Workers facing debt payments must also prioritize long-term savings, as difficult as this may seem.
Tag: student loan debt
The IRS recently issued a private letter ruling approving a student loan repayment benefit within a retirement plan; ERIC wants this expanded to apply to all plan sponsors.
The OneAmerica survey examines other topics relating to participant financial wellness, including health care expenses and the use of health savings accounts as short- and long-term savings vehicles.
IonTuition finds more than half (52%) of respondents still owe more than $15,000 in student loans, and the year-over-year data shows the number of respondents with more than $30,000 in student loans actually increased over time compared to initial borrowing.
Paying down debt is a higher priority for survey respondents than saving.
With a new service from BenefitEd, workers can move the entire match over to pay down their student loan debt or just a portion of it.
Plans which permit non-safe harbor hardship distributions could theoretically approve a participant’s hardship distribution request for the repayment of student loans, but those relying on the safe harbor cannot.
However, a brief released from the Center of Retirement Research shows retirement wealth accumulation is affected by having student loans.
Franklin Templeton last year launched the Spryng crowd funding platform for college savings; at this point the firm has not conducted a systematic review of profile performance, but anecdotally, gift givers have typically been a friend or family member of the account owner or beneficiary, though other examples of giving have demonstrated the broad power of the platform.
While employees are grappling with things like higher health care costs, financially supporting other family members and debt, a study from PwC finds they are not always taking the right steps to manage these issues and to invest and save for retirement adequately.
Student debt management is a complex and delicate issue that has a significant impact on employees’ broad financial wellness—but providing support can be straightforward from the plan sponsor perspective.
A poll by LendEDU finds 46% of Americans would participate in a proposed program that would provide loan forgiveness to borrows who agree to delay eligibility to collect Social Security.
Many may need to set up an emergency fund or pay off debt first.
For Millennials, student loan debt, credit cards and health care expenses all measured equally as causes for “extreme” amounts of financial stress, a survey found.
One-third would sacrifice retirement benefits.
The SaaS firm has expanded its platform and initiated new partnerships to help employers easily roll out student loan refinancing as an employee benefit.