Horace Mann Puts Teachers on Track to Reach $100 Million in Public Service Loan Forgiveness

Rhea-AI Summary

Horace Mann Educators Corporation (NYSE:HMN) reported that its Student Loan Solutions (SLS) program identified over $100 million in Public Service Loan Forgiveness (PSLF) opportunities for educators in 2020, raising the lifetime total to over $350 million. The SLS program offers resources and coaching to help public school educators achieve loan forgiveness. Over 85% of participants benefit from reduced payments, saving an average of $330 monthly, or over $4,000 annually. The program is freely available to districts and educators, extending through the 2021-2022 school year.

Positive

• SLS program identified over $100 million in PSLF opportunities in 2020.
• Lifetime total of PSLF opportunities exceeds $350 million.
• 85% of educators using SLS benefit from lower payments or loan forgiveness.
• Average monthly savings of $330 represents over $4,000 per year.

Negative

• None.

Horace Mann Educators Corporation (NYSE:HMN) announced today that its Student Loan Solutions (SLS) program identified more than $100 million in Public Service Loan Forgiveness (PSLF) opportunities for educators in 2020, bringing the program’s lifetime total to more than $350 million.¹

The Horace Mann SLS program provides webinar education, online resources and expert loan coaches to help all public school educators get the loan forgiveness they deserve under PSLF and Teacher Loan Forgiveness. PSLF forgives the remaining balance on Direct Loans after 120 monthly payments under a qualifying repayment plan. Since launching its Teacher Appreciation initiative in the fall, Horace Mann has offered all public school educators and school districts nationwide complimentary access to the SLS program — and is now extending that access through the 2021-2022 school year.

• Of the educators taking advantage of the SLS program, over 85% find they can be better off, either qualifying for loan forgiveness or obtaining lower monthly payments, and for a majority of people, both
• On average educators using the program save $330 per month, equivalent to more than $4,000 per year in student loan payment savings
• Of those that could qualify for PSLF the estimated student loan forgiveness is $75,000+ on average

“Horace Mann is on a mission to reduce the burden of student loan debt for educators. Since announcing our Teacher Appreciation initiative, school districts in more than 21 states have adopted our SLS program as a benefit for their employees, creating a meaningful opportunity for over 86,000 public school employees to have all or some of their student loan debt forgiven,” said Erin Clark, Vice President of Horace Mann's Student Loan Solutions program. “Some of the largest school districts in the country recognize the value of the Horace Mann Student Loan Solutions program. They know it helps to keep their current employees in the education profession, and also attracts new talent.”

A June 2020 Horace Mann survey showed more than 60% of educators have student loan debt, and that debt weighs heavily on their decision to stay in the profession. For a career that generally requires a college degree or greater, educator job compensation is often not commensurate with the investment it took to get there. Notably, 85% of educators said student loan debt has prevented them from achieving life goals, such as saving, buying a house or starting a family. Others have taken on additional jobs to support their families. Addressing student loan debt can help.²

“It is important to pursue PSLF now, even during the CARES Act student loan forbearance,” added Clark. “Educators who are in the right repayment plan now receive credit toward their qualifying loan payments, even if their payment is $0. But most educators are in the wrong payment plan today, and are missing this valuable opportunity to move closer to forgiveness.”

The SLS program is complimentary to both the school district and employees in appreciation of everything our schools and teachers are doing during the pandemic. School districts interested in learning more about the SLS program for employees and new hires can request information at horacemann.com/student-loan-debt-help/schools. Educators can sign up directly at horacemann.com/student-loan-debt-help/signup/teacher-appreciation.

(1) Potential savings of educators assisted by Horace Mann with Public Service Loan Forgiveness from October 2016 through 2020 based on assumptions established by the U.S. Office of Federal Student Aid. Monthly and annual savings are based on 2020 only.

(2) The Student Loan Debt Effect: Good Teachers are Leaving Education, Insights from the Horace Mann Educators Student Loan Debt Study

About Horace Mann

Horace Mann Educators Corporation (NYSE: HMN) is the largest financial services company focused on providing America’s educators and school employees with insurance and retirement solutions. Founded by Educators for Educators^® in 1945, the company is headquartered in Springfield, Illinois. For more information, visit horacemann.com, or follow us @HoraceMann on Twitter and LinkedIn, and @HoraceMannInsurance on Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210301006068/en/

FAQ

What is the total amount identified by the SLS program for PSLF in 2020 for HMN?

The SLS program identified over $100 million in Public Service Loan Forgiveness opportunities in 2020.

How much has the SLS program helped educators save in total?

The lifetime total of student loan forgiveness opportunities identified by the SLS program exceeds $350 million.

What percentage of educators benefit from the SLS program?

Over 85% of educators who use the SLS program find they can either qualify for loan forgiveness or reduce their monthly payments.

What are the average savings for educators using the SLS program?

Educators using the SLS program save an average of $330 per month, which amounts to over $4,000 annually.

How long will the complimentary access to the SLS program be available?

The complimentary access to the SLS program is extended through the 2021-2022 school year.