ChangEd Update | Shark Tank Season 9

Millions of students struggle with the crushing weight of student loan debt, which totals over $1.4 trillion. Troubled by this financial burden, Daniel Stelmach and Nick Skrzyniarz invented ChangEd as an innovative solution. ChangEd automatically uses spare change from everyday purchases to pay down student loans. Let’s see what happens between the sharks and the entrepreneurs in our ChangEd update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to ChangEd after Shark Tank. 

Dan and Nick entered Shark Tank Season 9, seeking $250,000 for 15% equity in their student loan debt savings platform. After an inspiring pitch to the sharks, they struck a deal with Mark Cuban for $250,000 for 25% equity.

In terms of a ChangEd update, the company received additional funding from stakeholders. Moreover, the company has helped pay off over $10 million in student loan debt, achieved over $6 million in annual revenue, and currently manages more than $2 billion in student loans.

Shark	Result
Mark Cuban	Accepted offer of $250,000 for 25% equity
Robert Herjavec	$250,000 for 48% equity
Lori Greiner	No offer
Alex Rodriguez	No offer
Barbara Corcoran	No offer

Shark Tank ChangEd Pitch

• Entrepreneurs: Dan Stelmach and Nick Sky
• Business: Student Loan Debt Savings Platform
• Ask: $250,000 for 15% equity
• Result: $250,000 for 25% equity
• Shark: Mark Cuban

Daniel and Nick started their presentation by explaining how ChangEd can help students pay off their loans faster and graduate sooner.

They sought an investment from the sharks to expand their operations and make a significant impact on student debt.

ChangEd is a mobile application designed to help student loan borrowers automatically reduce their debt through everyday purchases. 

The app integrates with a user’s bank account and student loan servicer.

Once connected, ChangEd rounds up each purchase to the nearest dollar and deposits the difference into a dedicated account. 

This accumulated money is then periodically applied towards the user’s student loan principal.

Furthermore, ChangEd is designed with the end user in mind. It features a user-friendly interface that allows users to monitor their progress and manage their accounts easily. 

ChangEd isn’t meant to be a primary debt repayment strategy.

In fact, it is a helpful tool for student loan borrowers who want to make extra progress on their debt without overhauling their finances.

The entrepreneurs revealed that they have about 9,000 downloads and about 1,000 active users.

As of January 2018, they had helped pay off $25,000 in debt and hoped to reach $100,000 by the end of the same year. 

They are in contact with over 90% of student loan providers and make their money by charging a $1 monthly fee.

Some of the sharks were concerned that other platforms already existed with similar features to help save money or pay off loans. 

However, Daniel and Nick reassured the sharks that their platform was the first of its kind to target student loan debt directly.

One of the issues raised by the sharks was that the business model was not yet generating enough money to justify a large investment. 

Daniel and Nick admitted that with about 1,000 open accounts, the $1 membership fee was only generating about $900 per month.

Barbara Corcoran expressed concerns about the banking relationships and believed that a bank could offer a similar service, so she dropped out of the deal. 

Guest shark Alex Rodriguez followed, citing similar concerns. 

Robert Herjavec questioned their valuation but offered $250,000 for 48% equity. 

Lori Greiner dropped out due to valuation concerns. 

Mark Cuban offered $250,000 for 25% equity, and Daniel and Nick accepted his offer, valuing his technology background.

Was this the right investment for the entrepreneurs at this time? Let’s find out in our ChangEd update.

Shark Tank ChangEd Update

Our ChangEd update is packed with exciting news. To start, Mark Cuban finalized his deal with Dan and Nick. 

Since airing, the company has helped repay over $10 million in student loan debt and has grown to more than $6 million in annual revenue. 

Furthermore, with over 3,500 reviews on the App Store, ChangEd has attracted tens of thousands of new users.

In May 2019, Mark Cuban funded a $200,000 convertible note for the company.

However, in September 2020, MetLife Digital Accelerator powered by Techstars also funded ChangEd with $200,000. 

By 2021, our ChangEd update found that the company was managing more than $2 billion in student loans. 

In addition, they introduced a new feature to the app called “Friends and Family,” which allows others to contribute to a user’s student debt. 

We’d call this ChangEd update a success.

You can find the other company updates from Season 9, Episode 20 here:

• The Dough Bar Update
• Shower Pill Update
• Snapclips Update

Before you go, check out our Shark Tank Season 9 page for more updates.