WASHINGTON — The American Bankers Association – through its subsidiary, the Corporation for American Banking – has endorsed the student loan repayment benefit offered by Gradifi, a Boston-based student loan pay down provider. The employer-based SLP Plan™ (Student Loan Paydown), will empower banks with a powerful tool to recruit and retain top talent by paying off their burdensome school debt. ABA members will receive preferred pricing.
“Student loan burden affects a significant portion of our nation’s workforce – particularly millennials,” said Rob Nichols, ABA’s president and CEO. “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.”
show 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,” said Nichols.
Extensive due diligence – conducted by ABA, with oversight from ABA’s Endorsed Solutions’ Banker Advisory Council, and John Young, CEO of Consumerdriven, an employee benefits specialist – included an in-depth evaluation of a number of competing solutions to validate Gradifi’s ability to provide banks a secure and seamless onboarding process.
With its recent acquisition by First Republic Bank (NYSE: FRC), Gradifi brings even more experience to provide the most advanced technology for banks to grow their businesses -- and in this case – recruit top talent.
“There are 44 million Americans with student loans totaling more than $1.3 trillion,” said Tim DeMello, Gradifi founder and CEO. “In the banking and financial services industries, where higher degrees of education are often needed, Gradifi helps banks ease employees’ debt burden to set them up for their future. We are pleased to work with ABA member banks and their employees to provide an innovative way to help tackle the student debt problem.”
At a time when higher education is getting more expensive and technological security is of utmost importance, Gradifi is helping lead the charge to provide some relief to the millions of people who have student loan debt. Other Gradifi customers include PwC, Penguin Random House and Natixis Global Asset Management.
About American Bankers Association
The American Bankers Association is the voice of the nation’s $16 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $12 trillion in deposits and extend more than $9 trillion in loans. Learn more at www.aba.com.
Gradifi is a Boston-based student loan pay down provider with the first innovative solution to the nation's $1.3 trillion student loan debt problem. Founded in 2014 and acquired by First Republic Bank in December 2016, the company is led by a management team that brings decades of combined experience in consumer financial services and entrepreneurial ventures. By partnering with companies such as PricewaterhouseCoopers to develop employer SLP Plans™ (Student Loan Paydown), rewards programs and brand loyalty programs, Gradifi is shifting the focus on student loan debt - from burden to empowerment. To learn more about Gradifi, visit www.gradifi.com or twitter.com/gradifi.
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