There is a common misconception that paying off student loans would be easy. The silver side is that there is an app to help you pay off your student debts quicker.
It’s true that dozens of applications exist. Included in these resources are tools to assist you in setting financial goals, establishing a savings plan, making investments, and devising a plan to pay off your student loans as soon as feasible. The most difficult element is deciding which option is the greatest fit for your needs and priorities.
Apps that Assist with Student Loan Repayment
Debt Payment Planner is our top selection for the best student loan payoff software because it allows you to plan the most effective method for paying off your loans as soon as possible. In addition, it has graphics that keep you motivated by displaying your payback progress and providing hints of payoff successes.
The other applications on our list excel in one or two specific areas, such as providing cash back on regular purchases, rerouting spare change to make extra loan payments, or assisting with general budgeting.
Thankfully, picking only one isn’t necessary. Micro-investing apps, cash-back apps, and debt strategy apps are just a few examples that might all play a role in your strategy to pay off your student loans. With so many options, how do you decide which apps to download?
Overall winner: Debt Payoff Planner
Anyone serious about devising a plan to eliminate their debt as rapidly as feasible should consult the Debt Payoff Planner. The software can be used to manage any type of debt, from auto loans to credit card balances, and it has a specific section for student loan repayment.
After entering all of your debt into the program, you will be able to evaluate several approaches to paying it off. When it comes to paying off debt, the debt snowball strategy puts the loan with the smallest balance at the top of the list, while the debt avalanche strategy puts the loan with the highest interest rate at the top. Alternatively, you may select a tailored package. The effect of extra payments can also be observed (the debt snowflake method).
In the paid Pro edition, you may access more planning templates, printable plans, payment reminders, and the Internet. Either form, though, provides a concrete path to financial freedom that should keep you motivated to tackle your debt as quickly as possible.
The best option for set-it-and-forget-it payments: Chipper
If you want a really hands-free, set-it-and-forget-it method of repaying your student loans, Chipper is the finest software for the job. The procedure is as follows:
- Register your debit or credit card with the app.
- Make typical online and in-person transactions.
- Chipper rounds up every transaction to the closest dollar, making a $4.25 cappuccino a $5 coffee.
- Chipper applies the difference to your student loan debt, directing the payment to your servicer.
- Your student loan debt is gradually decreasing.
Unlike other student debt repayment programs, this one requires almost little effort on your behalf. The strength of compound interest means that even small amounts of money, such as a few cents here and there, may build up to a significant sum over time.
Chipper claims that by simply rounding up a single $35 transaction, you may save almost $1,000 in interest payments over the course of your student loan.
Upromise is the best option for 529 account holders.
Upromise may be more known as a college savings app, but it may also be used to help retire student loans after graduation. The mobile app and browser add-on function similarly to other shopping rebate tools, letting you earn cash back on regular purchases.
However, that’s not all you can do. Shopping for groceries either in-store or online might potentially get you cash back. Cash back is available for eating out when a debit or credit card is linked.
You may increase your earnings with the Upromise Mastercard. Paying up your credit card bill in full each month will ensure that you don’t lose out on any cash-back points you could earn.
When your rebate balance reaches $50 or more, you can withdraw it to your choice of a checking, savings, or 529 college savings account. The maximum withdrawal from a Section 529 plan to repay student loans is $10,000.
EvoShare is the best option for online shopping.
With the EvoShare add-on for Chrome and companion app for iOS and Android, you can get up to 30% cashback on all of your digital purchases and reservations. Micro-savings, or micro-payments, allow you to set aside a little amount of money every day from a connected bank account.
EvoShare stands out from the crowd not just because of its high cash back % but also because it gives you the option to have that money applied straight to your student debts. To put it another way: that helps you resist the want to squander it.
You can get cash back even when you’re not online in some places, especially in California at the moment.
ChangEd is the best place to use micro-savings.
You can pay off your student loans faster and save a ton of money in interest by making extra payments on top of the required minimum each month, no matter how little the amount.
