Clasp, a retention-driven recruitment tool for healthcare employers, has raised $20 million in funding.
Clasp helps healthcare organizations replace transactional sign-on bonuses with retention-based incentives—notably, loan repayment. It works with the likes of Boston Children’s Hospital, Memorial Sloan Kettering, Northwestern Medicine and Novant Health.
The series B round was led by Crosslink Capital and Digitalis Ventures, alongside other investors, bringing Clasp’s total raised to $50 million. The latest capital will accelerate Clasp’s expansion across health systems, deepen university partnerships and scale its infrastructure, the company said.
Since 2019, clinician turnover has steadily increased. In 2024, nearly half of clinicians were classified as high-risk for leaving. This turnover costs organizations a lot—upwards of $500,000 for physicians.
With student loan repayments being a significant monthly expense for medical students, Clasp aims to reduce turnover through loan-linked hiring, inspired by the military’s early commitment model. Employers commit to clinicians before graduation and repay student loans over time in exchange for tenure.
“Healthcare has been stuck in a cycle of hiring and rehiring,” Gabby Contro, partner at Crosslink Capital, said in an announcement. “Clasp addresses the economic drivers behind that cycle, which represents tens of billions of dollars in wasted spend. By aligning financial support with tenure, the company is building infrastructure for a more stable clinical workforce.”
Clasp supports employers with brand marketing, so their repayment programs are well-known. On the other side, it works with universities to recommend that financial aid offices refer students to Clasp. The company also helps widen the clinical candidate pool with its curated network of clinician influencers on TikTok, campus ambassadors and various association partners. Clasp then facilitates the administration of loan repayment, integrating with most student loan providers, and gamifies the experience for employees through nudges about their repayment status.
The company has grown its number of health employer clients by 4x over the past year, spanning academic medical centers as well as pediatric, veterinary and outpatient clinics. Tess Michaels, founder and CEO of Clasp, said the fact that so many different types of healthcare employers are engaged with Clasp is telling.
“That has, in a lot of ways, validated that this challenge is so universal across the industry, no matter the geography … or the acute setting,” Michaels told Fierce Healthcare in an advanced interview.
Clasp drives retention rates 2.5x higher than traditional hiring models, the company claims. Over $130 million in employer commitments have been made to date.
President Donald Trump and Republicans’ One Big, Beautiful Bill Act made significant loan cuts, placing caps on annual and lifetime borrowing. The changes take effect this July and will affect a number of healthcare professions. The administration has said the changes will help slow rising tuition costs and protect students from debt, while provider groups caution the move could kneecap the clinical workforce pipeline and reduce the public’s access to care.
Specifically, the law limits “graduate students” to borrowing limits of $20,500 per year and $100,000 in aggregate, though those enrolling in a “professional” degree program have higher ceilings of $50,000 per year and $200,000 in aggregate. Graduate and professional students had previously been able to borrow up to the full cost of attendance.
“That really puts the future workforce of clinical talent at risk,” Michaels said.
Federal loans are the only kind eligible for public loan forgiveness, which has historically been one of the main draws to nonprofit employers, per Michaels. “If federal loans are capped, the ratio of loans that can eventually be forgiven versus not also changes, so it actually compounds the impact for clinicians,” Michaels said. Some employers commit up to $180,000 through Clasp.
Additionally, most private loans require co-signers, so “who gets access to private loans may also be challenged, Michaels said.” The founder thinks more lenders will be looking to widen their eligibility criteria in the future. “If more lenders can get focused on how to widen that credit box or the eligibility requirements, I think there is a good chance that clinical talent in particular should be able to tap into different forms of private loans going forward,” Michaels said.
Overall, Michaels expects to see rapid change over the coming year, with more employers beginning to consider student loan repayment. This dovetails with a growing number of states looking to ban clawbacks, where employers chase down money if an employee leaves early. With clawbacks banned, Michaels said being able to repay loans over time will become more essential and help de-risk the budget hospitals spend. Coupled with the new loan caps, “I think it’s actually almost forced employers to think proactively about how to future-proof their workforce,” Michaels said.
“Supporting students now is key to developing the workforce of tomorrow,” Lauren King, vice president of talent strategy and workforce management at Novant Health, said in an announcement. “Through our partnership with Clasp, we’re helping new nurse anesthetists repay a portion of their student loans, with the goal of expanding this benefit to other roles in the future. By easing financial burdens early, we’re fostering loyalty, engagement, and a strong foundation for long-term success.”