Tuition.io, a student loan managing platform, received an undisclosed investment from Raj Date through his investment firm Fenway Summer.
Tuition.io had previously raised a $1 million Seed Round from a group of investors.
Tuition.io now manages over $1 billion in student loans. At the time of its seed round in February 2012, Tuition.io just surpassed $250 million in student loans under its management.
Tuition.io aims to make it easy for students to get an overview of their outstanding debt and therefore be able to manage it better.
“The reality is that the average student does not have that firm of a grasp on what he or she actually owes. If you don’t know what you owe it’s harder to do the non-trivial task of dynamically managing your debt load.”
states Raj Date in an interview with TechCrunch.
According to Date the market for student loans is broken as student loan performance is only getting worse. The student loan debt is currently above $1.1 trillion with 37 million people in the U.S. currently having outstanding student loan debt.
This also has a negative impact on the economy as graduates spend most of their money repaying loans instead of creating personal wealth as reported by npr.
Tuition.io is now working on their business model; they currently generate revenue from displaying ads on the company’s popular blog.
- Tuition.io Picks Up A New Investor, As It Manages Over $1 Billion In Student Loans | TechCrunch
- Tuition.io Brings in Funding, Surpasses $1 Billion in Loans Under Management | Finovate
- Tuition.io raises $1 million in Seed Funding | FinSMEs
- Paying Off Student Loans Puts A Dent In Wallets, And The Economy | npr