The methods which a student pays back their loan debt has expanded over the years. While originally graduated alumni were forced to carry heavy burdens with no guarantee they could meet the repayment demands, it’s no longer so harsh. This is because, one big incentive is growing in popularity concerning companies and the benefits they offer. While some look at employers for things like health insurance help, now many are finding businesses have loan repayment programs too.
Plenty are starting to hear about it, and even more benefit. Elaine Florentino is one such example. A young woman of age 23, graduated from Bentley University with a degree in accounting and taxation. She took home approximately $57,000 worth of debt. A harsh pinch, and even with her impressive new skills from education, paying that off is a rough task.
But as benefits have been mentioned, Elaine isn’t without a paddle. Currently working as a top associate for PricewaterhouseCoopers (PwC), this Boston located business offers monthly aid payments towards her student loan debt. And that’s only by working for them, not out of pocket.
This new system is used by Gradifi, a name that’s common among the type of repay aid offered. Specifically, they call it the Student Loan Paydown, and although in a very juvenile state, it’s looking to take full effect for multiple companies around July of this year. Those that adopt the SLP system get a look at some great incentives for their workers: a $100 monthly/$1,200 annual payment for six years. However, if they’re promoted to manager, the benefits end in favor of higher pay.
PwC upon offering these helpful stipends believes they can help reduce debt lifetime by at least a couple years, and with other payment systems, might have individual totals reaching $10,000. A hopeful claim, one that’s becoming reality with their adoption of Gradifi. Considering the national debt for student loans is in the mountainous $1.3 trillion, affecting over 40 million Americans, like Elaine.
Student loan repayment as a company benefit sounds great, and it is, but many might wonder why it hasn’t been adopted by more corporations. As of now, the aid is out of company pocket and the pay-down isn’t tax deductible, meaning not every business can afford it. However, some try to compensate this by stressing the creation of long term employee loyalty. For now, Elaine and other lucky citizens will get an edge on paying back their debt as the Gradifi and related programs continue to grow.