November 30, 2017
Gradifi, the leading provider of student loan repayment and college savings programs to U.S. employers, today said that 260 organizations are now working with the company to offer a student loan repayment program to help employees pay off their student loans faster.
Since it was acquired by First Republic Bank a year ago, Gradifi has had a 10-fold increase in the number of companies that have agreed to offer its pioneering SLP Plan® (Student Loan Paydown) benefit program to employees.
Gradifi’s new clients include Bowers Insurance, CherrytreeGroup, KerberRose, Adishian Law Group, Exact Data, Math Genie, Deserve,Bloomsburg Vet Hospital and Lifetime Eye Care. These companies join progressive workplaces across the country offering the SLP Plan, such as PricewaterhouseCoopers (PwC), Peloton, Penguin Random House and Motus.
Building on demand for its solutions, Gradifi earlier this month expanded its suite of educational employee benefits with the launch of College SaveUp Plan, an innovative employer program that will help employees save for college for their children.
“Gradifi is differentiating employers in the marketplace by helping employees manage one of life’s major financial challenges – college education,” said Gradifi CEO Tim DeMello. “Gradifi’s student loan repayment and college savings programs address aspects of that challenge by offering bundled or stand-alone programs through an easy-to-implement, online platform.”
According to recent research commissioned by Gradifi, 90% of those surveyed with outstanding student loan debt said a student loan repayment benefit would positively impact their decision to accept a job offer, to recommend an employer or to stay at their current employer. Eight in 10 consider student loan debt a significant source of stress, the study found.
A student loan repayment program can significantly accelerate the paydown of student debt. Nationally, the median amount borrowed for a bachelor’s degree is $26,500. A $100 per month employer contribution for a loan at 4% over 10 years would save over $10,000 in principal and interest. The employer contribution would result in a 30% reduction in total payments, and the loan would be paid off three years faster.
Gradifi’s SLP plan enables employers to make direct contributions to pay down an employee’s debt. Employers can also extend that benefit to parents who have borrowed to pay for their children’s education.
Gradifi’s College SaveUp Plan benefit helps individuals and families save for a college education. College SaveUp Plan enables employers to make monthly contributions to an employee’s existing 529 college savings account. College tuition nationally has been rising 6% annually. At that current rate of increase, the cost of a private college education would be $500,000 in 18 years.
College SaveUp Plan gives employers the flexibility to set the program’s eligibility requirements and the dollar amount of the contribution, similar to the SLP Plan offering. Employees must have an established 529 savings account to receive the employer contribution.
A First Republic company, Gradifi is an innovator in educational employee benefits for U.S. employers. Gradifi’s mission to help employers compete more effectively for talent by providing employee benefits that support an employee’s investment in education. Gradifi offers both a student loan repayment benefit and college savings benefit program through its scalable, easy-to-implement online platform. Gradifi works with 260 companies across the U.S., and the company’s SLP Plan® is endorsed by the American Bankers Association. To learn more, visit www.twitter.com/gradifi.
Elizabeth Yekhtikian, 617-686-9541