What perk would you choose to make it more attractive to take on a job?
Do you need a company car (How Boomer-like are you. Are you a member of a 401(k). (Very common these days.
As Millennials make up the largest portion of the workforce, many companies are betting that student loan forgiveness will be a game-changer in attracting and retaining the brightest and most talented employees.
It’s not a bad bet. The staggering total amount of education debt was $1.52 trillion as of March 31st. This perk isn’t just for Millennials – according to Pew Research Center even 4 percent of people 45 and older are still struggling to pay their education debt. However, it should not be lost on anyone that the average student loans borrower will graduate this school year with $37,000 in student loan debt.
“It stood at about $600 billion 10 years ago,” MarketWatch.com reported.
Fidelity investments, the company that facilitates the new benefit, is also the one that manages millions of workers 401(k). Participating businesses in the Student Debt Employer Contribution Program are eligible to make after-tax contributions to student loans outstanding by their employees. They can also set their own parameters. “who”And “how much”With the help of a modeling tool, you can estimate their potential recruitment cost savings and retention costs.
“This is a new and relevant benefit that gives companies a competitive advantage to hire top talent,”Asha Srikantiah (Vice President Emerging Products at Fidelity), said:fidelity.comIt is worth noting, however, that while the average monthly contribution for most companies is around $100 per month it can sometimes reach as high as $800 per month in certain cases. “It also enables employees to pay off their debt faster, which in turn allows them to focus on other priorities – including buying a home, raising a family, and saving for retirement.”
The list of “early adopters”Fidelity announces it is teaming up to offer the benefit with tech giant Hewlett Packard Enterprise and the rail industry’s New York Air Brake. Financial firms Millennium Trust, OCC (The Options Clearing Corporation) and financial companies Millennium Trust are also included. Ariel Corporation is the world’s largest manufacturer and distributor of separable reciprocating natural gas compressors that are used in the global gas business.
It’s more than being a person. “facilitator”Fidelity was able to help others by introducing a student loan program to its employees back in 2016. The benefit has been received by more than 8,900 employees to date. It is paid directly into their loan service provider.
The company also takes what it calls “a holistic approach”Open access to its website allows students to address the issue of student debt Pre-College Planning ResourcesIt can help you avoid the dangers of getting into too much debt.
Recently, a deal was struck with the student debt refinancing platform Credible.comNow, student debt refinancing is also integrated into the Student Debt ToolEmployees enrolled in this program can receive pre-qualified rates from over 10 lenders, without having to affect their credit score.
“The idea is to help more Americans take control of their debt so they can better save and invest for the futures,”Stephen Dash, founder and CEO of Credible.
