If you are looking to attract, retain and engage top college-educated talent at your company, you should certainly consider it.
Twenty-six percent of the U.S. workforce and 70 percent of 2018 college graduates are encumbered by student loans, with the national total student loan debt total climbing steadily towards $1.5T4.. For many, getting out from under student debt is a more meaningful accomplishment than:
The Millennial Benefit Preferences Study identified the following three improvements when employers offered student loan assistance:
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 had reached their lowest point in over 50 years.
In today’s highly competitive market for talent, offering student loan assistance as a benefit is one 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.
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.
Did you know?
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.
Peanut Butter is a benefit administration firm built from the ground up to help employers provide student loan assistance. For more information, visit getpeanurtbutter.com. Peanut Butter is not affiliated with or endorsed by Associated Financial Group or LPL Financial.
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
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