4 Reasons Your Employer Should Assist in Student Loan Repayment
After graduating from college, chances are the two biggest things on your mind are 1. Getting a job, and 2. Paying off your student loans. But what if you could kill two birds with one stone?
As a hungry young professional in a competitive job market, it may be tempting to take the first job offer that comes your way. Looking for one that comes with a student loan assistance and benefits program, though, is worth the effort. Nowadays, more and more employers are getting on the act, for one simple reason: they benefit from it, too!
If you’re working for a company that’s not helping repaying your loans, both you and your employer are missing out. Here are 5 reasons your employer should assist in student loan repayment:
Low stress = high productivity
Until future technology replaces the labor force with advanced robots, it’s important to remember that employees are human beings, not machines. As such, there are a number of factors that can negatively affect the abilities of even the most promising workers.
One of the biggest is, of course, stress. And one of the biggest sources of stress? Financial debt. Student loan assistance helps ease new hires of their anxiety, ensuring a more motivated, more focused, and more productive work experience.
CARES make it tax-exempt
As student loan debt becomes an increasingly hot topic in the national conversation, the bright side of loan benefit programs is only getting brighter. In 2020, as a response to the coronavirus pandemic, the U.S. government passed the CARES act which, among other things, makes tax-exempt any payments made on behalf of a business to its employee’s college loan debts.
While this measure is only temporary as of this writing, it seems increasingly likely that tax-exempt student loan assistance will be made permanent law sooner rather than later.
It incentivises employee retention
The times they are a-changin’. Today’s job market belongs to Millennials, a generation quite a bit different than any that has come before. One of the biggest differences is that, on average, Millennials change jobs a lot more often than Boomers and GenXers. If you’re trying to build a strong, experienced, reliable workforce, how do you improve employee retention rates?
Well, one way is to make it so that your company represents more than just a weekly paycheck or yearly salary to your staff. You have to be as indispensable to your employees as they are to you. The more benefits you offer your workers, the more your workers can offer you.
The competition is doing it
Our parents always told us “just because everyone else is doing it doesn’t mean you have to, too.” And while that’s absolutely true, sometimes it’s a necessity.
Case in point, any business that wants to attract the best and brightest minds in its field needs to have some enticing perks to compete with all the other businesses clamoring to hire the same talented employees. For recent college graduates (i.e. the employees who are the freshest, most up-to-date, and motivated), a student loan repayment program is one perk that could play a big role in a potential hire opting to sign with your company over your competitors.