Fintech startup Savi Solutions has closed on a $6 million Series A funding round.
Founded in 2017 by student loan experts and advocates Tobin Van Ostern and Aaron Smith, Savi Solutions developed a platform that uses a proprietary tech to identify better student loan repayment and forgiveness options for borrowers. It’s based out of MakeOffices K Street.
This latest funding round was led by fintech investment firm Nyca Partners with participation from AlleyCorp, Temerity Capital, 9Yards Capital and others. The company said via its Twitter account that it plans to use the funding to accelerate growth plans. Including two previous seed rounds, Savi Solutions has raised $7.5 million in venture capital to-date, according to Crunchbase.
“While obviously I think there needs to be continued improvement on the policy side, we needed solutions for student loan borrowers right now,” said Smith in a TechCrunch interview. “And so that was sort of the impetus behind Savi — to use technology to create those kind of solutions.”
The company’s tech assesses student loan data from its users, mixed with their repayment goals, to come up with the best financial plan to pay off student loan debt. Savi Solutions also partners with companies and organizations to provide its student loan assessment tool as a benefit for employees with student loan debt. Users can also use the Savi Solutions’ student loan assessment tool to calculate their financial plan before committing to a full subscription.
With a $5 subscription fee, Savi Solutions said users save an average of $140 a month. The large teachers union, National Education Association, is one of the company’s partners and its platform is offered as a benefit to members, TechCrunch reports.
During this time, Savi Solutions is also providing a free COVID-19 student loan aid tool to healthcare professionals and people who have been laid off or experienced income decreases due to the pandemic.
🚨USE THIS NOW: COVID-19 Student Loan Aid Tool
We worked w/ #StudentLoanDebt advocates to make our service free to help you lower or eliminate your student loan payments during the #COVID2019 crisis if you lose your job or your hours are reduced.https://t.co/8HIPUFaBtC pic.twitter.com/2dO2yFJdZN
— Savi (@BySavi) March 18, 2020
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