The app ChangEd facilitates this through the utilization of micro-saving strategies. It automatically records all of your daily credit card and debit card purchases and adjusts the amounts to the closest dollar.
The additional funds from the difference are deposited into your ChangEd account, where they can be used to pay down your student loans sooner. When your account balance is $50 or more, the funds will be sent to the designated student loan servicer.
Additional benefits include making higher contributions to your loans when you have extra income and inviting friends and family to join and contribute their spare coins. The software also features a progress-tracking feature. It’s easy to see how much interest you’re able to save and how quickly your debt will be paid off by setting aside a little bit of money every week.
One limitation is that this tool is most useful for people who often use multiple payment methods. For the $3 monthly charge to make a difference in your debt, you’ll need to make enough transactions with your spare change each month.
Qoins are the best option for making additional payments.
Qoins, like ChangEd, enables you to direct the spare change from your purchases to your education debts. There is no minimum need, as there is with ChangEd, for payments to be applied to your specified debts. Instead, payments are made on a monthly basis. Other options for debt reduction include:
- Loan payments can be made through payroll deduction.
- Set up a recurring withdrawal from your bank account of a fixed amount.
- Make use of Smart Savings, which calculates the optimal monthly withdrawal amount for you, taking into account your financial situation and your desired repayment schedule.
- In exchange for using your Qoins prepaid card to make purchases from participating establishments, you will receive cash incentives.
By taking advantage of these many automated savings methods, you may easily and automatically put additional money toward paying down your student loans.
Best for Increasing Cash Flow: Digit
The Digit app streamlines the process of handling your money. While other budgeting applications need you to manually enter your income and expenses, Digit does this for you automatically. You may link it to your bank account to automatically create a bill payment fund from which you will be barred from withdrawing any funds.
The remaining amount of money that you can put toward your financial objectives and securely spend is then displayed. It can even save money for you automatically based on the criteria you establish.
With Digit, you can see your student loan repayment plan in the context of your whole financial picture, which makes it easier to achieve your objective of paying off your student loans.
Mint is the best credit monitoring service.
Similarly, Mint is another tool that may help you keep track of your personal money, including your student loans, in one convenient location. It’s useful for setting up a repayment plan since, like other budgeting applications, it lets you set up a budget and keep track of your spending automatically.
Unlike other budgeting applications, however, this one consolidates all of your financial data onto a single screen, including bank accounts, credit cards, investment accounts, and loans. Further, when you demonstrate a consistent capacity to make your payments on time, your credit score will rise.
TurboTax’s parent company, Intuit, also owns Mint, which is a nice perk. If you use TurboTax to file your taxes, you may import your financial data from Mint for convenience.
Quicken is the best app for bill pay.
If you’re looking for an alternative to Mint that will allow you to keep track of all your money in one place, Quicken is a good option. To help you devise a plan for paying off your student loans, Quicken also features a Debt Reduction Planner.
Quicken stands out because of its convenient in-app bill payment and inter-account transfer features. Having numerous accounts with various loan servicers allows you to better organize your student loan payments.
In addition to its mobile app, Quicken also provides a desktop version that can sync with it. So, if you prefer working on a larger screen while you’re not traveling, you can effortlessly switch between the two.
Fidelity Spire is the best option for balancing debt repayment and investing.
With the Fidelity Spire app, you can combine investment tools, savings targets, and personal finance education all in one convenient location. A user may set a goal to pay off student debts, for example, and then monitor their progress via the program.
Fidelity’s Student Debt tool, for example, which provides advice on how to reduce one’s student loan debt, is just one of the many resources that users may access through the app.
In addition, you may use the app to make direct stock and ETF purchases with as little as a single dollar. While paying off their debt, many borrowers put off starting a retirement fund.
However, they may lose hundreds of thousands of dollars because they fail to take advantage of compound interest over many years. Combining debt repayment with micro-investing is a practical feature.