TrustCo Bank, with 145 branches spread across New York, Florida, Massachusetts, New Jersey, and Vermont, recently teamed up with Goodly to provide student loan repayment as a benefit for their employees.
As part of this program, TrustCo will make monthly payments from $25 to $50 based on the tenure of their employees. These payments combine with the amount each employee pays monthly, which goes directly to paying off the principal of the loans. Goodly’s CEO, Greg Poulin, states that “those payments can help the average TrustCo employee reduce their student loan repayment term 20% faster than they otherwise would on their own.”
New York, where TrustCo is headquartered, was ranked in the top fifteen for the highest average student loan debt by state with the average student loan debt per borrower being $31,000 according to this report published in 2019. In addition, that report also cited that 59% of graduates in New York graduated with student debt.
According to this survey, 86% of young workers would commit to their employer for five years if they helped repay student loan debt. Thus, this program will be a great way for TrustCo to retain talent and maintain employee morale, even during the coronavirus pandemic. By contributing only $25 per month per employee, which averages out to around $0.80 per day, TrustCo will be helping the average employee become debt free 2 years faster.
Furthermore, this program will also help them retain employees through providing larger benefits to workers with greater tenure. The flexibility within Goodly’s programs enables employers to customize the functionality of this low-cost benefit to meet the needs of their firms. Plus, as part of the CARES Act passed on March 27th, employers will now be able to make tax-free contributions to their employee’s student loans through services such as Goodly, meaning the value of these programs will be even more significant to employees.