Should your Company Implement a Student Loan Assistance Program?
The simple answer is yes! By doing so, you’ll attract, retain, and engage top college-educated talent at your company.
Twenty-six percent of the U.S. workforce and 69 percent of 2018 college graduates are encumbered by student loans, with the national total student loan debt total climbing steadily towards $1.6T. Student loan assistance has quickly become the No. 1 benefit desired by college-educated talent. For many, getting out from under student debt is a more meaningful accomplishment than:
- Graduating college
- Getting their first job
- Receiving a promotion
When employers offer student loan assistance, they quickly notice three improvements:
They Hire Top Talent 13 Percent Faster
In today’s highly competitive market for talent, offering student loan assistance as a benefit is the best way for employers to attract the right people, and fast. The Millennial Benefit Preferences Study found that 85 percent of respondents would accept a job offer if student loan repayment was included.
Employee Tenure Increases by 36 Percent
Job hopping is high and replacing talent is expensive and time-consuming. Recruiters must spend both time and money on finding the perfect replacements, and there is often a decrease in overall company productivity after an employee departs.
Employers who make contributions to workers’ student debt engage them in a meaningful way, and in turn, save on costs of recruitment and turnover.
Gender and Cultural Diversity Improve
Did you know?
- ⅔ of student debt is held by women
- African Americans and Hispanics, on average, hold two times more student debt than their white peers
Companies that help pay down student loans can capitalize on a unique opportunity to engage these often underrepresented groups and accelerate the positive impact of gender and cultural diversity within their workplace and beyond.
Helping companies understand how retirement planning fits into the overall mix of benefits such as student loan assistance, as well as how it can impact recruiting and retention is part of our usiness Retirement Plan Services. Get in touch anytime with questions or to start a conversation.
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