There are many reasons why a company should consider student loan repayment assistance, we covered them in our last blog, with one of the main reasons driving companies to make the switch is to provide a benefits option that appeals to your target workforce. By 2025, the vast majority of workers will be the generation referred to as Millennials, and their main concern is their unmanageable student loan debt.

Current Student Loan Repayment Benefits

The idea of employers providing student loan benefits has created such a buzz—its even caught the eye of a congressman or two. While student loan repayment benefit programs have garnered national attention—not many employers actually offer anything like it as a benefit to attract or retain employees. In fact, according to the Society for Human Resource Management, only about 4% of employers do. WorldatWork offered similar numbers: on average, 4% of employers provide some type of loan repayment assistance; when looking at only large companies—those with over 40,000 employees—does that number jump to an 8%.

Student Loan Repayment Benefits Predicted To Rise

The Consumer Financial Protection Bureau strongly predicts that the current number of employers offering student loan repayment assistance will greatly increase as the workforce is overtaken by the millennial population—the specific population looking for student loan debt relief.

In addition, the recognition of financial health and its effect on the workplace is beginning to grab employer attention. Student loan debt causes many working individuals to stress over payment terms—and their financial ability to meet those demands or even save for retirement (80% delay retirement planning due to loan payments). As a result, stress and anxiety cross over productivity in the workplace and can drive more employees to frequently change employers for just a fraction more per year in salary earnings just to stay on top of current financial obligations.

Employers can retain their workforce and make an impactful statement about financial health by offering student loan assistance benefit packages. Even if your company only offers employees $100 per month, can make a significant impact for your employee’s debt while minimizing costs of providing an employee benefit. That’s only $1,200 per year—a fraction of the average employer cost of $5,179 annually for the medical premium of a single employee (when supplying 83% of the premium).

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Get Ahead Of The Curve

Work with The Student Loan Advisory Group to get ahead of the curve by offering your employees a cost-effective benefit option. Whether you choose to match contributions, provide a monthly stipend paid directly to their loan servicer, or offer student loan debt counseling services, we can help you pick the best program to improve employee retention, productivity, and job satisfaction.