Many employers are looking for new ways to entice and keep employees in their businesses. According to a recent survey, almost eighty-six percent of younger workers would choose jobs to commit at least five working years to if they were to receive help in paying off their student loans to do so. To create an increase in retention and recruitment of new, young workers, as well as helping to ease student debt burdens, Fidelity Investments has begun to offer employers the ability to join a new program to help their employees.
New Fidelity Student Loan Program
This new program can help a businesses’ employees pay off their graduate and undergraduate student loan debts easier and more quickly. With the help of the Student Debt Employer To Employee Contribution program, each employer will be able to make after-tax money contributions towards their participating employees’ loans using Fidelity for fulfilling and administering the payments in the end. The program is set to begin its pilot program during the last quarter of 2017 and be in full rollout in the beginning of 2018.
Any employer who wishes to participate in this program can turn to Fidelity with full trust as the strategic partner. They believe it is vital for their customers to have customized, modernized and creative programs in which to help the workforce become more financially stable today and into the future. This Student Debt Employer Contribution program has been designed to address the growing need across all of the generations who are struggling to get out of student loan debts. This is a one-stop experience for employers to help with their employees.
This new program will integrate along with Fidelity’s current platform to be used by both employers and employees. The employers will be able to easily manage the contributions they make towards their employees’ student debts using the Plan Sponsor Webstation on the dashboard of the program. Employees will be able to log into the dashboard and see and track those contributions that their employers have been making on their behalf. Also, along with tracking the employer’s contributions on NetBenefits, they will be able to keep track of their own benefits as well.
Fidelity To Offer Comprehensive Outline To Help Manage Student Loan Debts
Fidelity takes helping students with loan debt very seriously. Their commitment to helping goes beyond the Student Debt Employer Contribution program. They will also offer other tools which will help employees manage their current debts and help guide their parents to offering better support for making financial decisions about college and saving money.
•The Student Debt Tool will help people understand their current overall loan debt picture. It will offer the ability to get a personalized plan of action to help them lower their payments and pay the loan off much quicker. This tool can be used by anyone, whether they are a client of Fidelity or not. It gives borrowers a simple to understand picture of how certain programs such as the federal repayment plans or private refinancing options could help their situations.
•To help borrowers learn more about saving for college, Fidelity has created a College Savings program and a College Savings Calculator. Both can be customized and will help give borrower’s parents the ability to see how much their college kids should be saving. This can be used whether someone is already attending college or before they even apply.
The Burden Of Student Loan Debts
The burden of having student loan debts can be a tough on most people. According to Fidelity, more than a third of their retirement plan participants who were surveyed had student loan debts. Out of those, around eighty percent said the student loan debts have caused them to delay their retirement planning. Kevin Barry, the president of Fidelity Workplace, has said that employers will be able to use the market leadership of Fidelity to help borrowers relieve some of their financial burdens in order to make a positive impact on the ever-growing impact of student loan debts in the United States.
About Fidelity
The mission of Fidelity is to inspire a better future and offer better outcomes for their customers and the businesses in which they serve. They work hard to focus on meeting the needs of a diverse array of customers who look to them for financial assistance.