Back in 2014, Tuition.io was pitching itself as a management platform for student loan repayments. Now, three years later the company has raised $7 million in new financing as it moves from loan management services to actual repayment of student loans.
It’s a business model that’s already shown promise, with companies like FutureFuel.io also looking to get in on the action.
Both companies are partnering with employers to offer student loan repayment services as a benefit in the same way that folks would save for a retirement plan. A certain percentage of someone’s salary is taken out of their paycheck each month.
At Tuition.io, Wildcat Partners, Mohr Davidow Ventures, and MassMutual Ventures, has all put money into the business so that the company can move more quickly into the student loan repayment market.
As it pivots to actually work with companies to pay down student debt, the company has added two executives to its team. Scott Simmons, a former chief operating and finance officer at ShopRunner, a free shipping and return company, and Danica Bracy, who’s going to be working with Tution.io clients.
Already Fidelity Investments, Live Nation, and Staples are using the company’s loan repayments services.
The market for this huge and, sadly, growing. There are around 44 million people in the U.S. with outstanding student loans. Those loans total around $1.4 trillion with interest compounding at a rate of around $2,726 per second.
“Tuition.io’s value to our partners and their employees is clear. The company is changing the face of employee benefits while helping address a national crisis that is only slated to get worse,” said Bryan Stolle, General Partner at Wildcat Venture Partners, in a statement. “We have worked with Tuition.io since their inception and are excited to see their vision of helping ease the burden of student loans for the U.S. workforce become a reality.”