NEW YORK–(COMMERCIAL THREAD) – TIAA, a leading financial services provider, announced today that it is working with social impact tech startup Savi to make it easier for nonprofits to deliver a meaningful solution to student debt relief to their employees. Together, the companies launched a student debt solution designed to help employees of nonprofits immediately reduce their monthly student loan payments and qualify over time for federal student loan balance relief. by enrolling in the Federal Public Service Loan Forgiveness (PSLF) program.
TIAA and Savi piloted the solution from July 2019 to March 2020 with seven nonprofits, four in higher education and three in healthcare. During that time, employees who signed up for the solution were on track to save an average of $ 1,700 per year in student debt repayments. Payments for some employees have been cut in half. Additionally, employees had an expected average discount of over $ 50,000 after successfully completing 120 months in the PSLF program. The pilot’s total projected forgiveness exceeds $ 53,000,000 to date.
Much more than a simple tool or calculator, the solution launched today by TIAA and Savi helps participants successfully navigate the complex rules of the PSLF program. The PSLF program was designed over a decade ago to help people who dedicate their careers to serving others. Historically, the program has presented challenges for some borrowers due to difficulty understanding the rules and handling the paperwork. In fact, 98 percent of applicants to the PSLF program were rejected for not meeting program requirements or due to missing or incomplete information on a form. I Without a solution like Savi, more than half of borrowers miss the annual deadlines that are essential to getting a loan forgiveness.
“Debt management is a key step towards achieving financial well-being and that is why we are offering this solution,” said Doug Chittenden, executive vice president and president of institutional relations at TIAA. “There has never been a more important time to help keep our nonprofit participants on track to student debt cancellation. Health care workers on the front lines of this crisis and faculty and academic staff focused on administering distance learning programs are already under enormous pressure. Together with Savi, we are proud to help our participants and other nonprofit employees reap the important benefits of the federal PSLF program.
University of Pittsburgh Assistant Vice Chancellor of Human Resources John Kozar said, “The University of Pittsburgh continually seeks benefits and services that can deliver high value at little or no cost. One of the best examples is this solution from TIAA and Savi. The University was one of the first to adopt this program in March 2020, and in a very short time participants had a calculated average loan forgiveness of over $ 55,000. There is also an immediate saving with the reduction in loan repayments which average $ 100 per month. Among our participants, the total debt that can be canceled exceeds $ 14 million. Needless to say, we’re thrilled to make this solution available to all of our employees, and our faculty and staff are thrilled with the results. We are grateful to TIAA and Savi’s efforts to recognize and respond to this important need.
Employees of Devereux Advanced Behavioral Health, another participant in the pilot program, have experienced similar success. “This solution from TIAA and Savi is a great addition to our suite of employee benefits,” said Gayle Collins, director of operations for people in advanced behavioral health at Devereux. “It’s user-friendly, the data is impressive and exceeded our expectations in every way. Most importantly, our employees tell us it’s easy to navigate, helps them lower their monthly loan payments, and helps ensure they’re approved for a loan forgiveness.
Savi co-founder Aaron Smith said, “Even the most diligent student loan borrowers face difficulty navigating the confusing maze of federal student loan repayment and forgiveness options. After seeing the incredible impact of our pilot project with TIAA, we are excited to expand to the broader community of client institutions and their TIAA employees. ”
How it works
TIAA offers Savi’s solution to client institutions as a turnkey service to help them dramatically extend the financial wellness benefits available to their employees.
Individuals can register by answering a few simple questions. From there, the Savi software determines the potential savings with an income-based repayment plan and whether the person may qualify for a rebate program. The Savi algorithm takes into account an individual’s specific circumstances, including their family and tax situation, and offers a solution that best meets their needs. The solution acts as a janitor, helping the individual stay compliant with recurring PSLF program administrative requirements and reducing errors. Savi’s Customer Success Team is ready to answer questions and act as an advocate when needed.
Employees of non-profit institutions and their family members can also get an initial scan of the tool free of charge.
This solution offers a user-friendly deployment model that requires no IT intervention from the institution and allows the customer to control the channels and frequency of communication. A communication toolkit is provided to enable institutions to communicate information in the way that works best for them and their employees.
“I was already working for forgiveness, but found new savings,” said a TIAA participant and Savi user. “My monthly payment went from $ 360 to $ 150 – a reduction of more than half! ”
Mr. Chittenden of TIAA said, “TIAA recognizes that new financial realities have arisen for participants due to the current economic situation caused by COVID-19. We strive to help everyone work towards a stable financial future with dignity, purpose and hope. Managing student debt is a key measure to help ensure long-term financial well-being.
With an award-winning 1 With a history of consistent investment performance, TIAA (TIAA.org) is the leading provider of financial services to academia, research, medicine, culture and government. TIAA has $ 1.1 trillion in assets under management 2 (as of 03/31/2020) and offers a wide range of financial solutions, including investment, banking, advisory and education, and retirement services.
Savi is a social impact tech startup in Washington, DC, working to solve the student debt crisis affecting 46 million borrowers by helping them discover new loan repayment and cancellation options. Founded by longtime student loan experts and advocates, Savi is a public benefit company that has identified over $ 200 million in expected discounts for student loan borrowers. Savi works with employers, member organizations and financial institutions to provide our service as a one-time student loan benefit.
Savi and TIAA are independent entities. A portion of the fees charged by Savi may be shared with TIAA to offset the costs of supporting the program. TIAA makes no representations regarding the accuracy or completeness of the information provided by Savi. TIAA and Savi do not provide tax or legal advice. Please contact your personal tax or legal advisor.
1 The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy securities of any entity in any jurisdiction. For more information, see lipperfundawards.com. Lipper Fund Awards by Refinitiv, © 2020 Refinitiv. All rights reserved. Used under license. The price is based on a review of the risk-adjusted performance of 39 companies for 2016, 36 for 2017, 35 for 2018 and 2019 and 30 for 2020. The price is only for TIAA-CREF mutual funds in the asset class mixed. . Without such exemptions, the odds could be lower. Past performance is no guarantee of future results. For current performances, rankings and prospectuses, please visit TIAA.org.
2 Based on $ 1.1 trillion in assets under management in Nuveen affiliates and TIAA investment management teams as of 3/31/20.
© 2020 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, New York, NY 10017
I Source: Federal student aid, https://ifap.ed.gov/electronic-announcements/021920fsapostsnewreportstofsadatacenter