A recent discovery made by CNBC showed that hundreds of companies in the US are helping to pay off their employees’ student loans.
As the CNBC Student Debt and Housing 2017 report shows, there is genuine concern for the future welfare of many college graduates in America as their university debts are building up to more than $100,000.
That’s why a vast number of companies in the US have decided to ease the financial stress on their employees through student loan repayment schemes.
Nearly 70% of college graduates are currently in debt. Thanks to many companies’ new student loan assistance benefit, professionals may be able to pay off their debt a lot quicker than they thought. https://t.co/VG1dGqHVmY
— Conner Strong & Buckelew (@connerstrong) June 14, 2018
Despite this business approach being met with doubt and critique, there are 5 core reasons that lead employers to follow through.
1. It’s a magnet for emerging talent
As fresh graduates eye up their first professional experience, employers are luring them in with additional benefits that include student loan repayments.
In the race to get the best employees, companies include extra benefit programs to stand out from competition. One way they promote this assistance is by contributing a certain amount each month on top of your salary. Through the sponsored student loan plan, employees may receive $50-$150 to put towards their debt.
2. Slows down the domino effect
Panic over student debt can often spread in a domino effect. One by one, students start to worry about their financial future and compare their state of affairs with other like-minded individuals.
For instance, if an aspiring business student spoke to a current business graduate who was drowning in student loan letters and repayment warnings, it could potentially prevent them from pursuing that valuable university degree.
If, on the other hand, they heard how well that graduate was doing as they joined a company equipped with a student loan repayment scheme, it may slow the tide of worry and calm their mind.
3. Benefits the company culture
If an organisation is caring for their staff and takes the weight off their shoulders through a student loan repayment scheme, this is something that will surely improve the company culture overall.
Quite often, employees need to feel valued and part of a team to be happily productive and exceed employer expectations. By helping their workers defeat the looming fear of debt, they will be respected and complimented across the board.
After all, wouldn’t you rather be with a company that acknowledges the hard work it took for you to achieve your goals and the admirable determination you had to continue your education?
4. It demonstrates responsibility and accountability
This advantage works on both sides. For the employer, it shows they are accountable for their employee’s professional growth and responsible for their wellbeing.
For students and graduates, opting for a company that helps you with your student loan repayment may be a wise move to make. It shows that you’re already taking control of your financial situation and seriously considering your career.
By displaying responsibility and accountability, your employer and future employers will admire your intuition and forward-thinking nature.
5. It helps eradicate restrictive education
Education should not be a burden for anyone. By setting up student loan repayment services, employers are removing the negative expectations of having to work day and night to dissolve the overshadowing debt.
Rather than fearing their first job after graduation, students are more likely to look forward to building their career as the financial strain has been eased by their respective future employer.
As Forbes highlights, “Young people continue to enter the workforce weighed down by high amounts of student debt and some companies are taking notice. By offering initiatives to help their employees manage and pay back their loans, they relieve some of that strain.”
No one should be deterred by fear of student debt. Every one of us deserves the freedom to continue on education free from academic anxieties. That’s why employers in the US (and perhaps across the globe) are taking the necessary steps to prevent unnecessary negativity.
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