Splash Financial announced that it has raised $4.3 million in its latest venture capital funding round. The round was led by CUNA Mutual Group, as well as Northwestern Mutual Future Ventures.
Splash Financial was founded in 2015 out of Cleveland, OH. The midwestern startup is making waves in the fintech industry due to its services that help students refinance their academic loans. Splash Financial partnered with the Pentagon Federal Credit Union (PenFed) to offer a variety of refinancing solutions. These services are exclusive to PenFed members. One of the most notably known solutions they offer is a joint service for married couples to refinance together.
According to a 2019 Forbes report, student loan debt is the highest it has ever been. In the U.S. alone, there are currently over 44 million borrowers who owe $1.5 trillion in student loan debt collectively. This rate grows immensely, year after year as more students matriculate through higher education institutions, leaving a trail of debt behind them. While some hail refinancing companies as modern-day heroes to students swimming in financial debt, others question if refinancing or consolidation really makes sense. A recent NPR article cautions students to research, weigh your options, and understand what will happen if you decide to choose to take that route.