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Pandit-Backed CommonBond to Sell Student Loans to Wall Street

CommonBond Inc., the student-loan startup backed by Vikram Pandit, is joining the push to bundle loans created online into bonds, selling $96 million of notes.

The sale will be marketed as soon as this week as CommonBond follows marketplace lenders OnDeck Capital Inc. and Social Finance Inc. in securitizing the debt they helped create. They are among a growing class of firms once better known as peer-to-peer lenders, whose pioneers set out to match borrowers with people looking to invest extra cash, before they expanded to tap Wall Street’s deeper pockets of institutional investors and banks.