Changes continue to get announced for borrowers enrolled in the former SAVE plan, bringing fiscal responsibility back to individuals holding these loans. For the millions of borrowers enrolled in this plan, deemed illegal in US courts, interest will begin accruing on 8/1. With higher payments, and new payback schedules coming as a result. Uncertainty around this debt for these borrowers looms.
With many borrowers enrolled in SAVE employed by nonprofit or public sector employers, the impact will be immediate as the burden of these individuals student debt is once again recognized. According to the Department of Education ‘Millions of borrowers enrolled in the Biden Administration’s SAVE Plan based on the false promise of loan cancellation and zero monthly payments, despite multiple federal courts striking down such policies.’ A new reality surrounding these loans lies ahead as a result.
The good news is, employers can help. Through Student Loan Repayment, and contributions as little as $50 per-month toward employees’ loans. Companies can help their teams shave years off their student debt, and thousands in principal + interest. Plus, the benefit has also been proven to bring consistent ROI back to HR teams. Helping organizations attract talent 13% faster, and retain talent 36% longer.
If you’ve followed our recent content, on top of this already meaningful recruitment and retention data. Student Loan Repayment can now also be offered tax-free PERMANENTLY through the recent OBBB. Reiterating, now is the time to act to support employees and change the way your organization stands out in the market for talent.
If you’re a nonprofit employer, learning of these changes toward many of your employees’ student loans. Contact us today to learn more about getting started with your program and standing out as an employer of choice.
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