Every employee is in a different financial situation. Lower income employees can be financially stable, while top income-earners can be crippled with debt. Offering financial wellness benefits must relate to all types of employees, no matter their financial situation.
Student loan assistance applies to employees in all financial situations. Just because a benefit is related to student loans, doesn’t make it a genuine “student loan assistance” benefit. Student loan assistance can help employees struggling each month to make ends meet by guiding them into an income-driven repayment plan, as well as help employees ahead in their payments by saving them time and money on interest.
Student Loan Assistance Isn’t Only Refinancing
Refinancing student loans is a useful tool, especially for employees with good credit and high student debt. For some industries, student loan refinancing may be the primary means for employees to lower their student loan payments. For other industries, student loan refinancing is a less desired option for borrowers better qualified for income-driven repayment plans.
Student Loan Assistance Isn’t a Self-Service Benefit
Student loan repayment is complicated, especially in the federal space where over 90 percent of student loans originated. Just as you would seek a lawyer to help with legal issues, you should seek student loan experts to help with your student loan repayment options. Millions of borrowers default on their student loans without ever knowing about free federal repayment options that could have reduced their payments to as little as $0 per month. Seek a benefits partner that offers free access to expert counseling services.
Student Loan Assistance Isn’t a One Time Consultation
Most borrowers require nearly 20 years to repay their student loan debt. Having a “set it and forget” mentality is not an effective way to repay debt for that long. Monitoring your loans closely and taking advantage of overpayments or employer contributions can save borrowers time and money. Also, federal programs such as student loan forgiveness are easily misunderstood and conditions can change without notice. Go with a student loan benefit that offers real-time monitoring and personalized alerts.
Student Loan Assistance Isn’t a Novelty Benefit
Student loan debt is the second most abundant form of household debt. It affects 70% of college graduates and shows no signs of slowing down. Just like retirement benefits, student loan assistance is necessary to help your employees get out of debt. Just as 401(k) plans became common at ~80% of companies, student loan assistance is predicted to do the same.
Student Loan Assistance Isn’t Exclusive to Millennials
Student loan debt affects borrowers of all ages. Millennials carry the majority of student loan debt, but they also make up the majority of the workforce. The fastest growing segment of student loan borrowers are parents borrowing for their children and grandchildren. We’re seeing borrowers who are repaying their student loan debt as well as carrying student loans for their dependents. Retirement benefits are underutilized because many people are stuck repaying student debt into their 50s and 60s.
Student Loan Assistance Isn’t a Luxury Benefit
Companies of all sizes can afford to offer a student loan assistance benefit. Student loan assistance without a contribution program can be offered for pennies per employee per month. Get an instant quote from IonTuition to see how much it will cost your company to help employees relieve their financial stress and improve productivity.