TIAA and Savi Put Nonprofit Employees on Track Toward $155 Million in Student Debt Forgiveness

University and healthcare system workers get relief from student debt-management program

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Jul 28, 2021, 09:27 ET

NEW YORK, July 28, 2021 /PRNewswire/ -- Employees at 46 universities and healthcare systems are now on track to achieve a projected $155 million in student debt forgiveness using debt-management tools provided by TIAA, a leading provider of retirements, and Savi, a social impact technology startup.

These employees are already saving on average $1,900 per year from reduced monthly payments and will receive on average approximately $50,000 each in debt forgiveness, marking significant milestones in the student debt-management program's history.

Launched in June 2020, Savi and TIAA's offering makes it easier for nonprofit institutions to provide meaningful student debt relief to their employees. The solution helps employees of these institutions reduce their monthly student loan payments immediately and qualifies them over time for relief from the balance of their federal student loans by enrolling them and keeping them compliant in the federal Public Service Loan Forgiveness (PSLF) program.

"Nonprofit employers need to be aware that there are resources like this that can make a huge impact on the lives of their employees," said Snezana Zlatar, senior managing director and head of financial wellness advice and innovation at TIAA. "The current federal forbearance on student loans has been a safety net for many Americans, but it won't last forever. Employees, especially those in nonprofit roles who dedicate their careers to serving others, should have the opportunity to lower their student loan payments and ultimately work toward debt forgiveness. We want to help create financial security for people and allow them to achieve their long-term financial goals."

The solution from TIAA and Savi helps participants navigate the often-complex PSLF program, which has historically been challenging for borrowers who have difficulty understanding the rules and managing required paperwork.

In fact, the Department of Education released new statistics in March 2020 showing that only 1.8% of PSLF applicants had been approved. TIAA and Savi currently have more than a 99% approval rate for users submitting paperwork for the PSLF program. The tool is specifically designed to identify and flag issues directly related to a borrower's PSLF eligibility before submitting any form of application on their behalf.

The TIAA and Savi solution is like a student loan concierge service that helps educate users about their options and meet critical deadlines. This is particularly important during the current payment suspension, when even the months where no payments are required still count toward forgiveness.

"With student loan payments resuming in October 2021, it is more important than ever for borrowers to get on track and be aware of their options," said Aaron Smith, co-founder of Savi. "Borrowers should take the time while payments are still paused to check out options like income-driven repayment plans to keep their monthly payment lowered and check their eligibility for loan forgiveness options. Not waiting until the last minute is important and will help ensure a smooth return to repayment."

About TIAA
With an award-winning¹ track record for consistent investment performance, TIAA (TIAA.org) is the leading provider of financial services in the academic, research, medical, cultural and government fields. TIAA has $1.3 trillion in assets under management (as of 3/31/2021)² and offers a wide range of financial solutions, including investing, banking, advice and education, and retirement services.

¹The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. For more information, see lipperfundawards.com. Lipper Fund Awards from Refinitiv, ©2020 Refinitiv. All rights reserved. Used under license. The Award is based on a review of risk-adjusted performance of 39 companies for 2016, 36 for 2017, 35 for 2018 & 2019, and 30 for 2020. The award pertains only to the TIAA-CREF mutual funds in the mixed-asset category. Without such waivers ratings could be lower. Past performance does not guarantee future results. For current performance, rankings and prospectuses, please visit TIAA.org.

²Based on approximately $1.3 trillion of assets under management across Nuveen affiliates and TIAA investment management teams as of 3/31/2021.

Savi and TIAA are independent entities. A portion of any fee charged by Savi may be shared with TIAA to offset marketing costs for the program. In addition, TIAA has a minority ownership interest in Savi. TIAA makes no representations regarding the accuracy or completeness of any information provided by Savi. TIAA does not provide tax or legal advice. Please contact your personal tax or legal adviser.

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor's own objectives and circumstances.

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SOURCE TIAA