Tuition.io’s employee benefits tool was recently featured in Reuters and its syndicated publications: Your Money-The latest U.S. corporate perk? Student loan help.
Debt relief as a perk: “Not so long ago, employers competed for younger workers with unlimited snacks and foosball tables. But with total student debt now at more than a trillion dollars in the United States, a new trend may be starting to emerge: debt relief as a perk.
Companies are contributing $50 to $200 a month to help employees pay down student debt, according to Brendon McQueen, chief executive officer of employee student loan management firm Flex395.
ChowNow, an online food ordering company, and a client of Flex395, recently started offering a matching program to help some of their employees pay back student debt. ChowNow contributes up to $1,000 a year.
BALL AND CHAIN
Student debt is a ball and chain for young people, and is often a bigger priority than retirement, says Christopher Webb, ChowNow’s chief executive officer. “Like everything, you have to stand out to attract talent,” Webb says
ChowNow also offers a 401(k) and continues to have fun perks like unlimited cold brew coffee and a ping pong table.
Andrew Josuweit, chief executive officer of student loan advice site Student Loan Hero, says priorities are changing for recent college graduates.
“If you are a young adult, and you are just out of school, it makes a lot more sense to pay off your debt instead of focusing on your 401(k),” Josuweit says.
Of course, investing at an early age should be a priority as well, Josuweit says. But depending on the level of debt and the interest rate, it makes sense to run the numbers. Student Loan Hero and Flex395 owner Tuition.io both have tools to help manage student debt, including analyzing costs, along with the benefits of earlier payments.
And while it is tough to compete with free tacos and regular happy hours, the reality-driven millennial generation may perk up to companies when they hear about programs that make them financially fit.”
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