The Student Loan Tsunami is coming in just a few short months: on February 1, 2022, the post-COVID resumption of student loan payments will hit over 43 million borrowers in the US all at once.
Today, 70 percent of American graduates from last year have student loans.
At Payitoff, the company is building infrastructure to automate and optimize every aspect of debt management, starting with student loans.
Yesterday, Bobby and Payitoff announced a new $8.5 million funding round led by Lightspeed Venture Partners in which Social Leverage participated. We also participated in an earlier round pre pandemic.
From Bobby:
Our team has been working overtime to get our API infrastructure and technology into the hands of as many fintechs, financial institutions, and workplace providers as possible before the Student Loan Tsunami hits. Even though student loans are inherently the most complex debt in existence, Payitoff is dead simple to implement into a financial services platform and provides immediately impactful outcomes for both borrowers and the apps they use every day.
In fact, partners using Payitoff save the average borrower $240 a month on their student loan payments. This isn’t money they have to pay back either — much of the savings comes from federal and state assistance programs which are a headache to navigate independently, but can be instantly enrolled in using Payitoff.
Here is Bobby’s full post on behalf of the company .
I had Bobby on my ‘Panic’ podcast last year as the pandemic began and we did not know that the student loan can would be kicked down the road for another 20 months.
Have a listen here if you would like to understand how Bobby is thinking about the problem.
Have a great Friday…
ABOUT PAYITOFF
Payitoff is building infrastructure to automate and optimize every aspect of debt management, starting with student loans. The company partners with fintechs, workplace providers and financial institutions to provide technology solutions that produce better financial outcomes for their customers, the borrowers. Payitoff was founded by Bobby Matson in 2017 and the company is headquartered in New York, with a remote-first team dispersed across the country. To-date, Payitoff has raised a total of $11M in funding, from Lachy Groom, Lightspeed Venture Partners, Social Leverage, Sound Ventures and Struck Capital, as well as angel investors, including: Ayo Omojola, Jim Esposito, Rohini Pandhi, Russ Fradin, Ryan Nece and Todd Jackson.
