Companies are Jumping on the Student Loan Benefits Train

Niko Lalos
January 17 2019
Companies are Jumping on the Student Loan Benefits Train cover

More companies are now helping employees pay off student loans

Companies across America are experiencing the positive effects of providing student loan benefits to their employees. It’s no secret that offering student loan payments in benefits packages is something that resonates with fresh talent as they enter the job market. As the ball gets rolling for 2019, more and more companies are realizing that student loan benefits is one of the most talked about recruiting tools for acquiring and retaining top new talent. In addition, the past yields evidence for student loan benefits to explode into the most common benefit once it becomes tax free like retirement benefits did many years ago. 

But what about retirement?

Retirement funds have age restrictions and limitations. You have to wait a very long time before you can start to reap the benefits of retirement funds if you want to avoid paying a steep forfeiture for trying to access the funds too early. After waiting about sixty years, one can ingress full action with their retirement funds but usually have to deal with a high tax bracket at this point in time. Student loan benefits don’t have any hoops to jump through; no obstacles to grapple with; no age limitations. 

Student Debt or Retirement

Many people are finding out that having post-graduation student loans has an immense impact on a person’s financial decisions as they try to propel themselves into a practical lifestyle going forward. Although there is no correlation between the amount of student debt one possesses and the amount of money set aside for retirement, one thing that is certain is that just the mere presence of a student loan has a conscious effect that leads people to save less for retirement overall. Granting all this, a practical solution has been advised by the Center for Retirement Research’s very own, Geoff Sanzenbacher. He found that when employees are enrolled in automatic payment plans, employees begin to plan for retirement more habitually because the peril associated with student loans is no longer at the forefront of financial burdens. In order to achieve modern day financial wellness, Sanzenbacher urges employers to offer automatic student loan payment plans to their employees, an endeavor that Goodly specializes in completing. 

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Niko Lalos
January 17 2019