One common misconception of Student Loan Assistance is that it is a costly benefit. Employers often think they need to offer upwards of $100 or more each month to rollout this type of benefit program. We're here to tell you that's not the case. By implementing best practices when launching a Student Loan Assistance program, employers can see significant employee engagement that costs the company less than the free coffee offered in the break room each month.
When it comes to Student Loan Assistance, companies aren't competing on how much they offer employees towards their student loans, it's whether they offer anything at all. With that being said, offering something is better than evaluating the program and saying "pass" for strictly budgetary reasons. Especially when considering the cost of lost productivity and rehiring, the return on investment is quite substantial. You can even use our ROI Calculator to see the impact for your company.
Employers who feel constrained by budgeting decisions when considering a program should begin by offering just $30 per month towards employees' student loans. Here's why:
- The message is clear: "a dollar a day towards your student loans" is catchy and easy for employees to understand. The fun your team could have marketing the benefit this way is reason enough to do it.
- It's far less expensive than other "perks": 64% of Americans over 18 drink AT LEAST one cup of coffee per day... so if you were wondering how the coffee in the kitchen always seems to disappear, there's why. When comparing the cost of providing (unlimited) coffee for the 64% of employees who drink it vs. providing $1 each day towards student loans for the 25-37% who have student loans (depending on your industry) - quick math tells us that Student Loan Assistance is actually costing the company less.
- It's more meaningful than anything you're currently offering - the Millennial Benefits Preferences study shows us this. The study found 85% of college-educated Millennials said they would accept a job offer and existing employees would stay 36% longer if the employer offered Student Loan Repayment.
When push comes to shove, don't let budgeting hold you back from offering the one benefit your employees REALLY want. Offering something is better than offering nothing in the end. You can take the first step today by contacting our team below, we're here to help.