Employers are more aware of workers facing financial stress over their student loan repayment. Traditional voluntary benefits intended to help employees manage their finances, such as 401(k) plans, are becoming less effective. Workers across the country are asking for benefits that better fit their needs, such as student loan repayment. IonTuition has developed a free webinar to explain how student loan benefits are growing in popularity and the best practices for student loan assistance.
Student Loan Benefits are Becoming the New 401(k)
Even the best human resources departments have trouble estimating how many employees have student loans. One method for determining if your company should offer a student loan benefit is to look at how well your other financial wellness benefits are being utilized. If your 401(k) plan lacks participation, it’s likely employees can’t afford to contribute to their retirement due to their student loan debt.
Student Loan Benefits Improve Recruitment, Retention, and Productivity
Student loans rarely take priority over other monthly bills such as rent or car payments. Borrowers either take a passive approach to their repayment or are stressed out about their repayment overall. They’re unlikely to even know about alternative repayment plans, or if they do look, are confused over their options.
A student loan benefit helps employees manage their repayment. Most borrowers can benefit from lowering their monthly payment or repaying their loan faster. A student loan benefit will help them with both.