Gradifi and LendKey have entered a partnership to help provide employees with more student loan repayment options.
The average college student graduates with about $30,000 in student loan debt. Meanwhile, the total student loan debt in the U.S. is at a record $1.52 trillion. So it’s not surprising that more U.S. employers are realizing that the best way to attract and retain millennial employees is by helping them pay back their student loans.
This is the premise behind Gradifi, a company that offers a platform for student loans and college savings benefits. They have three different solutions that allow companies to help their employees manage and pay back their student loan debt.
And now through a partnership with the student loan refinancing company LendKey, Gradifi will be able to provide even more options to employers, with access to LendKey’s network of lenders through the Gradifi Refi program.
According to Meera Oliva, Chief Marketing Officer of Gradifi, this partnership will allow Gradifi to address the problem of student loan debt more effectively.
“By teaming up with LendKey, Gradifi can now offer many more student loan refinance options and allow employers to address the No. 1 concern of many employees – the high cost of repaying student loans,” Oliva said.
Based in Cincinnati and New York, LendKey is an online marketplace where borrowers can apply for student loans and student loan refinancing. With a network of over 300 banks and credit unions, LendKey provides a wide variety of options for consumers.
Lewis Goldman, Chief Marketing Officer of LendKey, also expressed his excitement over the partnership.
“LendKey and Gradifi share a common mission: to enable dreams for borrowers burdened by student loan debt,” Goldman said.
Gradifi provides two other solutions for employers; the SLP Plan and the College SaveUp Plan. With the SLP Plan, companies can provide monthly contributions to their employees’ student loans. The College SaveUp Plan lets employers make contributions to an employee’s 529 college savings plan account.
A 2017 study by American Student Assistance showed that 86 percent of employees would commit to their employer for five years if it helped them pay back their student loans. But while student loan repayment benefits are growing in popularity, this is something that only 4 percent of U.S. employers currently provide. However, it might still be worthwhile for borrowers to reach out to their current employer to see if they are willing to offer this benefit in the future.