The Federal Reserve Bank of New York Consumer Credit Panel/Equifax Quarterly released its 2017 Fourth Quarter report on household debt.
It shows that total household debt has grown past $13 trillion dollars even as unemployment has steadily dropped. Almost more noteworthy is student loan debt has increased by a dramatic $21 billion increase in 2017’s fourth quarter. This isn’t a new development – it’s a continuing trend that shows no signs of stopping soon.
While mortgage debt is down and the unemployment rate is the lowest since 2000, these positives are heavily outweighed by the dramatic rise of student debt. It’s rising so quickly that the debt is beginning to affect older Americans who can’t afford to pay for their own retirement. One analysis reports the number of people over 60 with student loan debt has quadrupled in the last decade from $700,000 to $2.8 million. Even further, this burden is starting to affect social security, as money has to be garnished from these checks to pay for the skyrocketing student loan payments.
WHAT THIS MEANS FOR YOUR COMPANY AND EMPLOYEES
As you can imagine, many Americans would be willing to find a way to pay off student loans before their retirement. Companies that help accomplish just this by offering a student loan benefit can experiencing recruitment and retentions boosts as a result.
When you offer a student loan benefit package like Vault, you can also help employees be able to start putting money into a 401(k) plan. At a time when over 70% of college graduates have student debt, offering a way out from under the mountain of debt for your an employees, with added progress toward a retirement plan can have significant ROI for your bottom line due to the potential of decreased attrition.
At Vault, we work to give you the tools you need enable your employees to make the most of this benefit. If your company is looking to diversify employee benefits and increase retention, look into adding a student loan package. It could be the deciding factor for many job seekers looking for a company that wants to help them plan their future.