New York City-headquartered Edly, a student loan platform offering income-based repayment (IBR) loans in the private sector, has secured up to $175 million in future flow financing commitments.

The investments are from funds and co-investment vehicles managed by Medalist Partners, a private credit and special opportunities investment manager, and Windmuehle Funds, a manager of nontraditional private alternative investments.

IBR loans are an alternative to traditional private student loans. Instead of paying a fixed interest rate, a student agrees to pay a fixed percentage of their earnings for a fixed number of months once they are employed and are earning a threshold salary. Borrower payments are subject to a cap on the total number of payments or total amount paid, as well as an APR cap.

Edly investors support students while generating a predictable monthly cash flow from a diversified portfolio. The financing facilities announced will be used to fund IBR loans to students across the US. The two investment firms have also made direct investments in Edly.

Earlier this year, Edly purchased Avenify, a company specialising in student financing for nursing schools. With this acquisition, Edly intends to expand its social impact and provide more nursing students with access to flexible education financing solutions.

Date published: 10 March 2022

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