It’s a chilly day in Wisconsin and the young graduate denizens of the fair state are facing issues millions of Americans deal with: repaying their student loans. But, out from the sea of grace periods and payment options, new methods are always bubbling through. Another recent addition is the customizable option offered by Gradifi; one that is now being utilized by Powertex.
Eau Claire, Wisconsin is home to Powertex who manages this interesting program. The benefits are on the wall, they can see, as it’s a rather encouraging factor to retain employees and hire new ones. More work for the organization, on top of helping many graduates get a leg up on financial burdens.
Alanda Provnozik is one such example of a grad student taking advantage of Powertek’s interaction with the Gradifi program. She’s not alone, as according to Powertek, roughly a quarter of their employees will also be using the program. So how does it work out for them?
Well as far as Gradifi goes, they offer a service to the employer, who then goes to the employee. This service allows an employee to customize eligibility, length of the service, and how much they pay towards their loan. Those eligible will have this plan taken up by Gradifi who manages the company’s repayment plan.
[Check out these related articles: Natixis Modifies Student Loan Benefits for Employees, New Study: Employer Perspective on Student Loans, or More Companies Adopting Employee Student Loan Repayment Assistance]
What might also appear to be an extension of goodwill isn’t true either. According to Gradifi, a company using this program might end up paying an extra $3 to $5 per employee. Since not all may qualify (or not use) the service, the cost is relatively insignificant. Also according to Gradifi, their plan benefits those who utilize it by roughly $100 a month, give or take.
For companies like Powertex and employees like Alanda, they’ll start seeing the benefits roll in around June of this year. What does this mean for the future? Hopefully, more options with companies will exist nationwide, offering additional layers of convenient repayment to get students out of debt. Programs like these not only help borrowers paying high-interest rates but also those with low interest student loans as it can help expedite repayment – saving borrowers a lot in interest. How far the Gradifi program itself will take off is yet to be seen, but it’ll test its mettle in the heart of Eau Claire.
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