Schwab Retirement Plan Services (SRPS) announced this week it is making expanded student loan and college planning resources available to 401(k) plan participants through an agreement with student loan and education benefits platform Candidly.
The collaboration includes participant access to Candidly Core, a suite of tools and resources designed to help employees optimize their repayment strategy and save significant time and money as they work toward eliminating student loan debt. Candidly Core also offers college planning resources, including a 529 plan finder and calculators to help with decision making. Through an integrated online experience, participants have one-click access to Candidly resources directly from the SRPS participant website.
The partnership comes at a critical moment for America’s 43 million student loan borrowers, as Candidly Founder and CEO Laurel Taylor pointed out on LinkedIn that collections on defaulted student loans are resuming May 5th—with borrowers facing drops in credit scores of up to 170 points for non-repayment followed by potential wage garnishment.
“We’re facing dual imperatives: helping employees navigate immediate cash flow challenges while preventing further entrenchment of the retirement savings crisis that already exists for student loan holders of all ages and wages across America,” Taylor wrote.
She also mentioned that the partnership delivers immediate relief through Candidly’s debt optimization platform—now integrated directly into Schwab’s ecosystem—giving every plan participant powerful tools to navigate a fragmented student loan landscape where 57% of borrowers don’t know their servicer and 46% can’t identify what they owe.
Expanded student loan retirement matching capabilities
Schwab and Candidly are also offering an integrated solution for employers implementing a student loan retirement match for their 401(k) plans as allowed by the SECURE 2.0 Act. Through this collaboration, Candidly verifies that participants have properly completed the self-certification process, which allows them to confirm their qualified student loan payments, and provides that information to SRPS, which can then calculate the employer match and fulfill the contributions.
“The SECURE 2.0 provisions create an unprecedented opportunity to tackle two critical financial challenges simultaneously—student debt and retirement readiness.”
Candidly’s Laurel Taylor
“As we continue to expand overall financial wellness offerings for clients, we’re very pleased to be working with Candidly to help employees and employers navigate student loan debt and college planning,” said Lee McAdoo, Managing Director, Schwab Retirement Plan Services. “Our clients who are evaluating student loan retirement matching can see value in Candidly’s independent reporting, which gives them the visibility, confidence, and support they need to offer this powerful benefit.”
SRPS plan sponsor clients can also leverage Candidly’s detailed analysis and reporting capabilities to determine how many of their employees are carrying student loan debt. This can help them better understand the impact student loan retirement matching could have on their overall benefits program, as well as the increased 401(k) plan participation that may result.
“By integrating Candidly’s technology with Schwab Retirement Plan Services’ capabilities, we’re helping employers transform student debt from a financial barrier into a bridge to retirement security,” Candidly’s Taylor said. “The SECURE 2.0 provisions create an unprecedented opportunity to tackle two critical financial challenges simultaneously—student debt and retirement readiness. Together with Schwab Retirement Plan Services, we’re delivering on our promise to create pathways from debt to opportunity for plan participants.”
Candidly is not affiliated with Schwab Retirement Plan Services, Inc. or its affiliates.
SEE ALSO:
• Candidly, Fiducius Partner to Offer Student Debt Repayment Benefits
• Student Loan Retirement Match Program Making a Big Impact at Candidly
• Schwab Introduces Income Lab
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.