BALTIMORE, Oct. 5, 2020 /PRNewswire/ -- T. Rowe Price
Retirement Plan Services, Inc. announced today that it will launch
a suite of student loan resources this fall, including educational
tools and content within its robust financial wellness offering.
Plan sponsors will also have the option to include additional
offerings like employer contribution services and access to student
loan refinancing, as well as live financial counseling services.
The benefit offerings will be provided by digital personal finance
company SoFi through the 'SoFi at Work' program.
The tools and educational content will be integrated into T.
Rowe Price's 401(k) participant
website, giving participants the ability to manage and plan for
their student loan needs while saving for retirement. For plan
sponsors, helping employees manage education costs can result in
greater participation in the retirement benefit, prevent
productivity loss, and help attract and retain talent.
New optional solutions from SoFi's 'SoFi at Work' include a
centralized dashboard that houses the Student Loan Debt Navigator.
Through 'SoFi at Work' employees can access multiple options to
help them better manage their financial needs and navigate their
student loan payments. Plan sponsors using SoFi's optional
solutions can elect to provide connectivity to SoFi's centralized
dashboard from the participant website.
T. Rowe Price recently conducted
a survey that examined the effect student loan debt can have on the
financial behaviors and attitudes of 401(k) savers. According to
the survey:
- More than half of the survey respondents (54%)—across all
generations--say they are affected by post-secondary education
expenses, with 52% citing that these costs are a barrier to
achieving their financial goals. Further, respondents with student
loan debt are less likely to participate in their 401(k) compared
to workers without it, and many are unlikely to shed this expense
completely until they are on the precipice of their
retirement.
- Sixty percent of those surveyed viewed their student loan debt
as long-term debt (such as a mortgage), significantly longer than
the original 10-year amortization.
"Our focus, as we continue to enhance our financial wellness
offering, is to find solutions that help participants successfully
manage all of their competing financial needs--like budgeting,
paying down debt and loans, and saving for health care expenses,"
said Kevin Collins, head of T. Rowe
Price Retirement Plan Services, Inc. "Student loan debt can have a
significant effect on an individual's financial situation and we
recognize that many individuals may need help finding the balance
between managing or planning for education costs while also saving
for retirement. Our strategic alliance with SoFi will help
individuals navigate this successfully."
"We are pleased to work with T. Rowe
Price to offer valuable financial wellness benefits as well
as education and tools to help their participants manage their
student loan needs and get on track for achieving financial
independence in the future," said Anthony
Noto, SoFi CEO. "Given the current macroeconomic
environment, employee circumstances are continuously changing and
more employees are seeking broad guidance on how to manage debt,
build their savings, and ultimately improve their financial health.
Together with T. Rowe Price, we are
committed to providing the most meaningful ways to help employees
address their toughest financial concerns head-on."
ABOUT T. ROWE
PRICE
Founded in 1937, T. Rowe Price (NASDAQ-GS: TROW) is an independent
global asset management company with $1.34
trillion in assets under management as of August 31, 2020. The firm is focused on
delivering investment excellence and retirement services for
institutional, intermediary, and individual investors. Our
strategic investing approach, driven by independent thinking and
guided by rigorous research, helps clients feel confident in
pursuing financial goals. For more information, visit
troweprice.com, Twitter, YouTube,
LinkedIn, Instagram, or Facebook.
ABOUT THE SURVEY
T. Rowe Price fielded an
online survey of over 2,400 workers employed by its retirement
services recordkeeping clients. All the respondents were eligible
for their employer's 401(k) plan, although not all participate.
Those who are repaying student loan debt or saving for future or
paying current post-secondary educational expenses were asked a
series of questions about student loans and their perceptions
around post-secondary educational expenses and retirement savings.
Those not impacted by these expenses were only asked for basic
demographic data for comparative purposes. The survey was fielded
in December 2019.
ABOUT SOFI
SoFi helps people achieve financial
independence to realize their ambitions. SoFi's products for
borrowing, saving, spending, investing, and protecting give its
more than one million members fast access to tools to get their
money right. SoFi membership comes with the key essentials for
getting ahead, including career advisors and connection to a
thriving community of like-minded, ambitious people. SoFi is also
the naming rights partner of SoFi Stadium, future home of the Los
Angeles Chargers and the Los Angeles Rams, opening in July 2020. For more information, visit
SoFi.com.
SOFI DISCLOSURE
SoFi at Work is offered by SoFi
Lending Corp., licensed by the Department of Business Oversight
under the California Financing Law, license #6054612; NMLS #1121636
(www.nmlsconsumeraccess.org). The Student Debt Navigator tool and
529 Savings tool are provided by SoFi Wealth, LLC, an SEC
Registered Investment Advisor. For additional product-specific
legal and licensing information, see SoFi.com/legal.
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SOURCE T. Rowe Price Group, Inc.