Student loan borrowers are facing a grim summer: These are the benefits businesses can offer employees to help with debt payments
Student loan borrowers have been on a wild ride over the past few years.
The onetime dream of widespread debt forgiveness has been extinguished, and a five-year reprieve for people who had defaulted on student loans expired in May of this year. This summer, the Trump administration will garnish the wages, tax refunds, and federal benefits of individuals in student loan default, in a move that could potentially impact millions.
It's going to be a cruel summer for millions of Americans bracing for the worst, but there are steps that employers can take to support workers who are laboring under the financial burden of student loan debt.
Benefits geared towards student loan assistance have become more popular over the past few years. The number of employers offering student loan benefits more than tripled in the past five years, from 4% in 2019 to 14% in 2024, according to the Society for Human Resource Management. And the number of job listings that included loan assistance on the platform Handshake doubled between 2019 and 2023, according to a report from the company.
Employers have a range of options to support staff trying to manage student debt, from integrating loan repayment support into retirement plans to offering educational assistance or even allowing workers to trade unused paid time off for loan payments. According to benefits specialists Fortune spoke with, these programs aren't without obstacles, but they can significantly boost employees' financial stability and peace of mind.
'Business leaders can't ignore this financial pressure anymore,' says Jeremy Yonan, VP of total rewards at job site Indeed. 'Student loan debt isn't just a personal challenge, it's actually a business imperative because the ripple effect comes up in every corner of the workplace.
You can read about what kinds of benefits employees can offer those with student loan debt here.
Brit Morsebrit.morse@fortune.com
This story was originally featured on Fortune.com
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