This week, 401kSpecialist Magazine provided an educated opinion on the potential of student loan repayment as the employee benefit with the most potential for positive returns for employers in 2021. In his article, Brian Anderson discusses student loan repayment in a post-Covid-19, alongside how Goodly is quickly carving out its space as an up-and-coming alternative to other financial wellness programs.
2021 is a Year of Regrowth
401kSpecialist nailed it on the head- 2021 is going to be a difficult year financially for recent college graduates. They had fewer means to pay off their student debt (pay cuts and mass unemployment) and will have a rough time in their job search this year.
The popularity of student loan repayment is accelerating, with “the Society for Human Resource Management (SHRM) forecasting that one-third of all U.S. employers could be offering some form of student loan repayment assistance program in 2021. In 2019, 8% of employers offered such a program, while just 4% offered one in 2018”. Companies adopting student loan repayment programs will be ahead of the curve, staying innovative, and desirable to sought-after qualified grads.
The New 401k
Congress took action to extend some of the most meaningful provisions of the CARES Act in December, making student loan repayment options much more tempting for larger companies who have to think in the long term. Our CEO, Gregory Poulin, called this “the most important legislative change to employee benefits in 40 years since Congress decided to alter the tax code with the Revenue Act that led to the proliferation of 401k.”
At Goodly, we believe that there are multiple paths to financial wellness. That’s why we offer 529 plans for college funds, emergency savings accounts (ESAs) for a rainy day, along with student loan repayment. We work directly with hundreds of clients across the United States, with employees all over the world. We’re excited to see what 2021 brings for the space of student loan benefits- hopefully, we can begin to whittle down the $1.6 trillion of student debt that Americans collectively hold. If this sounds like something that would benefit your organization, schedule a demo on our team’s calendar, or reach us at [email protected].