Changed is one of the smartest ideas yet to enter the Shark Tank! Daniel and Nick created an app that rounds up purchases to the next dollar and saves the change so that it applies to the principal of your student loan. This idea is so good that it should be used with any student loan. What a great way to pay down your debt!
Changed pays down your principal
Paying down your principal is what eliminates costly interest on any loan, especially student loans. Changed makes paying down your principal painless because it automatically applies the extra change to the student loan.
Season: 9 Episode 918
First Run: 2018/1/28
Shark: Alex Rodriguez, Barbara Corcoran, Mark Cuban, Lori Greiner, Robert Herjavec
Company: Changed
Entrepreneurs: Daniel Stelmach, Nick Skrzniarz
Nick and Dan's app has already paid down over $100,000 in principal before presenting on Shark Tank. The brothers launched the company in 2016, so it is less than two years old to date. Not only that, parents are soon able to contribute change from their debit/credit transactions which will speed up the reduction of principal on student loans.
The Changed website claims that an average of $1.65 is capable of being collected per day to pay down Student Loans. That has the potential to translate into $14,000 in savings on student loans. Round up $100 and Changed sends a payment to your loan servicer.
Changed charges $1 per month deducted from the change added to your account each month. That's it. The cost covers the FDIC insured account that holds your money and transfers and fees for sending payments to your student loan.
My best guess Changed is also earning interest on money stored in the bank accounts before the transfers to the student loan accounts.
Will the Sharks bite on Changed?
I think Mark Cuban will definitely be interested in Changed as well as Robert Herjavec. But, if there is a Shark that gets this deal it is Mark.
Of course, we have to think about what type of evaluation that they put on the deal and how much equity they are willing to give, but I think Mark goes after and gets this deal.