SoFi at Work – the holistic, financial well-being, and education assistance benefits partner to more than 1,000 organizations – announced the launch of a new Student Loan Verification (SLV) service.
SoFi (NASDAQ: SOFI), the digital personal finance company and all-in-one app, announces this new addition to its portfolio of employer financial well-being benefit solutions “in response to Congress’ approval of the Securing a Strong Retirement Act (SECURE 2.0).”
SECURE 2.0 includes “an important change to retirement law that allows employers to match employees’ student loan payments with contributions toward retirement plans as part of an existing benefits program.”
For organizations looking to make the most of this policy change, SLV simplifies “the process of linking matching employer retirement contributions to employee student loan repayments.”
SLV helps the workforce “make the most of retirement plans through 401(k) or 403(b) contributions, while still paying down student loan debt.”
As the cost of education has skyrocketed, student loan debt “has more than doubled over the last 20 years, its impact on retirement savings has grown, too.”
A 2019 study from MIT found 84 percent of adults “who carry student loan debt say it has impacted the amount they’re able to save for retirement.”
When it came to those who hadn’t saved for retirement at all, “more than one in four respondents said it was because they had to put their money toward paying off student loans.”
Barrett Scruggs, Vice President, Business Lead, SoFi at Work, said:
”At SoFi, we’re dedicated to helping people get their money right, and SECURE 2.0 and the provision that makes it easier for companies to support all employees’ financial well-being is a great example of that. Our Student Loan Verification service makes it easy for companies to put this emerging, yet highly impactful benefit into action for a more inclusive future.”
SoFi at Work partners “with leading financial groups and record keepers to administer Student Loan Verification.”
The service provides a low-cost way to verify eligible student loan payments and deliver contributions for retirement matching – “all employers need to do is determine employee eligibility based on student loan debt balances.” From there, SoFi at Work “handles the rest, including plan design, data security, and reporting.”
SLV is part of “a holistic financial well-being platform from SoFi at Work.”
The SoFi at Work Dashboard includes “a variety of tools for employees including a debt navigator, refinancing options, financial education resources, and more.”
This comprehensive solution “allows employers to meet the evolving needs of their diverse workforce.”