Natixis Global Asset Management, the second largest French asset managing company, has modified their student loan employee benefit. This time around Natixis is ramping up the benefits for their employees as well as expanding them to more of their workforce. Employees will find that these modifications are for the better.
Natixis changed their student loan employee benefit after analyzing a study from Durable Portfolio Construction Research. The results of this study revealed that younger employees neglected their 401(k) and retirement plans due to student loan debt. This is a study reveal that is supported by various other studies from different organizations. It is one of the leading causes for companies getting into student loan employee benefits.
With this new benefit, Natixis employees can receive up to $1000 a year towards the principal balance of their student loans. This amounts to a monthly payment of $83.33 made directly towards the lender. Natixis promises up to $10,000 over ten years towards student loans. On top of this, this benefit is available for both new and old employees. Both federal and private student loans qualify for this benefit.
The previous benefit was only available to students who had been with the company for at least five years. After that tenure, the employee would receive a $5000 stipend towards their student loans. Additionally, only federal student loans were eligible for this benefit. Employees can receive much more consistent and spread out aid with the new updated benefit.
Natixis is one of the few companies today that offers student loan employee benefits despite a rising popularity among employers. A decent portion of employees, about 20%, are currently utilizing this benefit, and the majority of them fall within the Millennial and X Generations. These benefits are clearly popular, and they most certainly increase the marketability of companies to new graduates.
All of these efforts are part of Natixis’ initiative to demonstrate its commitment to education as well as its understanding of the student loan issue. At any rate, Natixis is clearly able to provide this benefit since they happen to be an enormous asset management company with over $700 billion in assets. Smaller companies most likely cannot sustain student loan employee benefits alongside retirement plans and other healthcare benefits. In the end, it is only natural for the larger companies to set the precedent for student loan benefits. With this in mind, the rise of employee student loan benefits can be expected to be slow, but at least there are some benefits out on the market.