PROVIDENCE – Fidelity Investments last week launched a new program for employers to help employees pay off student loans quicker.
The new program, named the Student Debt Employer Contribution program, is designed to help employers increase recruitment and strengthen retention of employees by offering this type of incentive, according to Fidelity.
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“Employers turn to Fidelity as a trusted strategic partner, and it’s vital our customers have modernized, customized and creative programs to help their workforce be financially well today and into the future,” said Kevin Barry, president of Fidelity workplace investing.
The program gives employers the opportunity to make after-tax contributions toward participants’ loans. Fidelity, meanwhile, administers and fulfills payments. Fidelity last year started offering its employees a student-loan assistance program, and is now urging other companies to follow suit.
The Boston-based money manager cited a study showing 86 percent of young workers saying they’d commit to an employer for five years in exchange with help to pay off their student loans.
“The Student Debt Employer Contribution program addresses a growing need across all generations struggling with student loans, in a one-stop experience for employers,” Barry added.
Fidelity has about $6.3 trillion of assets under administration, including managed assets totaling $2.3 trillion as of July 31.
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.
