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 one.
There are of course exceptions to the rule…
If you see high turnover in the first few months of employment, a holding period may make sense. This is most common with large sales organizations, where new classes of sales reps are hired in bulk with some expectation that a percentage of them will likely leave. Under these circumstances, a three to six month benefits holding period can be an effective strategy.
Keep in mind, though, that employer contributions toward employee loans are made monthly, and typically range from $50-$100 per month. Since these aren’t huge dollar amounts in, say, the first six months, many employers decide that even if there is some expected turnover, it’s worth offering student loan assistance from day one as a means to help curb turnover.
If you have questions about what a student loan assistance program could look like at your company, schedule time with our client services team today or click the button below.