SoFi Reinvents College Loans With Alumni Funding


As the cost of a college education continues to rise, a startup called SoFi is offering a way for alumni to offer students financial assistance and more.

Co-founder and CEO Mike Cagney describes the current student loan system as a "classic market failure," resulting in students who are stuck with high interest rates and heavy debt that they struggle to pay off. He says that if you can remove government from the equation (specifically government loans) and replace it with alumni, then "you create a very virtuous cycle."