Over the past several months, one of the most popular benefits and perks being discussed in industry publications and at industry events is Student Loan Repayment Benefits. Here are a few places where you (or your employees) may have read information about this topic:
- Workforce magazine: April 2016: “Indebted to You? Student Loan Benefit Could Be Key Retention Tool” (link)
- Employee Benefit News: April 2016: “Student debt has multi-generational impact on financial wellness” (link)
- New York Times: March 2016: “Medical, Dental, 401(k)? Now Add School Loan Aid to Job Benefits” (link)
- SHRM: January 2016: “Easing the Student Loan Debt Burden? Points to Consider” (link)
- Bloomberg: December 2015: “The Hot, New Company Benefit: Student Debt Repayment” (link)
To help our clients better understand whether this is the type of benefit that they may want to consider offering to their employees, we encourage you to download our new Benefits Insights article on this topic within the CBGconnect portal. Here are highlights of a few of the main points that are covered within the document:
- Why offer a student loan repayment program: As your company looks for new ways to stand out from its competition when it comes to recruiting employees, it’s important to look at non-traditional benefits that could be offered. According to one study cited in the article, “80 percent of individuals would like to work for a company that offers student loan repayment assistance with a matching opportunity”.
- The current state of Student Loan Repayment Programs: While there is no doubt that media coverage about this benefit has been increasing tremendously lately, one SHRM study stated that only 3 percent of employers offer student loan aid. However, many more employers expect to offer this benefit within the next 12 to 24 months.
- Benefits for employers: The article highlights how offering this type of benefit can boost employee recruitment and retention efforts. In addition, it highlights how this benefit can also reduce financial stress for employees — which may, in turn, improve employee morale and increase productivity.
- Student loan repayment considerations: There are a number of practical considerations that employers should keep in mind, including tax issues, setting eligibility requirements, setting frequency and limit requirements, and establishing a policy that addresses what happens when an employee leaves the company.
We encourage all interested clients to download the in-depth Benefits Insights article from the CBGconnect portal today. If you need any help accessing the document, please let us know.
If you’d like to learn more about how your company can offer innovative benefits such as a Student Loan Repayment Program, please contact our team at 781-759-1222.