SAN FRANCISCO, Aug. 15, 2019 /PRNewswire/ -- SoFi announced today the addition of 529 contributions to their SoFi at Work program, inclusive of automated payroll deduction and employer contribution capabilities, as well as a forthcoming selection tool that will provide employees with 529 college savings plans that best fit their individual financial situation.
With the average cost of college running $26,290 for public, out-of-state universities and $35,830 for private universities, participation in 529 college savings plans is more important than ever. In 2018, 44% of parents reported saving for their child's college education in a 529 plan, so the number of parents saving is increasing.
"To date, SoFi has helped over 250,000 members refinance $18 billion in student loans, continuing our commitment to easing the student loan burden," said Anthony Noto, CEO at SoFi. "More than ever, employees are looking to their employers for financial wellness benefits and guidance. The addition of 529 capabilities to the SoFi at Work program is essential in offering the best in class tools for employers to provide their employees with the resources to help them reach their personal financial goals."
With the forthcoming 529 selection tool, employees will be able to input basic information about their expected college costs and household financial status and then receive a personalized recommendation for two college savings plans. Employees will also be able to link their existing 529 plans with SoFi's portal and make contributions from their paychecks via payroll integration with their employer's payroll provider. Employers can elect to make monthly contributions toward their employees 529 plans as well as their student loans.
SoFi acquired LEAF College Savings, an industry leader in the higher education benefits space, in order to facilitate the contribution and payroll deduction capabilities for SoFi at Work partners. LEAF's advanced payroll and HRIS integration technology makes recurring employee contributions to 529 college savings plans simple.
SoFi at Work was created to facilitate financial wellness across a company's entire workforce. Hundreds of companies and associations have partnered with SoFi to address their members' and employee's student debt. In addition to 529 contributions, employers can also elect to add student loan refinancing and student loan contributions to their benefits portal through the SoFi at Work program.
To learn more about SoFi at Work's 529 offerings, visit www.529sofi.com.
SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than 700,000 members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com or download our iOS and Android apps.