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Employers Mull Offering Student Loan Repayment

June 20, 2019
 
 

Adding to anecdotal evidence about major companies considering student loan repayment benefits for their employees and new hires, a new survey found that a large share of employers (23 percent) are considering offering such plans.

The International Foundation of Employee Benefit Plans released results of the survey this week. It said 4 percent of the 772 responding employers currently offer some form of student loan repayment assistance as benefits. Another 2 percent are in the process of creating such a program.

The top five reasons employers cited for holding back on offering the benefit were high cost, uncertainty and complexity of implementation, resentment among current employees who have paid off their student loans, resentment among employees with ineligible debt, and employee turnover after requirements for repayment have been met.

“Student loan repayment is a very new benefit offering. Its short life span makes it difficult to measure success or anticipate a possible ROI,” Julie Stich, vice president of content at the foundation, said in a written statement. “With high interest from employees and no firm governmental guidelines in place, it’s something to watch closely in the future.”

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