The funding takes Tuition.io’s total capital to more than $8 million. Tuition.io plans to use the capital to help acquire more enterprise customers, as well as to grow its customer service, engineering, and sales teams.
Tuition.io founder and CEO Brendon McQueen demonstrated his company’s platform at FinovateFall 2012 in New York.
Calling the investment a “testament to the headway” the company has made, Tuition.io founder and CEO Brendon McQueen pointed to his company’s status as a first-mover in the field as key. “We are proud to have been the first to market at scale with an innovative financial wellness platform that enables employers to offer student-loan payments as a benefit for hiring and retention,” McQueen said. He credited Tuition.io for “helping global companies attract and engage competitive talent while simultaneously addressing the $1.3 trillion student loan crisis in the U.S.”
Bryan Stolle, a general partner with Mohr Davidow Ventures, referred to Tuition.io as a “real game-changer for recruiting millennials.” He credited the company’s enterprise platform for “empowering employers to recruit and retain employees with student-loan contributions as a benefit.”
Tuition.io helps student-loan borrowers manage their debts. The platform uses graphical visualization to make it easier for borrowers to see how much they owe, to whom, and how to pay it off sooner. In April, Tuition.io launched a new student loan benefit solution, Flex395 that lets employers directly contribute to employees’ student-loan repayments to accelerate the payoff.
Announcing the new Flex395 initiative this spring, McQueen suggested that for many young professionals entering the workforce, retiring student loan debt is a higher priority than investing in their 401(k)s. “Young people neither willingly adopt nor care about 401(k) products,” McQueen said. “However, 70% of college graduates are finishing school with student loan balances averaging nearly $30,000.”
“The question is not whether 401(k)s are beneficial—of course, they are—but rather what benefits employers can offer that are most relevant and attractive to young, talented employees,” McQueen explained.
Founded in October 2011 and headquartered in Los Angeles, Tuition.io demoed its technology at FinovateFall 2012. Since inception, the company has helped thousands of borrowers manage more than $2 billion in outstanding student loans.