BOSTON — Employers wanting to attract and retain employees should know one single, powerful fact: Eighty-six percent of young workers say they'd commit to their employer for five years if they helped pay off their student loans1.
To increase recruitment and retention, and ease the burden of student loan debt, Fidelity Investments is offering employers a new program to help employees pay off undergraduate or graduate student loans more quickly. With the Student Debt Employer Contribution program, employers can make after-tax contributions towards participants' loans with Fidelity administering and fulfilling the payments. The program will pilot in the fourth quarter 2017 with a full rollout in early 2018.
"Employers turn to Fidelity as a trusted strategic partner, and it's vital our customers have modernized, customized and creative programs to help their workforce be financially well today and into the future," said Kevin Barry, president, Fidelity Workplace Investing. "The Student Debt Employer Contribution program addresses a growing need across all generations struggling with student loans, in a 'one-stop' experience for employers."
The program integrates with Fidelity's platform for both employers and employees. Employers can easily manage student debt contributions through their Plan Sponsor Webstation® dashboard, and employees can track and view payments made on their behalf on NetBenefits® alongside their other benefits.
Fidelity Offers a Comprehensive Product Roadmap to Manage Student Loan Debt
Fidelity's commitment to helping with college financing goes beyond the Student Debt Employer Contribution program, with tools to help employees manage current debt and guide parents to better decisions around saving for college.
- Fidelity's Student Debt Tool helps people understand their current student loan picture and provides a personalized plan of action to lower payments or pay the loan off faster. The tool, which can be used by anyone — Fidelity client or not — gives borrowers an easy-to-understand picture of how programs like federal repayment plans and private refinancing might impact their situation.
- To add more clarity around how to best save for college, Fidelity has designed a College Savings 2K Rule of Thumb and customizable College Savings Calculator, giving parents the ability to estimate how much they should be saving, whether they're just getting started or already thinking about campus tours.
"We know student debt weighs heavily on people — more than a third of Fidelity retirement plan participants surveyed have student debt and 80 percent of those say it delays retirement planning2. We can use Fidelity's market leadership to help employers alleviate the financial burden on their employees and make a positive impact on the growing issue of student debt," added Barry.
To learn more:
A Fidelity podcast takes an in-depth look at this issue and the steps people can take to make progress on their student debt. Employers who are interested in the Student Debt Employer Contribution program can contact a Fidelity representative at 877-241-4414.
About Fidelity Investments
Fidelity's mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $6.3 trillion, including managed assets of $2.3 trillion as of July 31, 2017, we focus on meeting the unique needs of a diverse set of customers: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients' money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.