With $1.6 trillion in student loan debt weighing down millions of Americans, student loans have become a crippling epidemic that is troubling young workers entering the job market by preventing them from participating in regular financial activities that almost every American participates in after college graduation. Recent college graduates are becoming so much more burdened with student loans now that it is easily snowballing into a crisis that is impairing key financial decisions like retirement and buying a house.
With 7 out of 10 college graduates finishing school with student loans and the average student debt measuring upwards of $30,000, some of the nation’s most talented up-and-coming employees can’t even get a car loan. In a similar fashion, student loan pressures are leaking over into retirement planning to the point that younger employees are putting off saving for retirement until they have paid off a chunk of their student debt.
Diverging benefit interests between employee and employer has led many valuable workers to leave their jobs to pursue opportunities elsewhere with companies that are offering student loan benefits. CEOs are finding that 80% of employees would rather work for a company that offers a student loan repayment benefit because not only does it help relieve much of the financial hardship that employees today are facing, but it also shows that their company cares a lot about its employees.
The companies who are already providing student loan benefits have the upper hand in the job market right now because this benefit is the most desired benefit for 2019 and it sets them apart from the pack when it comes down to choosing an employer. Once student loan benefits become tax treatable like retirement benefits did, the market for this benefit will takeoff, but, at the same time, employers who offered the benefit from the get-go will have the most talent and it will be harder for recruiters to sell their company to potential employees since everyone will be offering the benefit at that point.
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