The Truth Behind Student Loan Refinancing Savings

Student loans can be hard to understand and often times borrowers can be unclear on the exact differences between various types of loans. However, it's extremely important that borrowers continue to seek out additional understanding in order to make the appropriate decisions. The same can be said for student loan benefits offered by employers. What seems like a "benefit" may have the opposite impact for employees and employers need to be acutely aware of what to look out for when evaluating vendors.

Read More

NEW: IRS Ruling on Tax-Advantaged Student Loan Repayments

In August, the IRS issued a groundbreaking ruling that could affect the tax treatment of employers’ student loan repayment contributions. We can help you understand what the ruling means, how to explain it to your stakeholders, and how companies can act on it to offer a differentiated benefit before their competitors do.

Read More

In Some Cases Convenience Comes at a Cost

Aug 15, 2018 8:07:08 PM / by Corinne Thomas posted in Insights, Decisions, Winning Together

An earlier version of this post was originally published on the Peanut Butter blog on May 9, 2017 by David Aronson. You can view the original post here

Making payments towards employees student loans via payroll deduction: is it a convenience or does it come with a cost? As several vendors have begun requiring employees to make their minimum monthly student loan payment via payroll deduction as a requirement of Student Loan Assistance Programs, companies may look at this as an added perk that will help employees. What some fail to understand, however, is that they may actually be putting employees at a disadvantage if they choose to administer their program this way.

Read More

Credit Unions Have a Unique Opportunity to Address the Student Loan Crisis

Jul 27, 2018 2:06:04 PM / by Corinne Thomas posted in Insights, Student Loan Repayment

The original version of this post was published on the Members Development Company (MDC) blog by Sarah Lietz, Vice President of Owner Engagement at MDC. You can view the original post here

As more Americans flock to colleges and universities against a backdrop of rising tuition costs, it is increasingly clear that we are in the midst of a student loan crisis. The proliferation of high-cost student loans outpaces both inflation and wage growth, and delinquency rates are now higher than ever before, surpassing all other mainstream credit products. In total, there is $1.45 trillion in student loan debt in the U.S., and it grows by $2,700 every second. Over 44 million Americans currently hold student loan debt.

Read More

Medix CEO Shares the 6 Things You Need to Think About to Make New Grad Hires Successful

Jun 28, 2018 9:36:49 AM / by Corinne Thomas posted in Insights, Recruiting

The original version of this post was published on Purposeful CEO by Andrew Limouris, CEO at Medix. You can view the original post here

School is ending for the class of 2018, and employers across the nation are getting ready to welcome them into the workforce. For some of these new grads, this is when their parents take a first step back and let them stand on their own two feet.

As these new grads’ employer, not only are you responsible for helping them start successful careers; you’re oftentimes helping them start their independent lives. This is a huge privilege and responsibility! To help smooth the transition for these new professionals, consider these six things:

Read More

What should the Aflac WorkForces Report tell your company?

Mar 5, 2018 4:01:48 PM / by David Aronson posted in Insights, Recruiting, Retaining Talent

I recently got my hands on the latest Aflac WorkForces Report (AWR), and it is chock full of valuable insights about how employees and employers view the benefits offered in today’s market. The full report has great insights on benefits trends and attitudes, but here we’ve highlighted the top points below as it relates to hiring and retaining employee talent, and how the right benefits package can help. 

Read More

Why refinancing is not a benefit on its own

Nov 25, 2017 6:18:00 PM / by David Aronson posted in Insights

If your company is considering student loan refinancing, you should take a hard look at how a comprehensive Student Loan Assistance program differs from student loan refinancing on its own.

Read More

Employers rethink tuition reimbursement

Nov 24, 2017 10:58:58 AM / by David Aronson posted in Insights

We're all familiar with the old offer, "work for us for 2 years and we'll help pay for you to earn a college degree". Employers have been offering these programs for quite some time, but increasingly the value of such programs are being called into question. The common challenges that employers cite when assessing the effectiveness of their tuition reimbursement programs are:

Read More

3 Most Popular Student Loan Repayment Plan Designs

Nov 10, 2017 1:12:31 PM / by Philippe Melin posted in Insights

Read More

SHRM features Peanut Butter and Rise Interactive: 'Tips for Launching a Student-Loan Repayment Benefit'

Oct 12, 2017 12:24:59 PM / by David Aronson posted in Insights, Winning Together, Press Room

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).

Read More

The 3 questions executives ask about Student Loan Assistance

Sep 27, 2017 4:28:57 PM / by David Aronson posted in Insights

Interested in taking the perfect benefits package proposal to your executive team and walking away with unanimous approval?

Read More

Student loans delaying Millennial homeownership by 7 years

Sep 27, 2017 1:31:52 PM / by David Aronson posted in Insights

Research continues to show that student debt is delaying the American Dream. For employers, the opportunity to engage Millennial talent with a meaningful benefit that addresses their interests, has never been so real.

Read More

Student loan program pays off for Rise Interactive

Sep 27, 2017 12:44:24 PM / by David Aronson posted in Insights

Employee Benefit News (EBN) recently reported on the successful deployment of student loan assistance at Rise Interactive. Rise is an award winning digital marketing agency and Nicole Skaluba is the company's head of people.

Read More

Designing and implementing an effective student loan assistance program

Sep 20, 2017 5:38:26 PM / by David Aronson posted in Insights, Press Room

I recently had the honor of leading a session at the EBN Benefits Forum & Expo along with Nicole Skaluba, head of People at Rise Interactive.

Read More

Leverage Our Experience To Design The Right Plan For Your Company

Jul 11, 2017 4:55:44 AM / by David Aronson posted in Insights

In over two years of designing student loan assistance programs, we've found that employers consistently ask 3 questions while trying to decide if they should offer student loan assistance as an employee benefit.

Our plan design process leverages data-driven analysis along with insights from our work supporting top employers to help management teams and their advisors efficiently design student loan assistance programs that support their organization's talent goals, leverage best practices, and deploy capital in an efficient way.

Read More

Should my program have a benefits holding period, or be available to employees from the day they start?

Jun 5, 2017 9:16:07 PM / by David Aronson posted in Insights

For most employers there is no need to implement a holding period. Student Loan Assistance is a strong recruiting tool, and the impact is maximized if newly hired employees start receiving employer contributions from day 1.

There are of course exceptions to the rule...

Read More

How exactly are taxes treated for student loan repayment?

May 17, 2017 6:29:12 AM / by David Aronson posted in Insights

Good news: employer-sponsored student loan repayment contributions are tax deductible. The easy way to think of student loan repayment is to consider it like compensation.

That means employers can deduct their contributions as a business expense like they do with salary and wages.

It also means that employers will record Student Loan Repayment on payroll as Imputed Income.

Read More

Should we process employee payments via payroll?

May 9, 2017 12:14:55 PM / by David Aronson posted in Insights

While this may seem like a value-add service to some, the reality is that your employees don't need this, it creates unnecessary complexity for your program, and in some cases may introduce financial liability. Though technically possible, we advise employers do not process employee payments via payroll deduction.

Read More

Should my student loan assistance program have a clawback provision?

May 4, 2017 10:54:46 AM / by David Aronson posted in Insights

Clawback provisions are common with tuition reimbursement so this question comes up a lot. Because of some key differences in how we administer student loan repayment, there is usually not a need to have this type of provision attached to your program.

Read More

Will employees that don't have student loans be angry if we offer student loan assistance?

Apr 25, 2017 12:07:05 PM / by David Aronson posted in Insights

This is a common question. The short answer - No. Here's what we have learned after working with hundreds of employers.
Read More

Subscribe to Email Updates