Program developed to help nonprofit and public
service employees take control of student loans, navigate loan
forgiveness programs and improve financial security
AIG Retirement Services, a leading retirement plan provider for
tax-exempt and public sector employers, today announced it has
engaged Savi, a social impact technology firm, to provide nonprofit
and public service employees with an online tool to navigate
government loan forgiveness programs and help them take control of
their student loan debt and improve their future financial
security.
“Our work with Savi comes at a critical and challenging time.
Many employees of nonprofit and government entities carry student
loan debt and are either unaware of or confused when navigating the
Public Service Loan Forgiveness Program,” said Rob Scheinerman,
Chief Executive Officer of AIG Retirement Services. “We understand
the long-term impact student loan debt can have on financial and
retirement security, which is why we are proud to be working with
Savi to help employers empower their workforce to take control of
their student loan debt. The new program can chart the path for
nonprofit and public service employees to loan forgiveness, helping
to improve their financial future and creating enhanced flexibility
around other goals, including saving for retirement.”
The current environment threatens to exacerbate what was already
a large challenge. The Federal Reserve estimates that the nation’s
collective student loan debt is $1.6 trillion,1 and the
Congressional Budget Office projects an average of $100 billion
each year in new federal student loan debt for the next five
years.2 More than one in six American adults carry a federal
student loan,3 and the average federal student loan borrower
carries over $35,000 in debt.4
This problem is particularly acute for the 34 million government
and nonprofit employees,5 some of whom may be eligible for Public
Service Loan Forgiveness, a federal program that eliminates all
remaining federal student debt after 120 months of qualifying
payments have been made.6 To date, the program has experienced high
rejection rates for applicants, with less than two percent of
applications being approved as of April 30, 2020.7 For many, this
is due to incomplete applications and lack of understanding of
program requirements.
AIG Retirement Services and Savi seek to improve and simplify
the experience for public service employees by providing an
end-to-end digital process that helps:
- determine qualification for student loan forgiveness -
identify potential savings - navigate through enrollment - maintain
eligibility - provide a clear path to applying for full
forgiveness
For employees of nonprofit and public sector AIG Retirement
Services clients that are offering the new student debt solution,
this unique technology will be available on their employer’s
retirement plan website. This service also provides Savi’s analysis
of government rules concerning student loan debt, including new
provisions in the CARES Act.
"Public service employees deserve better and more personalized
information about how to manage and repay their student loan debt,"
said Tobin Van Ostern, Savi Co-Founder. "With our step-by-step
technology solution, borrowers see the full picture of what they
owe and then choose the best strategy to manage that debt
responsibly. We're excited to be working with AIG Retirement
Services clients and the public service employees who contribute so
much to our communities."
1 Consumer Credit G.19. Federal Reserve.
https://www.federalreserve.gov/releases/g19/current/default.htm 2
Income-Driven Repayment Plans for Student Loans: Budgetary Costs
and Policy Options. Congressional Budget Office.
https://www.cbo.gov/system/files/2020-02/55968-CBO-IDRP.pdf 3
Center for Microeconomic Data, Federal Reserve Bank of New York,
https://www.newyorkfed.org/microeconomics/topics/student-debt 4
Federal Student Aid Portfolio Summary, Office of Federal Student
Aid, U.S. Department of Education,
https://studentaid.gov/data-center/student/portfolio 5 U.S. Bureau
of Labor Statistics, U.S. Department of Labor,
https://www.bls.gov/emp/tables/employment-by-major-industry-sector.htm
and https://www.bls.gov/bdm/nonprofits/nonprofits.htm 6 Public
Service Loan Forgiveness Qualifying Payments, Office of Federal
Student Aid, U.S. Department of Education,
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service#qualifying-payments
7 Public Service Loan Forgiveness (PSLF) Program Data, Office of
Federal Student Aid, U.S. Department of Education,
https://studentaid.gov/data-center/student/loan-forgiveness/pslf-data
About Savi
Savi is a social impact technology startup based in Washington,
D.C. that is working to solve the student debt crisis affecting 46
million borrowers by helping them discover the best repayment and
loan forgiveness options. Founded by long-time student loan experts
and advocates, Savi is a Public Benefit Corporation that has
identified for borrowers more than $200 million in projected
forgiveness. Savi works with employers, membership organizations,
and financial institutions to provide the service as a unique
student loan benefit. Additional information can be found at
www.bysavi.com
About AIG Retirement Services
For more than half a century, AIG Retirement Services has served
as a leading defined contribution retirement plan provider for
tax-exempt and public sector employers, including healthcare, K-12,
higher education, government, religious, charitable and other
nonprofit organizations. AIG Retirement Services has more than $100
billion in total assets under administration, managing thousands of
plans serving approximately 1.8 million participants. It includes
the VALIC family of companies: The Variable Annuity Life Insurance
Company and its subsidiaries, VALIC Financial Advisors, Inc. and
VALIC Retirement Services Company. Additional information can be
found at www.aig.com/RetirementServices.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in more than
80 countries and jurisdictions. These diverse offerings include
products and services that help businesses and individuals protect
their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries and jurisdictions, and coverage is subject to
underwriting requirements and actual policy language. Non-insurance
products and services may be provided by independent third parties.
Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate
in state guaranty funds, and insureds are therefore not protected
by such funds.
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version on businesswire.com: https://www.businesswire.com/news/home/20200609005500/en/
AIG Sabra Purtill (Investors): 212-770-7074;
sabra.purtill@aig.com Matt Burkhard (Media): 212-458-4253;
matt.burkhard@aig.com
Savi Ian Coon: 515-822-8834; ian@bysavi.com
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