If you didn’t know already, student loan debt is becoming a serious issue in our education system. Students are packing on more debt than ever when trying to obtain a college education. In the early 90’s, about 50% of students that received a degree graduated with debt of around $10,000. Now, students are graduating with debt of about $35,000!
So what can you, as a business owner, entrepreneur, employer, or HR manager do to resolve this issue? I have four words for you: Student Loan Reimbursement Program. Due to the student debt crisis, companies should consider adopting a student loan repayment plan in their benefits package.
Until the government is able to keep up with the increasing costs of a college education, businesses could help young adults chip away at their student debt. That way, graduates can focus on saving money to purchase their own place, start their own retirement savings fund, or even get married.
Now what’s in it for you and your company? Well, not a lot of companies are currently using this benefits plan, so if you are one of the few companies that utilizes this program, high quality employees will be flocking your way. With more and more graduates worrying about paying off their student loans, this program will surely capture their attention when looking for a job. Furthermore, it will give your current employees a better incentive to stay within your firm, which will in turn decrease turnover and business costs.
Companies like Chegg and PricewaterhouseCoopers have already decided to start paying off their employees’ student loan debt and have been gaining serious attention for it. Not only is this benefit helpful to millennials, but it can also be geared towards middle-aged adults who still have student debt that needs to be paid.
It’s too early to say that this benefit plan is a growing trend in the private sector job market, but with the constant fluctuation of our country’s economy and the increase in costs of a college education, it wouldn’t surprise me if more companies decided to adopt this program.