Financial services company LendingTree said Friday that it has acquired Austin-based Student Loan Hero Inc., a personal finance website for managing student debt.
LendingTree, headquartered in Charlotte, connects users with lenders. The company will acquire Student Loan Hero, which offers tools, resources and advice for those paying off student debts, for $60 million.
LendingTree CEO Doug Lebda said the move will allow the company to quickly expand its student loan business. According to a news release, LendingTree has facilitated more than 65 million loan requests.
"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,” Lebda said in a written statement.
Andy Josuweit founded Student Loan Hero in 2012 after graduating college three years earlier with thousands of dollars in students loans.
“I was just getting terrible student loan advice,” Josuweit said, adding that his bad experience with student debt sparked his idea for the company.
After the merger, there will be 34 employees in the company, including three based in Austin.
Josuweit said LendingTree is the right platform for Student Loan Hero to engage with more consumers.
“It’s really great and obviously they’ve been around the block,” Josuweit said about LendingTree, a 22-year-old company.
Student Loan Hero has helped more than 200,000 borrowers manage and eliminate over $3.5 billion in student loan debt since 2012, according to a news release
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