There is approximately $1.5 trillion in outstanding student loans, affecting more than 44 million Americans. This debt is second only to mortgage debt and it has the attention of lawmakers as well as employers.
Employers are looking for ways to help individuals with student loans for purposes of attracting and retaining key talent. Some companies are assisting employees by making loan payments helping to pay down the loan debt. Others are designing their 401(k) plans to enhance retirement savings to those employees who may be missing out on employer contributions while they work on paying off student debt in lieu of contributing to their retirement plans.
TRI-AD can assist clients with retirement plan designs that enable employees with student loans to receive employer contributions, even if they cannot afford to defer money into the 401(k) plan. If you have employees burdened with student loan debt, we welcome the opportunity to discuss these designs with you.
The Student Loan Repayment Program was discussed in our Retirement Plans Legislative Update earlier this year. Click here to view a recording of the presentation, with the Student Loan program information starting at 23:22.
Please contact your Client Service Manager if you wish to discuss these retirement plan designs further or email us at email@example.com.