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How Student Loan Benefits Help 401(K) Contributions

BOBBY HILLIARD  |  APRIL 2, 2018

EMPLOYER INSIGHTS

Bobby Hilliard

Content Marketing

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In the world of job hunting, few things are held to a higher standard than the 401(k). If a company offers a 401(k) and then matches contributions, across the board, the company is considered somewhere you need to work.

In today’s world, employees aren’t saving for retirement because there are too many expenses right now, let alone what’s coming down the line in forty or fifty years.

But, there’s another player in the mix that’s as beneficial to employee engagement and excitement: student loan repayment. 

It’s important to realize that across companies, student loan debt is a massive issue that’s affecting many of your best and brightest minds. More than 78% of recent college grads walk off the stage with at least $45K in debt.

COMPANIES CAN HELP CREATE CHANGE

Like the 401(k), a student loan benefit invests back into employees. While benefits like pet insurance or chef-catered lunches are appealing, a student loan repayment benefit impacts lives immediately. Plus, it’s a great tool for retention.

Progressive companies across the country are adopting student loan repayment as a benefit because, coupled with a 401(k), it equates to cultural and social equity. It’s a great way to let employees know their companies are serious about their long-term growth.

 

ADOPT A PERK THAT CHANGES LIVES

Through Student Loan Genius, companies can offer 1:1 advising to help employees tackle debt. On an even more impactful level, employers can offer a student loan contribution to their employees. By providing even $50 a month, companies can help employees pay down their student loan debt that much faster. Ultimately, this helps them be able to buy that new car or their first house sooner. HR can be the difference-maker. As employees pay off their student loans, they’re more likely to feel able to contribute to their 401(k) and use their company’s 401(k) match.

If you’re interested in learning more about student loan benefits, get in touch with us.