6 startups that help borrowers manage their student loans
- A class of startups is trying to tackle America’s massive student debt crisis.
- Some help borrowers refinance their loans or streamline their monthly payment plans.
- Here are six student loan startups that have raised venture capital funds.
Last week, the Biden administration announced its long-awaited student debt forgiveness plan for borrowers who earn less than $125,000 and had taken out federal loans for higher education. Individual borrowers will receive a $10,000 rebate, while Pell Grant recipients will receive $20,000. Its fate in court is uncertain, but it represents a big step in the fight against student debt in the United States.
Yet the student debt crisis in the United States has been going on for decades: As of July, about 47 million borrowers owed about $1.75 trillion in unpaid student debt between federal and private loans.
A growing number of startups have sprung up to tackle this problem from many different angles, from refinancing student loans at lower interest rates to integrating student loan repayment as a perk that bosses can offer to their new employees.
Insider put together a list of six startups that operate in student loans across a wide variety of verticals and asked their founders to share how their startups and customers are affected by the government’s student loan cancellation plan. Biden administration.
Funding based on PitchBook data unless otherwise stated.