This month, people who owe money on federal student loans will have to start making payments again. That means borrowers who haven’t had to worry about student loans for more than three years are trying to figure out exactly what their next steps are. And many companies are competing to solve it.
Now, the student loan repayment deadline is approaching again, and it’s causing a lot of anxiety.
“Words like ‘overwhelmed’ and ‘anxious’ often appear in our emails,” said Betsy Mayotte, president of the company. Student Loan Advisor Associationa non-profit organization that helps borrowers manage their debt free of charge.
Many of them, she points out, are trying to figure out exactly how much debt they owe and whether there are any government forgiveness plans available to them.
“It all comes down to not knowing which payment plan to choose and wanting to make sure you’re not missing out on anything,” Mayotte says.
There are also companies working in this area. According to PitchBook, about $1.2 billion has been invested in student loan management startups in the past year.
Some startups work directly with borrowers. Some contract with companies that want to offer student loan advice as a perk to their employees.
Jenny Abramson heads the venture capital firm Rethink Impact, which invests in this space.
“We like the idea that employers can play a role and, frankly, that employers can be financially incentivized to play a role in reducing this stress.” she stated.
Abramson added that when employees don’t have to worry about money, they can focus more on their jobs.
There’s a lot going on in the world. For everything, Marketplace is here for you.
You use the Marketplace to analyze world events and communicate how they affect you in a factual and approachable way. We rely on your financial support to continue making that possible.
Your donation today powers the independent journalism you depend on.. For as little as $5 a month, you can help sustain our marketplace. This allows us to continue reporting on the things that matter to you.