Do you have employees with student debt? If so, you’re not alone. A recent study found that nearly two-thirds of millennials have student loan debt.
While it’s important to provide support for employees with student debt, it can be tricky to know how to help. Here are ten ways to get started:
- Help employees refinance their student loans: Refinancing student loans can be a great way to reduce the amount of interest you pay on your loans. Employees can visit websites like Credible to compare student loan refinancing rates from a variety of lenders.
- Encourage employees to enroll in income-driven repayment plans: Employees who are struggling to make their student loan payments may want to consider enrolling in an income-driven repayment plan. These plans cap monthly payments at a percentage of income and can help borrowers avoid defaulting on their loans.
- Give employees a break on student loan payments: Some employers offer employees a break on student loan payments, usually for a period of time after they’ve been hired. This can be a great way for employees to get a handle on their student debt without feeling overwhelmed.
- Help employees save for college: One way to help employees avoid student debt is to encourage them to save for college. Employees can open a 529 plan and contribute money tax-free to help cover the cost of higher education.
- Offer a financial wellness program for employees: A financial wellness program can help employees manage their student debt and other financial obligations. The program can offer resources like budgeting tips, information on student loan options, and advice on how to save for retirement.
- Offer student loan repayment assistance: Some employers offer student loan repayment assistance as a benefit to employees. This can be a great way to help employees pay off their student loans more quickly.
- Encourage employees to start a side hustle: Having a side hustle can be a great way to make extra money to put towards student loan payments. Employees can find opportunities for side hustles on websites like Craigslist or Upwork.
- Give employees time off to focus on paying off student loans: Many employers offer employees time off to focus on paying off their student loans. This can be a great way for employees to get a handle on their debt without feeling overwhelmed.
- Allow employees to pay back student loans with pretax dollars: Employees can save money on their student loan payments by using pretax dollars to cover their costs. This means that the money employees contribute to their student loans is not taxed.
- Help employees stay organized: One of the best ways to help employees manage their student debt is to help them stay organized. Employees can use tools like a student loan calculator to keep track of their loan balances and monthly payments.
Managing student debt can be difficult, but with the right support, employees can overcome this challenge. By implementing some of these tips, you can help your employees get on the road to financial wellness.