Many employers are now coming up with attractive way to entice millennials looking for work - and one that really stands out is helping to pay down student loan debt. Just knowing that you are not only collecting a paycheck, but also chipping away at an overwhelming debt can make all the difference to those feeling trapped by their monthly student loan payments.
Reuters reports about the growing trend of companies offering to help make student loan payments for new employees and how millennials are responding to the added work perk. How the programs works is by contributing a certain amount each month on top of whatever set payment the employee is making. So, a company may pay $100 a month toward your student loan - which will over time greatly lower the amount of time it will take to pay off the loan. For instance, if you have a debt with a balance of $26,500 with a 4% interest - your work can help reduce a 10 year loan by 3 years.
Maggie McCuen, a 26 year old working for one of the 4% of companies in the U.S. now helping their employees pay off student loan debt, has welcomed the program with open arms. She says, “It absolutely alleviates stress.” To date, McCuen’s employer Natixis Investment Managers has paid off $1,416 worth of her student loans since Decemeber of 2016.
Twenty-six year old Elaine Florentino says her employer’s commitment to help pay down student loan debt has offered her much relief. She has figured out that she will be out of debt about 2 years sooner than if she was not in this program. Florentino believes that the current 4% of companies offering the program will only expand in the coming years. She says, “I imagine by the time my son enters the workforce, a lot of companies will consider it a standard part of their comp package.”
What do you think of employers that offer loan repayment programs to entice new-hires?
Do you think more companies should offer programs like this?