At Goodly, we’ve put a great deal of thought into how we can streamline the benefits process for human resources teams. We want to ensure the transition to using the Goodly platform is clean and secure, with a user-friendly interface. We pride ourselves on being able to get companies up and running within twenty four hours of deciding to move forward, with the help of a thirty minute phone call. That said, there are some questions surrounding student loan repayment Goodly’s software that we often come across. We’d like to answer some of the most prominent:
1. What is this $5,250 number Goodly keeps throwing around?
In the December stimulus package, Congress extended the CARES Act until 2025. This allows employers to contribute up to $5,250 TAX-FREE to their employees’ student loan debt annually. Employers can chip away at employees’ student debt faster, and in a more financially-savvy way than ever before. With over $1.6 trillion in student loan debt across the United States, Goodly hopes to spread the news of this new legislation, something that every employer should take advantage of. Check out our interactive graph on our homepage to see how your student loans would be affected by a contribution of $5,250 per year! The compound effect monthly contributions have on loans is astounding.
2. What about employees who do not have student loan debt?
Goodly offers an entire suite of programs for employees without student loans. We have 529 Educational Savings Plans, where employers contribute towards a savings account for their employee’s children’s college savings, which can then be withdrawn tax-free, similar to a Roth IRA. We also offer emergency savings accounts (ESAs), an often overlooked, yet crucial account for every household to have. These can be either, or both, employee and employer funded. It’s also important to note there is no legislation stating employers have to provide a compensating offering to employees without student loans if they are to offer student loan repayment.
3. Does Goodly offer any student loan refinancing options for our employees?
One unique advantage about partnering with Goodly is that we don’t push refinancing on our users. We see it as a conflict of interest because all other companies who offer student loan repayment also make money on refinancing loans. Typically, employers do not want to be officially endorsing large financial decisions for their employees, where there could be negative ramifications. With that being said, if refinancing student loans makes sense for an individuals specific situation, there are some great options to find great rates and they do not need to go through their employer.
4. What does getting up and running with Goodly look like?
Once a client decides to learn more about Goodly, they will Schedule a Demo using the hotlink on our homepage. This will allow the potential client to schedule a demo call at a time that is convenient for them. On the call, Goodly’s team will walk the client through a deck explaining the appeal of offering student loan debt repayment, the importance of paying off student loan debt to millenials and Gen Z, and what working with Goodly would look like specifically for their company.
After the client decides to move forward with Goodly, it only takes a couple of business days to be fully set up. Our team will be available for email and phone calls to walk our clients and their employees through the Goodly user platform, and then debt can begin to be paid off.
5. Is student loan repayment a benefit that only larger employers offer?
Goodly works with employees of all sizes and across industries, from less than ten employees to thousands. Large employers use this benefit to improve financial wellness of employees and increase tenure. Smaller employers use student loan repayment to compete for young, bright talent. Professionals ages 22 to 35 have student loan debt that is hard to handle. An employer offering to help take charge of that mental and financial burden can often be the deciding factor between working for one startup or a slightly more established company. Startup owners (5-30 employees) can use student loan repayment as a powerful incentive to help build their teams.
Nonprofits fall into the same category. Oftentimes, nonprofits have a tough time competing with the salaries of larger companies. Student loan repayment is arguably the most powerful benefit they can offer young potential employees. If this sounds like something that would benefit your organization, schedule a demo.