&gt; In this round, $75 million is equity investment, and $200 million is debt funding.<p>Before people read the headline and think &quot;OMG another big one&quot;, this line is important. They are raising $75MM for the company and $200MM for the actual financing of the loans.<p>For anyone not familiar with SoFi (the main competitor), this model makes a ton of sense. Student loan terms do not take into consideration your future earnings based on what school you attend. Which means someone who goes to Harvard could have the same student loan structure as someone who goes to Foo State College. This is simple arbitrage.