ADP is the latest company to begin offering student loan benefits integrations as it announced its new partnership with online resource Summer.
The human resources (HR) and payroll provider will introduce student loan retirement matching and additional student debt tools through Summer’s platform.
Employers who use ADP’s 401(k) retirement solutions can opt-in to match employee’s qualifying student loan payments into their retirement plans. Through ADP’s sign-on user experience, participants will be able to access Summer Secure to enroll in the program, verify their loans and payments, and report information for an annual contribution to their retirement plan as a result of their 2024 student loan payments.
“ADP is excited to team up with Summer to offer a student loan retirement matching solution giving plan sponsors the ability to provide a valuable savings solution that puts employees on the road to financial wellness by paying their student loan debt and saving for retirement,” said Chris Magno, senior vice president and general manager, Retirement Services Division at ADP. “It’s a low-cost solution that can be implemented at scale. Summer and ADP have made it easy and affordable for plan sponsors of all sizes to opt in and support their employee populations.”
According to a release, ADP will also provide access to Summer’s student loan optimization tools, like a customized assessment of employees’ eligibility for repayment strategies as well as access to educational resources on student loans and saving for college. ADP plan sponsors can opt-in to premium additional student loan optimization tools through Summer, such as end-to-end enrollment in federal student loan programs like income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF), and employer contributions to debt payments, as well as tuition reimbursement.
“Employees with student debt are often at a real disadvantage when it comes to saving for the future, but Student Loan Retirement Matching means employees can pay down debt while also saving for their financial future,” said Summer CEO and founder Will Sealy. “Since this benefit can boost recruiting and retention for employers, ADP is once again proving it’s a true industry leader by making it possible for employers to easily adopt this offering.”
The partnership follows a string of collaborations between large-scale companies and student loan solutions as more organizations look to offer loan benefits for employees. Earlier this month, Hart House, a plant-based restaurant chain founded by actor and entrepreneur Kevin Hart, announced it was partnering with technology platform Savi on student loan repayment assistance. In January, Chipotle said it would start offering student loan matching benefits in partnership with SoFi.
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