A growing trend is starting to take root in companies across the United States. Like the days where potential workers looked for jobs to help pay for medical bills, now the benefits might be grounded in student loan debt assistance.
A relatively new student loan assistance program, called Tuition.io, has cropped up with good benefits for those looking to pay down heavy debt. Fidelity is one of the most recent companies to adopt the benefit program. Roughly 5,000 workers are making use of the service, and have found $2,000 annually can be paid into their loan on their employer’s behalf. While the maximum amount is $10K – a solid amount which generously helps.
Fidelity went on to mention the financial burdens of student debt kept their employers from making critical life decisions, which they wanted to assist with. By utilizing this program, they hope to get their workers on a better path.
Fidelity isn’t the only one offering pay-down programs though. According to the Society for Human Resource Management, roughly 3 percent of nationwide companies offer this benefit, but more are joining the fold. For instance, in the coming summer of 2016, company PwC will offer a $1,200 annual benefit towards paying off debt, for a total of six years. It’s good news for out-of-college alumni, as PwC hires roughly 11,000 new student workers every year.
Another company also joined the fold. Natixis Global Asset Management designed their own program with employee loyalty in mind. Workers who remain on staff for at least 5 years are given a $5,000 lump sum towards their total loans, with another $1,000 for each year afterward to a 5-year maximum. So in total, $10,000 for 10 years. They claim with this strategy, they’ll be able to better nurture the goals of not only their employees, but create a more enriched loyalty program without the hassle of expensive retraining and rehiring.
Two smaller lender businesses also aim to offer repayment benefits to their small pool of workers. CommonBond and LendEDU, the former having a recorded 100 employees and the latter having only six. However, their repayment options provide a great deal of loyalty interest, as they invest in paying off their worker’s loan debt without limit. In other words, benefits won’t stop until the loan itself is completely paid. As of now, CommonBond offers $100 per month and LendEDU $200.
While still not widely practiced, it’s likely in the coming years more businesses will begin to offer benefits which help pay off student debt, a useful aid in the growing financial problem.