Employee Benefits

Here’s How Employers Can Help Employees Pay Off Student Loans and Save for College

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How can employers successfully recruit and retain top talent? One key way is to offer benefits employees want, such as help repaying student loans. A recent Employee Benefit News webinar featured experts who addressed the challenge of how employers can help employees pay off student loans and save for college.

During the webinar, the expert speakers discussed these topics:

1.  Employee turnover costs: What is the real cost to replace employees?

2.  Why offer a student loan repayment benefit?

  • Many employees worry about finances. About 71 percent of students graduate with student loans and carry them into the workforce.
  • Employees with student loans often are forced to forego life decisions, such as buying a home, getting married, or starting a family.
  • Financial challenges of younger employees pose engagement challenges. Workers often spend several hours during the workday worrying about how to pay their debts.
  • Research shows that employees would give up benefits or consider a salary cut if the money was applied toward their student loan.

3.  What can employers do to help employees repay student loans?

4.  A new popular benefit option employers can offer is Employee Choice. With this benefit, employees choose how they want to invest employer 401(k) matching funds, such as retirement plan savings, student loan repayment, or both. This program uses existing benefit budgets, so there doesn’t have to be a large increase in employers’ budgets.

5.  Why a student loan assistance benefit can be an effective recruitment and retention strategy.

Listen to a recap of the webinar or view the entire presentation to learn more about student loan assistance benefit solutions.