Ascent, a San Diego-based provider of private student loans, has raised $45 million in a Series C funding extension. The company offers flexible cosigned, non-cosigned outcomes-based, and parent loans for undergraduate, graduate (including MBA, medical, law), and career bootcamp programs. It targets underserved borrowers like low-credit, first-gen, DACA, and international students, with no origination fees, autopay discounts, and the AscentUP platform for career and financial support. The new capital will scale originations and expand impact toward its $10B borrower income boost goal by 2028.
Grad PLUS Shakeup Fuels Private Innovation
The timing coincides with federal policy uncertainty around Grad PLUS loans, which Ascent's reports warn could disrupt graduate funding. Competitors are also capitalizing: Climb Credit secured a $125M debt facility in October 2024, while Funding U raised $17.5M Series B in early 2023 for credit-building loans. Ascent stands out with outcomes-based underwriting that prioritizes academic potential over credit history, filling gaps for FICO scores averaging 673.
Traditional federal loans cover only part of needs, with Grad PLUS at risk amid 2025 policy debates. Private lenders often demand cosigners or 700+ FICO, sidelining 40% of students from low-income households (under $32k avg). This leaves millions—especially first-gen and DACA learners—unable to finance degrees that could double lifetime earnings.
Ascent's non-cosigned loans qualify based on GPA (2.5+), program, and graduation rates, disbursing $210M such loans in 2023/2024 out of $581M total. Its Zero Percent Pay-It-Forward loans, backed by philanthropy, have originated $34M for underserved. Compared to SoFi's credit-heavy model or LendKey's cosigner focus, Ascent unlocks access while delivering results: 82% credit score gains and $1.6B income uplift for recent borrowers.
The AscentUP platform adds differentiation, offering remote internships, financial wellness tools, and $355k+ in scholarships to boost post-grad success. Since 2018, it has served 168k borrowers with $1.5B+ disbursed, earning 4.8/5 NPS from 9k+ reviews.
Endeavor Validates Inclusive Lending Model
Endeavor led the round, joined by Framework Ventures and others, signaling strategic bet on data-driven student finance amid federal flux. This growth capital positions Ascent to deepen partnerships with partner banks like Bank of Lake Mills. It reinforces a shift from pure credit risk to outcomes and impact metrics.
$1.6T Debt Drives Private Market Growth
U.S. student debt exceeds $1.6 trillion across 43 million borrowers, with private loans holding ~$140B outstanding and $25B+ annual disbursements. Bootcamp and grad financing segments are surging 20% YoY as alternatives to federal aid. Ascent's traction—$581M disbursed last two years—captures this, with non-cosigned and DACA loans ($15M) proving demand in underserved niches.
Competitive funding reflects momentum: Climb Credit's facility targets similar career training, while Funding U emphasizes rebuilding credit for subprime students. Trends favor flexible models like outcomes-based and ISAs, as schools adapt post-Grad PLUS.