5 Reasons Employers need a Student Loan Benefit
What's your reason?
Oct 31, 2019
1. You give, you get
Talent attraction: Workplace relief for student loan debt is a coveted benefit. Job seekers want it and will make career decisions based on its availability. Organizations focused on talent attraction offer student loan repayment assistance to stay competitive and incite job seekers to join their team. Studies show student loan benefits also make other good things happen across all working demographics, like employee loyalty and increased productivity.
2. Help employees help themselves
Enable better financial outcomes: Workplace repayment assistance enables employees to participate in a disciplined strategy of debt reduction that leads to student loans paid off years earlier and at significant cost savings. It also leads to superior retirement outcomes because we structure our student loan repayment program to optimize loan repayments with savings’ contributions.
3. Increase participation in your retirement savings plan
Plan engagement: Employees with student debt can be conflicted about saving for retirement vs. paying off student loans. Our student loan repayment benefit allows employees to contribute to both simultaneously, so you can end the student loan vs. retirement debate -with our plan there’s no need to choose. This is good since Boston College’s Center for Retirement Research recently reported that by age 30, college graduates with student debt accumulate 50% less retirement wealth than those without student loans.
4. Internal goodwill
Boost morale and productivity: The financial stress associated with record levels of debt is impacting the workplace. Pressure to save for retirement compounds the issue. For many workers this pressure leads to anxiety and more stress and ultimately, can lead to diminished work performance. Employer sponsored student loan repayment plans are known to boost employee morale and productivity by providing a clear path forward to debt elimination and long-term savings.
5. Win Win
Innovation and affordability: Our student loan repayment program, The Smart Benefit™ was designed for flexibility and with respect to your bottom line. It works alongside, and with no disruption to, your existing group savings plan. By allowing contributions to be re-purposed and redirected as extra payments on outstanding student loans, employers enable employees to become (student) debt free sooner and for less than expected.
With student loan debt climbing to record highs in recent years, employers are recognizing that student loan repayment is a powerful and meaningful benefit. The Smart Benefit™ delivers a disciplined strategy for debt elimination and a clear path to long-term savings. This is a simple, low-cost benefit whose real value far exceeds the nominal cost of implementation.