Student Loan Assistance has emerged as one of the most highly sought after benefits for employees headed into 2024. With the combination of federal student loan payments resuming in October and no large-scale government forgiveness, the US workforce is feeling the impact of their student loans more so than ever.
This begs the question, what are the most effective ways to offer the benefit? In our experience, most employers offer $50 a month as a direct contribution toward employees’ loans, paired with the tools they need to manage their student debt in Student Loan Resources. The next most popular plan is $100 a month under the same structure. However, this is more common in high-cost-of-living cities like New York, Los Angeles, and San Francisco or in industries like the dental or veterinary space, where student debt tends to be higher. In a recent post from the U.S. Chamber of Commerce, they also agreed that ‘businesses that offer student loan assistance start around $50 to $100 per employee per month, which can save employees thousands of dollars in interest over time.’
With only around 8% of employers offering Student Loan Repayment today, according to SHRM, the time for them to act is now. Not only can the benefit change the way organizations attract and retain talent, but it immensely improves their employee value proposition vs. competitors.
References:
- U.S. Chamber of Commerce – ‘How Your Business Can Offer Student Loan Assistance as a Benefit’ (2023) / https://www.uschamber.com/co/run/human-resources/offering-student-loan-assistance-employee-benefit