for students and families seeking flexible financing solutions that help keep academic goals within reach. At Hatch, we partner with innovative platforms to responsibly deliver credit where it can drive meaningful outcomes, and this collaboration reflects our commitment to supporting students as they complete undergraduate and graduate programs. We’re excited to work alongside Jen and her team to help more students successfully finish their educational journeys.”

The fintech is led by a seasoned team of student lending and financial services veterans. Key leadership includes CEO Jen O’Donald, CFO Brian Carp, COO Lisa Kaplan and a network of advisors that includes Paul Thome, former President of Sallie Mae Bank, and Dan Hill, former Chief Credit Officer of Sallie Mae. To deliver a comprehensive origination-to-servicing infrastructure aligned with best practices in compliance, risk management, and operational excellence, GradBridge partners with leading industry providers, including CampusDoor, Nelnet, Gestalt, and Maquette Advisors.

FF NEWS TAKE:
This reflects a growing trend in fintech lending — specialised credit models targeting underserved but viable borrower segments.

In student finance, traditional underwriting has often struggled to balance credit risk with future earning potential. If GradBridge’s second-look approach proves effective, it could expand access while demonstrating how fintech-led underwriting models can complement — rather than replace — the existing student lending ecosystem.