To help HR professionals prepare for sweeping benefit changes taking effect in 2026, last week SavvyFi hosted a webinar on how employers can support employees with both future education costs and existing student loan debt, while strengthening retention in the process.
The session featured:
- Kevin Porath, SavvyFi, with nine years of borrower advocacy experience and more than two decades in HR leadership.
- Jenny Sass, my529, bringing ten years of experience helping families and employers navigate education savings.
- Mandy Wallace, SavvyFi, who moderated the conversation and brings twenty years of experience across education, nonprofits, curriculum, and grant writing.
SavvyFi’s platform integrates directly with my529, allowing employees to open and fund one of the highest-rated college savings plans in the country.
What’s Changing: The Big Updates from H.R. 1 (The “One Big Beautiful Act”)
Kevin opened with a breakdown of several major changes already reshaping employer benefits:
- Public Service Loan Forgiveness (PSLF) remains available
- Income-Driven Repayment (IDR) is simplified to two plans: RAP and IBR
- The window for Parent PLUS borrowers to become PSLF-eligible is closing
- The SAVE plan has been discontinued
- Employer student loan contributions are permanently non-taxable under Section 127
- Section 127 will also be indexed to inflation, increasing annual limits over time
Critical Deadline: Parent PLUS Borrowers Must Consolidate by July 2026
One of the most urgent changes affects employees holding Parent PLUS loans who want to pursue PSLF. Consolidation is the only path to eligibility and the clock is ticking.
If borrowers do not consolidate by July 2026, they will permanently lose access to PSLF on these loans.
Kevin explains why this matters in this video clip:
What’s New for 529 Plans: More Flexibility, More Eligible Uses, More Value for Employers
Jenny then shared how recent legislation has expanded 529 plans in powerful ways. Eligible uses have grown far beyond traditional college tuition, giving employers more flexibility in the benefits they offer.
Key expansions include:
- K–12 expenses beyond tuition (limit increases to $20,000 in 2026)
- Postsecondary credentialing programs for adults
- The ability to roll up to $35,000 in unused 529 funds into a Roth IRA (under specific conditions)
These changes make 529 plans a strategic tool for upskilling, retention, and future financial wellness. Listen as Jenny explains the expansions:
Why HR Should Expect More Delinquency and Default and What It Means for Employers
Kevin outlined changes affecting current borrowers, especially those at risk of delinquency or default as repayment restarts and incomes have risen since pre-COVID.
Key points HR teams should prepare for:
- Recertification of income often leads to sharp increases in monthly payments
- Many borrowers are unaware their payment plan no longer aligns with their financial situation
Wage garnishments are already increasing and HR will likely be the first phone call when paychecks shrink - Helping employees stabilize their payments can boost credit scores by 75–100 points
Listen as Kevin explains what wage garnishment might look like for HR teams:
The Employer Opportunity: Reduce Turnover, Strengthen Culture, Support Financial Stability
Across sectors, employees are overwhelmed by student debt and confused by changing rules. Even highly educated professionals struggle to navigate the complexity. One misstep can cost them years of progress toward forgiveness.
That’s where employers can step in.
Organizations that help employees through this transition with guidance, coaching, and accessible education-finance tools will see:
- Lower turnover
- Higher engagement
- Improved financial stability across their workforce
- Stronger employer brand and culture
In Kevin’s words: Employers who help their teams through this moment will be the ones who flourish.
Want to prepare your workforce for 2026? Let’s talk.
SavvyFi helps employers offer education finance benefits that put real money into employees’ pockets today and in the future.
If you’d like to talk through options or see how our platform supports 529 savings, student loan repayment, PSLF coaching, and more, we’re here to help.
About SavvyFi: SavvyFi is a user-friendly fintech platform that makes it easy for employers to provide college savings and student loan benefits to their employees. Because the company’s platform is “zero-touch” to HR — without any complicated systems, integrations, or paperwork — SavvyFi unlocks education financing capabilities to even the smallest employers that would not otherwise be able to offer these benefits.
Disclosure: Third-party quotes shown may not be representative of the experience of all SavvyFi customers and do not represent a guarantee of future performance or success.
