Fifth Third Bank Launches App For Student Loans

Fifth Third Bancorp FITB is taking a fintech approach to the country’s $1.3 billion in student loan debt.

The Cincinnati-based bank announced a new app Tuesday, Fifth Third Momentum, that makes automated micropayments toward student loans by rounding up debit card purchases to the next dollar or by adding $1 to each purchase. The difference will then be paid toward a student loan balance.

Customers who round up $25 a month using the app could pay off a 20-year loan three years sooner and pay 8 percent less due to avoiding accumulated interest, according to Fifth Third. The app can be connected to more than 30 major public and private student loan servicers.

Fifth Third Momentum allows graduates’ family members to use the app by signing up with their own debit cards and connecting to help pay down loved ones’ debt, according to the bank.

“College debt affects our communities and our economy. This isn’t just a millennial or student issue,” Fifth Third Bancorp President and CEO Greg Carmichael said in a statement.

“As a bank, we need to bring innovative solutions to the market, to lead the way in helping the next generation pay off their student loans faster. Fifth Third momentum is a simple digital tool to help pay these debts faster.”

The app is available to any Fifth Third debit card user.

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