Employers that use Transamerica as the recordkeeper for their retirement plan now have access to Transamerica’s Student Loan Repayment Program to help workers pay back student loans.
The program allows employers to shift their benefit dollars, allowing them to make contributions to the employee’s retirement plan or student loan servicer. Transamerica notes that because clients will already have their retirement plan recordkept with it, the process will be streamlined. The program also enables participants to consolidate or refinance their loans.
Sponsors can choose from one of three providers to power the student loan repayment: Common Bond, Futurefuel.io and Tuition.io. Transamerica says each provider has a state-of-the-art online platform.
“Transamerica recognizes that student loans continue to be an especially heavy burden for employees,” says Kent Callahan, chief executive officer of Transamerica’s workplace solutions division. “While federal student loan repayments are deferred for the remainder of 2020, many employees with privately held student loans are still seeking relief. Many more employees will be looking for support once their loan payments begin again. We know that wealth and health are connected. Workers struggling with debt can have higher stress and may become less productive.”