New banks

Digit launches student loan payments

  • Digit uses automation to help consumers save over $2.5 billion.
  • The company has just launched a tool to accelerate student loan repayment.
close

Email a Friend

Digit launches student loan payments

Automated savings app Digit today announced the launch of Student Loan Payments, a new feature that helps members pay down student debt.

The short of it: Student debt affects 43 million people in the U.S. and has become one of the largest categories of consumer debt.

  • 65 percent of college seniors in the class of 2017 graduated with student debt.
  • The average student loan debt was $28,650 for the class of 2017.
  • The average US household with student debt owes $47,671.

How Digit’s Student Loan Payments works: Digit analyzes consumer income and spending and automatically squirrels money away when opportunities arise.

  • People use Digit to save for goals like paying off a credit card, creating an emergency fund, planning a trip, or making a down payment on a home.
  • A Digit user can now set up a student loan goal and connect loan accounts to Digit. 25 percent of current Digit users have student loan debt.
  • Digit supports student loan providers like Navient, Great Lakes, Nelnet, Fedloans, and American Education Services.
  • Digit works in the background, identifying opportunities to save some cash and apply it to paying down student debt.

Growth: Digit has helped its users save over $2.5 billion since launching in February 2015.

  • The average user saves $2500 per year with Digit.
  • 75 percent of Digit users have credit card debt.
  • The average Digit customer using the app’s credit card debt reduction feature is on track to pay down his debt 11 months faster, according to the company.

More student loan opportunities: Digit is another example of financial technology moving in to solve the massive student debt issue.

  • Data firm Plaid recently launched Liabilities, which provides access to consumer loan data to help fintech firms address consumer debt.
  • CommonBond is making inroads with employers that want to use student loan repayment an employee benefit. Late 2018, the firm struck a partnership with Fifth Third to offer its student loan refinancing services.
  • Consumer lender SoFi also wants companies like WeWork to make student loan repayment a perk for its employees.

0 comments on “Digit launches student loan payments”

Outlier OpinionsMakers

New banks

‘Emotions are always on’: How Dreams uses behavioral science to help consumers save

  • Founded in 2014, Dreams is a Swedish money management app that helps users save money by building on behavioral science.
  • With Dreams’ plans to expand, the app could appeal to US banks trying to keep young consumer interest.
Rivka Abramson | December 06, 2021
New banks

Navigating a changing business model: How banks can compete with fintechs

  • Fintech players are challenging the vertical business model by segmenting the value chain and coupling their own products with others’.
  • Banks can remain competitive by embracing this trend and rebundle their products to unlock new growth opportunities.
Iulia Ciutina | November 30, 2021
New banks

‘We were laughed out of a lot of rooms’: How Daylight and First Boulevard offer personalized banking experiences for underserved communities

  • A number of challenger banks have recently emerged to serve the needs of historically marginalized groups.
  • Daylight provides individualized banking services to the LGBTQ+ community, while First Boulevard caters to the financial needs of African Americans.
Ismail Umar | November 22, 2021
New banks

GoHenry zeroes in on finding the fun in finance

  • GoHenry is a banking app for kids that focuses on financial literacy.
  • With cash less of a staple payment form, GoHenry could be a solution to parents who want to track their kids’ allowances.
Rivka Abramson | November 16, 2021
New banks

‘Like navigating a dark forest with a dying mini-flashlight’: How Lance uses automation to simplify money management for freelancers

  • Lance provides automated banking solutions for freelancers.
  • The challenger bank recently launched a new feature that allows freelancers to receive direct credit card payments from their clients.
Ismail Umar | November 09, 2021
More Articles