The marketplace lender CommonBond announced that it has raised $35 million, which it plans to use to expand its operations across the country.

The New York company, which launched in 2012, finances tuition for students at some of the nation's top business schools. It also refinances existing student loans for graduates of a wider range of degree programs.

In a press release announcing the fundraising, CommonBond said that it expects to hit $500 million in total loans originated by the end of this year.

The funding round was led by the venture capital firm August Capital. Nyca Partners, another venture firm that focuses on the financial services sector, also contributed.

[Coming this November: Marketplace Lending + Investing. Hear how participants in this fast-growth niche are using data and technology to propel lending into the 21st century.]

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