You know you want to get rid of your student loans ASAP. The only thing you don’t know is how you’re going to find the extra money to make it happen. Thanks to ChangEd, the latest fintech app to help you tackle your student loans, there literally is an app for that.
If you think you’ve heard it all when it comes to student-loan fintech, and you’ve explored every calculator, loan consolidation option and app out there, you’re in luck. ChangEd is a brand-spankin’-new option for you, and they don’t focus on convincing you that you want to pay off your loans faster.
They actually make it happen, without you having to think about it at all.
What is ChangEd, exactly?
ChangEd is an app that rounds up your spare change and saves it up to help you put extra principal payments toward your student loans.
See, making extra principal payments on your student loans is the real MVP. When you make those payments, they get applied directly to the balance of your loans, not to the interest payments. Every regular payment you make has two components: You’re paying a portion of it to get your loan balance down, and a portion of it to cover the cost of borrowing that money.
The more principal payments you make, the faster you get out from under your student loans, period. But the challenging part is that finding an extra $100 in your budget is easier said than done.
That’s where ChangEd helps.
How does it work?
When you start using ChangEd, you’ll need to connect two things to your ChangEd app for it to work: your bank account and your student loan account.
Once it gets to peek into your bank account, ChangEd goes to work rounding up your purchases. When you buy a latte for $4.45, ChangEd will scurry away with the $0.55 that would make it an even $5 and saves that spare change for you.
Once you’ve saved $100 worth of spare change, ChangEd sends a nice $100 principal payment to your student loan balance.
Yes, it’s really that easy.
What else can it do?
As if paying down your student loans faster wasn’t enough of an incentive to download the app, it gives you a huge amount of loan-related information while you’re using it as well.
Since you’ll have to enter your loan information as part of signing up for the app, it can show you some pretty great visualizations of your loan based on your current interest rate, your total amount owing and how many extra payments you’ve made.
If seeing how much sooner you’ll pay off your loan isn’t motivation, I don’t know what is.
But it’s secure… right?
ChangEd’s team knows that when it comes to money, more security is better than less. That’s why your money is held in an FDIC-insured account while it’s with ChangEd, so you never have to worry if that money will just disappear. (It definitely won’t.)
Plus, they never store your account details. All ChangEd does is facilitate the transactions, so your account info is safe.
What’s the catch here – and how much does it cost?
Well, the app is only available for iOS right now, but if you’re an Android user, they’re planning to have it ready for you by the end of this year.
As for price, the app will charge you $1 per month, but considering how much it could help you save, that seems like a fair trade. Plus, as part of their launch (I told you they were new!) they’re not charging that $1-a-month fee for the next few months.
So if you have an iPhone and student loans … what are you waiting for? Download ChangEd for iOS today.
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Header image: Adobe Stock