The CARES Act: What does it mean for employers and employees? 

Info for employers

Info for employees

In a nutshell: As an employer who offers Vault benefits, you can now contribute up to $5,250 tax-exempt dollars toward employees’ student debt balances. 

What changed for borrowers?

Can borrowers continue to make payments?

Yes. Vault advises that borrowers who are financially able to make student loan payments to continue to do so in order to take advantage of lack of interest accrual during this time period. 

What should I do?

The provision enables employers to provide a student loan repayment benefit to employees on a tax-free basis. Under the provision, an employer may contribute up to $5,250 annually toward an employee’s student loans, and such payment would be excluded from the employee’s income.* The $5,250 cap applies to both the new student loan repayment benefit as well as other educational assistance (e.g., tuition, fees, books) provided by the employer. As an employer, you may make one time or multiple payments . The provision applies to any student loan payments made by an employer on behalf of an employee after the date of enactment and before January 1, 2021.

*Note that if you offer multiple education related benefits, you will want to track the amounts contributed to employees. Any amount the exceeds the $5250 cap is subject to taxes. 

3/20/2020

Student loan payment rules are changing daily, and Vault is monitoring those changes.  

The Department of Education has announced that it will allow anyone with federal student loans to enter into administrative forbearance for at least 60 days. 

What is administrative forbearance?

If an individual elects to enter into administrative forbearance, for at least 60 days beginning on March 13, if they have a federal student loan they do not have to make payments on those loans, and interest will not accrue. Please note that this applies to federal loans only.  Private loans are not eligible for this forbearance.

What do employees with loans have to do?

If an individual has federal student loans and cannot make their payments, they must reach out to their servicer and let them know that they wish to enter administrative forbearance. If they were already more than 30 days behind in their payments, their servicer has been directed to place their loans in administrative forbearance, retroactive to March 13.

Can employees still make payments on their federal loans?

Yes. Payments an individual makes during this time will be applied to any outstanding interest that accrued before March 13, and the rest will go towards their principal. Borrowers who are pursuing PSLF or whose payments are manageable will want to continue to make payments to make faster progress toward paying down their loans and completing forgiveness.

What about employer contributions?

Employer contributions will continue to be sent to the loan servicer you have chosen.  Those contributions will be processed as usual by servicers, whether individuals elect to enter into administrative forbearance or not.  

If you would like more information on student loan news, the U.S. Department of Education has published details related to the suspension of student loan payments here.

Here are other resources you might want to check out:

Coronavirus and Forbearance Info for Students, Borrowers, and Parents

What you need to know about student loans and the coronavirus pandemic

Nelnet: Important Coronavirus Information

Navient: Update on COVID-19 and your Student Loans 

Great Lakes: COVID-19 Update

FedLoan Servicing: COVID-19 Relief for Student Loan Borrowers

The CARES Act and Employee Student Loans

In a nutshell: As of March 27th, federal student loan servicers are suspending loan payments and setting interest rates to 0% for six months.

What is the CARES Act?

On March 27, 2020 Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in response to the Coronavirus pandemic. Among other things, this law provides relief for federal student loan borrowers.  From March 13 to September 30, 2020 federal student loans will be placed in an automatic administrative forbearance (temporary suspension of payments) and a 0% interest period.

Which types of loans are affected by the CARES Act?

       Federally-held student loans

      Direct loans (defaulted and nondefaulted)

      FFEL Program loans (defaulted and nondefaulted) not owned by commercial lenders, and

      Federal Perkins loans not owned by the university you attended

Does this apply to private loans?

No.  Private loans are not subject to the provisions of the CARES Act. 

What is “administrative forbearance”?

Administrative forbearance is a temporary suspension of your payments to your federal loan servicer.

Do I have to apply to have my federal loan payments suspended?

No. Federal loans will be automatically suspended by federal loan servicers.

When does the 0% interest period begin?

The 0% interest period began on March 13, 2020 and runs through September 30, 2020. Federal loan servicers are working to implement the 0% interest and will apply this change retroactively to March 13.  

Can I still make payments on my loans during this time?

Yes. If you choose to make payments to your loans between March 13 and September 30, 2020, your payment will first be applied to any interest accrued prior to March 13, then to principal. 

What happens to my regular auto-debit payments?

Auto-debit payments to federally-held loans will be automatically suspended during this administrative forbearance period.  

You can remain in administrative forbearance and make manual payments to your loan servicer, or if you wish to continue your auto-debit payments, you will need to contact your loan server to opt out of administrative forbearance and your auto-debit payments will resume.  

What happens if I made a payment after the CARES Act was enacted?

Any payment to a federally-held loan that was processed after March 13 can be refunded to you.  If you wish to receive a refund, you can contact your servicer to make that request.  

Can I still make payments on my federal loans?

Yes.  You can make payments in any amount to your federal loans during this administrative forbearance period.  If you are able to do so, making these payments could help you to pay off your loans sooner, as your payments will be applied to principal, once all interest accrued prior to March 13 is paid.

What if I’m pursuing PSLF?

