Survey finds student loan repayment programs on the rise in U.S.

The survey, which polled 365 U.S. employers, found the most common educational benefits were tuition assistance/repayment (57 per cent, down from 63 per cent in 2019), in-house training seminars (50 per cent, down from 61 per cent in 2019), educational conferences (47 per cent, down from 51 per cent), continuing education courses (45 per cent, down from 50 per cent) and personal development courses (40 per cent, up from 38 per cent).

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The top reasons employers cited for considering tuition assistance or student loan repayment programs were to attract future talent (92 per cent), retain current employees (80 per cent), maintain or increase employee satisfaction and loyalty (58 per cent) and remain competitive within the industry (55 per cent).

Among organizations that do offer the benefit, 60 per cent said they use an external vendor, while 40 per cent process the repayments internally. When asked about employee participation, 20 per cent of organizations indicated a utilization rate of less than one per cent and another 50 per cent indicated utilization between one per cent and five per cent.

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The barriers and challenges employers cited to implementing a program were determining a return on investment (48 per cent), too costly (48 per cent), resentment among workers who already paid off loans (34 per cent) and resentment among workers who have ineligible loan debt (30 per cent).

“Student loan repayment assistance is still an emerging benefit offering, but its significant growth shows strong interest in the marketplace,” said Julie Stich, vice-president of content at the IFEBP, in a press release. “Organizations are implementing a variety of eligibility requirements and other program parameters, indicating that some organizations are likely still determining the most effective way to manage this valued benefit.”

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