- Companies that offer student loan assistance on top of remote work may be especially appealing to some people.
- Outstanding student debt in the U.S. is estimated to be over $1.7 trillion, and more than 95% of people say they want some form of remote work.
How student loan aid works as an employee benefit
Student loan assistance programs come in a number of forms, and the benefit’s value can vary widely. So it’s worth digging into the terms before you make it a deciding factor in your job hunt, experts say. Total outstanding student loan debt is estimated to be over $1.7 trillion.
More than three-quarters of people who have student loans or expect to take them out say they’d be more likely to accept a job with a lower salary if they received a student loan assistance benefit, a Fidelity survey recently found. The firm polled recent college graduates and current high school students.
“With very low unemployment rates, employers will be more willing to offer student loan assistance to attract and retain qualified employees,” said higher education expert Mark Kantrowitz. Although, he noted, a higher salary does allow workers to pay off their debt at a faster pace on their own.
An employer offer for loan assistance may be especially attractive given the Supreme Court’s recent ruling striking down President Joe Biden’s plan to cancel up to $20,000 in federal student debt. Biden said he’s pursuing a different path to try to cancel people’s debts, but the process could be lengthy and will likely be met with the same legal challenges as his first attempt.
Student loan bills are set to resume in October after being on pause for over three years.
SHRM, a group representing human resources professionals, called on Congress and state legislatures in June to establish bigger tax breaks for workplace education benefits.
Meanwhile, more than 95% of people say they want some form of remote work, according to a FlexJobs survey in May.