As long as you continue to meet all other PSLF requirements* during the administrative forbearance period from March 13-September 20, you will not have to make payments to your federal student loans. During this automatic payment suspension for federal loans, your $0 payments will count as qualifying payments towards your PSLF progress.  

*PSLF requirements: You must have a Direct Loan, be on a qualifying repayment plan prior to March 13 and work full-time for a qualifying employer.

What if my loans are in default?

If you are trying to rehabilitate your loans, these suspended payments will count towards your rehabilitation.

Here are other resources you might want to check out:

Coronavirus and Forbearance Info for Students, Borrowers, and Parents

What you need to know about student loans and the coronavirus pandemic

Nelnet: Important Coronavirus Information

Navient: Update on COVID-19 and your Student Loans 

Great Lakes: COVID-19 Update

FedLoan Servicing: COVID-19 Relief for Student Loan Borrowers 

SEE ALL ARTICLES

The CARES Act: What does it mean for employers and employees? 

Info for employers

Info for employees

In a nutshell: As an employer who offers Vault benefits, you can now contribute up to $5,250 tax-exempt dollars toward employees’ student debt balances. 

What changed for borrowers?

Can borrowers continue to make payments?

Yes. Vault advises that borrowers who are financially able to make student loan payments to continue to do so in order to take advantage of lack of interest accrual during this time period. 

What should I do?

The provision enables employers to provide a student loan repayment benefit to employees on a tax-free basis. Under the provision, an employer may contribute up to $5,250 annually toward an employee’s student loans, and such payment would be excluded from the employee’s income.* The $5,250 cap applies to both the new student loan repayment benefit as well as other educational assistance (e.g., tuition, fees, books) provided by the employer. As an employer, you may make one time or multiple payments . The provision applies to any student loan payments made by an employer on behalf of an employee after the date of enactment and before January 1, 2021.

*Note that if you offer multiple education related benefits, you will want to track the amounts contributed to employees. Any amount the exceeds the $5250 cap is subject to taxes. 

3/20/2020

Student loan payment rules are changing daily, and Vault is monitoring those changes.  

The Department of Education has announced that it will allow anyone with federal student loans to enter into administrative forbearance for at least 60 days. 

What is administrative forbearance?

If an individual elects to enter into administrative forbearance, for at least 60 days beginning on March 13, if they have a federal student loan they do not have to make payments on those loans, and interest will not accrue. Please note that this applies to federal loans only.  Private loans are not eligible for this forbearance.

What do employees with loans have to do?

If an individual has federal student loans and cannot make their payments, they must reach out to their servicer and let them know that they wish to enter administrative forbearance. If they were already more than 30 days behind in their payments, their servicer has been directed to place their loans in administrative forbearance, retroactive to March 13.

Can employees still make payments on their federal loans?

Yes. Payments an individual makes during this time will be applied to any outstanding interest that accrued before March 13, and the rest will go towards their principal. Borrowers may choose to continue to make payments to make faster progress toward paying down their loans.

What about employer contributions?

Employer contributions will continue to be sent to the loan servicer you have chosen.  Those contributions will be processed as usual by servicers, whether individuals elect to enter into administrative forbearance or not.  

If you would like more information on student loan news, the U.S. Department of Education has published details related to the suspension of student loan payments here.

Here are other resources you might want to check out:

Coronavirus and Forbearance Info for Students, Borrowers, and Parents

What you need to know about student loans and the coronavirus pandemic

Nelnet: Important Coronavirus Information

Navient: Update on COVID-19 and your Student Loans 

Great Lakes: COVID-19 Update

FedLoan Servicing: COVID-19 Relief for Student Loan Borrowers

The CARES Act and Employee Student Loans

In a nutshell: As of March 27th, federal student loan servicers are suspending loan payments and setting interest rates to 0% for six months.

What is the CARES Act?

On March 27, 2020 Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in response to the Coronavirus pandemic. Among other things, this law provides relief for federal student loan borrowers.  From March 13 to September 30, 2020 federal student loans will be placed in an automatic administrative forbearance (temporary suspension of payments) and a 0% interest period.

Which types of loans are affected by the CARES Act?

Federally-held student loans

Direct loans (defaulted and nondefaulted)

FFEL Program loans (defaulted and nondefaulted) not owned by commercial lenders, and

Federal Perkins loans not owned by the university you attended

Does this apply to private loans?

No.  Private loans are not subject to the provisions of the CARES Act. 

What is “administrative forbearance”?

Administrative forbearance is a temporary suspension of your payments to your federal loan servicer.

Do I have to apply to have my federal loan payments suspended?

No. Federal loans will be automatically suspended by federal loan servicers.

When does the 0% interest period begin?

The 0% interest period began on March 13, 2020 and runs through September 30, 2020. Federal loan servicers are working to implement the 0% interest and will apply this change retroactively to March 13.  

Can I still make payments on my loans during this time?

Yes. If you choose to make payments to your loans between March 13 and September 30, 2020, your payment will first be applied to any interest accrued prior to March 13, then to principal. 

What happens to my regular auto-debit payments?

Auto-debit payments to federally-held loans will be automatically suspended during this administrative forbearance period.  

