Gradifi, a Boston-based startup providing services like its Employer Student Loan Paydown Plan (SLP) to help people chip away their student loans, just announced a partnership with Radius Bank that could be a game-changer for individuals strapped with student debt. According to the venture, its upcoming Gradifi MasterCard Debit Card with Apple Pay is the first and only debit card that will let people make a dent in their student loan payments.
Student loans have become a serious issue for the American populace pursuing higher education. This past spring, seven out of 10 seniors who graduated had borrowed money to pay for college and they’re now consequently strapped with an average of $37,172 in debt, according to the Wall Street Journal. To make matters worse, another WSJ article reported 43 percent of college grads with federal student loans weren’t making payments on their debt.
With Gradifi and Radius Bank’s debit card, which will be available in the fall, individuals earn one percent rewards on all purchases made with the card that can be directly applied toward any of their student loans. The card can be acquired by opening a Radius FDIC-insured free checking account, and any rewards are put towards loans through Gradifi’s payment processing platform.
“Our partnership with Radius enables Gradifi members to earn rewards on everyday purchases simply by using their debit cards, giving them the potential to shave years off of a student loan,” Gradifi Founder and CEO Tim DeMello said in a statement.
Gradifi was founded in 2014 to partner with employers and other organizations to contribute to solving the nation's $1.3 trillion student loan debt problem. Along with its SLP Plans offered through employers who opt in, it's continuing to expand its rewards programs for loan-carrying consumers with partners like Radius Bank.
