Chipper Launches Explore to Transform Student Loan Repayment After CARES Act Expires
78% of borrowers who use the new feature find a better plan
AUSTIN, Texas–(BUSINESS WIRE)–#CARESAct—Chipper, a social impact fintech company, today announced the launch of Explore, the first mobile feature designed to transform the way student loan borrowers navigate the complex repayment process. This free feature is Chipper’s most powerful tool yet and furthers its commitment to making expert student loan guidance available to all.
Explore enables borrowers to get a personalized, holistic repayment strategy in minutes. Using Chipper’s Core technology, borrowers can get a full 360-degree view of their current student loan situation, explore and compare 120+ repayment and forgiveness programs, and automatically enroll in eligible plans, without ever leaving the app.
In addition to its powerful technology, Chipper provides 1:1 support from student loan experts to help borrowers every step of the way. On average, users who qualify for income-driven plans can lower their payments by $298 per month, and forgiveness eligible borrowers are on pace to erase over $80k with Explore. You can download it on Apple’s App store, the Chipper website, and Google Play.
“The current student loan system is broken. Borrowers are confused about their options and aren’t sure who to turn to for help. This lack of access and awareness has caused more than 70% of borrowers to be in a distressed situation,” said Chipper Founder and CEO, Tony Aguilar. “Now with COVID-19, millions of borrowers are struggling, so we decided to do something about it. You shouldn’t have to qualify for refinancing or work for a certain company to get expert student loan advice and Explore is here to fix that.”
Transforming an Antiquated Industry
Student loan debt is one of the most prevalent financial issues in our society and COVID-19 is making it even worse. The U.S. Department of Education reports that about 20% of borrowers are in default while millions more are behind on their payments. With more than 10 million student loan borrowers out of work, the likelihood of default only increases. So while the CARES Act passed by the government provides temporary relief, payments are currently set to resume January 2021. The 45 million people who have student loans will continue to be inhibited financially. This means the ability to start saving, investing, buy a house, get married, or achieve other life goals could be out of reach until they can figure out a financial solution.
Falling behind on student loans can have serious consequences including wage garnishment, damage to credit scores, or ineligibility for home loans. It’s estimated that 50% of borrowers could be eligible for forgiveness. Yet, 99% of them are denied because of unclear plan guidelines among other uncertainties.
Chipper is supported by some of the world’s top VCs and investors, including FJ Labs, 500 Startups, Former CEO and Chairman of BBVA, Manalo Sanchez, Co-Founder of SOFI, Dan Macklin, and United Airlines CEO/Chairman and Oscar Munoz, among others.
Chipper is transforming the way student loan borrowers navigate the complex repayment process with a simple, user-friendly mobile app. The team is building the first holistic student loan automation platform to recast the current student loan system and streamline the repayment and forgiveness processes. By allowing borrowers to discover and automatically enroll in student loan forgiveness programs, income-driven repayment plans, and chip away at their debt faster with features such as Explore, Round-Ups, Recurring/One-Time Boosts, and Pool, Chipper is making life, liberty, and freedom from student debt accessible to all borrowers.