Student Loan Assistance is starting to make its way into the workplace.
Hundreds of companies are now offering student loan assistance to their workers. And not surprisingly, it’s making a huge impact towards those employees who are struggling with massive amounts of student loan debt.
Around 7 in 10 college graduates have student loan debt today, and the amount of debt owed can sometimes be as high as $100,000 plus.
Student loan debt is becoming more burdening than credit card or auto debt for Americans. Through the Student Loan Assistance program, companies are offering a solution.
Not only does this benefit those with student debt, the companies themselves are seeing a lift in applications. By contributing such an important benefit to their employees, companies are gaining interest in new talent. People actually want to join the companies in order to participate in the program being offered, which gives companies the opportunity to choose from a wide array of staff options.
Erin Smith, first vice president at Options Clearing Corporation, (who participates in the Student Loan Assistance program), speaks out about the new benefit,
Most companies provide a pretty standard benefit menu, like medicine, dental and vision, so when you introduce a program that differentiates you, that really matters.”
So the main question is, will loan assistance be as big as 401(k)s? Recent bills are looking to address this.
The Employer Participation in Student Loan Assistance Act, which would make assistance employees receive from their bosses tax free up to $5,250 a year, would make it so employers could deduct ‘the subsidy’. Companies including Starbucks have even expressed support for the bill.
Here’s to a positive approach towards student loan debt in America, and to a new step towards a solution.