Dive Brief:
- Bloomberg reports that employers looking to attract recent graduates should consider student loan management as part of their benefit package. Many student loan borrowers would prefer to work for a company that offers them some relief from their payments, according to survey results released Sept. 1 by Iontuition.
- Iontuition found that nearly 80% of the 1,000 individuals surveyed in July 2015 who said they had student loan debt indicated they would like to work for a company that offers repayment assistance.
- Programs such as as employers matching a portion of the employee's loan contributions are among the perks mentioned by survey participants.
Dive Insight:
In a press release, Iontuition noted that with record amounts of student debt attached to the incoming workforce, the majority of those surveyed viewed employee benefits that address education loans as a breakthrough and welcomed solution.
“Employers need to get engaged in the student loan issue,” added Balaji Rajan, chief executive officer of Ceannate Corp. (of which Iontuition is a subsidiary). Giving employees a way to manage student loans is a bonus for the employer and employee, he said.
Who would have thought that college loan help and advice would ever evolve into an employee benefit? Of course, the company sponsoring the survey offers a student loan management app to college students and graduates. But based on this survey, seems like it might make sense with today's staggering college loan balances and interest rates.
After all, 55% of respondents said they would prefer that the amount they are paying for health care go instead toward their student loan balance, and 49% of respondents said they would prefer student loan payment contributions over those for a 401(k) plan.
