Few Employers Offer Student Loan Repayment

But it’s a hot benefit for those who do

Kathy Gurchiek By Kathy Gurchiek March 18, 2016

The concept of employer-provided student loan repayment programs seem to be the rage right now, if recent news coverage is any indication. Only 3 percent of companies help workers pay down student debt, according to the Society for Human Resource Management, but interest in the perk is growing. While it’s still a relatively new benefit, it is an attractive recruitment tool—especially for Millennials saddled with enormous debt stemming from their schooling—and an Illinois Congressman introduced a bill last fall that would allow employers to offer up to $5,250 as a benefit for student loan payments for their employees.

These Companies Help Pay Off Their Employees’ Student Loan Debt
Fidelity announced Tuesday that full-time employees at the manager level or below will be eligible to receive $2,000 a year paid toward their student loan balance, for a total of up to $10,000.

Student Loan Payback Schemes Attract Millennial Workers
The small group of employers paying their employees' student loans is expanding as mounting national student debt keeps workers from saving for retirement or reaching major life milestones, like buying a home.
(Business Insurance)

Easing the Student Loan Debt Burden? Points to Consider
The most important thing to keep in mind about student loan repayment benefits is that they don’t receive preferential tax treatment. Any amount paid to employees will be subject to income and payroll taxes.
(SHRM Online)

More Employers Offer Student Loan Repayment Benefits
With high-profile employers like Pricewaterhouse Coopers and Fidelity announcing their own student loan repayment benefit plans, and presidential candidates talking about solutions for the nation’s collective $1.3 trillion student debt, it’s a safe bet many more companies will soon jump on board.
(U.S. News & World Report)

Survey Finds Student Loan Reimbursement a Hot New Benefit for Job Seekers
Results from a national survey of more than 5,000 job seekers revealed job seekers are looking for more unique employee benefits packages that can keep pace with modern financial concerns. While healthcare and 401(k) programs remain the most important benefits to job seekers, according to the Beyond survey the prospect of “student loan reimbursement” has emerged as a highly-desired offering. 

Six Careers That Help Pay Off Your Student Loans
From joining the Peace Corps to becoming a firefighter, you can find jobs that will pay for your education.
(The Atlantic

More Employers Try to Help Workers Pay Student Loans
Employers are discovering that making it easier for workers to pay off their student loans helps to attract and keep a happy workforce. This is not as simple as it sounds: Many college graduates end up owing multiple lenders, and the tax implications can be complicated. Employers also want to make sure the money goes to the right place. This has created a niche for a handful of startups helping employers deliver the benefit.
(Associated Press)



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