Employer-sponsored student loan repayment programs are growing quickly as was highlighted in an October article published by the Society for Human Resources Management (SHRM).
In the article, Peanut Butter CEO David Aronson shared that “companies are choosing to help their employees get out from under student debt because they can hire faster, retain talent longer and even improve gender and cultural diversity.”
Nicole Skaluba, director of employee services at Rise Interactive and Aronson were featured presenters addressing tips for launching a successful student-loan repayment benefit at the EBM Benefits Forum and Expo in September.
SHRM highlighted the following take-aways for employers seeking to design and implement effective student loan assistance programs:
1. Start Slow and Grow
Although many companies target monthly contributions of $100, we see most employers start at $50 per month. By starting low, you have more control over your budget and can pinpoint enrolllment.
2. Keep it Simple
Rise Interactive made all employees eligible to receive contributions from their first day of employment. There aren't any special tiers or requirements related to the plan, so the program is easy for recruiters to communicate to candidates and easy for managers to communicate to employees.
3. Have Shared Accountability
At Rise Interactive, Student Loan Assistance program participants agree to continue making at least the minimum payment on all their loans. That means their employer's contribution will help them get out of debt faster. For participants, it also means extra savings as most loan servicers offer a 25 basis point discount when borrowers provide minimum payments from their bank accounts through direct debit.
Rise Interactive’s is finding that Student Loan Assistance is the benefit that receives the most excitement from new employees because it’s something new and different.
Peanut Butter is the benefit administrator for Student Loan Assistance. We help top employers like Rise Interactive to design and implement Student Loan Assistance programs to efficiently accomplish their talent goals. Interested in receiving a free Student Loan Assistance plan design for your company?