NerdWallet - a personal finance blog - recently analyzed the cost savings for borrowers that have the fortunate opportunity to work for an employer that helps pay down their loans. According to the NerdWallet analysis, for a borrower with an average of $29,000 that participates in a typical benefit program, they can pay off their loans three years earlier and reduce their interest payments by $4,100 from what they currently owe. For an MBA grad with average student loans of $52,000, they can save over $5,000.
NerdWallet compares these inputs to a borrower that receives a student match from their employer AND a refi of their loan. The combined benefit allows the borrower to save even more money with both options. Please click here for a more extensive look at the study.
NerdWallet must be a big fan of GradFin. We offer both solutions - an employer match and a refi option. We are currently setting up appointments with companies across the country to discuss in more detail how we can set up this employee benefit program. We then meet with companies and their employees in a "town hall" educational style setting to discuss personalized options with employees, answer any questions about our program, and agree on a time to start accepting applications for refinancing the loans.
On March 2, 2016, Bloomberg news published an article about the NerdWallet study. The Bloomberg article also mentioned a survey of 1,000 people with loans found that 80 percent would like to work for an employer with some sort of repayment benefit. Around half said they preferred loan payments to 401(k) contributions and health insurance premium coverage. With these types of numbers floating out there, it is going to be very difficult for companies to not begin to offer this type of benefit program for their employees.
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