TIAA Puts Nonprofit Employees on Track for More than $280 Million in Student Debt Forgiveness

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Jun 08, 2022, 10:43 ET

University of Kentucky employees will have $17 million in student loan debt eliminated through TIAA and Savi solution

NEW YORK, June 8, 2022 /PRNewswire/ -- Employees at over 100 nonprofit, healthcare, and university systems are on track to have a projected $286 million of their student debt forgiven using a debt-management solution offered by TIAA and Savi, a social impact technology startup.

At one TIAA institutional client, the University of Kentucky (UK), employees can expect nearly $17 million in total projected forgiveness, with an average forgiveness of more than $35,000 per eligible employee¹.

"Studies show that people's concern about their finances affects their health, their sleep, their relationships, and their work," said Richard Amos, Chief Benefits Officer with the University of Kentucky. "It's a big burden that we saw as a great opportunity—because it relates to our employees' financial well-being, which is something we're highly focused upon here."

The solution from TIAA and Savi helps participants navigate the often-complex Public Service Loan Forgiveness (PSLF) program, which has historically been challenging for borrowers who have difficulty understanding the rules and managing required paperwork. The tool is designed specifically to identify and flag issues directly related to a borrower's PSLF eligibility before submitting any application on their behalf. It also educates users about their options and helps them meet critical deadlines. This is particularly important during the current payment suspension when no payments are required, but the months still count toward forgiveness.

"Even as debt payments are paused, student loan debt continues to be a profound source of stress for many borrowers," said Snezana Zlatar, head of advice solutions at TIAA. "Our solution helps people know that they are on track to eliminate their student loans entirely. Lowering monthly student loan payments through Savi or eliminating the student loan debt altogether means more household income for individuals that can be allocated towards long-term financial goals, such as saving for a secure retirement."

About TIAA

TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It is the #1 not-for-profit retirement market provider², paid more than $6.4 billion in lifetime income to retired clients in 2021 and has nearly $1.3 trillion in assets under management (as of 3/31/2022)³.

About Savi

Savi is a social impact technology startup in Washington, D.C. working to solve the student debt crisis affecting 46 million borrowers by helping them discover new repayment and loan forgiveness options. Founded by long-time student loan experts and advocates, Savi is a public benefit corporation that works with employers, membership organizations, and financial institutions to provide our service as a unique student loan benefit.

Results experienced may not be typical of all participants.

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 consider 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.

TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.

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¹ Savi Solutions PBC, as of 06/03/2022. These estimates may not be typical of all participants.

² As of Dec. 31, 2020. Based on data in PLANSPONSOR's 403(b) Market Survey, which published in August 2021.

³ As of March 31, 2022 assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1,321 trillion.

SOURCE TIAA