As we kick-off 2024, research and data on end-of-year spending are already surfacing. According to The 19th News, “Student loan repayments are putting a damper on holiday spending — especially for Gen Z and millennials.”
As widely known, federal student loan payments resumed nationwide in October 2023, resulting in the average borrower facing a monthly payment of over $300 towards their student loans. This financial consideration, absent during the holidays for over three years, is impacting millennials and Gen Z, who increasingly constitute a larger portion of the US workforce. To address the financial uncertainty faced by these groups, employers must think innovatively about their benefits, and student loan assistance emerges as a potential solution.
By adopting the industry’s most common program, offering $50 per month, companies can assist their employees in clearing student debt in 8 years instead of 10. This approach translates to savings exceeding $7,000 in principal and interest over that period. Such initiatives not only alleviate financial stress in the workplace but also earn employees’ recognition that their employer supports them.
Read The 19th News Article at: https://19thnews.org/2023/12/student-loan-damper-holiday-spending-gen-z-millennials/ (Dec2023)