Washington-based Savi, the firm that helps students in the country by providing them better loan repayment and forgiveness options has confirmed picking up $6 million in its Series A financing. The current round has been led by fintech investment firm Nyca Partners with participation from AlleyCorp, Temerity Capital, 9Yards Capital.
Prior to this round, Savi had raised $1.5 million in seed financing which came in two tranches. The current infusion takes the total amount raised by the firm to $7.5 million.The company was founded by Aaron Smith and Tobin Van Ostern in 2017. Savi plans to use the capital to expand its operations and its business reach.
Aaron Smith, the CEO of the firm while speaking to TechCrunch said that “While obviously I think there needs to be a continued improvement on the policy side, we needed solutions for student loan borrowers right now. And so that was sort of the impetus behind Savi — to use technology to create those kinds of solutions.”
The firm also provides an option for loan forgiveness. However, for the students to avail this option, they need to be within the rules of their loan programs. It is an interesting option and if the students can avail it, it surely helps them concentrate on their studies.
With the help of the current round of financing, Savi will now look to expand its reach an assist more students in these crisis times. With COVID-19 pandemic, making the economy take a dip, programs like these will keep the morale high for the students, who are the future.
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