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Transamerica Launches Student Loan Repayment Program

Service Providers

The Baltimore-based firm has announced that it is offering employers a new way to help employees grappling with an estimated $1.6 trillion in student loan debt. 

Under the Student Loan Repayment Program, Transamerica’s retirement plan sponsors may choose one of three providers to power the student loan repayment element of their organization’s retirement plan: Common Bond, Futurefuel.io, and Tuition.io. 

Each provider has an online platform where employees can obtain information and consolidate their student loans. Transamerica notes that its multi-provider approach gives employers the freedom to evaluate and choose the best solution for their organization. 

“We know that wealth and health are connected,” notes Kent Callahan, Chief Executive Officer for Transamerica’s Workplace Solutions division. “Workers struggling with debt can have higher stress and may become less productive. This program offers another way for employers to help their employees manage their financial obligations during uncertain times, a benefit we believe many employees will welcome.”

The firm says that it will work with organizations to create a viable plan design allowing contributions on the employee’s behalf to the organization’s retirement plan. Alternatively, employers can contribute directly to the employee’s student loan servicer on top of what the employee pays regularly.  

“Transamerica's Student Loan Repayment Program gives employers the power to help their workers during this critical time and going forward, and enables workers to save for retirement and pay student loans at the same time,” Callahan further states.  

Additional information about the program can be found here

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