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

‘Our ultimate goal is to be number one in the U.S.market’: Behind Temenos’ new push in the US with Jacqueline White, president of the Americas

  • Jacqueline White joined Temenos as president of the Americas at the beginning of 2021.
  • She joins the podcast to talk about what she's seeing in the market and her plans for growing the software firm's footprint in the U.S.
Zachary Miller | March 23, 2021
New banks, Podcasts

‘Ever since I dreamed up Greenlight, investing was always part of it’: Tim Sheehan on the launch of Greenlight Max

  • Greenlight is a quickly-growing financial app targeting teens and their parents.
  • The company just released investing technology to help kids learn good habits of investing by doing it.
Zachary Miller | March 17, 2021
New banks

How fintechs are working with banks to make them more green

  • The financial ecosystem seems to be getting greener.
  • Can fintechs help banks provide greener financial solutions?
Rivka Abramson | March 15, 2021
New banks

‘The financial industry was not built to serve the needs of melanated people because we were excluded from its construction’: Visa partners on crypto with First Boulevard

  • Visa partnered with digital bank First Boulevard for the anticipated launch of its crypto API pilot program.
  • The challenger bank which is focused on increasing financial inclusion for the Black community will enable its customers to purchase, trade and custody digital assets.
Rimal Farrukh | February 25, 2021
New banks

‘It’s difficult for a smaller, local bank to compete against the mega banks’: Inside Trustco Bank’s evolving digital experience

  • New York’s Trustco Bank recently implemented a digital banking platform to improve customer user experiences.
  • The local bank has witnessed over a 50 percent increase in mobile deposits.
Rimal Farrukh | February 11, 2021
More Articles