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Client Service August 5, 2024
Student Loan Repayment Startup Summer Acquires Vault
Summer buys the student loan benefits firm that has worked with recordkeepers such as Voya and Schwab.
Reported by Remy Samuels
Student loan repayment benefits startup Summer PBC has acquired Vault Student Loan Benefits, formerly Student Loan Genius, the firm announced Thursday.
Founded in 2013, Austin, Texas-based Vault was an early financial wellness innovator, working with more than 3,000 employers and 401(k) recordkeepers like Voya and Schwab Retirement Plan Services.
Vault’s platform helped bolster HR leaders’ employee recruiting and retention efforts by offering student loan repayment services, contributing to employee 529 college savings plans and facilitating student loan retirement matching, according to Summer’s announcement.
This acquisition “cements Summer’s status as a leader in the student loan and education benefits category and marks a significant milestone for the seven-year-old company,” according to the announcement.
Summer partners with employers and institutions to deliver tailored student loan benefits that help employees save for education, better manage their student loans, find forgiveness options and lower monthly payments.
By integrating Vault’s technology and expertise, Summer plans to further enhance its product suite for HR leaders looking to offer or enhance their for student loan benefits.
“We are thrilled to welcome Vault into the Summer family,” said Will Sealy, Summer’s founder and CEO, in a statement. “This acquisition brings talent and expanded resources that will empower us to better serve our existing employer clients as well as grow to support many more.”
Heather Lowe, Vault’s former chief operating officer who joined Summer as vice president, also said in a statement, “Summer’s technology platform immediately enhances our ability to tackle the major generational challenge of student debt and rising college costs for employees and their families across the country.”
In an all-cash transaction, Summer is acquiring certain Vault assets, intellectual property and select client contracts. Following the acquisition, Vault’s existing products will be phased out, and Vault’s core team will join Summer.
Some of Summer’s products include:
- Summer Save, a platform for student loan optimization and college savings;
- Summer Boost, which provides employer student loan contributions and tuition reimbursement; and
- Summer Secure, offering a student loan retirement matching compliant with the SECURE 2.0 Act of 2022.
Summer also recently announced hiring Don Weinstein, ADP’s former chief product and technology officer, as Summer’s first chief innovation officer. Earlier this year, Summer partnered with ADP to enhance its capabilities for 401(k) student loan matching for retirement plan participants.
