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Companies Pay Down Workers’ Student Debt as Supreme Court Weighs Forgiveness

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As good as a raise: Professionals turn to employers’ benefits to repay student debt. “It has been a powerful retention tool.”

Student-loan perks are getting more popular: 17% of large employers surveyed by the Employee Benefit Research Institute said they offered student-loan assistance in 2021; another 31% said they were planning to roll out the benefit.PREVIEWSmaller firms are also launching these benefits to help with recruiting, said Kate Winget, a chief revenue officer atat Work, which offers education benefits to corporate clients through a program called Gradifi.

Biden’s student-debt forgiveness plan isn’t the only change coming for student-loan borrowers. His plan also fundamentally changes how loans will be repaid, turning many into, essentially, free college grants. WSJ explains. The company introduced the benefit after some job candidates said that they opted for jobs elsewhere in part because those employers were offering student-loan repayment benefits, Mr. O’Connor said.

Augie Kennady said he could get a mortgage because his company paid thousands of dollars toward his student loans.an education-technology company in Santa Clara, Calif., now offers workers who stay with the firm for more than two years between $4,000 and $6,000 annually toward student loans. Junior-level employees receive more because they tend to have more debt, the company said.

 

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