AIG Retirement Services, a retirement plan provider for tax-exempt and public sector employers, announced it has engaged Savi, a social impact technology firm, to provide nonprofit and public service employees with an online tool to navigate government loan forgiveness programs.
The firm notes that Public Service Loan Forgiveness, a federal program that eliminates all remaining federal student debt after 120 months of qualifying payments have been made, has experienced high rejection rates for applicants, with less than 2% of applications being approved as of April 30. For many, it says, this is due to incomplete applications and a lack of understanding of program requirements.
AIG Retirement Services and Savi seek to improve and simplify the experience for employees by providing an end-to-end digital process that helps:
- determine qualification for student loan forgiveness;
- identify potential savings;
- navigate through enrollment;
- maintain eligibility; and
- provide a clear path to applying for full forgiveness.
Employees of nonprofit and public sector AIG Retirement Services clients that are offering the new student debt solution will be able to find the technology on their retirement plan website. This service also provides Savi’s analysis of government rules concerning student loan debt, including provisions in the Coronavirus Aid, Relief and Economic Security (CARES) Act.
“The new program can chart the path for nonprofit and public service employees to loan forgiveness, helping to improve their financial future and creating enhanced flexibility around other goals, including saving for retirement,” says Rob Scheinerman, chief executive officer of AIG Retirement Services.