Shark Tank Student Loans App. Student loan debt is a financial problem that is quite surprising and seizes the attention of many parties. A recent 2018 data on studentloanhero, as reported by allsharktankproducts.com, says that currently Americans have more than $ 1.48 trillion in student loan debt, spread among around 44 million borrowers. From the data, around $ 620 billion more came from total credit card debt.
The question is, is getting a bachelor’s degree still has a chance to get a higher income and a better career? Of course still have a big chance. But what about students’ ability to pay debts, given the high costs and interest charged? ChangEd, as reported by Forbes, mentions an average student loan of $ 37,172 at a cost of more than $ 60,000 – if students remain on a minimum payment every month.
Student loan debt has become the biggest financial problem facing the young generation today. Shark Tank is here to provide loans to students who are experiencing financial difficulties. The new app is here trying to change it with changes. ChangED helps you pay off student loan debt more quickly and avoid some of the high-interest costs. Here Shark Tank will show its role in helping student financial difficulties.
ChangED is an application that collects transactions to help pay off student loans. ChangED reports that one of the ChangED application users can generate $ 100. Next, ChangED sends $ 100 to the student loan processor. It doesn’t sound like much, but if you, for example, as a student, can pay an additional $ 50 per month for a student loan, you can save up to $ 10,000 in interest for years.
The founders of ChangED Dan Stelmach and Nick Sky from Chicago, Illinois, started a business at Shark Tank in January 2018. They invested in Tank for $ 250,000 in return for 15% equity. “In an effort to pay student loans, the application supported by Shark Tank is currently supported by local groups,” Marcia Heroux Pounds, a reporter from South Florida Sun Sentinel.
The initial idea of ChangED’s mobile application is to help pay student loans at lower interest rates. To realize this idea, ChangED later partnered with Tropical Financial Credit Union based in Miramar to provide free student loan payment services with a checking account.
Through this application, according to ChangED, young people burdened by student loans can save $ 10,000 for interest payments from the principal loan amount of $ 37,000 over a period of 25 years plus an extra $ 50 monthly payment in spare change toward the loan. According to one of ChangED’s founders, Nick Sky, students who use this application can save at least 30%. He gave an example, a $ 37,000 loan would cost more than $ 60,000 just by making a minimum payment and paying full interest.
How ChangED Service Works
ChangED application members link their debit and credit cards to the application, and each time they make a purchase, the amount is rounded to dollars. For example, if a ChangED user buys Caramel Mocha Frappuccino in Starbucks for $ 4.25 then an additional 75 cents is stored in a special account, which is insured with FDIC for student loan payments.
Once the balance reaches $ 100, the funds will be sent to the loan officer. ChangED reports that no more than $ 10 a day is collected at one time, which costs $ 1 a month for this service. But for those who have a checking account with Tropical Financial Credit Union, ChangED services are free.
A credit union report said that not a few people aged 22-27 were forced to postpone major decisions in their lives, such as getting married or buying a house, because they still had student debts.
Amy McGraw, vice president of marketing at Tropical Financial, which has locations throughout South Florida, said credit unions recognize that millennials – now ages 22 to 37 – might delay major life decisions, such as getting married or buying a home, because of their student loans. McGraw called it a new financial crisis, which if no attempt was made, would cause a collapse of 10 to 15 years.
Tropical Financial has partnered with ChangED application creator Sky and Stelmach, who in 2017 promoted their company to investors at Shark Tank. Sky and Stelmach struggled with the debt of their own students from college when they launched the application last year. The two companies also made a deal with a Cuban businessman, a venture capitalist and owner of the Dallas Mavericks basketball team, who invested $ 250,000 for a quarter of the company.
Statistical data released by the National Center for Education Statistics in Washington, D.C. shows the existence of increasing student loan debt. It is reported that at least 60% of students completing a master’s degree in the 2015-2016 period have student loan debt, both from undergraduate or graduate school – with an average balance of $ 66,000.
Sky and Stelmach are currently heavily marketing their applications and planning more partnerships with financial institutions. Tropical Financial and Altra Federal Credit Union in Wisconsin are two credit unions in countries that have partnered with ChangED to offer applications free to customers. At present, Tropical Financial has assets of around $ 720 million with 65,000 members in Florida, New York and Missouri.
All family members can help students pay their loans by becoming ChangED members on their own behalf and entering student loan numbers on the application. If they are Financial Financial customers, they can also access this service for free. The Tropical Financial Giro account is free for customers up to the age of 26, or for customers who have at least a $ 500 balance. ChangED reports since its launch in 2017, this application has been used to pay off student loans of $ 1 million with a membership of more than 25,000 people.