Local company's new tool helps with student loan debt, saves you money

The statistics are staggering. Tens of millions of Americans are drowning in more than a trillion dollars of student loan debt.

And with the problem only growing, FOX 32 wants to help you navigate the complicated world of paying those loans back.

Student loans, for many, are a heavy and stressful burden. In fact, a recent poll shows half of millennials would give up their right to vote to wipe out their student debt.

But one local company wants to help turn that around, using spare change.
“Student loan debt grows at over 2800 dollars a second. What we want to do is slow that down,” said Nicky Sky, co-founder of “ChangEd.”

Sky and his brother Dan launched "ChangEd" earlier this year. It’s a tool that links your bank account with your student loan servicer. Then, it rounds up your transactions to the nearest dollar and applies that money to your loan automatically.

Recent college grad Kevin Sousa says "ChangEd" is helping him shut the door on his debt, one transaction at a time. So far, he says he's saved about 400 bucks using the “ChangEd” app and he's knocked a month off his loan term.
Sky says users pay a dollar a month to use "ChangEd" - which helps cover the cost of keeping your money safe.

“All of your funds are stored in an FDIC-insured ChangEd account,” Sky said.

Here are some other ways to stay on top of your loans: consider refinancing. The consumer financial protection bureau says - weigh the benefits and the risks.

Re-read your agreement - make sure you know the terms of your loan.

And if you can't afford a payment - contact your servicer to see what options are available.

So far – “ChangEd” has helped users in Chicago and across the U.S. save more than 40-thousand dollars.