New app helps with paying down student loan debt

New app helps with paying down student loan debt

TOLEDO, OH (WTOL) - Parents and students, know those loan bills that come pouring in after college graduation are no fun.

"College kids, money isn't necessarily the first thing on our minds when we're in school, but it can definitely become the first thing on our minds when we're out of school," said University of Toledo Freshman Isaac Petkac.

"It is kind of  scary because you kind of just take them out, not really thinking about it, but the closer to graduation, they add up," said University of Toledo Junior Stephanie Villella.

In fact, college students graduated with an average loan debt of $37,000  in 2016.

Fifth Third Bank wants to make payments easier. It just introduced a new app called "Momentum." Those who have a debit card with the bank, can round up purchases to the dollar and the extra change will go toward paying their student loan.

"It takes 20 years to pay off a student loan and with this program, just by using your debit card, we estimate you can pay off your student loan three to four years early and save maybe 8% of your loan debt," said  Regional President of Fifth Third Bank, Bob LaClair.

The app isn't just for students to pay their student loans. Parents and other loved ones can also make payments towards that debt.

"Log on that student loan account to your own debit card and every time you use that debit card, you can round up that purchase or add a dollar to the transaction and your loved one will get assistance with their student loan," said LaClair.

Students said they think the app will help keep them on track and focused on paying down their debt.

"That's kinda nice that, that little change can probably make a huge difference," said Villella.

The "Momentum" app is free, but you do need to have a Fifth Third Bank checking account to enroll.

There are other apps available to help with student loan payments and they are listed below:

  • ChangEd - Another round-up system on purchases. There is an iOS App at the App Store but not an Android version yet.
  • Upromise by SallieMae - This app offers cashback rewards that can be used toward paying down eligible student loans.

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