Voya Financial is the latest plan provider to offer a student loan debt reduction tool to its workplace client.
The firm is partnering with Vault, a student loan benefit technology company.
“With student loan debt in the U.S. totaling approximately $1.55 trillion, the new relationship comes at a time when more Americans are seeking resources to help pay off debt as fast as possible—without sacrificing saving for retirement,” according to Voya.
It will offer Vault’s platform as an optional service to its workplace clients, supporting the company’s broader focus and efforts to address the financial wellness needs of Americans.
“Our research has found that 96% of individuals with student loan debt would be likely or very likely to save more for retirement if they felt like they had their student debt under control,” Charlie Nelson, CEO of Retirement and Employee Benefits at Voya Financial, said in a statement. “For many Americans, student debt—for themselves, a spouse or a child—has increasingly become a major roadblock to saving for their future. We’re thrilled to offer a solution that aligns with our commitment to providing holistic wellness solutions that can help our plan participants achieve greater security in retirement. That starts with providing support across a wide range of challenges, including student loan repayment.”
Voya research also notes that many individuals seek financial resources and support to help pay off their student debt as fast as possible, without having to sacrifice other financial priorities such as saving for retirement.
Holistic financial wellness strategy
With one in three adults under the age of 30 having student loan debt, Voya’s findings suggest that employers who offer individuals more support and education could bolster their employees’ holistic financial wellness strategy.
Employers who offer loan assistance programs can also have a greater opportunity to attract and retain employees amid a tight labor market, Voya notes. Its research finds that student loan debt assistance can be a great talent acquisition and retention tool, especially for those ages 18 to 44, who are much more likely to choose an employer who offers such a benefit.
“We see our relationship with Voya as a way to help unite employees and employers at scale around an economic stressor that has become life-altering for the modern American workforce,” added Romy Parzick, CEO of Vault. “Employers offering student debt pay-down benefits enjoy a recruiting advantage and lower turnover; and employees who take control of their financial health are less stressed, happier at their place of work and vastly more productive. It’s a rare, balanced win-win.”