The Trump administration’s sweeping overhaul of federal student loan borrowing is starting to push more higher education borrowers into the hands of private lenders, where loans can be costlier and less flexible.
Ascent, a San Diego-based outcomes-based financing lender, is stepping up with loans that are friendly on interest and repayment, alongside support services that help students graduate and repay on time.
Over the past decade, Ascent has deployed over $1.5 billion to hundreds of thousands of student borrowers, through loans that don’t require a cosigner or a strong credit profile. Students are required to begin making payments nine months after graduation based on their yearly salaries.
“A student’s potential shouldn’t be limited by their current financial circumstances, but rather fueled by their future success,” said Ascent’s Ken Ruggiero. “As federal policies shift and traditional funding gaps widen, our mission to offer financing for traditionally overlooked and underserved individuals and families has never been more important.”
Inclusive lending
Ascent’s $45 million Series C financing was led by an undisclosed global asset management firm. “This new capital will allow us to double down on our goals, providing students with the funding they need to invest in their future,” Ruggiero said.
Ascent’s goal is to help student borrowers increase their income by $10 billion by 2028. It lends to undergraduate and graduate school borrowers, screening them mainly based on their earning potential upon graduation. The company also supports upskilling for healthcare workers, electrical lineworkers, welders and other skilled trade workers, and has a lending program for DACA students who don’t qualify for federal student loans.
