ABA Endorses Student Loan Repayment Employee Benefit

The American Bankers Association, through its Corporation for American Banking subsidiary, has endorsed the student loan repayment employee benefit offered by Gradifi. The company offers its turnkey Student Loan Paydown Plan, which will offer participating banks a powerful tool to recruit and retain top talent by accelerating student debt payments. Through the endorsement, participating ABA members will receive attractive pricing discounts.

“Student loan burden affects a significant portion of our nation’s workforce — particularly millennials,” said ABA President and CEO Rob Nichols. “Since so few employers currently offer such benefits, we see this as an opportunity for banks to uniquely position themselves to attract and retain young talent. The number of young professionals with thousands of dollars in student debt is staggering. This causes them to delay homeownership and other major purchases that could bolster our nation’s economy. ”

While only four percent of employers nationwide currently offer a student loan repayment benefit, nearly eight in 10 millennials say this kind of benefit would be a “deciding factor” or make a “considerable impact” in whether they take a job or stay with an employer. “We’re encouraging our members to consider offering a benefit like this to help attract and retain millennials in their individual markets,” added Nichols.

ABA selected Gradifi — a Boston-based subsidiary of First Republic Bank — after an in-depth due diligence process validating Gradifi’s ability to provide a secure and seamless onboarding process. Other Gradifi clients include PwC, Penguin Random House and Natixis Global Asset Management. ABA and Gradifi will hold a free webinar on Feb. 15 to share more about the product.

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About Evan Sparks

Evan Sparks
Evan Sparks is editor-in-chief of the ABA Banking Journal and vice president for editorial services at the American Bankers Association.