Student loan refinancing startup Splash Financial raises $ 4.3 million – TechCrunch
Financial Splash, a Cleveland-based startup that has partnered with the Pentagon Federal Credit Union to refinance student loans, raised $ 4.3 million in a venture financing round.
The round was led by CUNA Mutual Group, a partner of PenFed, and Northwestern Mutual Future Ventures, the corporate investment arm of Northwestern Mutual.
As student loan debt skyrockets, more and more financial services companies are looking for ways to cash in on the growing national problem.
Splash Financial provides PenFed with an easy online way to issue loans that people can use to consolidate their student loan payments.
Conditions Splash Financial’s offers are not great, according to NerdWallet. Through Splash Financial, borrowers can get fixed interest rate loans between 3.87% and 7.03% and variable interest rate loans between 3.05% and 7.79%.
“With this funding round, Splash has gained not only new investors, but also strong partners in CUNA Mutual Group and Northwestern Mutual,” Steven Muszynski, founder and CEO of Splash Financial, said in a statement.
The company said it would use the money to attract additional banks and credit unions as lending partners and expand its national footprint.
It should be noted that during CUNA is a PenFed partner, Northwestern Mutual does not appear to be. As insurers seek ways to market other home, life and health insurance products to younger generations who don’t buy, student loans present an opportunity, the companies said.
“We believe in the power of financial innovation to change lives, shape the future and build a better future,” said Brian Kaas, President and CEO of CMFG Ventures. “Student loan refinancing is an important area of opportunity for financial institutions, so we are excited to invest in this innovative loan refinancing platform. This will help millions of college students tackle their student loan debts and connect them with financial institutions for long term success.