MyRichUncle
| Company type | Defunct |
|---|---|
| Industry | Student loans |
| Founded | March 2000 |
| Founders | Vishal Garg Raza Khan |
| Defunct | February 9, 2009 |
| Fate | Filed for Chapter 7 bankruptcy |
| Footnotes / references | |
MyRichUncle, owned by MRU Holdings, Inc., offered discounted student loans to borrowers in the United States.
In 2001, the company launched its first product, in which students signed over a percentage of future earnings to investors; selling their human capital.
In 2006, MyRichUncle published an advertisement in The New York Times questioning financial aid administrators' practice of taking "kickbacks" from lenders in exchange for a place on their "preferred lender" lists; the campaign triggered an investigation that led to several lenders agreeing to a new code of conduct. The campaign also alienated many school administrators.
Between May 2005, when the company launched a private loan product, through June 2008, the company originated over $420 million of private student loans and approximately $40 million of federal student loans.
The company depended on Merrill Lynch to buy and securitize its loans. In February 2009, after banks cut off the company's credit lines due to the 2008 financial crisis, MRU Holdings filed for Chapter 7 bankruptcy and suspended its operations.