Student loans are the fastest growing form of U.S. household debt. Today’s generation of employees are less financially secure than previous generations, and student debt hinders millions from saving for retirement, purchasing a home, and even starting a family.
Employers are stepping up to offer more comprehensive financial wellness benefits as an incentive to attract and retain talent. The most paramount tool to improve employee financial well-being is student loan repayment assistance through IonTuition.
Below are five ways that IonTuition optimizes student loan repayment for your employees.
1. Automatic Payments
An easy way to prevent missed student loan payments is to set up automatic payments. Payments are automatically deducted from the borrower’s bank account on the same date each month. Even better, most servicers offer a 0.25% interest rate deduction for borrowers who enroll in auto-payments.
IonTuition’s concierge advisors guide employees into setting up auto-payments with their student loan servicers. If they’re uncomfortable having auto-debits, IonTuition can also be used to set up payment reminders.
2. Loan Consolidation
Money management starts with knowing the amounts and dates for monthly income and expenses. Student loan consolidation involves lumping all loans into one payment. Having one consistent payment makes managing a monthly budget easier.
Most people are unaware of the Federal student loan consolidation option. Our concierge advisors can review the employee’s loan portfolio and connect them directly with their servicer to begin the consolidation process.
3. Lower Monthly Payments
Since student loan payments are a not a priority over housing and transportation costs, lowering student loan payments relieves financial stress overall.
IonTuition’s self-service calculator prequalifies users for income-driven repayment plans that can lower monthly payments to as little as $0. Several income-driven plans also include loan forgiveness after 20-25 years. The calculator can also suggest extended or graduated repayment plans that can also lower monthly payments.
4. Repay Loans Sooner
To save the most money on the life of a loan, it’s in the borrower’s best interest to repay the loan as soon as possible. IonTuition includes an online calculator to show total time and interest saved from making extra payments.
Whether employees receive contributions from their company or make extra payments on their own, every over-payment saves even more from unaccrued interest. Even an extra $10 per monthly can saves hundreds over the life of a loan.
5. Refinancing
Finally, there is an option that can consolidate your loans, lower your monthly payment, and save money on interest – refinancing through a private student loan lender. Refinancing is appropriate for borrowers with high credit scores, so it’s not viable for everyone.
IonTuition includes a network of 300+ refinancing lenders to help those qualified employees find the best possible terms.
Talk to the IonTuition team today about how you can help your employees with their student loan repayment.