Striders + Student Collaborating

If you’re trying to get a mortgage or an auto loan, banks will put on their judging glasses and look into your past. Makes sense; it’s a reasonably reliable indicator as to whether you’ll be able to repay your loans or not. Student financing is a little different.

Sure, your past plays a role, but for a lot of education, having a degree dramatically changes your earning potential, and hence your ability to repay. With a philosophy that the current student loan systems perpetuate the rich-get-richer systems, Stride Funding is taking a different approach and just raised $12 million to help it take the business a few more steps into the future.

The issue at the heart of the company is one of equality and access to education — one of the most significant indicators as to whether someone will have an opportunity for financial upward mobility. As you might expect, there are layers of privilege (can your parents help pay for your loans) and — more specifically — institutionalized racism in the picture.

It is with quixotic optimism that Stride Funding is taking on the $130 billion student loan industry, which currently has $1.6 trillion worth of loans outstanding.

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