Fidelity has launched the Student Debt Employer Contribution program, which enables employers to make after-tax contributions towards their workers’ student loans. Fidelity will pilot the program in the fourth quarter and do a full rollout in 2018.
Fidelity notes that 86% of young workers say they would remain with their current employers for five years if this service was offered to them.
“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,” says Kevin Barry, president of 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.”
Fidelity also offers people its Student Debt Tool, which offers information about federal repayment plans and private refinancing. Fidelity is making this tool available to people who are clients as well as those who are not.
For parents, Fidelity offers its College Savings Calculator, which helps them estimate how much they should be saving.
“We know student debt weighs heavily on people,” Barry says. “More than a third of Fidelity retirement plan participants surveyed have student debt, and 80% of those say it delays retirement planning. 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.”