New program by CommonBond enables employee student loan payments to result in employer-paid retirement contributions, addressing financial wellness and retirement readiness for a growing portion of the workforce
NEW YORK— Mar. 10, 2020 — Today, CommonBond’s enterprise unit – CommonBond for Business™ – announces the launch of Retirement Contribution™, a customizable benefit that helps employers ensure that employees with student loans are not left behind when it comes to saving for retirement.
73% of borrowers report they are putting off maximizing their retirement savings due to their student loans (1). This is particularly salient for people near the beginning of their careers when they have a long runway to save and the greatest opportunity to grow their retirement nest egg.
As a pioneer in student loan benefits, CommonBond recognized that employees’ student debt burden was hindering their ability to save for the future, so the company created a solution tying student loan payment to retirement savings in a beneficial way.
At the core of this new offering is CommonBond’s technology stack built to seamlessly verify employee payments towards their student loans, resulting in more employees qualifying for their company’s tax-advantaged retirement contribution program. The turnkey technology and program administration enable this solution to be easily added to existing employer benefit programs and retirement recordkeeper offerings.
“We are thrilled to announce the launch of Retirement Contribution,” said CommonBond CEO and co-founder David Klein. “We build products to help people with student loans unlock savings, accelerate life milestones, and strengthen their financial health. With Retirement Contribution, we’re enabling people with student loans in the U.S. to unlock retirement contributions from their employer. We are very excited about that.”
CommonBond was one of the first companies in the country to offer student loan benefits to its own employees in late 2015. Noticing its popularity among employees and responding to interest from corporate partners, CommonBond created one of the country’s first student loan benefits platforms. The platform enables employees to pay down their student loans faster, and in turn, allows employers to attract and retain top talent with a compelling and increasingly relevant employee perk.
CommonBond for Business powers the student loan benefits offering for thousands of employers nationwide. With the addition of Retirement Contribution to the student loan solution set, CommonBond provides the most comprehensive and customizable suite of student loan benefits in the country.
CommonBond has launched Retirement Contribution with several companies across various industries, including real estate, technology, and professional services. This benefit is fast becoming popular with healthcare providers as well, given the high student loan balances that come with many healthcare degrees. CommonBond expects this benefit to grow significantly in popularity over the next few years.
For more information on Retirement Contribution from CommonBond, please visit: https://www.commonbond.co/student-loan-benefits.
CommonBond is a leading financial technology company that offers a suite of student loan-based solutions to consumers and enterprises. Consumers benefit from more affordable, transparent, and simple ways to pay their student debt. Enterprises benefit from tech-forward engagement capabilities to scale their businesses with Millennial and Gen Z customers and employees.
To date, CommonBond has reached over 500,000 users and powers student loan solutions for thousands of enterprises nationwide. CommonBond is the first and only finance company with a "one-for-one" social mission: for every loan it funds, CommonBond also funds the education of a child in need, through its partnership with Pencils of Promise. For more information, visit www.commonbond.co.
(1) TIAA and MIT AgeLab, Student Loan Debt: The Multigenerational Effects on Relationships and Retirement, July 2019, https://tiaa.new-media-release.com/mit-agelab/downloads/AgeLab_Student_Debt_Executive_Summary.pdf