How Student Loan Benefits Help 401(K) Contributions

In the world of job hunting, few things are held to a higher standard than the 401(k). If a company offers a 401(k) and then matches contributions, across the board, the company is considered somewhere you need to work.

In today’s world, employees aren’t saving for retirement because there are too many expenses right now, let alone what’s coming down the line in forty or fifty years.

But, there’s another player in the mix that’s as beneficial to employee engagement and excitement: student loan repayment.

It’s important to realize that across companies, student loan debt is a massive issue that’s affecting many of your best and brightest minds. More than 78% of recent college grads walk off the stage with at least $45K in debt.

COMPANIES CAN HELP CREATE CHANGE

Like the 401(k), a student loan benefit invests back into employees. While benefits like pet insurance or chef-catered lunches are appealing, a student loan repayment benefit impacts lives immediately. Plus, it’s a great tool for retention.

Progressive companies across the country are adopting student loan repayment as a benefit because, coupled with a 401(k), it equates to cultural and social equity. It’s a great way to let employees know their companies are serious about their long-term growth.

ADOPT A PERK THAT CHANGES LIVES

Through Student Loan Genius, companies can offer 1:1 advising to help employees tackle debt. On an even more impactful level, employers can offer a student loan contribution to their employees. By providing even $50 a month, companies can help employees pay down their student loan debt that much faster. Ultimately, this helps them be able to buy that new car or their first house sooner. HR can be the difference-maker. As employees pay off their student loans, they’re more likely to feel able to contribute to their 401(k) and use their company’s 401(k) match.

If you’re interested in learning more about student loan benefits, get in touch with us.

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Retain Your Best Employees With The Perk They Want

The cost of tuition for degrees continues to rise, seemingly without an end. The U.S. Department of Education provides statistics that are neither shocking nor comforting

Today’s generation of workers isn’t loyal like the one before them. The average worker is armed with too much information. They know who’s paying the highest salaries thanks Glassdoor, and Indeed makes job searching possible with a click.

Recruiters scan resumes on all of these networks, trying to fill holes in their rosters. Because of this, employers take active measures against turnover. The average worker only stays with their current company for two years, but it’s been proven that if you can get an employee to make it to five years, they’re more likely to stay for over 10 years.

Offering a student loan repayment benefit is one critical way to keep employees engaged. Every month your company could make a contribution toward student loan debt and help employees save money. Currently, the student loan debt crisis is nearing 1.4 trillion dollars – those numbers mean there are multiple people on your staff right now who are drowning in a monthly bill that’s stopping them from buying a house or upgrading their car.

By adopting a monthly student loan benefit, not only is it a cultural win for the company, it also lets employees know that you care about their well being. And with the mentality of today’s teams, that’s a massive win because “impact” is everything.

Vault works with companies to realize their retention goals. We’ve seen the benefit catch fire with some of the world’s biggest brands, like New York Life, and there’s no shortage of employers looking for ways to empower their staff. Student loan repayment is a great place to start.

If this sounds like something you’re interested in exploring, feel free to connect with us. You could take a huge step toward retaining your best employees.

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Student Loan Repayment That’s Faster Than Lightning

Paying off student loans is not an overnight process. There’s a lot of mitigating factors – time, money, and daily expenses – that can hold up forward progress.

The good news is borrowers aren’t alone in the fight for financial freedom. Tools and programs exist that help lower payments or demonstrate the impact of different repayment plans. Student Loan Genius helps dot the I’s and cross the T’s by finding new ways to inform and empower borrowers to fight debt head-on.

Vault allows users to easily view repayment programs that could lower their monthly payments. By doing so, users see what federal repayment plans they qualify for and how the plan impacts their loan payment timeline. If a user finds a repayment plan they’re interested in switching to, he or she can download a step-by-step walkthrough guide that walks through how to make the change.

If paying off debt faster is the priority over changing repayment plans, we can help there too. There’s a “Pay Off Faster” tab for users, which allows users to model how repayment time and interest accrued would be impacted by increasing a monthly payment.

Refinancing is also an option Vault can help with. If a user is curious about refinancing their loans, there’s a section in our tool for that, too. Users can see if the qualify for refinancing without actually pulling their credit. Resources are available to lower interest rates on monthly payments, accrued interest, or adjust repayment time – users judge what works for them.

These 3 perks are huge components of what makes Vault great to offer to employees to help them pay down their student loans. Contact us below to learn more.

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Unpaid Student Loans Could Cost You Your Career

The depth of how student loan debt affects lives goes deeper than a number on a statement reminding the borrower that his or her monthly bill is due. Defaulting on student loans can do more than just affect your credit score – it can cripple your job choices.

According to the Brookings Institute, 30% of jobs now require a certification or license in addition to a college degree, but laws exist in 19 states that allow for state agencies to revoke licenses. Ranging from medical professionals to teachers, game wardens, police, and barbers, anyone who needs a professional license can lose it due to unpaid student loan debt. In South Dakota, they’ll even suspend your driver’s license.

While creditors find new and aggressive ways to punish borrowers who default, revoking professional credentials seems a bit drastic and counterintuitive, but yet, some states still do it as a means of punishment, or at the very least, a means to get a debtor on a payment plan.

The average teacher in Georgia makes between $37,000 – $50,000 a year, so saddling them with, in some cases, $1,300 a month student loan repayment equates to a massive portion of their paycheck. Right now, laws exist in ten states prohibiting new K-12 teachers from working until they get on a student loan repayment plan.

