SoFi has released a new service as they expand their financial wellness offerings. SoFo has created “SoFi at Work”, the program is similar to a 401(k) where companies offer the service as a nice benefit. It should be noted that SoFi contributes $200 to each month to their own employees that carry student loan debt. This program already encompasses over 600 participating companies across the US including companies like Meredith Corporation and Northrop Grumman. Seven of the top 10 tech firms in the Fortune 500 are participating along with 58 of the Vault Law Top 100 law firms and eleven of the 2017 Vault Banking 50.
Mike Cagney, CEO and co-founder of SoFi said they believe student loan assistance is the next 401(k);
“This is especially true for the Millennial generation, now the largest percentage of the workforce, who are starting their careers with record-setting student loan debt and deferring important priorities like retirement savings or buying their first home.”
Catesby Perrin, Head of Business Development at SoFi, explained that often people have to choose between saving for retirement or paying down student debt. But what they really need to do is both.“Forward-thinking companies like our partners are thinking about the most meaningful ways to address these stresses and their employees’ overall financial wellness,” said Perrin.
The SoFi program for companies includes the Student Loan Contribution Benefit – administered by SoFi- and the Student Loan Refinancing Benefit, SoFi’s core service.
SoFi COO Joanne Bradford visited with Bloomberg West yesterday reviewing the new service saying that student debt has a profound impact as individuals struggle to manage the burden. They did a survey indicating the 90% of prospective employees would be more inclined to work with a company that provides this type of perk. And this is not just for the Millennial generation as servicing debt can go on for many years. So until policy makers fix the student debt crises, SoFi is offering an interesting option.
The video from Bloomberg is embedded below.