Mark Cuban-backed Startup, ChangEd, Sends $1 million in Payments for Student Loan Borrowers
The mobile app that rounds up spare change and puts it toward student loan debt reaches major milestone
CHICAGO, IL — ChangEd, a Chicago-based startup helping borrowers pay down student loan debt, announces that they have helped pay down more than $1 million of its members’ loans via its mobile app.
“This milestone is more than just a number,” said ChangEd CEO Nick Sky. “This $1 million in student loan debt paid off for our members translates into decades shaved off their repayment term. We’re helping give people years of their life back without having to think about it.”
The company, which appeared on ABC’s Shark Tank earlier this year, uses a set-it-and-forget-it spare change roundup technology, which automates these savings and payments.
"Student loan debt is weakening our economy on a micro- and macro-level” said Mark Cuban, a ChangEd investor. “At more than $1.5 trillion in national debt, held by 44 million Americans, we need tools like ChangEd to be made available to borrowers who want to chip away at this debt.”
ChangEd launched in Chicago in mid-2017 working out of the University of Chicago’s Polsky Center and the Chicago based incubator, 1871.
The app offers an easy way for student loan borrowers to better manage their loan repayment.
In the app, members link their credit and debit card accounts to ChangEd. ChangEd then analyzes their purchases and rounds them up to the next dollar. Accumulated spare change roundups are then transferred from their linked account to their personal FDIC-insured ChangEd account. A payment to their student loans is then applied.
Student loan debt in the United States has ballooned to unprecedented levels. More than 70 percent of the 2018 graduating class is leaving with more than $39,000 in student loan debt, according to CNBC. This is causing young Americans to delay first-time homebuying, children and retirement savings.
“We’re thrilled that ChangEd has helped so many people knock out their loans” Sky said. “These spare change roundups are having a powerful impact on the repayment path for our members.”
ChangEd is currently available in the Apple App and Google Play stores.
ChangEd is a mobile app that rounds up the spare change from your everyday purchases to help you save interest on your student loans. By simply linking your main credit/debit cards, the app will automatically round up any purchases to the nearest dollar and put that change toward the loans. The faster you shave down the principal, the less interest you pay. The app already has been used to pay down more than $1 million in student loans nationwide. An upcoming feature will allow parents and spouses to link their accounts to join the effort!
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