You can remain in administrative forbearance and make manual payments to your loan servicer, or if you wish to continue your auto-debit payments, you will need to contact your loan server to opt out of administrative forbearance and your auto-debit payments will resume.  

What happens if I made a payment after the CARES Act was enacted?

Any payment to a federally-held loan that was processed after March 13 can be refunded to you.  If you wish to receive a refund, you can contact your servicer to make that request.  

Can I still make payments on my federal loans?

Yes.  You can make payments in any amount to your federal loans during this administrative forbearance period.  If you are able to do so, making these payments could help you to pay off your loans sooner, as your payments will be applied to principal, once all interest accrued prior to March 13 is paid.

What if I’m pursuing PSLF?

As long as you continue to meet all other PSLF requirements* during the administrative forbearance period from March 13-September 20, you will not have to make payments to your federal student loans. During this automatic payment suspension for federal loans, your $0 payments will count as qualifying payments towards your PSLF progress.  

*PSLF requirements: You must have a Direct Loan, be on a qualifying repayment plan prior to March 13 and work full-time for a qualifying employer.

What if my loans are in default?

If you are trying to rehabilitate your loans, these suspended payments will count towards your rehabilitation.

Here are other resources you might want to check out:

Coronavirus and Forbearance Info for Students, Borrowers, and Parents

What you need to know about student loans and the coronavirus pandemic

Nelnet: Important Coronavirus Information

Navient: Update on COVID-19 and your Student Loans 

Great Lakes: COVID-19 Update

FedLoan Servicing: COVID-19 Relief for Student Loan Borrowers 

SEE ALL ARTICLES

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates…

Billionaire Robert F. Smith made headlines earlier this year as he announced his intent to pay off the debt of all 2019 Morehouse graduates.

While highly commendable, actions like Smith’s do not hit at the systemic problems that have allowed the student loan bubble to swell to a formidable $1.5 trillion. Lasting changes that will positively benefit individuals, as well as the American economy, can only be the result of policy decisions. Congress needs to be pushed out of its partisan induced stupor to act on this issue.

Fortunately, there are individuals, groups and companies actively pushing for these changes. Advocacy groups are seeking solutions like student loan forgiveness, free or capped tuition, improved transparency, and incentives for student loan debt repayment benefits.

These three movers and shakers are improving the student loan industry today.

Three People Making a Difference Today:

1. Natalia Abrams

As Executive Director, Natalia heads the non-profit Student Debt Crisis, an organization that seeks to directly educate borrowers as well as monitor current policy pertaining to student loans. This two-pronged approach teaches borrowers about their financial health and options to alleviate stress, while also advocating for long-term policy protections for students.

Abrams’ status as an advocate of students predates her current initiatives. She began Occupy Colleges in 2011 to protest ever-inflating tuition and the lack of adequate financial aid by organizing one of the largest college protests in the past four decades.

Natalia actively advocates for student loan debt reform and regularly brings the struggles of borrowers to light in the national media.

2. Betsy Mayotte

Betsy Mayonette is the founder and president of The Institute of Student Loan Advisors (TISLA), a non-profit organization with the mission to offer free student loan advice and guidance.

Due to high-interest rates, penalties, and lack of deference options, private loans are significantly more expensive and offer less protection to borrowers. According to The Institute of College Access And Success (TICAS), over half of undergraduates took out private loans without exhausting their federal loan options. Offering accessible advice and guidance is one way to offset harmful borrowing decisions.

Betsy has the perfect background to offer expert assistance. Prior to founding TISLA, Betsy spent 18 years at the American Student Assistance® in Boston, which also focused on helping students make better decisions about their student loan debt and repayment plans. She has been a primary negotiator for federal Title IV negotiated rule-making sessions on the topics of student loans at foreign schools, loan rehabilitation, and borrower defense to repayment.

3. Congressman Scott Peters

US Congressman Scott Peters of California is using his position to sponsor the Employer Participation Repayment Act. This would encourage employers to annually contribute up to $5,250 per employee towards their employees’ student loan debt. This act would allow employers to gain a tax advantage if they pay on their employees’ student loan debt.

While this is not a long-term solution, it does encourage the private sector to play a larger role. This plan also appeals to both employees and employers, making it much easier to support than loan forgiveness and potentially having quite an impact on the future job market in the United States.

Companies Pitching In Against Student Debt

While the government fails to find a solution for this issue, many companies and organizations in the private sector are joining the fight against debt by enhancing their benefits offerings.

Prepare to see this trend grow as companies gain more than just the joy of altruism and tax breaks. Student loan benefits are an excellent employee retention tool, saving companies both time and money otherwise lost when an employee quits.

At the same time, their employee benefits through student loan debt support.

Below are just a handful of major players who are investing in their employees by paying off their student loan debt:

The fight against student loan debt

Though daunting, the stress and financial burdens of student loan debt can be alleviated. The actions these leaders are taking are just the beginning of the fight for loan reform and benefits.

From the public to the private sector, there are various recommendations and answers to the problem. The most important thing to remember is that we can all be part of the solution.

——

Want to know how you can join the fight against student loans and improve the lives of your employees? Contact us today.