Social Finance, Inc. (SoFi), the private student lender, announced that it secured a $60 million warehouse line from Morgan Stanley. The facility gives SoFi increased capacity to further expand its community-based lending model.

SoFi transformed student lending by connecting investors and borrowers via school-specific lending funds that yield compelling financial returns while lowering the cost of student debt. Since launching publicly in April 2012, SoFi has seen exceptional traction, having funded $90 million in loans and received interest from potential borrowers for an additional $250 million in loans.

“This financing represents a significant milestone for SoFi,” stated Mike Cagney, chief executive officer, SoFi. “The quality of our borrowers and rigorous underwriting criteria attracted the support of a world-class financial partner in Morgan Stanley. This credit facility supports our plans for ambitious growth and allows us to have a greater impact on the student loan market.”

This announcement comes two weeks after Sallie Mae, the largest U.S. student lender, sold $1.1 billion of securities backed by private student loans, according to the Wall Street Journal. The popularity of this sale demonstrated investor interest in student loan credit.

“SoFi’s student loan assets reflect the highest quality unsecured lending assets available,” said Cagney. “By adding more responsible underwriting and a community-based social contract between borrower and investor, our private education loans are a significantly more attractive investment.”

Morgan Stanley is a global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.