While tuition reimbursement programs, which are federally regulated, are far more common--offered by 80% of employers--Willis Towers Watson is starting to see "a significant increase in the number of employers considering a student loan repayment
program, when they think about the overall wellness of their worker population," says Lydia Jilek, senior director of voluntary benefits at the consultancy.
On the other hand, if you have a young demographic, offering benefits like student loan repayment
could be the way to go.
While we are able to pay a fairly competitive salary, we have difficulty recruiting qualified clinicians because the surrounding states offer incentives to clinicians, such as the availability of State Loan Repayment
Program funding, that New Hampshire doesn't.
The CEO said defermentof loan repayment
is acollective decision and it isthe only way to address theissue that youths are facingnow.
At the July 2018 meeting, the Board directed staff to develop legislation to provide scholarships or loan repayment
funding through a surcharge on licensee fees.
Employers and employees alike acknowledge that the burden of student loan repayment
often derails employee retirement savings.
The surge in public debt over the last five years has increased the debt-servicing burden in terms of interest payments and loan repayments
on both foreign and domestic debt.
Sixty percent of former college students who are currently repaying student loans are concerned their student loan repayments
will cause them to work extra jobs to make ends meet, according to a survey commissioned by Discover Student Loans.
Declining loan repayment
rates may lead to adverse outcomes for both banks and borrowers.
* Measuring loan repayment
on a per-student basis sometimes produces different results than measuring repayment on a per-dollar basis.
To be sure, help with student loan repayment
is still a rare benefit -- only 4% of employers offered it in 2017 and 2016, though the number has ticked up from 3% in 2015, according to data from the Society for Human Resource Management.
BenefitEd, founded by the Nelnet Innovation Hub in 2016, helps employers offer student loan repayment
as an employee benefit by directly contributing toward an employee's student loan balance.