Employees Need Student Loan Contributions
Deciding to offer a student loan contributions is one of the best ways to help your employees improve their financial wellness. Student loan debt can often seem overwhelming, especially for recent college graduates facing 10 to 25 years of repayment.
Only 13% of Employers Currently Offer Student Loan Benefits
The demand for student loan repayment benefits continue to grow. Our annual surveys have shown employees with student loan debt believe employers should help them repay their student debt.
Implementing Student Loan Contributions is Easy
Implementing a student loan contribution program is easy, especially with an online solution like IonTuition. Employers can create an administrator’s account and pay entirely online. The employer uploads a list of eligible workers, and the employees receive an email to create an account and upload their loan information. Once their loan information is uploaded, they can allocate their contributions to the loans of their choice.
There are Two Styles of Student Loan Contributions, Matched & Fixed.
In a fixed contribution plan, the employer sends payments to the loans of the employee’s choice. In a matched contribution plan, the employer matches extra payments the worker makes up to a set amount. The industry standard is $100 per month with a lifetime limit of $10,000. In addition, a recent ruling may allow employers to contribute to 401(k) plans as the match for student loan payments.
Student Loan Contributions Directly Help Employees
In a student loan contribution program, payments made to the employees’ student loans are applied directly to the principal. By directing contributions to loans with higher interest rates, employees can save even more money. Employees will repay their loans early and save money on interest.
Our student loan contribution program, IonPay, offers a simple platform that’s easy to administer. The employee can see how their company is saving them money. We include a 10-year repayment graph showing how much time and money they’re saving as a result of their contributions.
Visit our employer page to sign up for IonTuition today.