Spinwheel, a consumer debt management technology that lets companies embed debt solutions in their applications, launched Spinwheel CARES on August 24 to help Americans prepare for the potential end of the Biden Administration’s payment pause and “take the wheel of their student debt.”

                By                    Yaёl Bizouati-Kennedy

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The launch coincided with the Biden Administration’s announcement to forgive $10,000 in federal student debt for most borrowers, up to $20,000 for recipients of Pell Grants, as well as extend the pause “one final time” to Dec. 31., according to a tweet from President Joe Biden.

Campos explained that the new Student Debt API (application programming interface) Solution provides reliable access to student loan data, with the reporting that employers need to take advantage of all of the benefits associated with the CARES Act and Secure 2.0.

Spinwheel has now been live for more than two years and has billions of dollars of debt connected, Campos said, adding that when federal student loan servicers started to change and borrowers were migrated to new servicers, Spinwheel configured its platform to help make these transitions as seamless as possible — including the migration of Public Service Loan Forgiveness (PSLF) data.

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Campos said that Spinwheel has dozens of companies signed up on the platform, which range from 401k providers and employee financial benefits providers to consumer financial services, apps, lenders and even grocery loyalty programs.

“While the general audience is any company that wants to engage and help Americans with debt, Spinwheel CARES is specifically for programs that wish to embed financial technology which helps borrowers and their loved ones impacted by student debt,” Campos said.

In April, the Department of Education announced an extension of the pause on student loan repayment, interest, and collections — which went into effect in 2020 due to the pandemic — through Aug. 31. It will now be extended through Dec. 31, as part of the administration’s announcement on Aug. 24.

Campos said that while the moratorium temporarily paused payments and set interest rates to zero for federal loans, the dynamics that cause student loan debt to be the most complicated and fastest growing consumer debt remain.

“That’s why I’m excited to debut our most comprehensive student loan solution yet. Spinwheel CARES makes it easier than ever for businesses to build debt solutions into their products,” Campo said. “Student debt is a crushing burden, and this period is the perfect time for businesses to build solutions to support students who are focused on getting out of debt.”

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Campos also added that Spinwheel CARES includes support for borrowers being migrated to new servicers.

“They won’t get disconnected or dropped from our partners’ programs,” he said. “Without Spinwheel, providers need to cobble together three to six disparate solutions that do not offer the coverage or capabilities that borrowers need. Solutions that are not purpose-built can hurt borrowers with broken connections, poor coverage, missing data, and the inability to take smart and timely action.”