Employee Services: Employees with student debt should Savi | try out CU Boulder today
Federal student loan debt affects more than 43 million people in the United States. Public Service Loan Forgiveness (PSLF) can be a relief for University of Colorado faculty and staff, but the process of applying for and maintaining a PSLF repayment plan can be complex and challenging.
CU announces a new partnership between our retirement plan provider TIAA and social impact tech company Savi that can help CU employees determine their PSLF eligibility and overcome their debt burden.
“I’m excited about our partnership with Savi, who are experts in the federal loan forgiveness program,” said Michelle Martinez, director of strategic performance initiatives at CU. “Savi is here to help and if you are eligible then you should not miss this opportunity.”
Savi is a tool that serves as a guide for borrowers who want to determine their eligibility for forgiveness and then successfully apply for and maintain their payment plans. The PSLF program includes an income-based payment plan that can reduce a borrower’s debt repayments by an average of $150 per month.
After 120 months of successful payments, borrowers can have their remaining balance waived – tax-free.
Any employee with student debt should try Savi
PSLF application requirements and documentation can be complex and inflexible. The slightest mistake can result in a rejection, and the follow-up requirements and annual reporting can derail an approved repayment plan.
Due to the complexity of the application process, individuals who have applied for PSLF and have been rejected should not miss this opportunity to verify their eligibility through Savi.
Savi is a free way for borrowers to find out if they qualify. From there, eligible faculty and staff can self-apply or re-apply for an annual fee of $60, or use Savi’s tools and resources to initiate the application process and help manage their tracking and annual reporting obligations.
“I understand the application process can be overwhelming and a rejection may have been due to an unknown error. For that reason, I encourage anyone with a student loan to apply,” Martinez said.
Borrowers should apply before October 31st
This year, it’s crucial for borrowers to act quickly to verify their eligibility and apply for PSLF. In October 2021, PSLF requirements and benefits were expanded to include Perkins, FFEL and DL loan programs and allowed pre-consolidation payments to count towards the 120-month benchmark.
These extended options expire on October 31, 2022.
“The limited waiver of public service loan forgiveness is a life-changing opportunity for officials to seize,” said Lindsay Clark, Savi’s director of foreign affairs.
“A lot of student borrowers [who] who have labored for years and decades are finally receiving the forgiveness they deserve and have earned with this passing opportunity. Borrowers should definitely use Savi to see if they are eligible for instant forgiveness or line up their ducks before October 31.”
The repayment depends on the income
Debt relief is a significant opportunity for long-term financial relief, but the consolidation and repayment plan that PSLF provides to borrowers also provides short-term relief.
The PSLF repayment schedule includes income-based calculations to determine a borrower’s monthly payments. As of December 31, 2021, projected debt savings for borrowers with a PSLF repayment plan averaged $1,800 per year.
“Even with debt payments suspended, student loan debt continues to be a major source of stress for many borrowers,” said Snezana Zlatar, director of advisory solutions at TIAA. “Our solution helps people know they’re on the right track to getting rid of their student loans altogether.”
“Savi’s reduction in monthly student loan payments, or elimination of student loan debt altogether, means more household income for individuals that can be used for long-term financial goals like saving for safe retirement.”
Learn more about Savi and get started
Savi offers CU employees two service options:
- Free student loan check: Quickly view your repayment plan options and potential savings when you enter your personal information into Savi’s tool.
- Savi Essential Service: Apply for PSLF, track forgiveness payments, get convenient eFiling, personalized assistance, reminders and more for a $60 annual fee.
TIAA and CU have established online resources to help employees learn more about Savi, what they need to start the credit assessment process, and find options to pursue PSLF through Savi’s Essential Service or on their own.
Visit CU’s Savi Information Page and TIAA’s Student Debt Page to explore your options, and attend these upcoming TIAA and Savi informational webinars:
Faculty and staff can take advantage of this empowering new resource at any time, but may have a much greater opportunity for debt relief if they apply before October 31st. Borrowers should begin Savi’s Free Student Loan Checkup as soon as possible to determine their eligibility and have time to collect their information and apply for PSLF before the October 31 cutoff.