T. Rowe Price Retirement Plan Services, Inc. announced this week it will launch a suite of student loan resources this fall, including educational tools and content within its financial wellness offering.
Plan sponsors will also have the option to include additional offerings like employer contribution services and access to student loan refinancing, as well as live financial counseling services. The benefit offerings will be provided by digital personal finance company SoFi through the ‘SoFi at Work’ program.
The tools and educational content will be integrated into T. Rowe Price’s 401k participant website, giving participants the ability to manage and plan for their student loan needs while saving for retirement. For plan sponsors, helping employees manage education costs can result in greater participation in the retirement benefit, prevent productivity loss, and help attract and retain talent, the company said in a statement.
New optional solutions from SoFi’s ‘SoFi at Work’ include a centralized dashboard that houses the Student Loan Debt Navigator. Through ‘SoFi at Work’ employees can access multiple options to help them better manage their financial needs and navigate their student loan payments. Plan sponsors using SoFi’s optional solutions can elect to provide connectivity to SoFi’s centralized dashboard from the participant website.
T. Rowe Price recently conducted a survey of over 2,400 workers employed by its retirement services recordkeeping clients examining the effect student loan debt can have on the financial behaviors and attitudes of 401k savers. According to the survey:
- More than half of the survey respondents (54%)—across all generations—say they are affected by post-secondary education expenses, with 52% citing that these costs are a barrier to achieving their financial goals. Further, respondents with student loan debt are less likely to participate in their 401k compared to workers without it, and many are unlikely to shed this expense completely until they are on the precipice of their retirement.
- 60% of those surveyed viewed their student loan debt as long-term debt (such as a mortgage), significantly longer than the original 10-year amortization.
“Our focus, as we continue to enhance our financial wellness offering, is to find solutions that help participants successfully manage all of their competing financial needs—like budgeting, paying down debt and loans, and saving for health care expenses,” said Kevin Collins, head of T. Rowe Price Retirement Plan Services, Inc. “Student loan debt can have a significant effect on an individual’s financial situation and we recognize that many individuals may need help finding the balance between managing or planning for education costs while also saving for retirement. Our strategic alliance with SoFi will help individuals navigate this successfully.”
“We are pleased to work with T. Rowe Price to offer valuable financial wellness benefits as well as education and tools to help their participants manage their student loan needs and get on track for achieving financial independence in the future,” said Anthony Noto, SoFi CEO. “Given the current macroeconomic environment, employee circumstances are continuously changing and more employees are seeking broad guidance on how to manage debt, build their savings, and ultimately improve their financial health. Together with T. Rowe Price, we are committed to providing the most meaningful ways to help employees address their toughest financial concerns head-on.”
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
