LendEDU
| Company type | Private |
|---|---|
| Industry | Financial services |
| Founded | 2014 |
| Founder | Nate Matherson, Matt Lenhard |
| Headquarters | Hoboken, New Jersey , United States |
Area served | United States |
| Products | Student loans, personal loans, credit cards, mortgages, insurance products |
| Website | lendedu |
LendEDU (pronounced Lend-E-D-U) operates as an online marketplace that provides a range of financial products, including student loans, personal loans, and credit cards. Often compared to Lendingtree.com, its primary emphasis lies in student lending solutions. In 2018, LendEDU encountered controversy when it was disclosed that it owned "Student Loan Report" without proper transparency, and its CEO faced allegations of deceiving media outlets by citing a fictitious source.
History
Nate Matherson and Matt Lenhard, who were students at the University of Delaware, participated in the Iowa Startup Accelerator in 2014 with an initial concept for an online tutor-booking service named ShopTutors. After the idea was rejected, they pivoted to developing LendEDU, a digital marketplace centered on student loans and refinancing options. Matherson’s personal experience with nearly $50,000 in student debt highlighted the demand for refinancing alternatives.[1][2][3] During the accelerator program, LendEDU received $50,000 in funding from Built by Iowa alongside a $5,000 grant from the University of Delaware’s VentureOn initiative aimed at fostering small business growth.[4]
In 2015, the startup secured $120,000 in investments from the Horn Program Venture Development Center and Y Combinator, which significantly accelerated its development.[3]Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name
Subsequently, LendEDU moved its main office to Hoboken, New Jersey.
By November 2020, LendEDU remained headquartered in Hoboken with its fundamental platform largely intact. The company broadened its offerings beyond student loans to include mortgages, personal loans, credit cards, and insurance products.
Platform
LendEDU’s platform delivers comprehensive information on student loans, mortgages, personal loans, and various insurance options. It allows users to compare lenders based on interest rates, terms, and eligibility criteria tailored to their unique financial profiles. For example, individuals interested in refinancing student loans can analyze different choices to identify the most suitable option.
Additionally, LendEDU offers a suite of calculators that assist consumers in evaluating repayment plans, payoff strategies, potential savings from refinancing, tax benefits, and other financial considerations.
Charitable works & Initiatives
The company’s philanthropic efforts include collaboration with One Tree Planted to support global reforestation projects and the administration of the LendEDU Scholarship program, which awards $1,000 biannually to two deserving high school or college students. Furthermore, LendEDU contributes to New Jersey-based nonprofit organizations such as The Hoboken Shelter, Advance the Cure for MS, and the Community FoodBank of New Jersey.
In September 2019, LendEDU served as a co-sponsor for the Pride Center of New Jersey’s inaugural gala marking its 25th year of service to the LGBTQ community. This event also featured sponsors like Robert Wood Johnson University Hospital and WellCare.
In the News
LendEDU’s research and data have been cited by prominent media outlets including The Wall Street Journal, The Washington Post, CNBC, Bloomberg, and Fox Business. These features underscore LendEDU’s impact within the student loan and personal finance sectors.
In June 2019, LendEDU released a study examining how student loan debt affects consumers who file for Chapter 7 bankruptcy, highlighting that student loan obligations persist even after bankruptcy discharge.
The company’s yearly rankings of the "top 50 college financial literacy programs" assess factors such as educational workshops, personalized counseling sessions, and incentive initiatives to measure universities’ commitment to financial education.
In August 2020, LendEDU published its fifth annual report titled "Student Loan Debt by School by State," which revealed an increase in average student loan debt per borrower in the United States—from $28,565 in 2018 to $29,076 in 2019.
In September 2020, a survey conducted by LendEDU involving 1,000 U.S. homeowners found that 55% of those who purchased homes during the pandemic regretted their decision mainly due to financial concerns.
Drew Cloud Controversy
Beginning around 2016, "The Student Loan Report" started releasing surveys and analytical reports, including a 2018 assertion—referenced by outlets such as Fox News, CNBC, and Inside Higher Ed—that 20% of students used loan funds to purchase digital currency. However, an inquiry by the Chronicle of Higher Education uncovered that the purported founder of the site, "Drew Cloud," was a fabricated persona. The Chronicle accused LendEDU of "misleading media outlets with a fictitious source" and highlighted the lack of transparency regarding its ownership of the Student Loan Report.[5]
The Atlantic condemned LendEDU’s approach, stating it capitalized on the confusion surrounding student debt to market refinancing options that financially favored the company.Cite error: The opening <ref> tag is malformed or has a bad name
According to The Boston Globe, Pollfish—the firm responsible for conducting the survey—affirmed the validity and independence of its results.Cite error: The opening <ref> tag is malformed or has a bad name
In April 2018, NPR reported that the Student Loan Report website received more than 8,000 visits.Cite error: The opening <ref> tag is malformed or has a bad name
In March 2020, the Federal Trade Commission reached a settlement with LendEDU concerning accusations of deceptive ratings and reviews connected to financial products.Cite error: The opening <ref> tag is malformed or has a bad name
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