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SoFi, one of the prominent finance companies today, has set a precedent for corporate partnerships and student loan refinancing as they exceed $1 billion in loan refinancing through partnerships. In short, SoFi has launched a program aimed at helping employed graduates pay off debt.
A large number of companies are currently in partnership with SoFi with the intent to combat the rising issue of financial aid repayment. The combination of employer company benefits and SoFi financial services alleviates repayment issues, and more importantly, allows graduates to focus on other pressing matters involving financial attention such as retirement savings and 401(k).
Options for Companies Partnering With SoFi
There are two options that companies can choose from when making a deal with SoFi. The first is known as the Employer Contribution Model which requires companies to pay a set amount each month in an effort to help pay for student loans.
The next deal is known as the Classic Partner Model, which is free for employers who provide SoFi as a worker benefit, and it comes with a sign on bonus to encourage application from companies.
As a demonstration of these concepts, SoFi offers an employee benefit of $200 per month for financial aid repayment. This shows that SoFi is willing to set a precedent for other companies to follow. SoFi is one of the fastest growing fintech companies with over $1 billion in capital raised to date.
These are two current ways for employees to loosen up the grip that debt issues have on the workforce. Once again, the main incentive for these programs is to help pay for financial aid by working through provided employer benefits.
These new programs coincide with recent legislature that relates to loan payment and employee benefit strategies. Recent acts known as the Employer Participation in Student Loan Assistance Act and the Employer Participation in Repayment Act aim at combating the increasing repayment issues.
Overall, this news simply alludes towards a new movement in the effort to reduce repayment issues experienced by young borrowers. The movement looks towards employers to offer respite in the long journey of eliminating debt.
Author: Jeff Gitlen
Jeff Gitlen writes about a wide range of finance topics including everything from student loans to credit cards to small business financing. Jeff's work has been featured on a number of sites including Bloomberg, CNBC, Forbes, Market Watch, and more.