CLEVELAND–Splash Financial, a start-up that has partnered with the Pentagon Federal Credit Union to refinance student loans, has raised $4.3 million in a round of venture financing led by CMFG Ventures, a unit of CUNA Mutual Group, and Northwestern Mutual Future Ventures.
Splash Financial said it provides an easy, online way for PenFed to originate loans that folks can use to consolidate their student loan payments.
According to NerdWallet, borrowers from Splash Financial can get loans with fixed interest rates ranging between 3.87% and 7.03% and variable interest rate loans ranging between 3.05% and 7.79%.
“Through this funding round, Splash has gained not only new investors but also strong partners in CUNA Mutual Group and Northwestern Mutual,” said Steven Muszynski, founder and chief executive of Splash Financial, in a statement.
The company said it would use the money to bring on additional banks and credit unions as lending partners and expand its national footprint.
“We believe in the power of financial innovation to change lives, shape futures, and build a better tomorrow,” said Brian Kaas, president and managing director, CMFG Ventures in a statement. “Student loan refinancing is an important area of opportunity for financial institutions, so we’re glad to invest in this innovative loan refinancing platform. It’ll help millions of college students tackle student loan debt and connect them with financial institutions for long-term success.”