Back in 2014, Tuition fees.io presented itself as a platform for managing student loan repayments. Now, three years later, the company has raised $ 7 million in new financing as it moves from loan management services to the actual repayment of student loans.
It’s a business model that has shown promise in the past, with companies like FutureFuel.io looking to jump into the action as well.
The two companies are partnering with employers to offer student loan repayment services as a benefit in the same way people would save for a retirement plan. A certain percentage of a person’s salary is taken from their salary each month.
At Tuition.io, Wildcat Partners, Mohr Davidow Ventures, and MassMutual Ventures all put money into the business so the business could get into the student loan repayment market faster.
As it strives to work with companies to pay off student debt, the company has added two executives to its team. Scott Simmons, former director of operations and finance at ShopRunner, a free delivery and returns company, and Danica Bracy, who will be working with Tution.io customers.
Already Fidelity Investments, Live Nation and Staples use the company’s loan repayment services.
The market for this huge and, unfortunately, growing. There are approximately 44 million people in the United States with outstanding student loans. These loans total approximately $ 1.4 trillion, with interest compounded at a rate of approximately $ 2,726 per second.
“The value of Tuition.io for our partners and their employees is clear. The company is changing the face of benefits while helping to cope with a nationwide crisis that is only set to worsen, ”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 American workforce become a reality.”