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Should Your Company Implement A Student Loan Assistance Program?

We believe the simple answer is yes! By doing so, you will attract, retain and engage top college-educated talent at your company.

Twenty-six percent of the U.S. workforce and 69 percent of 2018 college graduates are encumbered by student loans, with the national total student loan debt total climbing steadily towards $1.6T.4 Student loan assistance has quickly become the #1 benefit desired by college-educated talent. For many, getting out from under student debt is a more meaningful accomplishment than:

  • Graduating college
  • Getting their first job
  • Receiving a promotion

When employers offer student loan assistance, they quickly notice three improvements:

They Hire Top Talent 13 Percent Faster

The Bureau of Labor Statistics reports1 that August’s U.S. unemployment rate was 3.8%, and college educated unemployment2 was even lower at 2.0%, continuing the trend where unemployment rates have reached their lowest point in over 50 years.

In today’s highly competitive market for talent, offering student loan assistance as a benefit is the best way for employers to attract the right people, and fast. The Millennial Benefit Preferences Study3 found that 85 percent of respondents would accept a job offer if student loan repayment was included.

Employee Tenure Increases by 36 Percent

Job hopping is high and replacing talent is expensive and time-consuming. Recruiters must spend both time and money on finding the perfect replacements, and there is often a decrease in overall company productivity after an employee departs.

Employers who make contributions to workers’ student debt engage them in a meaningful way, and in turn, save on costs of recruitment and turnover.

Gender and Cultural Diversity Improve

Did you know?

  • ⅔ of student debt is held by women5
  • African Americans and Hispanics, on average, hold two times more student debt than their white peers6

Companies that help pay down student loans can capitalize on a unique opportunity to engage these often underrepresented groups and accelerate the positive impact of gender and cultural diversity within their workplace and beyond.

  1. https://www.bls.gov/news.release/pdf/empsit.pdf
  2. https://www.bls.gov/news.release/empsit.t04.htm
  3.  https://www.getpeanutbutter.com/download-millennium-benefits-study/
  4. https://jobenomics.com/wp-content/uploads/2019/10/Jobenomics-Comprehensive-U.S.-Labor-Force-andEmployment-Report-Q1-2018-28-April-2018.pdf
  5.  https://www.cnbc.com/2018/03/13/american-women-hold-two-thirds-of-all-student-debt-heres-why.html 6. https://www.nclc.org/images/nclc-response-to-borrowers-of-color-letter-feb2019.pdf

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