With more and more millennials in the workforce employers are looking to provide unique benefits to retain and recruit employees. One of the greatest obstacles faced by millennials is mounting student loan payments. According to studenloangenius.com, a company that helps employers and employees facilitate student loan repayment benefits, the average monthly payment is over $600 and the average total debt exceeds $60,000. What employers are seeing is that this debt is causing employees to delay saving for retirement and, notably, employees are struggling with economic hardship.
A few companies are aiming to help their employees tackle student loan debt—an idea that not only shows employees they are valued, but is a differentiator to recruit new talent. There are a variety of ways employers are assisting with loan repayment. For example, Student Loan Genius has created a program that allows employers to match employee contributions or payments to their student loans. Other organizations provide repayment assistance through a bonus system which gives the employee a yearly sum to apply to their loan. This is an incredibly attractive benefit that is certainly gaining in popularity and, as the cost of education becomes even more expensive, these types of programs will continue to grow.
To learn more about offering unique benefits such as employer-based student loan repayment, contact Walsh Duffield’s Benefits Division.
Marie A. Story, MS, ACSM CPT