Student loan repayment will become a hot employee benefit

Students loans had become a national problem in recent years. According to the Federal Bank of Cleveland, there were approximately total $1.2 trillion of outstanding student debts in the end of 2015, and student loans interests are not low. Even public loans can have interests from 4.29% – 6.84%.  In addition, student loan was one of the hot topic debated in the 2016 presidential debate.

student-loan-interest-rates

Federal student loans interests from the previous two years (source from US News) 

When millennials finally graduated from college, many of them will need to face their student loans accumulated from the previous four years. In the same time, many employers started to use it as an opportunities to attract recently graduated talents, they offer student loan repayment as an employee benefit. Although these monies are considered as taxable incomes, they are ultimately free money from employers to pay back their employees’ student debts.

employee-benefits

Notable companies that offer student loan repayment as benefits (source: TheCollegeAdvisor)

In conclusion, as many millennials are facing their student loan problem, companies with such employee benefit can attract many millennials’ resumes and job application. Innovative companies which wanted to stay competitive in hiring will be very likely to offer this benefit soon.

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