With student loan debt taking the spotlight, millions of doctors, nurses and teachers have the opportunity to receive additional debt relief through the New Fidelity Investments® service
BOSTON–(BUSINESS WIRE)–As student loans take the spotlight once again, employers are faced with the task of directing employees to much-needed relief. To that end, leads Fidelity Investments, the leading provider of employee benefits® Partnered with Summer, a Certified B Corporation dedicated to serving student loan borrowers across the country, to significantly simplify the process of applying for government loan forgiveness through an automated software solution. The new solution that will empower millions of nonprofit and public sector employees struggling with student loan debt to find much-needed relief is now available to help eligible individuals navigate through a more efficient process to apply.
Fidelity and Summer’s solution replaces a historically time-consuming and manual, paper-based process. Rather than doing it alone, the automated offering provides access to technology and optional expert assistance to navigate the student loan forgiveness application and help people verify their eligibility, compare options, and then complete the process — all online in few minutes. Consistent with Fidelity’s commitment to developing lifelong partnerships and providing access to educational opportunities for clients from diverse backgrounds, Fidelity’s expanded list of tools and resources offers individuals a more holistic view of planning and paying for college.
“Debt lending is an enormous challenge and impacts the overall well-being of people of all ages, especially those committed to public service,” said Sangeeta Moorjani, head of tax exempt and retirement solutions at Fidelity Investments. “We are committed to providing solutions that can help eliminate student loan debt and provide some relief from financial stress for the millions of nurses, doctors and teachers we serve.”
The new resource provides support for federal government loan forgivenessI Program offered by the Department of Education aimed at eliminating student loan debt for eligible government employees. Under the program, nonprofit employees, including eligible nurses, doctors and teachers, have the option to waive the balance of their direct loans after making 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Assistance is available to all individuals who qualify, including those who may not have qualified in the past but are now eligible for a “overhaul” through the limited waiver before the October 31, 2022 deadline to act .
“Forgiveness of public sector loans has created a unique opportunity for borrowers and their employers to take immediate action for financial well-being,” said Will Sealy, founder and CEO of Summer. “Summer members save an average of $62,000 by using our digital solutions, and recent White House announcements will only increase those savings as borrowers sign up for additional forgiveness and lower monthly payments under a new income-based repayment (IDR) plan. Working with Fidelity, we can extend that impact to millions of borrowers and give them the guidance they need to manage their student debt.”
Fidelity offers solutions designed to make a difference and improve the lives of employees
As an industry leader in the nonprofit workplace retirement market and an organization dedicated to providing education and access for all, Fidelity offers its plan sponsors educational resources to increase awareness of the program’s eligibility and benefits for enactment of public sector loans to employers.
In addition, Fidelity has a legacy of helping its nearly 60,000 employees and the community access educational opportunities. Fidelity offers competitive tuition reimbursement services, and to date its student debt assistance has eliminated more than $67 million in principal debt plus approximately $31 million in interest payments. That corresponds to 19,737 yearsii since the program started in 2016, loan payments for Fidelity employees have decreased. In the community, Fidelity is focused on providing financial literacy and access to education to historically underserved populations because she knows education can improve long-term outcomes.
Because student debt is not a one-time problem, Fidelity also offers a holistic range of student debt solutions, including:
A student debt benefits program that allows companies to design a program that best meets the needs of their workforce, which can help with recruitment, improve employee retention and increase productivity, including a Student Debt: Direct℠ Option that helps employees with monthly loan payments – now tax-free and integrated with tuition reimbursement, based on customer needs; as well as Student Debt: Retirement℠, which allows employers to make 401(k) contributions based on student loan payments.
Fidelity’s Student Debt Tool, which is completely free and allows borrowers to get a unique view of government and private lending options by summarizing all of their student loans in one place, along with the options available for repayment.
Access to a student debt refinancing platform, Credible.comiiithrough its Student Debt Tool, which gives users the ability to compare pre-qualified interest rates from up to ten refinancing lenders without compromising their credit score.
To help people avoid racking up debt in the first place, Pre-College Planning Resources exist to help families plan, save, and pay for college.
Summer works with organizations to empower their populations to manage and reduce student loan debt through proven technology, policy expertise and human support. Founded in 2017 by industry experts, the company’s mission is to alleviate the student loan debt of 46 million borrowers by providing leading solutions such as automated digital government loan registration and loan consolidation. Summer is a certified B Corporation. Visit www.meetsummer.com for more information.
About Fidelity Investments
Fidelity’s mission is to inspire a better tomorrow and deliver better outcomes for the customers and businesses we serve. With $10.5 trillion in assets under management, including $4.0 trillion in discretionary assets as of July 31, 2022, we are focused on serving the unique needs of a diverse range of clients. Fidelity has been privately held for over 75 years and employs more than 58,000 people focused on the long-term success of our clients. For more information about Fidelity Investments, please visit https://www.fidelity.com/about-fidelity/our-company.
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ii Data up to December 2021.
iii Credible Operations, Inc. is not affiliated with Fidelity Brokerage Services, member NYSE, SIPC or its affiliates. Credible is solely responsible for the information and services provided. Fidelity disclaims any liability resulting from the use of this information.