In a little more than a decade, Wilmington-based College Ave has gone from a startup with a mission to simplify student lending to the second-largest private student loan provider in the country.
Behind that swift ascent is its strategic, deeply collaborative relationship with Firstrust Bank, which began with a handshake and has since powered more than $10 billion in student loans.
Founded in 2014, College Ave was created to take the stress and confusion out of paying for college. Co-founders Joe DePaulo and Tim Staley envisioned a more transparent, user-friendly experience for families navigating one of the biggest financial decisions they’d ever make.
“(Taking out student loans) is a very intimidating process for families, so we try to keep it simple,” said DePaulo, College Ave’s Chairman and CEO. “We try to be very transparent, and we give them some control over how the product works.”
Staley, College Ave’s Director and President, said the company has simplified the application process.
“I think you can get through it in less than three minutes,” he said. “And then you’re able to customize the loan based on your situation. We give the borrower the total cost of the loan. They have different repayment options to help them navigate through that process.”
That customer-first mindset resonated with Firstrust Bank, the largest family-owned financial institution in Greater Philadelphia and one rooted in relationship banking. Richard Green, Firstrust’s Executive Chairman and Owner, immediately saw potential in College Ave’s approach — and its leadership.
“Here was somebody (DePaulo) with a great background who was doing something in the fintech space,” said Green. “Since I was investing in the evolution of banking, this would be a good business to support.”
Firstrust did more than just invest in College Ave. The bank became its primary financial engine.
“When we do a loan, it’s really owned and papered by Firstrust — all of the disclosures, all of the fulfillment,” said DePaulo. “Then, Firstrust warehouses our loans until we sell them to the eventual buyers. Putting those two together is very, very unusual. Only a few banks in the country could get their head around that.”
It’s a model that’s enabled College Ave to scale quickly without sacrificing its core values.
“When we first met Firstrust, we had done about $53 million in loans,” said DePaulo. “Now, we’re doing more than $2.5 billion a year.”
That growth didn’t happen in a vacuum. Firstrust’s continued support has included structuring and leading a $1 billion credit facility for College Ave — an endorsement of the business’s performance, as well as its long-term sustainability.
“It’s exciting to think about where College Ave started to now, having done $10 billion worth of student loans,” said Firstrust CEO and President Tim Abell. “We’ve agented a billion-dollar credit facility for that. That speaks to the investments that Firstrust has made and the capabilities that we’ve created to support companies like this.”
Staley credited Firstrust not just as a lender, but as a true partner.
“You have to surround yourself with great people,” he said. “That extends to partnerships like Firstrust.”
“If you come from a large company, doing a handshake deal is almost unheard of,” said DePaulo. “With Firstrust, you can actually do a handshake.”
Learn more about how Firstrust Bank is helping people and businesses achieve success in the very region it calls home.
