A federal cap on student loans taking effect in July is expected to hit medical, dental and other clinical students hard. At the same time, healthcare systems are spending billions of dollars each year on sign-on bonuses and contract labor to manage costly turnover.
Boston-based Clasp helps employers attract and retain critical talent via student loan-linked hiring. Under Clasp’s model, health employers offer to repay student debt for students who commit to joining; repayment is tied to employee tenure.
Nearly half of clinicians leave their first job within two years for better working hours and pay, according to a survey by the Medical Group Management Association. “If we want clinicians to stay, incentives must reward staying,” said Clasp’s Tess Michaels. “When financial support grows over time instead of expiring after a short clawback window, behavior changes. Teams stabilize. Vacancy cycles decline.”
Workforce infrastructure
Clasp’s $20 million Series B round was led byCrosslink Capital and health investor Digitalis Ventures. Strada Education and individual investors, including former Starbucks executive Frank Britt and Comparably founder Jason Nazar, also participated.
The company has helped customers including Boston Children’s Hospital, UMass Memorial Health, UNC Health Appalachian and OhioHealth allocate more than $130 million across thousands of student loan repayment programs. The programs have helped workers in some cases pay down as much as $180,000 in student debt over their tenure.
“With retention-driven loan repayment, we’re investing in meaningful workforce stability,” said OhioHealth’s Tristan Hall. The nonprofit health system’s program targets local students that receive clinical training at its hospitals and other health facilities.
