FinWise Bank, a subsidiary of FinWise Bancorp, and Stride Funding, a mission-driven fintech company that offers access to outcomes-based education financing products, announced today the launch of their collaborative Employer Sponsored Loan (ESL) program. The loan program will improve education financing by allowing students to secure loans sponsored by their future employers, so that their education is linked directly to their career progression and helping reduce their debt burden after graduation.
The ESL Program is an extension of the successful Income Share Loan Program (ISP) that FinWise and Stride previously collaborated on, demonstrating both companies’ continued commitment to providing flexible and affordable education financing options. Students apply for sponsorship through participating employers and once selected are supported with loans from FinWise Bank, facilitated by Stride Funding. These loans are designed to be paid back by the employer as an employee benefit over a specified term of employment. This structure reduces the debt burden for talented students, while making efficient use of recruiting and retention resources used by employers to support critical workforce planning initiatives.
The program is available to students in critical fields such as engineering, healthcare, and skilled trade, addressing industry shortages and encouraging career growth. Eligible students may borrow up to $65,000 per year and $130,000 per student lifetime of participation with a minimum of $2,500. The pilot program has administered close to $2.2 million in sponsored loans for upfront tuition financing.
“The success of our pilot program earlier this year demonstrated strong demand for this type of innovative loan solution among both employers and students,” said Jim Noone, President of FinWise. “Working with Stride, we have refined the offering to create a win-win-win for students, employers, and schools with a focus on improving recruitment and retention.”
“The program is ideally suited to high-quality students willing to commit to working with employers post-graduation in exchange for placement opportunities and financial support for their education,” said Tess Michaels, Founder and CEO of Stride Funding. “It’s a step forward in our mission to improve economic outcomes for students and contribute positively to workforce development.”
To learn more about the ESL Program, please visit https://www.stridefunding.com/employers.
About FinWise Bank
FinWise Bank is a Utah state-chartered bank and a wholly-owned subsidiary of FinWise Bancorp, a Utah bank holding company headquartered in Murray, Utah. FinWise leverages strategic relationships with third-party loan origination platforms, proprietary loan analytics technology, and a seasoned management team to efficiently deliver innovative lending solutions to small businesses and individuals
and broader Banking as a Service (BaaS) card and payment solutions. For more information on FinWise Bank, visit www.finwise.bank.
About Stride Funding
Stride Funding, named the 2022 Startup of the Year by Startup Boston, is a venture-backed, mission-driven company that is transforming access to alternative and higher education with flexible forms of financing. Stride Funding has been recognized as a visionary leader for its innovative funding programs and commitment to career support.
Learn more at www.stridefunding.com.