Looking beyond refinancing

How Mattress Firm unlocked an average monthly savings of $472 for employees by targeting student loan debt

‍The challenge‍

Mattress Firm leadership had identified financial wellbeing as an opportunity area after reviewing benefit plan design during 2020. Return-to-work, mental health considerations and student loans coming due again in December were creating a perfect storm that only expedited the need to prioritize financial health.

While Mattress Firm offered student loan refinancing to start, the benefit only reached a fraction of student loan borrowers in their employee population. HR and benefits leadership also recognized the impact of student debt on the whole household with ripple effects on spouses and dependents. By leveraging Summer as a holistic approach to student loan debt for their employees and dependents, Mattress Firm is prioritizing financial wellness as well as retention and recruitment efforts.

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‍The solution‍

Mattress Firm partnered with the Summer team, who identified income-driven repayment and contribution as solutions. These options helped eligible employees self-manage an average debt of $36,000 and optimize their financial wellbeing goals at large, with minimal input needed from the HR function.

How did they get there?

To achieve their goals, Mattress Firm employees leveraged tools like Optimization in the Summer at Work suite to help manage and reduce their monthly payments. By enrolling in income-driven repayment plans and taking advantage of the cash-back tool, Mattress Firm borrowers save an average of $472/month to put towards other financial goals with an average lifetime savings of $3,630.

Income-Driven Repayment (IDR): Income-driven repayment is a free federal program that ties borrowers' monthly student loan payments to their income with potential forgiveness options. Summer helped eligible Mattress Firm employees by identifying the best IDR plan for each borrower and streamlining the enrollment process, digitally.

Cash Back: Mattress Firm borrowers earned cash back on their online and in-person purchases and put those funds toward their student loans.

Intelligent Contribution: To expedite the repayment process, Summer partners can leverage the Intelligent Contribution tool, which lets employers contribute a portion of their employees' student loan payments each month. The extra support significantly boosts the ease and speed at which employees can become student debt-free.