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Betterment Adds Student Debt Management to Employee Benefits

Betterment Adds Student Debt Management to Employee Benefits
February 22, 2022 | 5mins Read

We founded Spinwheel to relieve the burdens of student debt on our loved ones — and the millions of other Americans who took out student loans. That’s why we’re thrilled to announce that we’ve partnered with Betterment at Work to help employees pay off their student loans and get out of debt sooner. Be sure to read more about this fantastic news featured on CNBC, “Betterment adds new student loan, 529 college savings features to its 401(k) business” and Fast Company, “Saving for college or paying it off? Betterment wants to help with both”, along with the official press release.

Betterment at Work, formerly known as Betterment for Business, is the leading holistic savings and investing solution designed to empower employees on their journey to financial wellbeing, starting with their 401(k). They help employees meet their financial goals beyond retirement with customizable portfolios and insightful advice on how to save. But student loan assistance, one of the key financial issues facing many Americans, has been absent — until now.

By partnering with Spinwheel, Betterment at Work has integrated student loan solutions into its 401(k) and financial wellness offering. Now, employers using its 401(k) will be able to offer student loan solutions as part of a broader financial wellness package. This enables employees to connect their student loan accounts to their Betterment account, so they can easily visualize key information about their loans, receive personalized recommendations on which loans to pay off first, and view repayment projections.

Using Spinwheel’s payment optimization technology, employers can now contribute to their employees’ student loan payments directly through their Betterment at Work accounts, and employees can even deduct their loan payments directly from their paychecks. Spinwheel’s integration also enables employers to create a student loan matching program — similar to a 401(k) match — to match employee contributions towards their student debt.

This partnership comes at a critical time for student debt borrowers. While the federal moratorium on student loan repayments eased some of the financial strain on student loan borrowers, 80% say student debt is cutting into their ability to save for retirement, 50% have lower balances saved for retirement, 41% were forced to take on a second job due to financial instability since the start of the pandemic, and 69% had to dip into emergency funds. With the payment pause scheduled to end in May, employees are increasingly seeking out employers that can help them and their families pay off student debt. In fact, 83% of employees believe their employers should be responsible for at least a quarter of their student debt, which makes the need for Spinwheel’s intelligent student debt solutions even more acute.

Working with Betterment at Work has provided Spinwheel a unique opportunity to do our part to help solve the student debt crisis. We look forward to helping employees find financial wellness by empowering them to manage their student debt.


About the author: Spinwheel is on a mission to make it easier to manage debt. Our Loan APIs make it easy to embed consumer loan data, including credit card debt, student loans, personal loans, auto loans, and mortgages, directly into your app or product. With just one connection, you'll be able to help your business and your users improve financial outcomes. We call this Better Debt. Read More >

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