To Help Employees Pay Down Burdensome Student Loans
Many of us make great strides to attempt to be debt free. While it may be next to impossible to have a completely debt free life, it’s great to know there are employers out there that are doing what they can to help make their employees’ financial situations a little less stressful.
Today, approximately seven out of 10 new graduates have student loan debt, including many Western Union employees; this according to The Project on Student Debt, a report issued by the Institute for College Access and Success.
But there is good news! Effective June 1 of this year, Western Union will offer a student loan paydown plan. Separate from the company’s tuition reimbursement program, the student loan paydown program allows the company to make a $50 monthly contribution and apply it to the principal balance of an eligible employee’s student loan.
Contributions are sent to Gradifi, a third-party vendor helping manage the program on behalf of WU, who will send the contribution directly to the employee’s loan provider. Employees wishing to take advantage of this benefit must continue to make his or her regular monthly payments, and contributions made by the company are considered taxable income.
A college degree is a critical component to one’s career. Here at Western Union, we want to be able to provide our employees this added benefit to help with their current financial situation, while potentially saving thousands of dollars and reducing the duration of their student loan.