I am an avid reader of the getoutofdebt.org newsletter. Just today, I read your article on the student who tried to smuggle cocaine into the U.S. to pay off his student loans. It was heart-wrenching, mostly because I realized that I am not the only individual who has thought of absurd quick money makers to pay student loans. With that said, I have been searching for solutions that would help reduce student debt for everyone and I HAVE FOUND IT.
Welcome to Thrive – An innovative new program that uses 401(k) Employer Matching Dollars to pay off employee Student Loan Debt. If your company offers a 401k match program, they can also offer the unique benefit of paying down student loans on your behalf.
Here is how it works:
1. An employee allocates their matching dollars to their 401k plan, student loans, or both.
2. The employer withholds the deduction, and applies matching funds to one lump sum, and then Thrive processes and applies the payment to each student loan.
Q: Does your company have to participate in a 401k to utilize the Thrive Matching Program?
A: No, but companies that already have a 401k match program will be more inclined to introduce this benefit because they already have the budget set aside.
Q: Why wouldn’t a company be able to do this themselves?
A: They could, however, our platform validates the payments are actually going toward a student loan for the company as a service. In addition, adding this service from Thrive can be budget neutral.
Q: How many match dollars go unused per year?
A: 24 Billion dollars of employer match money goes unused per year
Q: How is the Student Loan payment taxed?
A: The match provided by your company will be considered additional income and will be taxed as such. This would be similar to utilizing a ROTH 401(k) plan where your contribution is taxed prior to sending into the 401(k).
Check us out at ThriveMatching.com.
If you would like to see this benefit incorporated within your organization, or you have further questions, please contact me. I am happy to discuss a strategy to approach your company, as well as take the next steps to Demo our system.
Sales Manager – Thrive Matching
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