THE STUDENT LOAN CRISIS ISN’T GETTING BETTER

For employers, this model is catastrophic. There’s 1.4 trillion dollars in student loan debt floating around America. There’s an inevitability that some of these borrowers are working for hospitals, firehouses, or local police. Yet, these people cannot work – not because of lack of skills or training, but because a rigid system of repayment doesn’t work in their favor.

One of the biggest misconceptions regarding student loans is the severity of the issue. The average millennial carries around $45-52K a year in student loan debt, which is certainly not a lightweight monthly payment. Student loan debt is the most significant source of income debt, second only to owning a home.

Unfortunately, some of the borrowers in default may not even know they’re in default. It’s possible that with the stress and unpredictability of life their loan statement was lost in time and became an “I’ll get around to it someday” scenario.

REIMAGINING CRIME AND PUNISHMENT

While it’s evident that those in default should have consequences for not paying back what they owe, the question needs to be asked: is there a better way? We can’t strip people of their means of making a living. According to the American Nurses Association, within the next five years, there will be a nurse shortage of almost four million nurses. Houston, Texas needs over 2,000 new police officers. Firefighters are in short supply in Kentucky, New York, Indiana, and Texas. Punishing people ready to fill these roles impacts local economy, whereas a solution to work with borrowers to find a realistic endpoint would prove to be more fruitful. Collectively, we need to do better.

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All Of Your Student Loan Information In One Place

Most employees are uncertain what their student loan big picture looks like. Vault has the answer.

With our platform, users can view their monthly payment, total debt amount, interest, and repayment plan for all of their loans right in the Vault portal.

Like all things Vault, we wanted the user experience to be super clean and super simple. No one wants to dig through pages and tabs trying to understand what this loan means in correlation to overall debt, so we cut out all of the confusion by allowing all the information to be viewed in a single dashboard.

There’s information to potentially help lower an employee’s monthly payment, see how he or she can pay off your loans faster, or check to see if refinancing makes sense.

Depending on an employees’ financial goals, they can each decide what’s best for their situation and future. If you’re interested in offering Vault to your employees as a benefit, contact us.

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One On One Support With Humans Ready To Help

VAULT is here for your team.

We want to help every user win the war against student loans and we do so by empowering borrowers with every option available to them. Employees can connect with Vault and schedule a one on one advisory phone call or just drop us an email.

CRUSH STUDENT LOAN DEBT

We’re here to help all your employees crush their student loans. We believe that being there for our users is paramount for the best experience. No machines or auto-responders, just humans ready to help. No one wants to talk to a machine or leave a message that will sit unanswered. We’ve collected the resources and we’re happy to share everything we’ve got. We ensure that this information is accessible so borrowers can make smart choices to regain their financial freedom.

KEEP IT ONE ON ONE

If email works best for an employee, let us know what’s going on, and we’ll answer questions and share helpful resources to get the user on the right path. If an employee wants to schedule a call, our support team will walk him or her through loans, goals, options, or help with troubleshooting Genius Advisor.

Student loan debt is stressful. Let us help your team. If you’re an HR person, don’t hesitate to ask questions, we’ll do our best to provide whatever answers you’re looking for.

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Painless Perks: Import Federal Student Loans With Ease

When we update the Student Loan Genius platform, making sure our customers have an easy experience is at the top of our priority list.

Importing NSLDS student loan information shouldn’t be an exhaustive process – users should be able to update and upload their profiles with a few clicks. It’s super simple:

IMPORTING NSLDS STUDENT LOAN INFORMATION

It’s that easy to import data with Genius Advisor. This is just one of the great features we offer your employees with our benefit platform. To learn more, contact us.

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HR In The Driver’s Seat: How To Roll Out Student Loan Genius

One of the most critical aspects of the Vault platform is being simple to use for both employees and employers.

When it comes to how the tool was designed, we wanted to provide choices and make the Vault experience customizable and intuitive.

When an employer works with Vault, they’re in control of how they roll out the program to their team.

Employers can announce they’re offering student loan repayment using 2 methods:

Whichever way HR wants to roll out the program, we can help make the process painless.

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What you need to know about California and Student Loans

California is leading the charge in helping people with their student loan debt. For the federal government and in other states, student debt that has been canceled or forgiven is treated as taxable income.

So if a borrower has $90k forgiven, that adds $90k to their taxable income for that year. However, California has expanded income tax exclusion for canceled or forgiven student loan debt.

Starting in 2017 and lasting until January 1st, 2022, the exclusion applies to federal loan plans such as:

While this will not affect the tax status of student loan benefit such as those offered by student loan genius, California’s bill is a big step in the right direction, helping those crushed by student loan debt.

If you’re a California resident, reach out to your local representative to learn more about Assembly Bill No. 461 – Chapter 525.

If you’ve got questions we can help with, please contact us.

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Structure For Success: Set Student Loan Repayment On Seniority

Tiered student loan repayment plans are a great way to reward your best employees over time. With Vault, employers are in the driver’s seat.

It reveals the continued trend of ever increasing cost of college education. Forbes recently reported that student debt has now become the second highest consumer debt category after mortgage loans. As students come out of college and seek employment, finding the right job that can help reduce this burden becomes crucial.

The Vault portal is a breeze to set up and implement by HR’s needs. Employers can choose to reward senior employees with a full monthly loan repayment amount, but also incrementally reward newer employees over time.

The average employee stays with a company just two years, which creates a revolving door for recruiting teams. It’s been proven that employees who remain past four years are more likely to make it for the long term, helping HR and recruiting.

Companies can structure their payments however they see fit, with some opting for a plan similar to offering varying dollar amounts based on tenure.

Whatever your company wants to do, Vault can help. If you’ve got any questions, contact us.

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