College isn’t free yet, but Savi raises a $6M Series A to assist student loan borrowers find loan forgiveness

The student loan crisis has crescendoed to even worse heights. As universities shut down across the country due to the outbreak of COVID-19 and employment opportunities dim with the rapidly decelerating economy, today’s students and post-grads need better tools than ever to navigate their finances.
Unfortunately, student loans in the United States are extraordinarily complicated, with literally hundreds of variations on loan terms, repayment methods and public interest forgiveness options. For borrowers, what are the best ways to minimize their total burden while staying within the rules?
Washington, DC-based Savi wants to make student loan borrowers “savvy” to the best options available to them, and now it has even more capital to take on this pressing challenge. The company announced today that it has raised a $6 million Series A led by Nyca Partners, one of the most influential investing firms in the fintech space.
Finance startups often have misaligned incentives between users and their own revenue models — a financial health app may make quiet referral revenue by peddling new credit cards and loans, exactly what a user doesn’t need.
What makes Savi interesting is that the company was designed from the beginning to make sure that it always placed the interests of its users first. It’s organized as a public benefit corporation and founded by two idealistic founders who came together over improving the outcomes of the nation’s youth.
After graduating from Georgetown Law, Aaron Smith founded and spent four years running Young Invincibles, a youth-focused think tank and advocacy organization that was originally created to bring attention to youth issues during the healthcare reform discussions in the early years of the Obama administration. Meanwhile, Savi’s other co-founder, Tobin Van Ostern, worked on youth voter engagement for Obama’s first presidential campaign as the head of Students for Barack Obama before heading to the liberal Center for American Progress.
College isn’t free yet, but Savi raises a $6M Series A to assist student loan borrowers find loan forgiveness
Savi co-founders Tobin Van Ostern and Aaron Smith. Photos courtesy of Savi.
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