BOSTON--(BUSINESS WIRE)--
Gradifi, a leader in student loan paydown benefit programs for U.S. employers, today launched College SaveUp Plan, an innovative HR benefit that will help employees save for college for their children.
Gradifi’s College SaveUp Plan benefit enables companies to make monthly contributions to an employee’s existing 529 college savings account. A 529 plan is a tax-advantaged savings account available to families in almost every state in the nation.
College SaveUp Plan is designed as a stand-alone employee benefit or can be integrated with Gradifi’s SLP Plan® (Student Loan Paydown) benefit, which allows employers to make contributions to accelerate the payoff of an employee’s student loan debt. Gradifi has commitments from nearly 250 companies to offer its SLP Plan.
Gradifi is the first to bundle both a student loan repayment and college savings program benefit in a single, scalable, easy-to-implement platform.
“With 44 million Americans struggling with student loan debt, we see an opportunity to extend our student loan repayment platform and integrate a college savings benefit,” said Gradifi CEO Tim DeMello. “This is another game-changer from Gradifi that will help families avoid student loan debt and enable employers to differentiate themselves in the marketplace.”
Steve Connelly, CEO of Connelly Partners, which is offering the SLP Plan to its employees, said: “Paying down student loan debt is beyond stressful for half our employees, and Gradifi has given us a way to help them. Saving for college is equally stressful for the other half of our employees. And now Gradifi has a way to help them as well.”
College SaveUp Plan is part of Gradifi’s broader mission to help employers support their employees’ investment in education and address the challenges of financing higher education.
Nationally, college tuition has been rising 6% annually. At that current rate of increase, the cost of a private college education would be $500,000 in 18 years. In terms of student loan debt, many borrowers are struggling as student debt continues to rise. Nationally, the median amount borrowed for a bachelor’s degree is $26,500 and is $45,000 for an MBA, according to research commissioned by Gradifi.
College SaveUp Plan gives employers the flexibility to set the program’s eligibility requirements and the dollar amount of the contribution, just like the SLP Plan offering. Employees must have an established 529 savings account to receive the employer contribution.
About Gradifi
A First Republic company, Gradifi is an innovator in educational employee benefits for U.S. employers. Gradifi offers both a student loan repayment benefit and college savings benefit program through its scalable, easy-to-implement online platform. Gradifi’s mission to help employers compete more effectively for talent by providing employee benefits that support an employee’s investment in education. Gradifi works with nearly 250 companies across the U.S., and the company’s SLP Plan® is endorsed by the American Bankers Association. To learn more, visit www.gradifi.com or www.twitter.com/gradifi.
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