This was originally posted on Oct 29, 2021 and was updated on August 25th, 2022
Starting in January of 2023 student loan servicers are expected to resume the monthly collection of payments from roughly 45 million borrowers. Whoa?! That’s going to be a shock for a lot of people.
In March of 2020, the CARES Act (Coronavirus Aid, Relief and Economic Security Act) placed federal student loans on “holiday” for a limited time pause, to offer financial relief to many people across the United States. Since then, borrowers have not been required to make a monthly payment and have not had interest accrue on their loans. Now this COVID-19 emergency relief measure is scheduled to end on December 31, 2022. Starting in January, a typical borrower will be required to pay about $350 per month and will see interest begin to accrue at 6% per anum.
Are your employees ready for their student loan payments to resume?
In today’s competitive market for talent, empathic employers are winning the best new hires and retaining valued team members longer. For employers looking to stand out in 2023, the resumption of student loan payments represents an opportunity to show college-educated workers that your organization understands their interests and will support them in addressing their challenges.
Peanut Butter makes it easy for companies to provide Student Loan Assistance, including:
With Student Loan Resources, your company can empower employees to take control of their student debt. Employees receive:
- Curated advice and insights
- Loan management dashboard
- Financial wellness tools
- Refinancing marketplace
- $200 rebate for refinancing
When your company compliments Student Loan Resources with a Student Loan Repayment Plan, you can expect:
- Faster hiring timelines
- Longer employee tenure
- Improved diversity
- Stronger engagement
Most companies choose to contribute $50/month and they see about 25% of all employees elect to participate in their Student Loan Repayment Plan. For participants, the impact is meaningful. A $50 contribution can help the average worker get out from under her student loans in 8 years instead of 10 and save nearly $7,000 in principal and interest. Peanut Butter’s Repayment Budget Calculator can help you confirm that your company’s expenses should fall within your budget.
For companies large and small, there’s still time to act. Your Peanut Butter account can be set up today and your company’s program can be launched with about an hour of work time. As an employer, you’ll receive:
- Employer control panel
- Communication toolkit
- HR support
- Impact reporting
- Customer success manager
Ready to get started? We’re here to help.