Companies Providing Student Loan Repayment Benefits on Rise
In the last two years, the number of companies offering student loan repayment benefits have almost doubled, a new report by the Society for Human Resource Management (SHRM) has revealed.
From 4 percent in 2018, the number of companies providing student-loan repayment benefits has jumped to 8 percent in 2019.
SHRM surveyed 2,763 randomly selected HR professionals and analyzed more than 250 benefits that organizations may offer their employees.
The number of employers providing undergraduate or graduate tuition assistance to employees has remained unchanged as more than half of them continue to provide for assistance for such purpose.
The report anticipates a rise in student-loan repayment if The Employers Participation in Repayment Act, which allows employers to voluntary give tax-free student loan assistance up to $5,250 annually is passed by Congress.
“Finding the right combination of benefits that appeals to a multigenerational workforce can be a challenge,” said Alex Alonso, SHRM-SCP, chief knowledge officer for SHRM.
“But if you know a good portion of your workforce are Baby Boomers with aging parents, you might choose to beef up your caregiving benefits and flexible scheduling policies. On the other hand, if you have a young demographic, offering benefits like student loan repayment could be the way to go.
Among the other wide benefits package, more than 40 percent of the companies are also providing onsite lactation/mother’s rooms, telecommuting, PPOs, high-deductible health plans linked to a savings or spending account among others.