Digital Bill Payment

Student Loan Mgmt Firm Payitoff Notches $8.5M

Payitoff, an automatic student loan administration firm serving the FinTech sector, has generated $8.5 million in a seed spherical, in keeping with a Wednesday (Nov. 10) press launch.

Led by Lightspeed Venture Partners, the spherical noticed participation from Sound Ventures, Struck Capital and Social Leverage, along with a lot of angel traders, per the announcement. The contemporary funds will help the 4-year-old firm in increasing its worker base and onboarding dozens of recent FinTechs as they put together for the resumption of student loan funds on Feb. 1, in keeping with Payitoff.

“With loan forbearance coming to an end and 43 million borrowers re-entering payment, we’re about to experience a ‘student debt tsunami’ that will impact our economy and financial markets in ways never experienced before,” mentioned Justin Overdorff, accomplice at Lightspeed Venture Partners. “Payitoff offers financial services and innovative solutions, one that takes into account the financial health of their customer, the borrower.”

Payitoff’s API options allow companions to embed student loan reimbursement instantly. Payitoff customers save the common borrower $2,800 per yr, in keeping with the announcement. Approvals for varied packages, akin to income-driven reimbursement, might be finalized in about 10 days versus the trade normal of six weeks.

In associated information, FutureFuel.io, in a joint effort with Fiserv, final month introduced plans to convey the FutureFuel.io student loan reimbursement platform to extra debtors. Offering a customized method to student loan reimbursement based mostly on the borrower’s wants, the platform leverages machine studying know-how and behavioral economics to assist shoppers decide how finest to repay their loan.

READ:   5  Red Flags to Look Out for

Read extra: FutureFuel.io, Fiserv Announce Collaboration on Student Loan Repayment Platform

As of 2019, there have been 44 million student loan debtors who collectively owed $1.5 trillion in debt, making student loans the second-highest debt class behind residence loans, as PYMNTS reported. By 2023, it’s estimated that 40% of student loan debtors will default on their loans.

See additionally: How Frank Wants to Help Students Stay Away From Debt

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NEW PYMNTS DATA: THE 2021 HOLIDAY SHOPPING OUTLOOK

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