The Fall of the 401k Benefit to Student LoanGifting
LoanBenefit™ proves it's better than a 401k
THOUSAND OAKS, Calif., July 12, 2017 /PRNewswire/ -- LoanGifting, the first crowdfunding site that empowers family, friends, and employers of student debt holders to help repay student loans, announced today the launch of their newest employee benefits solution. This solution provides a greater financial return than a 401k benefit, helps recruit top talent, increase employee retention, and improve employee satisfaction.
Driven by its mission that "Everyone Deserves To Be Student Debt-Free," LoanGifting provides technology solutions to help crowdfund and make significant progress in the fight against today's student debt epidemic. With the launch of its newest loan repayment ecosystem, student loan holders can connect with family, friends, and employers to send financial contributions directly to student debt lenders. This solution streamlines the repayment process and provides financial benefits that achieve a higher return on investment than a 401k contribution.
LoanGifting's unique business solution will help with the recruitment of top talent, improve employee retention, and alleviate undue burdens of stress and distraction for those having student loan debt. According to the Society for Human Resource Management's 2016 SHRM Benefits Survey, 96% of businesses have yet to provide any student loan repayment benefit. Coupling this with the fact that 76% of participants in the 2015 American Student Assistance Survey said that a student loan benefit would be a contributing factor for accepting a job offer, there are significant opportunities for employers to attract and retain top talent through a differentiated benefit offering and for employees to receive student debt relief.
LoanGifting not only allows a medium for family, friends, and employers to help repay student debt and reduce financial stress, but it also provides analysis of historical contributions, the total repayment financial impact, and is easily integrated with payroll, employee benefit, and financial lender software systems to allow widespread industry adoption.
Why is LoanGifting vital for today's marketplace? Per the American Association of University Women (AAUW), there are currently 45 million student loan borrowers in the United States amounting to over $1.5 trillion in total student loan debt. Additionally, the financial impact of loan repayment compared to a 401k contribution can be profound. A $10 LoanGifting can equate to a realizable benefit of $300 based on the duration of the loan. Given the uncertainty of today's financial marketplace, LoanGifting can substantially improve an individual's financial well-being. In fact, over 2,000 student loan debtors are currently taking advantage of this benefit with LoanGifting.
Per LoanGifting's Founder and CEO Ravi Sawhney, "It's a simple concept, why not guide a friend or relative to help pay for the cost of college? Everyone loves to help those who seek education, always have and always will. But things are out of control. The cost of education keeps rising, the federal support to offset tuition is a ghost of what it once was, and the economic downturn forced many to earn higher education by obtaining readily accessible loans. These same loans that carry higher interest rates will follow you to your grave, if you can't pay them off. These are the same loans that have 7 million students in default while many others will be paying their obligations for decades. Bottom line, those with student loans are looking for solutions to help with financial burden. LoanGifting was created to help those people become student debt-free."
About LoanGifting
Founded in 2015, this SaaS product focuses on Fintech solutions to directly challenge the student debt epidemic. LoanGifting started as a crowdfunding site for Student Loan Debtors but due to overwhelming demand by employers for an employee benefits solution, LoanGifting developed Student LoanBenefits™, a benefit similar to a 401k but with a better return on investment. Given the growing demand for student debt relief and thousands of users joining the site, employers partner with LoanGifting to provide Student LoanBenefits™. The service operates as a direct pipeline for student loan repayment and connects millions who have student debt with their extended network of family, friends, and employers. Through these connections, LoanGifting allows a student debt holder's network to give directly to his or her loan. In doing so, their loan principal and future interest is reduced, and subsequently, the length of time it takes to pay off loans is reduced.
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SOURCE LoanGifting
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