March 10, 2022

Chipper Raises $5.6M to Eliminate Student Loan Debt and Combat the Latinx Funding Gap

News

Austin, TX - March 10, 2022 – Chipper, the app working to empower student loan borrowers to chip away at their debt faster, announced today it has received a $5.6 million seed investment. The round was led by Freestyle Capital, Slauson & Co., and Propel Venture. Backers also include investors from the Cap Table Coalition and fintech leaders Ethan Bloch of Digit, founder of Loop John Henry, and Craig Lewis of Gig Wage.


With this investment, Chipper expects to quickly grow its existing user base of 80,000+ users, as 45M+ people will go back into repayment in May. Funds are allocated in preparation for the moratorium lift through team growth, marketing, and product expansions including the launch of new programs like Chipper Rewards. By accelerating its capabilities and offering comprehensive solutions to its users, Chipper will surely emerge as the go-to app for paying off student loans. 

“As a first-gen high school and college graduate who experienced the trials of conquering student debt, I wanted to create a simple solution for all student loan borrowers to manage their debt and navigate a realistic path to financial freedom,” said Tony Aguilar, founder and CEO of Chipper. “With this new round of funding and payments resuming in May, we know 2022 will be a big year for Chipper. This funding will allow us to grow our user base and help borrowers with their student loan journeys from start to finish.” 

Launched in 2020, Chipper empowers student loan borrowers to improve their financial health by providing transparent, seamless student loan repayment solutions and is the only student loan app to support borrowers in every step of their journey. Chipper saves users an average of $309/month and has helped qualified applicants receive a total of $81 million in forgiveness since its launch. The company is currently growing 40% month over month, demonstrating its unique position in the student loan space.

Chipper’s revenue is obtained through a tiered membership program. It’s completely free to sync loans from your servicer and explore forgiveness and repayment options. Users can enroll with Chipper+ for additional support, auto-enrollment for forgiveness or repayment programs, and access to round-ups for $4/month. Users can also access the round-ups service on its own for $2/month. For now, all Chipper services are free until the loan moratorium is lifted on May 1, as borrowers aren’t making payments.


“This funding round is more than an investment in our product and team; it is personal for me as a Latino founder as we work to close the gap on both sides of the table in venture capital. As we climb, we must pull others along with us where we can. We started Chipper with the mission of helping those hit the hardest by student debt, which are people of color. I’m excited to partner with the Cap Table Coalition and pledge more than 25% of this round to diverse investors,” said Aguilar.

“This new funding round positions Chipper for tremendous growth in the year ahead,” said Austin Clements, managing partner at Slauson & Co. “We believe that Chipper is revolutionizing the way people approach the difficult and confusing student loan process, making it digestible and far more accessible to the millions of people that need them. We are proud that this joint investment will allow Chipper to chart new paths for expansion and product development, all contributing to its greater mission to help millions of post-graduates grappling with student debt, especially people of color and women. Slauson & Co. looks forward to what Tony and Chipper will accomplish with this new investment.” 

There is a gap in the VC community with only 3% of venture capital investors being Black or Latinx, and only 1.1% of all private funds having Black, Latinx, or female managers. The Cap Table Coalition is an organization made up of high-growth startups, VC firms, and emerging fund managers working to close the racial wealth gap. The Cap Table Coalition is providing a simple way for companies and firms to increase representation and funding in the venture capital ecosystem. High-growth startups looking to get involved can pledge to allocate 10% of all their funding rounds to the organization to be distributed to Black, Latinx, and other underrepresented investors. Chipper is taking this commitment one step further and contributing 25% of the company’s seed round to the coalition.

“This funding round is a prime example of what can be achieved if we bring together founders and diverse investor groups looking to transform the venture capital landscape,” said Elizabeth Grier at The Cap Table Coalition. “These investors envision the future of venture capital—and technology as a whole—as one that is inclusive of great minds from all gender groups, ethnic backgrounds and walks of life.”

For more information on Chipper, visit www.chipper.app, and for the Cap Table Coalition, visit www.captablecoalition.com.

About Chipper

Chipper is a simple app that helps users optimize and chip away at their student loan debt faster than traditional repayment methods. A comprehensive digital solution for student loan borrowers, Chipper’s algorithm identifies options for repayment, management and even loan forgiveness tailored to individual users. Chipper guides users through their recommended plans, streamlines paperwork, and provides 1-on-1 advice from its team of student loan experts. With a mission to empower student loan borrowers to make smart decisions and alleviate the burden of enormous debt, Chipper provides an authentic pathway to success and financial wellness.

Founded by Tony Aguilar in 2018 and headquartered in Austin, TX, Chipper has already helped over 80,000 customers conquer student debt up to four years faster. Chipper services included provide an average savings of $309 per month. Chipper allows customers to round up everyday purchases and apply that amount to their student loans so small contributions chip away at debt to become huge savings.  Chipper also offers multiple services and solutions including forgiveness, lower payments and more for all student loan borrowers.

About Cap Table Coalition

The Cap Table Coalition aims to diversify the venture capital ecosystem and close the racial wealth gap by creating investment opportunities for Black, Latinx, LGBTQ+, Native American, women, and other traditionally marginalized investors. The Cap Table Coalition was inspired by the Act One Diversity Rider for VCs and Finix's unique fundraising efforts to diversify startup cap tables. The Coalition has made it as easy as possible for all companies and firms to join the movement.

Media Contact

Alex Miller Murphy

alex@thebrandguild.com

717-903-9302

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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