By Betsy Prueter
Recently, Bloomberg Business reported findings from a new study on companies who pay back their employees’ student loans. The study found that, on average, these companies provide $4,100 over three years for undergraduate debt. Contributions vary based on individual employee’s debt and how generous the employer’s benefit package is.
Key findings include:
- Companies who offer student loan repayment typically offer to pay between $100 and $250 a month, freeing up three years of repayment and providing employees with the opportunity to save their money elsewhere (e.g. in a retirement fund).
- In a survey of recent college graduates, 80% said they would like to work for an employer who offered student loan repayment, and more than half said they would prefer a loan repayment benefit to 401k contributions or health insurance coverage.
- While only a small handful of companies currently offer this benefit, more are predicted to begin offering it as an effective recruitment and retention tool.