The weight of student debt can often be paralyzing, however an app launched by Fifth Third Bank has reportedly freed up $1 million worth of loan debt for its customers.
The app, Fifth Third Momentum, is available to any Fifth Third debit card user and can be used with more than 30 major student-loan servicers, both public and private.
The company explained the app allows customers to either round up debit card purchases to the next dollar or to add $1 to each purchase. Once the weekly minimum of $5 is rounded up, users can apply the extra cash to a loan of their choice.
“We understand how student loan debt is affecting recent graduates as well as our communities and the economy overall,” Fifth Third Bancorp President, Chairman and CEO Greg Carmichael said. “It’s great to see how Fifth Third Momentum helps our customers pay down their student loans and make a difference in their lives.”
A study conducted by LendEDU indicated that the student debt crisis is predicted to become worse as the oldest members of Generation Z accumulate student debt.
Luckily, Fifth Third estimates that customers who round up $25 a month using its app can avoid interest and pay 8% less on a 20-year loan sooner, according to the company.
First American determined that the correlation between homeownership and education has nearly doubled in the past 10 years. So, this has the potential to help young Americans who have dreams of homeownership.
Although the app was primarily made for Millennials, Fifth Third Bank Momentum allows graduates’ family members to use their own Fifth Third debit cards to connect their purchases to help their loved ones reduce student debt.
“It feels great to create a solution that’s integrated into our customers’ lives, and we’re so happy to have helped our customers already pay down $1 million in student loan debt,” Fifth Third Bank Digital Chief Officer Melissa Stevens said.