Pay4Education Inc, a fintech company focused on helping consumers making informed college finance choices, has raised $575,000 in funding. Springfield Venture Fund led the round with participation from other investors that included Alchemy Group.
Correction: An earlier version of this news report misstated the amount that was raised in this funding. That information has since been corrected.
June 13, 2019 SPRINGFIELD, MA— Pay4Education, Inc., a fintech company focused on helping millions of consumers make informed college finance choices by determining costs and monthly affordability in advance, today announced that is has secured its initial funding round. The Springfield Venture Fund, created by MassMutual to support fast growing businesses in the city, led the round with additional support from the locally based Alchemy Group and several edtech and finance angels.
Co-Founder and CEO Patrick Kandianis, a student finance and fintech veteran, and Co-Founder Colleen Krumwiede, a longtime financial aid administrator, developed the platform to help mitigate the effects of mismanaged student debt at the time of purchase and to fill the void of actionable advisory tools.
“Every student and family’s college selection and college finance story is unique,” said Kandianis, “College award letters only provide general insights for a single year at a time and are delivered in a myriad of different formats. We help families cut through the red tape and see a true picture of all four years of costs with just an award letter or a tuition bill. Then we look at outcomes to see if the purchase makes sense.”
Pay4, scheduled for launch in early July, will use the funds to accelerate product development and ramp up marketing of its revolutionary family-focused platform. Pay4 works directly with consumers, with financial and college advisors, and also with colleges and universities that share its vision to provide their admitted students with a clear understanding on all four years of costs up front. Several colleges are beta testing the product with first year populations this summer.
Chris Sims, partner in the Alchemy Group, noted, “College is one of the largest investments a family will make. Pay4 simplifies all the complexity of this process, across years, siblings, and sources of funding, into one decision platform. It will empower both families and schools, transforming the way people plan and pay for college.” Jay Leonard added that, “With the platform being built and operated in Western Massachusetts, SVF is excited to have experienced entrepreneurs running such a game-changing, consumer-focused business based right here in Springfield.”
About Pay4Education, Inc.
Pay4Education believes informed consumers make better choices and better students, and, if necessary, better borrowers. Pay4 increases financial knowledge and transparency by empowering students, families, and colleges with technology that clearly shows the costs of four years of college on a monthly payment basis. By enabling students and their families to make smarter, personalized financial decisions that fit their budgets when “purchasing” college, Pay4 helps consumers responsibly manage the entire payment and repayment lifecycle. Learn more at www.pay4edu.com.