We all know student loan debt is an issue, but exactly how big of a problem is it?
Americans collectively owe over $1.5 trillion in student loans, and this problem isn’t likely to be solved anytime soon. In fact, the Congressional Budget Office estimates that this number will almost double in the next 10 years. This isn’t only affecting new college graduates entering the workforce, though; it’s also taking a toll on middle-aged folks in the midst of a well-established career. Employers, too, are being forced to take notice, as student loan debt is starting to take a toll on recruitment and retention.
This may seem like an insurmountable problem, but thankfully, new solutions are being developed that will make it easier for companies to support those employees who are struggling to pay off their student loans. Doing so will help you build trust and loyalty with your existing employees and bring new talent to your door. In a world where so many are drowning in student debt, employers that offer solutions have an extreme competitive advantage when it comes to recruiting and retaining talent.
One of the newest solutions on the market is the Thrive Matching Program – an employee benefit that allows employees to re-allocate a portion of their retirement plan contributions and corresponding company match toward their student loan debt. By integrating with existing retirement plans, this benefit allows employers to offer a meaningful student loan debt benefit while remaining budget neutral.
If you’re interested in learning more about helping your employees reduce their student loan debt, we’ll be hosting a webinar with Thrive to answer any questions you might have about their program. Click below to sign up!
At Raffa Financial, we provide long-lasting benefits strategies to take care of your business and your employees. Located in Rockville, Maryland, we identify and manage complex employee benefits challenges for businesses all over the greater Maryland, Virginia and Washington, DC area.
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