Pub. 5 2016 Issue 9

Member FDIC | © 2016 INTRUST Bank | Equal Housing Lender Good relationships build business. Business. It’s the link that holds your community together. As a family-owned, Midwest-based financial institution, we understand the importance of local business and built our foundation by developing trusted relationships. Our goal is, and always will be, to be a proactive partner by providing the best financial solutions so you, and your community, can thrive. Call us at 800-732-5120 or visit intrustbank.com . grad school debt? Ultimately, many of them won’t. Imagine the economic growth that could be unleashed if young Americans had hundreds of billions of extra dollars to invest in starting businesses, to save for their futures and to buy new homes and cars. Banks had nothing to do with the quintupling of student debt, which took place over a period when the federal government essentially took over the student loan market. But this debt is preventing our young customers and employees from achieving their financial goals and developing deeper, lifelong relationships with their banks. We need to act. First, we are encouraging companies to help their employees tackle their debt. It can be hard to justify saving for retirement when you have tens of thousands of dollars outstanding at 8 percent. Paying down debt offers the surest return many young Americans can find in the market, and it’s a great way to attract—and retain—young talent. At the American Bankers Association, we recently launched a student debt repayment benefit, contributing up to $1,200 per year toward any employee’s student loans. Second, ABA, with the assistance of our Endorsed Solutions Banker Advisory Council, is evaluating companies that offer student debt repayment benefit solutions that banks can offer to their employees. While just 4 percent of employers nationwide offer such a benefit, more than 80 percent of millennials say this kind of benefit would be a “deciding factor” or make a “considerable impact” in whether they take a job or stay with an employer. Third, we are exploring legislation to change the way student debt repayment is taxed—with a goal of helping borrowers get out of debt sooner so they can more fully engage with you. When the new Congress convenes, we will be working with lawmakers to develop this proposal. Additionally, we are training bankers and offering resources for our members’ customers to help them understand student debt and its implications—and learn what restructuring and refinancing options might be available to them. Student debt and the cost of college are the single biggest financial worry for Americans under 40. In partnership with ABA and your state associations, America’s banks are tackling this problem and positioning student borrowers to make the transition to adulthood a little sooner. Leticia Saiid is a Security+ ceEmail Rob Nichols at nichols@aba.com .