SoFi tops $1 billion in student loan refinances issued to borrowers through corporate partnerships


SAN FRANCISCO, March 29, 2016 /PRNewswire/ — SoFi, a modern financial company taking an unprecedented approach to lending and wealth management, today announced that it has funded more than $1 billion in the refinancing of student loans to borrowers entirely through partnerships with companies and associations. More than 400 partners, from the Fortune 10 and fastest-growing startups to the largest professional services firms, banks, and membership groups, help employees pay off student debt with SoFi. SoFi also announced today that it is joining these companies in embracing student loan assistance as a social benefit; the company will now contribute $200 per month to help pay off student loan debt for its own eligible employees.

As part of its radical approach to financial services, SoFi helps these companies lead change in benefits that reflects the current needs of early career professionals. These workers are more concerned about student debt than saving for retirement, and SoFi is saving borrowers $18,000, on average, over the life of their loans. This savings can allow employees to participate in other important voluntary benefits such as 401(k) plans and health savings accounts that they otherwise give up.

A significant percentage of SoFi’s 130,000+ members are introduced to the company through these partnerships, which range in size from 200-200,000+ employees. Participants include Microsoft; Skadden; Working day; Akin Gump; Weil Gotshal; Orrick, Herrington & Sutcliffe and hundreds more. SoFi offers two employer options, both at no cost to the employer:

  • Employer contribution model: administered by SoFi, companies can contribute a regular amount (e.g., $100/month) to their employees’ existing student loans. For employees that SoFi cannot underwrite, SoFi will still administer the employer contribution for their existing loans.
  • Classic partner model: a completely free program for employers and associations that offer SoFi as a benefit to their workers and members, usually with a special welcome bonus or other sign-up incentive.

“Student debt has reached crisis proportions in this country, and borrowers — especially Millennials — are struggling to repay their loans and set aside any amount for their future,” said Catesby Perrin, Head of Business Development at SoFi. “So it makes sense that we’re seeing a lot of excitement about the benefit. It really is the most important benefit for employees since the 401(k), and it signals to employees that their companies are invested in their success and tackle the most pressing financial concerns they have right now, not just forty years later.Beyond the enthusiasm of the borrowers themselves, the positive feedback we have received from companies are overwhelming. They see that helping to ease the burden of student loans is an especially meaningful and differentiating way to benefit both current and potential employees,” Perrin said.

The SoFi milestone follows news that lawmakers are also working to make it easier and more attractive for employers to help workers pay off debt. The Student Loan Assistance Employer Participation Act (also known as HR 3861) was recently introduced in the House with bipartisan co-sponsorship, and the Employers’ Participation in Reimbursement Act was concurrently introduced in the Senate. The bills would revise tax laws to prevent workers from being taxed on employer-sponsored student loan repayment plans.

These efforts are not surprising, given that more than 70% of employees say they are stressed about money. And, according to a survey of more than 5,000 job seekers by job search and application site Beyond, nearly 90% of people in debt said they believe companies should offer student loan repayment as part of their employee benefits. Advantage is a natural fit for large companies looking to boost recruitment, reduce turnover and increase employee satisfaction.

SoFi’s non-traditional underwriting approach considers an individual’s financial well-being to determine their creditworthiness, with factors such as work history and free cash flow. SoFi also offers borrowers benefits not found elsewhere, such as unemployment protection, an entrepreneurship program, career advice and member events.

About SoFi
SoFi is a modern financial company taking an unprecedented approach to lending and wealth management. We have replaced the impersonal, transactional banking experience with a long-term partnership, enabling our members to realize the full potential of their money, their careers and their relationships. Our members are constantly pushing the boundaries of what life has to offer. Whether it’s refinancing their student loans, buying their dream home, or simply seeking advice as they progress in their careers, SoFi provides the products and tools to match their ambitions and propels them to new levels of financial greatness. For more information, visit SoFi.com and check out these fast facts.

For press inquiries:
Laurel Tonney
[email protected]
720.435.8862

Logo- http://photos.prnewswire.com/prnh/20160226/338122LOGO

SOURCESoFi

Related links

http://www.sofi.com

Previous LendEDU makes it easy to refinance student loans - TechCrunch
Next CordiaGrad, leader in student loan refinancing, relaunches as Purefy