North Carolina-based LendingTree, Inc. is taking a big step into the student loan space, with its announced agreement to purchase Student Loan Hero, Inc., a personal finance website for student loan borrowers to manage their student debt.
“The acquisition of Student Loan Hero is a strategic transaction that will allow LendingTree to quickly scale our Student Loan business,” said Doug Lebda, founder and CEO of LendingTree in a press statement. “On top of that, LendingTree and Student Loan Hero share a common goal of providing consumers with the tools and resources to better understand their personal finances and make smarter financial decisions.”
Founded in 2012 by CEO Andrew Josuweit, Student Loan Hero has helped over 200,000 borrowers manage and eliminate over $3.5 billion in student loan debt since 2012. The company also assists individuals to become more financially healthy, reaching over 3.5 million people each year. This includes giving current and former students free loan calculators and unbiased, unbiased personalized advice.
Andy Josuweit, founder and CEO of Student Loan Hero, views the acquisition as an opportunity for the business to grow, stating, “Given LendingTree’s emphasis on consumer empowerment and transparency, we feel confident that this is the right platform for Student Loan Hero to engage more consumers and help them reach their financial goals.”
LendingTree will pay $60 million in cash upon closing that is anticipated in the third quarter of 2018.
