MasterCard’s New Cash-Back Student Loan Deal

TechCrunch reported on Tuesday (June 21) that, when Gradifi launched its student loan assistance program, more than 450 companies reached out to take advantage of that offering, a nod to the fact that offering such assistance remains a staple of attracting employees. Those companies can use the Gradifi platform to contribute funds which are then used to help pay the debt of employees with those firms.

The tech site noted that the firm has 20 companies registered through its platform, and there are 80 more that are coming on board through the end of 2017. The total tally of loans that are registered across the platform comes, at present, to $150 million.

Gradifi said that it would be launching a partnership with Radius Bank, which allows MasterCard users to earn 1 percent cash back, which is earmarked for student loans.

As for the financials of Gradifi itself, the company, according to TechCrunch, is backed exclusively by angel investors and has expectations that the firm will be cash flow positive by the end of next year. The firm also signed a partnership for 1.1 percent cash back, and the spread that comes between the 1 percent that it offers on the cards to pay for overhead and other costs — for example, staffing, as it has expanded exponentially, from three employees last year to 30 staffers at present.