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The skyrocketing cost of higher education can make saving and paying for college overwhelming. So you might want to “leaf” the burden to the experts.
Leaf College Savings co-founders Juan Aguilar, Chris Duffus and Josh Bixler set out with the goal of making it easier to save for college. More specifically, they wanted to find an easier way to give the gift of college savings because, as Aguilar says, “it’s a complicated web out there of college savings.”
The collaborators previously had been colleagues at another Arlington business and regrouped a few years after that company sold. Leaf has been around for about three years now and the Rosslyn-based business has nearly 20 employees.
Leaf enables people to purchase an FDIC-insured gift card which transfers money directly into any 529 college savings plan. If the recipient doesn’t have a college savings account, the business will help set one up.
“It’s a gift that says something very special and very specific,” Aguilar says.
Another option Leaf offers is for an employer to allow payroll contributions to go toward a college savings gift, in a similar way to how a 401(k) works.
“That’s the headache we’re solving right now,” says Aguilar. “The gift card is one idea, a payroll deduction… is idea number two.”
Aguilar points out that children are more likely to pursue higher education if they have some savings set aside for it. He says Leaf offers ways to start saving early — for example, by giving one of the gift cards at a baby shower — and all of the contributions will add up over the child’s lifetime.
“We’re not trying to say a gift card will pay for every dime. But we say that every little bit helps and you need to get started somewhere,” he says. “Over time it will grow into something, which is certainly better than not having made a plan or waiting until it’s too late.”
The business continues to evolve and improve based on feedback from customers and research on changes and trends for savings plans. Employees currently are devising a payroll benefits program to help workers pay off their student loans. Leaf is working on the idea with companies interested in using such a benefit as a recruitment and retention incentive.
“The amount of college debt is staggering,” Aguilar says. “Companies love the idea of college savings and helping employees with student loans.”
As a testament to the benefits Leaf provides, Aguilar says he uses the services for his own kids.
“On a personal level, being able to use Leaf myself… it’s good to see the product work and that it really helps people,” he says. “I’m happy that we’re helping people save for college.”